Learn Forex Currency Trading Online
By [http://ezinearticles.com/?expert=Tom_Houser]Tom Houser
Forex, a specialized form of day trading, involves the simultaneous buying and selling of world currencies. Trading occurs via phone, or online, with hubs in Sydney, London, Tokyo and New York, creating a 24-hour market. Forex is a speculative market, and as with many securities markets, requires a certain level of knowledge to reap the possible huge profits and avoid the profound losses.
One way to gain this knowledge is to learn forex currency trading online.
Websites to learn forex currency trading online abound from brokerage sites to software (trading platforms) sites to online educational sites. In exchange for opening an account, some brokerage sites will offer free online classes in forex using the brokerage's personal trading platform. Other sites offer free self-study courses that include contact with professional forex traders, and a 30-day live trading demo to learn forex currency trading online.
The educational sites provide a range of course types, with varying costs, to learn forex currency trading online. Choices include online seminars, self-study classes in the form of online sessions and in downloaded files, interactive lessons with professionals, and the use of videos simulating actual trades. Prices for the courses range from free to hundreds of dollars. One website, The Online Training Academy, which was formed in 1997 to specifically train traders, also offers mentoring programs and on-location courses.
Professional traders offer courses to learn forex currency trading online. Some of these traders have been trading forex since its inception, and have developed their own trading platforms (software). Their courses offer their expertise in CD, DVD and study-at-home via online formats, and can cost anywhere from $300 on up, depending on the number of sessions and level of expertise desired.
The majority of the online class sites agree certain basic topics are necessary to learn forex currency trading online, starting with how the forex market works. Knowledge of forex terms, such as spread, margin, rollover etc, is also important. In addition, it is important to know about currency pairs and the types of charts available, plus how to read them. Understanding when to trade is also recommended.
Once traders learn forex currency trading online, and before trading can begin, they need to know how to open an account, to distinguish features of trading platforms, and the best way to choose a broker. This last is particularly important because in order to trade, a customer must have a reputable broker. Many brokers offer simulated trading sessions to help the trader understand the process before committing capital, and to decide if the brokerages' particular trading platform meets the customer's needs.
Finding the right course may take some time, but the extra effort will be more than worth it. As stated above, the forex market is speculative and carries with it a considerable amount of risk. Virtually everyone associated with forex trading advises traders to gain as much knowledge as possible before entering the market. Bottom line: the best way to learn forex currency trading online is to take advantage of all the tools available.
Are you interested in learning about Forex Currency Online Trading [http://bestforexcurrencyinfo.com/index.php] Our site provides plenty of useful information regarding Forex Information.
by T.D. Houser
Article Source: [http://EzineArticles.com/?Learn-Forex-Currency-Trading-Online&id=657854] Learn Forex Currency Trading Online
Tuesday, April 30, 2013
Forex Trading Tips
Forex Trading Tips
By [http://ezinearticles.com/?expert=John_Gaines]John Gaines
Why do hundreds of thousands online traders and investors trade the forex market every day, and how do they make money doing it?
This two-part report clearly and simply details essential tips on how to avoid typical pitfalls and start making more money in your forex trading.
Trade pairs, not currencies - Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.
Knowledge is Power - When starting out trading forex online, it is essential that you understand the basics of this market if you want to make the most of your investments.
The main forex influencer is global news and events. For example, say an ECB statement is released on European interest rates which typically will cause a flurry of activity. Most newcomers react violently to news like this and close their positions and subsequently miss out on some of the best trading opportunities by waiting until the market calms down. The potential in the forex market is in the volatility, not in its tranquility.
Unambitious trading - Many new traders will place very tight orders in order to take very small profits. This is not a sustainable approach because although you may be profitable in the short run (if you are lucky), you risk losing in the longer term as you have to recover the difference between the bid and the ask price before you can make any profit and this is much more difficult when you make small trades than when you make larger ones.
Over-cautious trading - Like the trader who tries to take small incremental profits all the time, the trader who places tight stop losses with a retail forex broker is doomed. As we stated above, you have to give your position a fair chance to demonstrate its ability to produce. If you don't place reasonable stop losses that allow your trade to do so, you will always end up undercutting yourself and losing a small piece of your deposit with every trade.
Independence - If you are new to forex, you will either decide to trade your own money or to have a broker trade it for you. So far, so good. But your risk of losing increases exponentially if you either of these two things:
Interfere with what your broker is doing on your behalf (as his strategy might require a long gestation period);
Seek advice from too many sources - multiple input will only result in multiple losses. Take a position, ride with it and then analyse the outcome - by yourself, for yourself.
Tiny margins - Margin trading is one of the biggest advantages in trading forex as it allows you to trade amounts far larger than the total of your deposits. However, it can also be dangerous to novice traders as it can appeal to the greed factor that destroys many forex traders. The best guideline is to increase your leverage in line with your experience and success.
No strategy - The aim of making money is not a trading strategy. A strategy is your map for how you plan to make money. Your strategy details the approach you are going to take, which currencies you are going to trade and how you will manage your risk. Without a strategy, you may become one of the 90% of new traders that lose their money.
Trading Off-Peak Hours - Professional FX traders, option traders, and hedge funds posses a huge advantage over small retail traders during off-peak hours (between 2200 CET and 1000 CET) as they can hedge their positions and move them around when there is far small trade volume is going through (meaning their risk is smaller). The best advice for trading during off peak hours is simple - don't.
The only way is up/down - When the market is on its way up, the market is on its way up. When the market is going down, the market is going down. That's it. There are many systems which analyse past trends, but none that can accurately predict the future. But if you acknowledge to yourself that all that is happening at any time is that the market is simply moving, you'll be amazed at how hard it is to blame anyone else.
Trade on the news - Most of the really big market moves occur around news time. Trading volume is high and the moves are significant; this means there is no better time to trade than when news is released. This is when the big players adjust their positions and prices change resulting in a serious currency flow.
Exiting Trades - If you place a trade and it's not working out for you, get out. Don't compound your mistake by staying in and hoping for a reversal. If you're in a winning trade, don't talk yourself out of the position because you're bored or want to relieve stress; stress is a natural part of trading; get used to it.
Don't trade too short-term - If you are aiming to make less than 20 points profit, don't undertake the trade. The spread you are trading on will make the odds against you far too high.
Don't be smart - The most successful traders I know keep their trading simple. They don't analyse all day or research historical trends and track web logs and their results are excellent.
Tops and Bottoms - There are no real "bargains" in trading foreign exchange. Trade in the direction the price is going in and you're results will be almost guaranteed to improve.
Ignoring the technicals- Understanding whether the market is over-extended long or short is a key indicator of price action. Spikes occur in the market when it is moving all one way.
Emotional Trading - Without that all-important strategy, you're trades essentially are thoughts only and thoughts are emotions and a very poor foundation for trading. When most of us are upset and emotional, we don't tend to make the wisest decisions. Don't let your emotions sway you.
Confidence - Confidence comes from successful trading. If you lose money early in your trading career it's very difficult to regain it; the trick is not to go off half-cocked; learn the business before you trade. Remember, knowledge is power.
The second and final part of this report clearly and simply details more essential tips on how to avoid the pitfalls and start making more money in your forex trading.
Take it like a man - If you decide to ride a loss, you are simply displaying stupidity and cowardice. It takes guts to accept your loss and wait for tomorrow to try again. Sticking to a bad position ruins lots of traders - permanently. Try to remember that the market often behaves illogically, so don't get commit to any one trade; it's just a trade. One good trade will not make you a trading success; it's ongoing regular performance over months and years that makes a good trader.
Focus - Fantasising about possible profits and then "spending" them before you have realised them is no good. Focus on your current position(s) and place reasonable stop losses at the time you do the trade. Then sit back and enjoy the ride - you have no real control from now on, the market will do what it wants to do.
Don't trust demos - Demo trading often causes new traders to learn bad habits. These bad habits, which can be very dangerous in the long run, come about because you are playing with virtual money. Once you know how your broker's system works, start trading small amounts and only take the risk you can afford to win or lose.
Stick to the strategy - When you make money on a well thought-out strategic trade, don't go and lose half of it next time on a fancy; stick to your strategy and invest profits on the next trade that matches your long-term goals.
Trade today - Most successful day traders are highly focused on what's happening in the short-term, not what may happen over the next month. If you're trading with 40 to 60-point stops focus on what's happening today as the market will probably move too quickly to consider the long-term future. However, the long-term trends are not unimportant; they will not always help you though if you're trading intraday.
The clues are in the details - The bottom line on your account balance doesn't tell the whole story. Consider individual trade details; analyse your losses and the telling losing streaks. Generally, traders that make money without suffering significant daily losses have the best chance of sustaining positive performance in the long term.
Simulated Results - Be very careful and wary about infamous "black box" systems. These so-called trading signal systems do not often explain exactly how the trade signals they generate are produced. Typically, these systems only show their track record of extraordinary results - historical results. Successfully predicting future trade scenarios is altogether more complex. The high-speed algorithmic capabilities of these systems provide significant retrospective trading systems, not ones which will help you trade effectively in the future.
Get to know one cross at a time - Each currency pair is unique, and has a unique way of moving in the marketplace. The forces which cause the pair to move up and down are individual to each cross, so study them and learn from your experience and apply your learning to one cross at a time.
Risk Reward - If you put a 20 point stop and a 50 point profit your chances of winning are probably about 1-3 against you. In fact, given the spread you're trading on, it's more likely to be 1-4. Play the odds the market gives you.
Trading for Wrong Reasons - Don't trade if you are bored, unsure or reacting on a whim. The reason that you are bored in the first place is probably because there is no trade to make in the first place. If you are unsure, it's probably because you can't see the trade to make, so don't make one.
Zen Trading- Even when you have taken a position in the markets, you should try and think as you would if you hadn't taken one. This level of detachment is essential if you want to retain your clarity of mind and avoid succumbing to emotional impulses and therefore increasing the likelihood of incurring losses. To achieve this, you need to cultivate a calm and relaxed outlook. Trade in brief periods of no more than a few hours at a time and accept that once the trade has been made, it's out of your hands.
Determination - Once you have decided to place a trade, stick to it and let it run its course. This means that if your stop loss is close to being triggered, let it trigger. If you move your stop midway through a trade's life, you are more than likely to suffer worse moves against you. Your determination must be show itself when you acknowledge that you got it wrong, so get out.
Short-term Moving Average Crossovers - This is one of the most dangerous trade scenarios for non professional traders. When the short-term moving average crosses the longer-term moving average it only means that the average price in the short run is equal to the average price in the longer run. This is neither a bullish nor bearish indication, so don't fall into the trap of believing it is one.
Stochastic - Another dangerous scenario. When it first signals an exhausted condition that's when the big spike in the "exhausted" currency cross tends to occur. My advice is to buy on the first sign of an overbought cross and then sell on the first sign of an oversold one. This approach means that you'll be with the trend and have successfully identified a positive move that still has some way to go. So if percentage K and percentage D are both crossing 80, then buy! (This is the same on sell side, where you sell at 20).
One cross is all that counts - EURUSD seems to be trading higher, so you buy GBPUSD because it appears not to have moved yet. This is dangerous. Focus on one cross at a time - if EURUSD looks good to you, then just buy EURUSD.
Wrong Broker - A lot of FOREX brokers are in business only to make money from yours. Read forums, blogs and chats around the net to get an unbiased opinion before you choose your broker.
Too bullish - Trading statistics show that 90% of most traders will fail at some point. Being too bullish about your trading aptitude can be fatal to your long-term success. You can always learn more about trading the markets, even if you are currently successful in your trades. Stay modest, and keep your eyes open for new ideas and bad habits you might be falling in to.
Interpret forex news yourself - Learn to read the source documents of forex news and events - don't rely on the interpretations of news media or others.
John Gaines
rel=nofollow [http://www.forextrading-system.com/]online trading, currency trading, financial service
A veteran of online trading, John Gaines offers the financial services industry his perspectives and expertise on a variety of trading systems and financial instruments, including forex, CFDs, futures, options and stocks.
Article Source: [http://EzineArticles.com/?Forex-Trading-Tips&id=113582] Forex Trading Tips
By [http://ezinearticles.com/?expert=John_Gaines]John Gaines
Why do hundreds of thousands online traders and investors trade the forex market every day, and how do they make money doing it?
This two-part report clearly and simply details essential tips on how to avoid typical pitfalls and start making more money in your forex trading.
Trade pairs, not currencies - Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.
Knowledge is Power - When starting out trading forex online, it is essential that you understand the basics of this market if you want to make the most of your investments.
The main forex influencer is global news and events. For example, say an ECB statement is released on European interest rates which typically will cause a flurry of activity. Most newcomers react violently to news like this and close their positions and subsequently miss out on some of the best trading opportunities by waiting until the market calms down. The potential in the forex market is in the volatility, not in its tranquility.
Unambitious trading - Many new traders will place very tight orders in order to take very small profits. This is not a sustainable approach because although you may be profitable in the short run (if you are lucky), you risk losing in the longer term as you have to recover the difference between the bid and the ask price before you can make any profit and this is much more difficult when you make small trades than when you make larger ones.
Over-cautious trading - Like the trader who tries to take small incremental profits all the time, the trader who places tight stop losses with a retail forex broker is doomed. As we stated above, you have to give your position a fair chance to demonstrate its ability to produce. If you don't place reasonable stop losses that allow your trade to do so, you will always end up undercutting yourself and losing a small piece of your deposit with every trade.
Independence - If you are new to forex, you will either decide to trade your own money or to have a broker trade it for you. So far, so good. But your risk of losing increases exponentially if you either of these two things:
Interfere with what your broker is doing on your behalf (as his strategy might require a long gestation period);
Seek advice from too many sources - multiple input will only result in multiple losses. Take a position, ride with it and then analyse the outcome - by yourself, for yourself.
Tiny margins - Margin trading is one of the biggest advantages in trading forex as it allows you to trade amounts far larger than the total of your deposits. However, it can also be dangerous to novice traders as it can appeal to the greed factor that destroys many forex traders. The best guideline is to increase your leverage in line with your experience and success.
No strategy - The aim of making money is not a trading strategy. A strategy is your map for how you plan to make money. Your strategy details the approach you are going to take, which currencies you are going to trade and how you will manage your risk. Without a strategy, you may become one of the 90% of new traders that lose their money.
Trading Off-Peak Hours - Professional FX traders, option traders, and hedge funds posses a huge advantage over small retail traders during off-peak hours (between 2200 CET and 1000 CET) as they can hedge their positions and move them around when there is far small trade volume is going through (meaning their risk is smaller). The best advice for trading during off peak hours is simple - don't.
The only way is up/down - When the market is on its way up, the market is on its way up. When the market is going down, the market is going down. That's it. There are many systems which analyse past trends, but none that can accurately predict the future. But if you acknowledge to yourself that all that is happening at any time is that the market is simply moving, you'll be amazed at how hard it is to blame anyone else.
Trade on the news - Most of the really big market moves occur around news time. Trading volume is high and the moves are significant; this means there is no better time to trade than when news is released. This is when the big players adjust their positions and prices change resulting in a serious currency flow.
Exiting Trades - If you place a trade and it's not working out for you, get out. Don't compound your mistake by staying in and hoping for a reversal. If you're in a winning trade, don't talk yourself out of the position because you're bored or want to relieve stress; stress is a natural part of trading; get used to it.
Don't trade too short-term - If you are aiming to make less than 20 points profit, don't undertake the trade. The spread you are trading on will make the odds against you far too high.
Don't be smart - The most successful traders I know keep their trading simple. They don't analyse all day or research historical trends and track web logs and their results are excellent.
Tops and Bottoms - There are no real "bargains" in trading foreign exchange. Trade in the direction the price is going in and you're results will be almost guaranteed to improve.
Ignoring the technicals- Understanding whether the market is over-extended long or short is a key indicator of price action. Spikes occur in the market when it is moving all one way.
Emotional Trading - Without that all-important strategy, you're trades essentially are thoughts only and thoughts are emotions and a very poor foundation for trading. When most of us are upset and emotional, we don't tend to make the wisest decisions. Don't let your emotions sway you.
Confidence - Confidence comes from successful trading. If you lose money early in your trading career it's very difficult to regain it; the trick is not to go off half-cocked; learn the business before you trade. Remember, knowledge is power.
The second and final part of this report clearly and simply details more essential tips on how to avoid the pitfalls and start making more money in your forex trading.
Take it like a man - If you decide to ride a loss, you are simply displaying stupidity and cowardice. It takes guts to accept your loss and wait for tomorrow to try again. Sticking to a bad position ruins lots of traders - permanently. Try to remember that the market often behaves illogically, so don't get commit to any one trade; it's just a trade. One good trade will not make you a trading success; it's ongoing regular performance over months and years that makes a good trader.
Focus - Fantasising about possible profits and then "spending" them before you have realised them is no good. Focus on your current position(s) and place reasonable stop losses at the time you do the trade. Then sit back and enjoy the ride - you have no real control from now on, the market will do what it wants to do.
Don't trust demos - Demo trading often causes new traders to learn bad habits. These bad habits, which can be very dangerous in the long run, come about because you are playing with virtual money. Once you know how your broker's system works, start trading small amounts and only take the risk you can afford to win or lose.
Stick to the strategy - When you make money on a well thought-out strategic trade, don't go and lose half of it next time on a fancy; stick to your strategy and invest profits on the next trade that matches your long-term goals.
Trade today - Most successful day traders are highly focused on what's happening in the short-term, not what may happen over the next month. If you're trading with 40 to 60-point stops focus on what's happening today as the market will probably move too quickly to consider the long-term future. However, the long-term trends are not unimportant; they will not always help you though if you're trading intraday.
The clues are in the details - The bottom line on your account balance doesn't tell the whole story. Consider individual trade details; analyse your losses and the telling losing streaks. Generally, traders that make money without suffering significant daily losses have the best chance of sustaining positive performance in the long term.
Simulated Results - Be very careful and wary about infamous "black box" systems. These so-called trading signal systems do not often explain exactly how the trade signals they generate are produced. Typically, these systems only show their track record of extraordinary results - historical results. Successfully predicting future trade scenarios is altogether more complex. The high-speed algorithmic capabilities of these systems provide significant retrospective trading systems, not ones which will help you trade effectively in the future.
Get to know one cross at a time - Each currency pair is unique, and has a unique way of moving in the marketplace. The forces which cause the pair to move up and down are individual to each cross, so study them and learn from your experience and apply your learning to one cross at a time.
Risk Reward - If you put a 20 point stop and a 50 point profit your chances of winning are probably about 1-3 against you. In fact, given the spread you're trading on, it's more likely to be 1-4. Play the odds the market gives you.
Trading for Wrong Reasons - Don't trade if you are bored, unsure or reacting on a whim. The reason that you are bored in the first place is probably because there is no trade to make in the first place. If you are unsure, it's probably because you can't see the trade to make, so don't make one.
Zen Trading- Even when you have taken a position in the markets, you should try and think as you would if you hadn't taken one. This level of detachment is essential if you want to retain your clarity of mind and avoid succumbing to emotional impulses and therefore increasing the likelihood of incurring losses. To achieve this, you need to cultivate a calm and relaxed outlook. Trade in brief periods of no more than a few hours at a time and accept that once the trade has been made, it's out of your hands.
Determination - Once you have decided to place a trade, stick to it and let it run its course. This means that if your stop loss is close to being triggered, let it trigger. If you move your stop midway through a trade's life, you are more than likely to suffer worse moves against you. Your determination must be show itself when you acknowledge that you got it wrong, so get out.
Short-term Moving Average Crossovers - This is one of the most dangerous trade scenarios for non professional traders. When the short-term moving average crosses the longer-term moving average it only means that the average price in the short run is equal to the average price in the longer run. This is neither a bullish nor bearish indication, so don't fall into the trap of believing it is one.
Stochastic - Another dangerous scenario. When it first signals an exhausted condition that's when the big spike in the "exhausted" currency cross tends to occur. My advice is to buy on the first sign of an overbought cross and then sell on the first sign of an oversold one. This approach means that you'll be with the trend and have successfully identified a positive move that still has some way to go. So if percentage K and percentage D are both crossing 80, then buy! (This is the same on sell side, where you sell at 20).
One cross is all that counts - EURUSD seems to be trading higher, so you buy GBPUSD because it appears not to have moved yet. This is dangerous. Focus on one cross at a time - if EURUSD looks good to you, then just buy EURUSD.
Wrong Broker - A lot of FOREX brokers are in business only to make money from yours. Read forums, blogs and chats around the net to get an unbiased opinion before you choose your broker.
Too bullish - Trading statistics show that 90% of most traders will fail at some point. Being too bullish about your trading aptitude can be fatal to your long-term success. You can always learn more about trading the markets, even if you are currently successful in your trades. Stay modest, and keep your eyes open for new ideas and bad habits you might be falling in to.
Interpret forex news yourself - Learn to read the source documents of forex news and events - don't rely on the interpretations of news media or others.
John Gaines
rel=nofollow [http://www.forextrading-system.com/]online trading, currency trading, financial service
A veteran of online trading, John Gaines offers the financial services industry his perspectives and expertise on a variety of trading systems and financial instruments, including forex, CFDs, futures, options and stocks.
Article Source: [http://EzineArticles.com/?Forex-Trading-Tips&id=113582] Forex Trading Tips
Learn Forex - Forex Investing
Learn Forex - Forex Investing
By [http://ezinearticles.com/?expert=Dean_Watt]Dean Watt
What is forex investing?
Like all investing it is about making a stable return on your investment and then compounding this investment overtime to grow your money. In this example it about using the foreign exchange market to achieve the returns rather than stocks or commodities.
How do you use the foreign exchange market for investment returns?
You could find a fund that deals with currency exchange and buy shares in the fund. This would allow you to benefit from access to the forex market. There are many funds available and they can be bought in different currencies such as the US Dollar, Euro, Sterling and Australian Dollar.
Example of 3 funds (US Dollar, Euro and Australian Dollar) taken from fidelity fund tracker (04/sept/2012)
Each result shows the profit / loss from �1000 invested at the beginning of the term.
1 year results
US Dollar... �1,020.09, +2% increase
Euro... �903.41,-9.7% decrease
Australian Dollar �1,010.29, +1.02% increase
The returns over the last year have been either very tiny growth or have been a negative return. This is before the fees for the fund have been deducted.
Let's look at the past 5 years
US Dollar... �1,313.80, +31.38% increase, +6.27% increase per yr
Euro... �1232.48, +23.24% increase, +4.64% increase per yr
Australian Dollar �1,931.15, +93.11% increase, +18.62% increase per yr
With 5 years of being in the fund you would have been lucky to get more than 30% increase. Being in the right fund and you would have nearly doubled your money.
Is there another way?
Fortunately there is another way to invest in forex and make much better returns. This is by using professional traders who trade on your behalf. You then follow their trades and make a much greater return.
To do this safely you have to use a risk management system that puts you in control. Using a risk management system means you are free to pick and choose who you want to trade your account. The professional trader is only there to open and close trades and make profit. Your risk management system is there to control your account. You are in control of your management system.
How easy is a risk management system?
A risk management system is very easy to use especially if you use a ready made platform. By entering a few variables such as the current prices of currencies you can manage your own trading risk. These simple steps gives you access to the world of forex investing.
How much return can I expect?
This s dependent on the trader you follow however 30% to 90%+ per year is normal.
Let's look at 3 separate traders
�1000 invested for 1 year
Trader 1 �1,880.20, +88% increase
Trader 2 �1,656.04, +65.6% increase
Trader 3 �1.403.06, +40.3% increase
The results from using a risk management system combined with a professional trader can be a marked improvement to investing in a fund. When these results are compounded over 5 years the results can be fantastic.
You can compound the results because the risk management system allows you geometric your profits while maintain the same risk profile.
Compounded over 5 Years
Trader 1 �23,484.93
Trader 2 �12,453.79
Trader 3 �5,436.11
Is it safe to trade?
As long as a risk management system is used and the professional traders are profitable then the system is safe. Remove any part and the system will not function as designed. The key is to let the trader do what the trader does. Make money.
Your job is to be a risk manager and keep the trader working within your risk management system. This all happens on web based platform for full automation. You don't have to communicate with the trader just use the online interface. If you can do this you can grow your money with forex investing.
Learn forex investing [http://forextradingtutorial.biz]HERE
Don't forget to sign up for your FREE ebook - 5 Pitfalls To Avoid For Successful Forex Trading
Article Source: [http://EzineArticles.com/?Learn-Forex---Forex-Investing&id=7267121] Learn Forex - Forex Investing
By [http://ezinearticles.com/?expert=Dean_Watt]Dean Watt
What is forex investing?
Like all investing it is about making a stable return on your investment and then compounding this investment overtime to grow your money. In this example it about using the foreign exchange market to achieve the returns rather than stocks or commodities.
How do you use the foreign exchange market for investment returns?
You could find a fund that deals with currency exchange and buy shares in the fund. This would allow you to benefit from access to the forex market. There are many funds available and they can be bought in different currencies such as the US Dollar, Euro, Sterling and Australian Dollar.
Example of 3 funds (US Dollar, Euro and Australian Dollar) taken from fidelity fund tracker (04/sept/2012)
Each result shows the profit / loss from �1000 invested at the beginning of the term.
1 year results
US Dollar... �1,020.09, +2% increase
Euro... �903.41,-9.7% decrease
Australian Dollar �1,010.29, +1.02% increase
The returns over the last year have been either very tiny growth or have been a negative return. This is before the fees for the fund have been deducted.
Let's look at the past 5 years
US Dollar... �1,313.80, +31.38% increase, +6.27% increase per yr
Euro... �1232.48, +23.24% increase, +4.64% increase per yr
Australian Dollar �1,931.15, +93.11% increase, +18.62% increase per yr
With 5 years of being in the fund you would have been lucky to get more than 30% increase. Being in the right fund and you would have nearly doubled your money.
Is there another way?
Fortunately there is another way to invest in forex and make much better returns. This is by using professional traders who trade on your behalf. You then follow their trades and make a much greater return.
To do this safely you have to use a risk management system that puts you in control. Using a risk management system means you are free to pick and choose who you want to trade your account. The professional trader is only there to open and close trades and make profit. Your risk management system is there to control your account. You are in control of your management system.
How easy is a risk management system?
A risk management system is very easy to use especially if you use a ready made platform. By entering a few variables such as the current prices of currencies you can manage your own trading risk. These simple steps gives you access to the world of forex investing.
How much return can I expect?
This s dependent on the trader you follow however 30% to 90%+ per year is normal.
Let's look at 3 separate traders
�1000 invested for 1 year
Trader 1 �1,880.20, +88% increase
Trader 2 �1,656.04, +65.6% increase
Trader 3 �1.403.06, +40.3% increase
The results from using a risk management system combined with a professional trader can be a marked improvement to investing in a fund. When these results are compounded over 5 years the results can be fantastic.
You can compound the results because the risk management system allows you geometric your profits while maintain the same risk profile.
Compounded over 5 Years
Trader 1 �23,484.93
Trader 2 �12,453.79
Trader 3 �5,436.11
Is it safe to trade?
As long as a risk management system is used and the professional traders are profitable then the system is safe. Remove any part and the system will not function as designed. The key is to let the trader do what the trader does. Make money.
Your job is to be a risk manager and keep the trader working within your risk management system. This all happens on web based platform for full automation. You don't have to communicate with the trader just use the online interface. If you can do this you can grow your money with forex investing.
Learn forex investing [http://forextradingtutorial.biz]HERE
Don't forget to sign up for your FREE ebook - 5 Pitfalls To Avoid For Successful Forex Trading
Article Source: [http://EzineArticles.com/?Learn-Forex---Forex-Investing&id=7267121] Learn Forex - Forex Investing
Friday, April 26, 2013
Three Steps To Properly Time Your Stock Trades
Three Steps To Properly Time Your Stock Trades
By [http://ezinearticles.com/?expert=Timothy_R_Fletcher]Timothy R Fletcher
We have all done it at least once.
We hear or read in the news about a company with a promising future.
We become immediately convinced that we must buy now or we will miss out.
Making hasty, emotional decisions when purchasing stocks is dangerous.
This is especially true for new traders who may be working with a modest initial balance in their new stock trading account. When you get caught chasing after prices and a stock you purchased falls dramatically, you either take losses or wait and wait and wait for the price to rise again.
A disciplined stock buying strategy can protect you from emotional quick decisions.
Instead of searching and hoping for the next big winner, here is a strategy that can find bargain prices for good stocks and stop you from paying too much.
Step one:
Do your homework and identify six or eight, maybe up to a dozen companies that have a promising future, but whose stock price is less than one dollar.
I'm not suggesting that you become a "penny-stock player." I am suggesting that you identify low-priced stocks of promising companies because these are opportunities to build large positions quickly.
Generally, these are going to be companies that are in the development stage or perhaps newly started companies.
Determine that their product or service is sound and that there is a strong management team in place.
Step two:
Identify each stock's "channel" or "range."
Take a look at the stock's one year price chart. Over the last few months, is the stock's price fluctuating between five cents and $.10 per share?
You don't have to be a chart technician to recognize a stock's average range.
Step three:
If it is consistently moving up and down in a range or channel, simply place a "limit-buy order" equal to the bottom of the range or channel and wait!
This takes discipline, but it keeps you from chasing after rising prices. Yes, from time to time a stock will take off higher and you will "miss the boat" because of this strategy.
More times than not, however, this strategy will keep you rational and help you wait for the pullback that almost always follows sharp price spikes.
This is merely one strategy for timing your stock trades.
This is, however, an excellent strategy for the new stock trader. As you become more experienced, you will find many other strategies that accomplish the same thing in different market conditions.
For now, identify good stocks to accumulate. Get a feel for the price range. Then place limit-buy orders and wait for the price to "come to you."
Timothy Randolph Fletcher is the Managing Editor of the NDW TREND TRADING REPORT. It is a monthly publication that provides research, analysis, and specific stock choices for traders. The company also provides a QUICK-START GUIDE TO STOCK TRADING for those who are considering stock trading for profits. Click here for a free copy!
http://newdaywealthprotection.com/index165.htm
Article Source: [http://EzineArticles.com/?Three-Steps-To-Properly-Time-Your-Stock-Trades&id=7668374] Three Steps To Properly Time Your Stock Trades
By [http://ezinearticles.com/?expert=Timothy_R_Fletcher]Timothy R Fletcher
We have all done it at least once.
We hear or read in the news about a company with a promising future.
We become immediately convinced that we must buy now or we will miss out.
Making hasty, emotional decisions when purchasing stocks is dangerous.
This is especially true for new traders who may be working with a modest initial balance in their new stock trading account. When you get caught chasing after prices and a stock you purchased falls dramatically, you either take losses or wait and wait and wait for the price to rise again.
A disciplined stock buying strategy can protect you from emotional quick decisions.
Instead of searching and hoping for the next big winner, here is a strategy that can find bargain prices for good stocks and stop you from paying too much.
Step one:
Do your homework and identify six or eight, maybe up to a dozen companies that have a promising future, but whose stock price is less than one dollar.
I'm not suggesting that you become a "penny-stock player." I am suggesting that you identify low-priced stocks of promising companies because these are opportunities to build large positions quickly.
Generally, these are going to be companies that are in the development stage or perhaps newly started companies.
Determine that their product or service is sound and that there is a strong management team in place.
Step two:
Identify each stock's "channel" or "range."
Take a look at the stock's one year price chart. Over the last few months, is the stock's price fluctuating between five cents and $.10 per share?
You don't have to be a chart technician to recognize a stock's average range.
Step three:
If it is consistently moving up and down in a range or channel, simply place a "limit-buy order" equal to the bottom of the range or channel and wait!
This takes discipline, but it keeps you from chasing after rising prices. Yes, from time to time a stock will take off higher and you will "miss the boat" because of this strategy.
More times than not, however, this strategy will keep you rational and help you wait for the pullback that almost always follows sharp price spikes.
This is merely one strategy for timing your stock trades.
This is, however, an excellent strategy for the new stock trader. As you become more experienced, you will find many other strategies that accomplish the same thing in different market conditions.
For now, identify good stocks to accumulate. Get a feel for the price range. Then place limit-buy orders and wait for the price to "come to you."
Timothy Randolph Fletcher is the Managing Editor of the NDW TREND TRADING REPORT. It is a monthly publication that provides research, analysis, and specific stock choices for traders. The company also provides a QUICK-START GUIDE TO STOCK TRADING for those who are considering stock trading for profits. Click here for a free copy!
http://newdaywealthprotection.com/index165.htm
Article Source: [http://EzineArticles.com/?Three-Steps-To-Properly-Time-Your-Stock-Trades&id=7668374] Three Steps To Properly Time Your Stock Trades
Tuesday, April 23, 2013
A Beginner's Guide to Leveraged Stock Market Opportunities - Contracts For Difference (CFD)
A Beginner's Guide to Leveraged Stock Market Opportunities - Contracts For Difference (CFD)
By [http://ezinearticles.com/?expert=William_Potter]William Potter
One of the most common reasons for people to get started in trading Contracts for Difference (CFDs) is after hearing the amazing gains friends or co-workers have made when trading this exciting product.
While it's great to hear of the success people have when trading CFDs it's important for those looking to get started to learn the basics before jumping in head first.
This basic tutorial guide will touch on the essential basics to understand when looking to trade Contracts for Difference (CFD).
The first thing to understand when it comes to trading a CFD is that it is exactly like trading the stock market, except you need a small amount of money up front. This is known as your CFD margin. When trading the ASX or the UK Stock market you will mostly need around 10% margin in order to open your positions.
So if you wanted to trade Woodside Petroleum (WPL) shares or Vodafone (VOD) shares and you wanted to take a $10,000 initial position then you would need around $1,000 up front in order to control the whole position.
CFD margin rates do differ from one broker to another so its best to check out the respective brokers website to see what their margin rates are. As a rule of thumb, you can trade the top 200 CFDs with most CFD brokers with only 5-20% margin up front.
Who do I borrow the money off for the rest of the position? In actual fact, when trading a CFD you are effectively borrowing the whole amount of money, regardless of the margin you put up front. In the example above, a $10,000 CFD position is the same as borrowing $10,000.
There are 2 things to keep in mind when holding a CFD position. Are you going to hold the position overnight or are you going to exit before the day is over?
One fantastic aspect of CFD trading is that buying and selling a position on the same trading day does not incur any overnight interest. So a day trader could open a $100,000 position in the morning and exit before market close and they would not have to pay interest on borrowing those funds. Fantastic isn't it?
If you hold a position overnight then you need to pay CFD financing, which is a small daily fee and usually equates to the overnight cash rate (reserve bank rate) plus 2%. If you are trading in Australia and the current reserve bank rate is 7.25% then you will pay 7.25% plus 2% (9.25 %) per year calculated as a daily rate. This debit will hit your account every day you hold the position overnight.
Discover how to use other people's money when trading the worlds stock markets by taking part in this [http://www.learncfds.com/CFD-Tutorial-Introduction.html]FREE CFD tutorial Learn more about the CFD revolution by going to http://www.learncfds.com
Article Source: [http://EzineArticles.com/?A-Beginners-Guide-to-Leveraged-Stock-Market-Opportunities---Contracts-For-Difference-(CFD)&id=1454795] A Beginner's Guide to Leveraged Stock Market Opportunities - Contracts For Difference (CFD)
By [http://ezinearticles.com/?expert=William_Potter]William Potter
One of the most common reasons for people to get started in trading Contracts for Difference (CFDs) is after hearing the amazing gains friends or co-workers have made when trading this exciting product.
While it's great to hear of the success people have when trading CFDs it's important for those looking to get started to learn the basics before jumping in head first.
This basic tutorial guide will touch on the essential basics to understand when looking to trade Contracts for Difference (CFD).
The first thing to understand when it comes to trading a CFD is that it is exactly like trading the stock market, except you need a small amount of money up front. This is known as your CFD margin. When trading the ASX or the UK Stock market you will mostly need around 10% margin in order to open your positions.
So if you wanted to trade Woodside Petroleum (WPL) shares or Vodafone (VOD) shares and you wanted to take a $10,000 initial position then you would need around $1,000 up front in order to control the whole position.
CFD margin rates do differ from one broker to another so its best to check out the respective brokers website to see what their margin rates are. As a rule of thumb, you can trade the top 200 CFDs with most CFD brokers with only 5-20% margin up front.
Who do I borrow the money off for the rest of the position? In actual fact, when trading a CFD you are effectively borrowing the whole amount of money, regardless of the margin you put up front. In the example above, a $10,000 CFD position is the same as borrowing $10,000.
There are 2 things to keep in mind when holding a CFD position. Are you going to hold the position overnight or are you going to exit before the day is over?
One fantastic aspect of CFD trading is that buying and selling a position on the same trading day does not incur any overnight interest. So a day trader could open a $100,000 position in the morning and exit before market close and they would not have to pay interest on borrowing those funds. Fantastic isn't it?
If you hold a position overnight then you need to pay CFD financing, which is a small daily fee and usually equates to the overnight cash rate (reserve bank rate) plus 2%. If you are trading in Australia and the current reserve bank rate is 7.25% then you will pay 7.25% plus 2% (9.25 %) per year calculated as a daily rate. This debit will hit your account every day you hold the position overnight.
Discover how to use other people's money when trading the worlds stock markets by taking part in this [http://www.learncfds.com/CFD-Tutorial-Introduction.html]FREE CFD tutorial Learn more about the CFD revolution by going to http://www.learncfds.com
Article Source: [http://EzineArticles.com/?A-Beginners-Guide-to-Leveraged-Stock-Market-Opportunities---Contracts-For-Difference-(CFD)&id=1454795] A Beginner's Guide to Leveraged Stock Market Opportunities - Contracts For Difference (CFD)
The Best Guide to Learn How to Trade CFDs
The Best Guide to Learn How to Trade CFDs
By [http://ezinearticles.com/?expert=Jeremy_Black]Jeremy Black
There are so many contracts for difference guide out there that pretend or claim to be the best. Some even have online tutorials to teach beginners on how to trade CFDs. However, even if those guides have the most advanced technologies being used, they would still be incomplete if they do not consist of the most essential contents that any trader, most especially beginners, need. Some platforms or providers even have the most interactive applications. Nevertheless, they would still be futile without the necessary details.
In this regard, there are at least three (3) aspects that are most necessary when it comes to reading or referring to contracts for difference guide. These are vital because these pieces of information will teach newbie traders on how to really trade CFDs. Specifically, these are about its difference from betting or gambling, as well as its mechanics, and even the risks associated with it.
What is the difference between CFD trading and betting or gambling?
On the one hand, any person who is just beginning to learn the basics of contracts for difference should know the difference between trading this kind of investment instrument compared to betting and gambling. Well, this kind of investment is also a form of betting or gambling. This is because traders are putting their money on something that will just happen in the future. Hence, it is full of uncertainties. Nevertheless, it is not mere gambling because there are some tools and parameters that can be used in order to come up with a reliable prediction. In other words, it is not similar to the way of gambling in a casino.
How does its mechanics work?
On the other hand, the set of mechanics on how to trade CFDs is, of course, extremely important to know by traders and wannabes. In this regard, what traders need to think about is how they will be able to start trading in this platform. Firstly, they need to borrow money in order to bet on short-term market movements, for example. If the market's price increases or higher than the agreed price in the contract, then the buyer wins while if it is the other way around, then he or she loses.
However, it has to be reiterated that traders are not exchanging or trading physical underlying assets at all. In most cases nowadays, the bet or contracts is only on the movement of the price of a particular market, instrument or investment commodity.
What are the risks that people should be worry about?
Thirdly, but not the least, people should also be aware of the risks associated when they trade CFDs online. Some platforms will, in fact, deliberately hide it from their clients. However, it is extremely important because this will guide the traders on the things that they should do or avoid to do. Some of the risk factors that traders should be vigilant include the unlimited losses that may be incurred when investing on this.
CFDSpy.com is an online trading portal and education site, aimed at making it easier for traders to learn about how to [http://www.cfdspy.com/]trade CFDs covering a broad base of different investment types and instruments, and [http://www.cfdspy.com/guide/cfd-guide.php]contracts for difference guide.
Article Source: [http://EzineArticles.com/?The-Best-Guide-to-Learn-How-to-Trade-CFDs&id=7587827] The Best Guide to Learn How to Trade CFDs
By [http://ezinearticles.com/?expert=Jeremy_Black]Jeremy Black
There are so many contracts for difference guide out there that pretend or claim to be the best. Some even have online tutorials to teach beginners on how to trade CFDs. However, even if those guides have the most advanced technologies being used, they would still be incomplete if they do not consist of the most essential contents that any trader, most especially beginners, need. Some platforms or providers even have the most interactive applications. Nevertheless, they would still be futile without the necessary details.
In this regard, there are at least three (3) aspects that are most necessary when it comes to reading or referring to contracts for difference guide. These are vital because these pieces of information will teach newbie traders on how to really trade CFDs. Specifically, these are about its difference from betting or gambling, as well as its mechanics, and even the risks associated with it.
What is the difference between CFD trading and betting or gambling?
On the one hand, any person who is just beginning to learn the basics of contracts for difference should know the difference between trading this kind of investment instrument compared to betting and gambling. Well, this kind of investment is also a form of betting or gambling. This is because traders are putting their money on something that will just happen in the future. Hence, it is full of uncertainties. Nevertheless, it is not mere gambling because there are some tools and parameters that can be used in order to come up with a reliable prediction. In other words, it is not similar to the way of gambling in a casino.
How does its mechanics work?
On the other hand, the set of mechanics on how to trade CFDs is, of course, extremely important to know by traders and wannabes. In this regard, what traders need to think about is how they will be able to start trading in this platform. Firstly, they need to borrow money in order to bet on short-term market movements, for example. If the market's price increases or higher than the agreed price in the contract, then the buyer wins while if it is the other way around, then he or she loses.
However, it has to be reiterated that traders are not exchanging or trading physical underlying assets at all. In most cases nowadays, the bet or contracts is only on the movement of the price of a particular market, instrument or investment commodity.
What are the risks that people should be worry about?
Thirdly, but not the least, people should also be aware of the risks associated when they trade CFDs online. Some platforms will, in fact, deliberately hide it from their clients. However, it is extremely important because this will guide the traders on the things that they should do or avoid to do. Some of the risk factors that traders should be vigilant include the unlimited losses that may be incurred when investing on this.
CFDSpy.com is an online trading portal and education site, aimed at making it easier for traders to learn about how to [http://www.cfdspy.com/]trade CFDs covering a broad base of different investment types and instruments, and [http://www.cfdspy.com/guide/cfd-guide.php]contracts for difference guide.
Article Source: [http://EzineArticles.com/?The-Best-Guide-to-Learn-How-to-Trade-CFDs&id=7587827] The Best Guide to Learn How to Trade CFDs
Saturday, April 20, 2013
Commodity Trading Under the Guidance of a Broker
Commodity Trading Under the Guidance of a Broker
By [http://ezinearticles.com/?expert=David_Rivera]David Rivera
Day traders especially those who are still new can benefit from the guidance of commodities brokers. Experts may be able to help starters in making their plans based on the goals that they would like to achieve. It is necessary that new traders work on attainable objectives when dealing with commodity futures. They also have to determine the extent of their knowledge about the way the market behaves. Commodities brokers can help as many of them specialize in precious metals, foreign currencies, treasury bonds, agricultural products, energy sources, stock indices and also futures options.
Brokers are able to guide their traders in creating strategies that are suitable to the type of market that they have selected. As traders are able to implement sound plans and effective methods, they are able to decrease the risk that they are taking. Beginners may benefit from the extensive knowledge and expertise of their brokers. New traders are able to learn from them how to correlate their available investment capital with their desired financial goals over a period of time while being aware of the volatility of the market trends. Seasoned brokers may recommend the best trading style such as Swing Trading or Trend Trading to their traders in order for them to achieve their desired goals.
Those who are relatively new to the trading business will need to find a good broker who will guide them in making the right choices or decisions at the right time. A reliable broker for instance is one who is registered and works under regulation of the trading commission. The trading platform that the broker is offering should be easy to use and understand. The best brokers usually allow their new traders to get hands-on trading experiences without them investing real money. The demo account will give people the chance to gain some experiences in trading without actually losing real money in the process.
It is also important that beginners are able to get the best customer service and also the support from their broker. Their queries should be entertained as soon as possible in order for them to benefit from their investments. Although most brokers provide facilities for funding and withdrawing, new traders have to select one that will provide them with utmost ease and convenience. People with smaller capital to work with may check the required initial deposit for them to start trading. Those who would like to have more advantage may also check the leverage options that are offered by their brokers.
Choosing the right broker and the right trading platform is important especially for those who would like to engage in profitable trading activities.
Commodity option trading involves buying and selling futures option contracts. You do not have to just trade one futures options contract. You can combine different options and trade them together in what is called spread trading. Spread trading is a way to limit your risk because when you lose in one contract, you profit in another. Learn at http://www.deltaneutraltrading.com/optin/ezines.html
Article Source: [http://EzineArticles.com/?Commodity-Trading-Under-the-Guidance-of-a-Broker&id=7557200] Commodity Trading Under the Guidance of a Broker
By [http://ezinearticles.com/?expert=David_Rivera]David Rivera
Day traders especially those who are still new can benefit from the guidance of commodities brokers. Experts may be able to help starters in making their plans based on the goals that they would like to achieve. It is necessary that new traders work on attainable objectives when dealing with commodity futures. They also have to determine the extent of their knowledge about the way the market behaves. Commodities brokers can help as many of them specialize in precious metals, foreign currencies, treasury bonds, agricultural products, energy sources, stock indices and also futures options.
Brokers are able to guide their traders in creating strategies that are suitable to the type of market that they have selected. As traders are able to implement sound plans and effective methods, they are able to decrease the risk that they are taking. Beginners may benefit from the extensive knowledge and expertise of their brokers. New traders are able to learn from them how to correlate their available investment capital with their desired financial goals over a period of time while being aware of the volatility of the market trends. Seasoned brokers may recommend the best trading style such as Swing Trading or Trend Trading to their traders in order for them to achieve their desired goals.
Those who are relatively new to the trading business will need to find a good broker who will guide them in making the right choices or decisions at the right time. A reliable broker for instance is one who is registered and works under regulation of the trading commission. The trading platform that the broker is offering should be easy to use and understand. The best brokers usually allow their new traders to get hands-on trading experiences without them investing real money. The demo account will give people the chance to gain some experiences in trading without actually losing real money in the process.
It is also important that beginners are able to get the best customer service and also the support from their broker. Their queries should be entertained as soon as possible in order for them to benefit from their investments. Although most brokers provide facilities for funding and withdrawing, new traders have to select one that will provide them with utmost ease and convenience. People with smaller capital to work with may check the required initial deposit for them to start trading. Those who would like to have more advantage may also check the leverage options that are offered by their brokers.
Choosing the right broker and the right trading platform is important especially for those who would like to engage in profitable trading activities.
Commodity option trading involves buying and selling futures option contracts. You do not have to just trade one futures options contract. You can combine different options and trade them together in what is called spread trading. Spread trading is a way to limit your risk because when you lose in one contract, you profit in another. Learn at http://www.deltaneutraltrading.com/optin/ezines.html
Article Source: [http://EzineArticles.com/?Commodity-Trading-Under-the-Guidance-of-a-Broker&id=7557200] Commodity Trading Under the Guidance of a Broker
Basic Principles Applied in Commodity Trading
Basic Principles Applied in Commodity Trading
By [http://ezinearticles.com/?expert=David_Rivera]David Rivera
There are some fundamental principles that individuals need to know and to understand if they would like to enter the commodities market. Some of the concepts may actually be applied in other markets as well. Physical goods like metals, grain and food than can be exchanged are considered as commodities. Practically almost all of the everyday things that people make use of or consume come from commodities such as gasoline, natural gas, cocoa, sugar, coffee and many more. These raw materials or products may range from soft commodities to energy sources and to abstract commodities as well.
Some traders transact in a spot market where exchanges are immediate. A trader who represents a large company for example may purchase large volume of gold or oil on the spot. Regular people who make small purchases of the things that they need are actually involved in spot trading.
There are also traders who trade in the futures market. The buyer and the seller would agree on the terms of their transaction that will be carried out at a future date. They will also have to agree on the price of the commodity being transacted. However, it is important to understand that the parties do not actually engage in the exchange of the physical product right away but they are dealing with a contract.
This form of trading protects the parties from possible fluctuations of the price in the future. One of them will gain while the other losses in case the price would increase or decrease. Farmers for example may protect their gains by ensuring that their harvest will be bought at a specified price in the future.
However, trading in futures may pose lots of risks to traders. Some of them would limit the danger of losing much by trading options as well. Traders only risk the premium that they have paid including the commissions and other fees. They are only given the right to buy or to sell and they can exercise their option if they decide to unlike futures contracts where the seller will have to deliver the actual volume and quality of goods that have been agreed upon.
Although traders have the advantage of using leverage when trading futures contract, they have to learn how to use it wisely. Commodities trading can also be very risky and some traders may lose all if they are not careful. The leverage that is at the disposal of traders is the main reason that makes the futures contract more volatile rather than the value of the underlying asset or security.
When [http://www.futuresoptionspapertrading.com]commodity trading, look for ways on how you can minimize your risk. You can practice commodity futures trading by paper trading using spreads. This means buying one option and selling another option at the same time. This can also be done using straight futures contracts by buying one futures and selling another. Learn at [http://www.futuresoptionspapertrading.com]http://www.futuresoptionspapertrading.com.
Article Source: [http://EzineArticles.com/?Basic-Principles-Applied-in-Commodity-Trading&id=7643777] Basic Principles Applied in Commodity Trading
By [http://ezinearticles.com/?expert=David_Rivera]David Rivera
There are some fundamental principles that individuals need to know and to understand if they would like to enter the commodities market. Some of the concepts may actually be applied in other markets as well. Physical goods like metals, grain and food than can be exchanged are considered as commodities. Practically almost all of the everyday things that people make use of or consume come from commodities such as gasoline, natural gas, cocoa, sugar, coffee and many more. These raw materials or products may range from soft commodities to energy sources and to abstract commodities as well.
Some traders transact in a spot market where exchanges are immediate. A trader who represents a large company for example may purchase large volume of gold or oil on the spot. Regular people who make small purchases of the things that they need are actually involved in spot trading.
There are also traders who trade in the futures market. The buyer and the seller would agree on the terms of their transaction that will be carried out at a future date. They will also have to agree on the price of the commodity being transacted. However, it is important to understand that the parties do not actually engage in the exchange of the physical product right away but they are dealing with a contract.
This form of trading protects the parties from possible fluctuations of the price in the future. One of them will gain while the other losses in case the price would increase or decrease. Farmers for example may protect their gains by ensuring that their harvest will be bought at a specified price in the future.
However, trading in futures may pose lots of risks to traders. Some of them would limit the danger of losing much by trading options as well. Traders only risk the premium that they have paid including the commissions and other fees. They are only given the right to buy or to sell and they can exercise their option if they decide to unlike futures contracts where the seller will have to deliver the actual volume and quality of goods that have been agreed upon.
Although traders have the advantage of using leverage when trading futures contract, they have to learn how to use it wisely. Commodities trading can also be very risky and some traders may lose all if they are not careful. The leverage that is at the disposal of traders is the main reason that makes the futures contract more volatile rather than the value of the underlying asset or security.
When [http://www.futuresoptionspapertrading.com]commodity trading, look for ways on how you can minimize your risk. You can practice commodity futures trading by paper trading using spreads. This means buying one option and selling another option at the same time. This can also be done using straight futures contracts by buying one futures and selling another. Learn at [http://www.futuresoptionspapertrading.com]http://www.futuresoptionspapertrading.com.
Article Source: [http://EzineArticles.com/?Basic-Principles-Applied-in-Commodity-Trading&id=7643777] Basic Principles Applied in Commodity Trading
Friday, April 19, 2013
Should I Trade Options or E-Mini Futures?
Should I Trade Options or E-Mini Futures?
By [http://ezinearticles.com/?expert=David_S._Adams]David S. Adams
I was looking over several of the article directories in the "day trading" section and found a wealth of information on trading options. On the other hand, there was scant information about day trading stocks or e-mini futures. I was stunned by this finding. While I write quite a bit about day trading e-mini futures, I very seldom look at the article in the directories. What a surprise to find such a large number of articles about options, and specifically, day trading options.
From the onset, let me say that throughout a 30 year career in trading, I am a very tepid fan of options, at best. Options do have their place in trading though, especially as hedges for positions and the stock market. For reasons I will discuss shortly, I have found them to be unsatisfactory instruments to day trade or to trade it all, for that matter.
Why?
I read several of the articles I referenced above just to make sure that I still understood options as I always have and it seems nothing has changed. The same problems that have plagued option traders for my entire career seem to be in place. Judging by the sheer number of articles, there must be a renewed interest in options as a day trading, or at least a short term trading vehicle. This trend confused me enough that I called one of my friends who is a broker and questioned him about retail traders and options and the problems they faced. He chuckled and explained that they are just as difficult as ever to trade.
Why do I think options are so difficult to trade?
� The potential trader has to pick a specific time he or she thinks the strike price will be in the money.
� The potential trader has to pick a specific price when that he or she thinks will be profitable.
� The potential trader has to work with a number of outside variables (i.e. extrinsic value, intrinsic value, time decay as strike date approaches, to name a few)
� The potential trader has to hold on to the option overnight or for a specified period of time which exposes him or her to market risk.
In short, a good option trader has to pick the time, price, and assume the risk over a period of time in order to be profitable. To a futures scalper, all of these variables represent the type of risk he or she works diligently to avoid.
Most of the articles I read were quite enamored of the leverage that options present to their holders, but the same sort of leverage can be achieved with much higher potential profits and the futures market. In the futures market, we do not hold trades overnight and most trades last around 15 minutes. This short holding period and greatly reduces the risks described above.
Day trading futures involves shorter holding periods, high leverage like options, and rapid movement in which to make trades. Obviously, a futures day trader doesn't have to look very far into the future to make his or her decisions. Generally speaking, our investment horizon is around 15 minutes. With such a short investment horizon, day trading e-mini futures takes a good deal of the risk of predicting the direction of a potential trade out of the picture. The same cannot be said for options.
There are some very good option traders out there, but they generally are highly experienced traders and have a very narrow focus in the methodology they employ in trading. As a futures trader, I don't have to spend hours searching for potential trades that meet the algorithmic criterion even day trading options require.
In summary, I have written some about the problems with trading options as opposed to scalping futures contracts. It is my belief that those problems in options are substantial enough to disqualify them from my trading preferences. There are simply too many other excellent trading opportunities out there that carry lesser risk.
Real Live Trading Doesn't Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by [http://www.learn-to-trade-and-invest.com/]clicking here.
Article Source: [http://EzineArticles.com/?Should-I-Trade-Options-or-E-Mini-Futures?&id=7651523] Should I Trade Options or E-Mini Futures?
By [http://ezinearticles.com/?expert=David_S._Adams]David S. Adams
I was looking over several of the article directories in the "day trading" section and found a wealth of information on trading options. On the other hand, there was scant information about day trading stocks or e-mini futures. I was stunned by this finding. While I write quite a bit about day trading e-mini futures, I very seldom look at the article in the directories. What a surprise to find such a large number of articles about options, and specifically, day trading options.
From the onset, let me say that throughout a 30 year career in trading, I am a very tepid fan of options, at best. Options do have their place in trading though, especially as hedges for positions and the stock market. For reasons I will discuss shortly, I have found them to be unsatisfactory instruments to day trade or to trade it all, for that matter.
Why?
I read several of the articles I referenced above just to make sure that I still understood options as I always have and it seems nothing has changed. The same problems that have plagued option traders for my entire career seem to be in place. Judging by the sheer number of articles, there must be a renewed interest in options as a day trading, or at least a short term trading vehicle. This trend confused me enough that I called one of my friends who is a broker and questioned him about retail traders and options and the problems they faced. He chuckled and explained that they are just as difficult as ever to trade.
Why do I think options are so difficult to trade?
� The potential trader has to pick a specific time he or she thinks the strike price will be in the money.
� The potential trader has to pick a specific price when that he or she thinks will be profitable.
� The potential trader has to work with a number of outside variables (i.e. extrinsic value, intrinsic value, time decay as strike date approaches, to name a few)
� The potential trader has to hold on to the option overnight or for a specified period of time which exposes him or her to market risk.
In short, a good option trader has to pick the time, price, and assume the risk over a period of time in order to be profitable. To a futures scalper, all of these variables represent the type of risk he or she works diligently to avoid.
Most of the articles I read were quite enamored of the leverage that options present to their holders, but the same sort of leverage can be achieved with much higher potential profits and the futures market. In the futures market, we do not hold trades overnight and most trades last around 15 minutes. This short holding period and greatly reduces the risks described above.
Day trading futures involves shorter holding periods, high leverage like options, and rapid movement in which to make trades. Obviously, a futures day trader doesn't have to look very far into the future to make his or her decisions. Generally speaking, our investment horizon is around 15 minutes. With such a short investment horizon, day trading e-mini futures takes a good deal of the risk of predicting the direction of a potential trade out of the picture. The same cannot be said for options.
There are some very good option traders out there, but they generally are highly experienced traders and have a very narrow focus in the methodology they employ in trading. As a futures trader, I don't have to spend hours searching for potential trades that meet the algorithmic criterion even day trading options require.
In summary, I have written some about the problems with trading options as opposed to scalping futures contracts. It is my belief that those problems in options are substantial enough to disqualify them from my trading preferences. There are simply too many other excellent trading opportunities out there that carry lesser risk.
Real Live Trading Doesn't Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by [http://www.learn-to-trade-and-invest.com/]clicking here.
Article Source: [http://EzineArticles.com/?Should-I-Trade-Options-or-E-Mini-Futures?&id=7651523] Should I Trade Options or E-Mini Futures?
Making Investments in Futures and Options
Making Investments in Futures and Options
By [http://ezinearticles.com/?expert=David_Rivera]David Rivera
Individuals who are thinking of making investments in futures and options have to learn some important concepts as these entails a series of trading positions. They will have to make consecutive trading moves one after the other as trading futures or trading options involve expiration dates. Traders need to close their positions at it expires and they also have to open new ones that they can hold for a longer time. Traders do not actually trade the physical products or underlying assets per se but they make use of financial instruments such as contracts that stipulate details of the agreements.
The underlying securities or assets are traded at a premium. Traders do not have to put up the entire value of the asset but they only have to pay for it at a fraction of the set price. The value of the premium decreases over time especially when it is near its expiration. Traders may have the chance to make use of leverage but they also have to take the risks that go with it because of market volatility. This may come in the form of the differences between the prices of the underlying assets over a specified time frame.
Individuals may succeed in their futures and options investments if they can manage their financial resources properly and if they can stick to their strategies in minimizing the degree of risk that they are taking. Traders for example may keep their losses at less than 2% of their total diversified investments. Their ability to control their money and their investments despite the volatility of the market will help them become more confident in their trading. Trading futures and options may not be that easy because of the premium that traders have to pay for coupled with the market price of the assets. Beginners may start with mini-contracts first especially when they are still learning how to control the risks involved in trading.
New traders will also have to follow the trend whether the market moves up or down. They also have to know how they can go about hedge trading if they would like to purchase or sell of a put option or a call option. Aside from these concepts, starters need to be familiar with the terms used in analyzing the market. They need to apply concepts such as statistical probability which will help them determine whether they are going to deal with bull market moves or with bear market moves.
There are many ways to trade futures options. You can use different techniques that combine commodity options together to trade with little risk. Professional traders always think about limiting their risk. Whether you trade options or not, you should always set loss limits. Learn more at http://www.deltaneutraltrading.com/optin/ezines.html
Article Source: [http://EzineArticles.com/?Making-Investments-in-Futures-and-Options&id=7637668] Making Investments in Futures and Options
By [http://ezinearticles.com/?expert=David_Rivera]David Rivera
Individuals who are thinking of making investments in futures and options have to learn some important concepts as these entails a series of trading positions. They will have to make consecutive trading moves one after the other as trading futures or trading options involve expiration dates. Traders need to close their positions at it expires and they also have to open new ones that they can hold for a longer time. Traders do not actually trade the physical products or underlying assets per se but they make use of financial instruments such as contracts that stipulate details of the agreements.
The underlying securities or assets are traded at a premium. Traders do not have to put up the entire value of the asset but they only have to pay for it at a fraction of the set price. The value of the premium decreases over time especially when it is near its expiration. Traders may have the chance to make use of leverage but they also have to take the risks that go with it because of market volatility. This may come in the form of the differences between the prices of the underlying assets over a specified time frame.
Individuals may succeed in their futures and options investments if they can manage their financial resources properly and if they can stick to their strategies in minimizing the degree of risk that they are taking. Traders for example may keep their losses at less than 2% of their total diversified investments. Their ability to control their money and their investments despite the volatility of the market will help them become more confident in their trading. Trading futures and options may not be that easy because of the premium that traders have to pay for coupled with the market price of the assets. Beginners may start with mini-contracts first especially when they are still learning how to control the risks involved in trading.
New traders will also have to follow the trend whether the market moves up or down. They also have to know how they can go about hedge trading if they would like to purchase or sell of a put option or a call option. Aside from these concepts, starters need to be familiar with the terms used in analyzing the market. They need to apply concepts such as statistical probability which will help them determine whether they are going to deal with bull market moves or with bear market moves.
There are many ways to trade futures options. You can use different techniques that combine commodity options together to trade with little risk. Professional traders always think about limiting their risk. Whether you trade options or not, you should always set loss limits. Learn more at http://www.deltaneutraltrading.com/optin/ezines.html
Article Source: [http://EzineArticles.com/?Making-Investments-in-Futures-and-Options&id=7637668] Making Investments in Futures and Options
Guide to Options Trading for Beginners
Guide to Options Trading for Beginners
By [http://ezinearticles.com/?expert=David_Rivera]David Rivera
Options are considered as derivatives as these financial transactions are based on the value of assets or underlying securities. Unlike stocks, options expire on specific dates and they have no specified fixed number when it comes to its availability. Most people may not really understand how options work but some of them have been using it in their trading business. Beginners have to understand that there are two types of options that they can work on. The first one is the call option where they can buy a stock for example at a given price before a specified date for example. This may likened to buying security deposits.
Traders pay for the option premium when they buy call options. This payment gives them the right to buy the underlying asset at a pre-determined strike price in the future. Traders may not actually buy the stock for example because they are not obliged to do so but in the process, they will have lost money in terms of the option premium if they simply wait for it to expire. The second type of option that they can transact with is called the put option. Traders can sell the underlying asset at a price agreed and at a specified date. Put options in this case may be likened to insurance policies.
Traders can exercise their put option and they can sell the asset at an insured price. In case the price of the underlying asset goes up, they do not need to exercise their put option and their only cost incurred is the premium. The call and the put options are used by traders in order to lessen the risk that they are taking. Those who buy options are given the right to exercise. Traders who would like to exercise their call option may buy the underlying security at the given strike price and those who would like to exercise their put option may sell it at the price agreed upon.
Although call and put traders are given the right to buy or to sell, they are not obliged to do so. They may decide to exercise their rights depending on their analysis of the market. There are different ways for traders to liquidate their options aside from exercising their right. They may liquidate through closing a buy or a sell or they may simply opt for abandonment. Traders may choose to abandon their options in case the premium that is left is lesser than the cost of liquidating it.
There are many ways to trade futures options. You can use different techniques that combine trading futures options together to trade with little risk. Professional traders always think about limiting their risk. Whether you trade options or not, you should always set loss limits. Learn more at http://www.deltaneutraltrading.com/optin/ezines.html
Article Source: [http://EzineArticles.com/?Guide-to-Options-Trading-for-Beginners&id=7574710] Guide to Options Trading for Beginners
By [http://ezinearticles.com/?expert=David_Rivera]David Rivera
Options are considered as derivatives as these financial transactions are based on the value of assets or underlying securities. Unlike stocks, options expire on specific dates and they have no specified fixed number when it comes to its availability. Most people may not really understand how options work but some of them have been using it in their trading business. Beginners have to understand that there are two types of options that they can work on. The first one is the call option where they can buy a stock for example at a given price before a specified date for example. This may likened to buying security deposits.
Traders pay for the option premium when they buy call options. This payment gives them the right to buy the underlying asset at a pre-determined strike price in the future. Traders may not actually buy the stock for example because they are not obliged to do so but in the process, they will have lost money in terms of the option premium if they simply wait for it to expire. The second type of option that they can transact with is called the put option. Traders can sell the underlying asset at a price agreed and at a specified date. Put options in this case may be likened to insurance policies.
Traders can exercise their put option and they can sell the asset at an insured price. In case the price of the underlying asset goes up, they do not need to exercise their put option and their only cost incurred is the premium. The call and the put options are used by traders in order to lessen the risk that they are taking. Those who buy options are given the right to exercise. Traders who would like to exercise their call option may buy the underlying security at the given strike price and those who would like to exercise their put option may sell it at the price agreed upon.
Although call and put traders are given the right to buy or to sell, they are not obliged to do so. They may decide to exercise their rights depending on their analysis of the market. There are different ways for traders to liquidate their options aside from exercising their right. They may liquidate through closing a buy or a sell or they may simply opt for abandonment. Traders may choose to abandon their options in case the premium that is left is lesser than the cost of liquidating it.
There are many ways to trade futures options. You can use different techniques that combine trading futures options together to trade with little risk. Professional traders always think about limiting their risk. Whether you trade options or not, you should always set loss limits. Learn more at http://www.deltaneutraltrading.com/optin/ezines.html
Article Source: [http://EzineArticles.com/?Guide-to-Options-Trading-for-Beginners&id=7574710] Guide to Options Trading for Beginners
Friday, April 12, 2013
Why Silver Prices Continue to Rise
Why Silver Prices Continue to Rise
By [http://ezinearticles.com/?expert=Mark_W._Medley]Mark W. Medley
By the end of 2010, the price of silver had increased by an incredible 70% in the space of four months, and global investors are bullish about the price of silver reaching new highs in 2011/2012. Why is silver becoming a much sought after precious metal?
When the bank of China announced that ordinary Chinese should invest in silver, as an option to gold. Unveiling newly minted bars and coins with a fanfare fire cracker display, on state television. Investors around the world woke up to the fact silver was on the way up.
At the same time ordinary Chinese citizens were public ally encouraged to go to their bank and trade their dollars's into mini silver bars, and coins. In India silver traders were seeing a slow switch from gold to silver by ordinary Indians in the bazaars.
Silver values on global markets jumped up to its highest in 31 years, as China, the Worlds forth highest producer of this precious metal, announced no more silver was going to be exported. Whilst experts admitted there was a global shortage of silver.
Shortages create higher prices, and the fact that nations still holding US dollar bills, fear that quantitative easing (printing money) by the US treasury is continuing to devalue the greenback. Gold, Silver and other precious metals can be bought with these extra dollars, and in turn ensure no future dollar losses in the future, as the sale of silver can be made in a local currency.
De-coupling from the greenback has been a gradual process since the 2008 market crash, and involves a continued process of buying assets with these extra dollars. This seems to be the strategy of China, and much of the developed World. But there is another reason why silver prices are rising. Silver is needed in a wide range of Industrial products, as well as for Jewellery products such as rings and bracelets. A shortage of silver is simply driving the price up.
High gold prices are also reason silver is becoming a more valuable precious metal. In many countries, people tend to buy gold as an investment, especially jewellery. Since there is less trust in the US dollar, and the Euro, consumers seeing high gold prices, are now opting for silver.
The Chinese investor, Indian housewife and global manufactures, are the three main reasons silver could be the new gold for the next few years. And this trend also helps less developed countries which suffered because of a formerly artificially low silver price.
Silver can be freely traded through most national banks, or coin shops. Online users can purchase silver coins and mini-bars through eBay, and a wide range of silver stores. Silver coins like the American Eagle or Kennedy dollar, also make great gifts, and aid local businesses who sell them.
Discover how to [http://www.amazon.com/Adjusting-Change-Economic-Crisis-Towards/dp/1456379968]Adjust to economic change.
Article Source: [http://EzineArticles.com/?Why-Silver-Prices-Continue-to-Rise&id=5614169] Why Silver Prices Continue to Rise
By [http://ezinearticles.com/?expert=Mark_W._Medley]Mark W. Medley
By the end of 2010, the price of silver had increased by an incredible 70% in the space of four months, and global investors are bullish about the price of silver reaching new highs in 2011/2012. Why is silver becoming a much sought after precious metal?
When the bank of China announced that ordinary Chinese should invest in silver, as an option to gold. Unveiling newly minted bars and coins with a fanfare fire cracker display, on state television. Investors around the world woke up to the fact silver was on the way up.
At the same time ordinary Chinese citizens were public ally encouraged to go to their bank and trade their dollars's into mini silver bars, and coins. In India silver traders were seeing a slow switch from gold to silver by ordinary Indians in the bazaars.
Silver values on global markets jumped up to its highest in 31 years, as China, the Worlds forth highest producer of this precious metal, announced no more silver was going to be exported. Whilst experts admitted there was a global shortage of silver.
Shortages create higher prices, and the fact that nations still holding US dollar bills, fear that quantitative easing (printing money) by the US treasury is continuing to devalue the greenback. Gold, Silver and other precious metals can be bought with these extra dollars, and in turn ensure no future dollar losses in the future, as the sale of silver can be made in a local currency.
De-coupling from the greenback has been a gradual process since the 2008 market crash, and involves a continued process of buying assets with these extra dollars. This seems to be the strategy of China, and much of the developed World. But there is another reason why silver prices are rising. Silver is needed in a wide range of Industrial products, as well as for Jewellery products such as rings and bracelets. A shortage of silver is simply driving the price up.
High gold prices are also reason silver is becoming a more valuable precious metal. In many countries, people tend to buy gold as an investment, especially jewellery. Since there is less trust in the US dollar, and the Euro, consumers seeing high gold prices, are now opting for silver.
The Chinese investor, Indian housewife and global manufactures, are the three main reasons silver could be the new gold for the next few years. And this trend also helps less developed countries which suffered because of a formerly artificially low silver price.
Silver can be freely traded through most national banks, or coin shops. Online users can purchase silver coins and mini-bars through eBay, and a wide range of silver stores. Silver coins like the American Eagle or Kennedy dollar, also make great gifts, and aid local businesses who sell them.
Discover how to [http://www.amazon.com/Adjusting-Change-Economic-Crisis-Towards/dp/1456379968]Adjust to economic change.
Article Source: [http://EzineArticles.com/?Why-Silver-Prices-Continue-to-Rise&id=5614169] Why Silver Prices Continue to Rise
Tips for Silver Coin Investments
Tips for Silver Coin Investments
By [http://ezinearticles.com/?expert=Kyles_Humphrey]Kyles Humphrey
Investing your money in silver coins or gold bullions always retains its value far much better than any other investment type no matter how strong the or weak the economy is. Considering this, people have again started parking their money in precious metals more beneficial and less risky than those done in other means of investments because of today's weak economy. If you are planning to invest your money in silver coins, consult the experts of the industry, follow their advice and do some research on your own. This will help you have a fair idea of latest silver prices, pros and cons of investment in silver coins and avoid risks, bad investments as well. This will eventually get you better outputs and financial returns. Here are few tips that will trigger your research for smarter investments in silver coins:
* A Wise Choice of Coins:
Silver coins come in varied types.
Each type of silver coin has different melt value. Do not jump to blocking your money in investments done in the very first type of silver coins you come across. Before investing, examine deeply and compare all types of silver coins and then choose the one that matches your criteria of qualities.
* Junk Silver in Collection:
Old coins are called as Junk silver. Do not trash them out or dismiss the old coins you already have. These ancient coins contain a countable amount of silver and other metals as well.
* Getting into the Business:
If serious business is what your mind is occupied with, always buy proof coins and not the uncirculated coins. Proof coins are generally wrapped with plastic sheets to keep them intact and scratch-free. Uncirculated coins may have some other marks or to the worst, may be damaged which reduces the value of a coin and eventually the silver price that you will be getting. Collecting old coins is another way if you do not wish to put much amount of money as business capital. If you do not wish to put money of your pocket, start collecting old coins, visit collectors shops where you'll get a chance to buy old coins at bargain prices.
Investment in silver is one of the best options especially in the time of economic havoc. As a result of rising inflation, the prices of all commodities have touched a great height in order to cover the costs of the government debt. In such inflated economy, investing in a commodity like silver is a very valuable step. Investors always look forward to purchase silver coins because these coins can offer much worth and returns.
The author is a knowledgeable journalist in silver market, mining & stocks, who frequently writes articles related to silver prices, silver spot price including tips on investment in silver. Please visit [http://silverprices.com]silverprices.com for more details.
Article Source: [http://EzineArticles.com/?Tips-for-Silver-Coin-Investments&id=6473024] Tips for Silver Coin Investments
By [http://ezinearticles.com/?expert=Kyles_Humphrey]Kyles Humphrey
Investing your money in silver coins or gold bullions always retains its value far much better than any other investment type no matter how strong the or weak the economy is. Considering this, people have again started parking their money in precious metals more beneficial and less risky than those done in other means of investments because of today's weak economy. If you are planning to invest your money in silver coins, consult the experts of the industry, follow their advice and do some research on your own. This will help you have a fair idea of latest silver prices, pros and cons of investment in silver coins and avoid risks, bad investments as well. This will eventually get you better outputs and financial returns. Here are few tips that will trigger your research for smarter investments in silver coins:
* A Wise Choice of Coins:
Silver coins come in varied types.
Each type of silver coin has different melt value. Do not jump to blocking your money in investments done in the very first type of silver coins you come across. Before investing, examine deeply and compare all types of silver coins and then choose the one that matches your criteria of qualities.
* Junk Silver in Collection:
Old coins are called as Junk silver. Do not trash them out or dismiss the old coins you already have. These ancient coins contain a countable amount of silver and other metals as well.
* Getting into the Business:
If serious business is what your mind is occupied with, always buy proof coins and not the uncirculated coins. Proof coins are generally wrapped with plastic sheets to keep them intact and scratch-free. Uncirculated coins may have some other marks or to the worst, may be damaged which reduces the value of a coin and eventually the silver price that you will be getting. Collecting old coins is another way if you do not wish to put much amount of money as business capital. If you do not wish to put money of your pocket, start collecting old coins, visit collectors shops where you'll get a chance to buy old coins at bargain prices.
Investment in silver is one of the best options especially in the time of economic havoc. As a result of rising inflation, the prices of all commodities have touched a great height in order to cover the costs of the government debt. In such inflated economy, investing in a commodity like silver is a very valuable step. Investors always look forward to purchase silver coins because these coins can offer much worth and returns.
The author is a knowledgeable journalist in silver market, mining & stocks, who frequently writes articles related to silver prices, silver spot price including tips on investment in silver. Please visit [http://silverprices.com]silverprices.com for more details.
Article Source: [http://EzineArticles.com/?Tips-for-Silver-Coin-Investments&id=6473024] Tips for Silver Coin Investments
Junk Silver Coins - A Timely Investment
Junk Silver Coins - A Timely Investment
By [http://ezinearticles.com/?expert=Steven_D_Chambers]Steven D Chambers
So what is junk silver and what makes a coin a "Junk Silver coin"? It's really very simple. Junk silver is an informal way of referring to coins with no numismatic value, a fancy way of saying that coin collectors have no special interest in these particular coins, but that have a value based on their metallic composition. Prior to 1965 in the United States the dime, quarter and half dollar (50 cent piece) were composed of 90% Silver and 10% copper. Silver, being a precious metal, gave these coins an intrinsic value equal to the value of the silver the coins contain. Because silver prices have increased significantly since the coins were minted the actual value of the coin far exceeds the coin's face value. In fact, the Coinage Act of 1965, which ended silver coinage in the United States, was passed because people were hoarding the high value silver coins, causing a shortage of coinage. From the passage of this act in 1965 US coins have consisted of copper with a silvery alloy giving the coins a similar appearance to the silver coins, but having little intrinsic value.
Junk silver coins have a place in your investment portfolio, especially in these economically uncertain times. In times of economic uncertainty people have traditionally turned to gold and silver coins to preserve their wealth. It's no different today. Gold and silver prices are surging because people are learning they can no longer trust the dollar and other fiat currencies. Since silver coins have an intrinsic value based on the actual worth of the material in the coin, not on the promises and guarantees of politicians, they tend to be worth more over time, unlike the US dollar which has lost 95% of its value over the last 100 years. If you want to preserve your wealth, it only makes sense to begin placing a portion of your wealth in precious metals, which is where junk silver coins fit in.
Deciding to invest in precious metals is the first step. The second and more critical step is to actually do it. You can of course simply buy silver through a mutual fund or exchange traded fund on the stock market but you can never really be sure you're buying actual silver. You may simply be buying a promise of silver and not the actual metal. Because of this it's best to start your silver and gold investing with coins. When you have a coin in your possession you know you actually own the precious metal. In fact, owning some physical silver and physical gold is an essential part of your precious metal investments.
For most of us the easiest way to get started investing in precious metals is to picking up a few junk silver coins either online or at a coin shops and stashing them away. Do this on a regular basis and pretty soon you'll have a nice financial reserve built up that you can rely upon. You'll find that because junk silver coins are plentiful, relatively inexpensive and easy to find they are a great way to get started. Unlike gold coins, with have a high value to weight ratio, silver coins are relatively cheap. The current spot price for an ounce of gold is roughly $1200.00 while an ounce of silver costs less than $20. Since you can start your silver investing with a single coin you can literally get started for less than $5.00.
So the time to get started investing in junk silver coins is now, before silver prices start to increase. The best place to start looking for coins is either a local coin dealer or by looking online. Simply typing in the words, "junk silver" into an Internet search engine will provide you with plenty of coin dealers and private parties who will sell you junk silver coins. eBay is another good option to explore. My guess is that you'll find investing in junk silver coins addictive because it not only helps you build a financial nest egg that will preserve and grow your wealth, it's also a lot of fun.
Steve Chambers is a long time precious metal investor who believes everyone needs to hold a portion of their wealth in the form of silver and gold coins. His website, http://www.junksilveronline.com has resources and information on investing in silver, specifically junk silver coins. In these turbulent economic times characterized by high unemployment, uncontrollable government spending and a massive increase in the money supply everyone needs to add precious metals to their portfolio. Junk silver coins is how you get started.
Article Source: [http://EzineArticles.com/?Junk-Silver-Coins---A-Timely-Investment&id=4386179] Junk Silver Coins - A Timely Investment
By [http://ezinearticles.com/?expert=Steven_D_Chambers]Steven D Chambers
So what is junk silver and what makes a coin a "Junk Silver coin"? It's really very simple. Junk silver is an informal way of referring to coins with no numismatic value, a fancy way of saying that coin collectors have no special interest in these particular coins, but that have a value based on their metallic composition. Prior to 1965 in the United States the dime, quarter and half dollar (50 cent piece) were composed of 90% Silver and 10% copper. Silver, being a precious metal, gave these coins an intrinsic value equal to the value of the silver the coins contain. Because silver prices have increased significantly since the coins were minted the actual value of the coin far exceeds the coin's face value. In fact, the Coinage Act of 1965, which ended silver coinage in the United States, was passed because people were hoarding the high value silver coins, causing a shortage of coinage. From the passage of this act in 1965 US coins have consisted of copper with a silvery alloy giving the coins a similar appearance to the silver coins, but having little intrinsic value.
Junk silver coins have a place in your investment portfolio, especially in these economically uncertain times. In times of economic uncertainty people have traditionally turned to gold and silver coins to preserve their wealth. It's no different today. Gold and silver prices are surging because people are learning they can no longer trust the dollar and other fiat currencies. Since silver coins have an intrinsic value based on the actual worth of the material in the coin, not on the promises and guarantees of politicians, they tend to be worth more over time, unlike the US dollar which has lost 95% of its value over the last 100 years. If you want to preserve your wealth, it only makes sense to begin placing a portion of your wealth in precious metals, which is where junk silver coins fit in.
Deciding to invest in precious metals is the first step. The second and more critical step is to actually do it. You can of course simply buy silver through a mutual fund or exchange traded fund on the stock market but you can never really be sure you're buying actual silver. You may simply be buying a promise of silver and not the actual metal. Because of this it's best to start your silver and gold investing with coins. When you have a coin in your possession you know you actually own the precious metal. In fact, owning some physical silver and physical gold is an essential part of your precious metal investments.
For most of us the easiest way to get started investing in precious metals is to picking up a few junk silver coins either online or at a coin shops and stashing them away. Do this on a regular basis and pretty soon you'll have a nice financial reserve built up that you can rely upon. You'll find that because junk silver coins are plentiful, relatively inexpensive and easy to find they are a great way to get started. Unlike gold coins, with have a high value to weight ratio, silver coins are relatively cheap. The current spot price for an ounce of gold is roughly $1200.00 while an ounce of silver costs less than $20. Since you can start your silver investing with a single coin you can literally get started for less than $5.00.
So the time to get started investing in junk silver coins is now, before silver prices start to increase. The best place to start looking for coins is either a local coin dealer or by looking online. Simply typing in the words, "junk silver" into an Internet search engine will provide you with plenty of coin dealers and private parties who will sell you junk silver coins. eBay is another good option to explore. My guess is that you'll find investing in junk silver coins addictive because it not only helps you build a financial nest egg that will preserve and grow your wealth, it's also a lot of fun.
Steve Chambers is a long time precious metal investor who believes everyone needs to hold a portion of their wealth in the form of silver and gold coins. His website, http://www.junksilveronline.com has resources and information on investing in silver, specifically junk silver coins. In these turbulent economic times characterized by high unemployment, uncontrollable government spending and a massive increase in the money supply everyone needs to add precious metals to their portfolio. Junk silver coins is how you get started.
Article Source: [http://EzineArticles.com/?Junk-Silver-Coins---A-Timely-Investment&id=4386179] Junk Silver Coins - A Timely Investment
Tips on Buying Silver: The "Poor Man's Gold"
Tips on Buying Silver: The "Poor Man's Gold"
By [http://ezinearticles.com/?expert=Steve_A_McCurdy]Steve A McCurdy
A prominent silver analyst recently stated that he thinks that at its current price, silver is the most undervalued commodity in history, but here are some things prospective silver investors might not know.
Buying and Storing Physical Silver
You can buy silver bullion bars and coins from many qualified dealers both in the U. S. and abroad. By "qualified" we mean dealers who offer defined buyback programs and secured storage options along with your purchases. Two popular dealers are American Precious Metals Exchange and KITCO in Canada. Both feature great selections, competitive pricing, quick delivery (if you choose), and excellent buyback policies, along with secure storage options. Bullion silver bars and coins are.9999 pure silver and trade at modest premiums to their intrinsic (or melt) values. You can also purchase what is known as "junk" silver, which means United States silver coins minted prior to 1965 (1970 for the Kennedy Half Dollar). Junk silver coins contain 90% silver and 10% copper, and are generally sold in random denominations in different sized "bags." Premiums over melt value can vary greatly among dealers, so you should shop carefully. Some dealers also offer uncirculated US silver coins, but these coins have numismatic value and so are universally sold at higher premiums over their intrinsic value.
Advantages/Disadvantages of Silver over Gold
Many anticipate a collapse of the dollar as the U.S. unit of currency at some future point. Fiat currencies (those based only upon faith) have never stood the test of time, and history is replete with almost 4,000 examples of failed fiat currencies. If and when the dollar ultimately fails there will almost certainly be a period during which silver and gold coins will be used as currency. Silver coins will have more utility than gold as a replacement currency, but gold can be more easily stored. It is not possible to predict the relative future values of gold and silver, but holding some of both metals is probably a wise policy.
Alleged Silver Price Manipulation
Many traders believe silver prices have been artificially suppressed by major money center banks acting in collusion with the Federal Reserve since 2008. The Commodity Futures Trading Commission (CFTC) began investigating charges made by traders against JPMorgan Chase in 2008 after the bank acquired large silver short positions as part of its acquisition of Bear Stearns, and separate federal lawsuits were filed against JPMorgan Chase and HSBC (a large foreign bank) in October, 2010, charging silver market manipulation. The suits alleged that the banks illegally manipulated silver prices by periodically "flooding the market" with sell orders to suppress market rallies. The suits were dismissed in 2011 on grounds that unless and until the CFTC completed its investigation the Courts had no basis for any findings against the Banks. The CFTC investigation remains unresolved today, five years after it began, and as of this date JPMorgan Chase still holds short positions representing over 20% of the entire Comex silver market. Veteran traders believe price suppression continues, but remain confident that demand will ultimately overwhelm the Banks' short positions, and that silver prices will then dramatically spike to their true market values.
Summary
There are many alternatives for buying silver, and decisions to enter the silver market deserve careful thought, planning, and preparation. We hope you will find this information useful if you are contemplating an investment in silver.
Steve McCurdy specializes in investing in precious metals and is a survivalist. You can check his latest website at [http://www.goldsilverandsurvival.com]Gold Silver and Survival, and also read his article [http://www.goldsilverandsurvival.com/?p=137/]Buying Silver.
Article Source: [http://EzineArticles.com/?Tips-on-Buying-Silver:-The-Poor-Mans-Gold&id=7581028] Tips on Buying Silver: The "Poor Man's Gold"
By [http://ezinearticles.com/?expert=Steve_A_McCurdy]Steve A McCurdy
A prominent silver analyst recently stated that he thinks that at its current price, silver is the most undervalued commodity in history, but here are some things prospective silver investors might not know.
Buying and Storing Physical Silver
You can buy silver bullion bars and coins from many qualified dealers both in the U. S. and abroad. By "qualified" we mean dealers who offer defined buyback programs and secured storage options along with your purchases. Two popular dealers are American Precious Metals Exchange and KITCO in Canada. Both feature great selections, competitive pricing, quick delivery (if you choose), and excellent buyback policies, along with secure storage options. Bullion silver bars and coins are.9999 pure silver and trade at modest premiums to their intrinsic (or melt) values. You can also purchase what is known as "junk" silver, which means United States silver coins minted prior to 1965 (1970 for the Kennedy Half Dollar). Junk silver coins contain 90% silver and 10% copper, and are generally sold in random denominations in different sized "bags." Premiums over melt value can vary greatly among dealers, so you should shop carefully. Some dealers also offer uncirculated US silver coins, but these coins have numismatic value and so are universally sold at higher premiums over their intrinsic value.
Advantages/Disadvantages of Silver over Gold
Many anticipate a collapse of the dollar as the U.S. unit of currency at some future point. Fiat currencies (those based only upon faith) have never stood the test of time, and history is replete with almost 4,000 examples of failed fiat currencies. If and when the dollar ultimately fails there will almost certainly be a period during which silver and gold coins will be used as currency. Silver coins will have more utility than gold as a replacement currency, but gold can be more easily stored. It is not possible to predict the relative future values of gold and silver, but holding some of both metals is probably a wise policy.
Alleged Silver Price Manipulation
Many traders believe silver prices have been artificially suppressed by major money center banks acting in collusion with the Federal Reserve since 2008. The Commodity Futures Trading Commission (CFTC) began investigating charges made by traders against JPMorgan Chase in 2008 after the bank acquired large silver short positions as part of its acquisition of Bear Stearns, and separate federal lawsuits were filed against JPMorgan Chase and HSBC (a large foreign bank) in October, 2010, charging silver market manipulation. The suits alleged that the banks illegally manipulated silver prices by periodically "flooding the market" with sell orders to suppress market rallies. The suits were dismissed in 2011 on grounds that unless and until the CFTC completed its investigation the Courts had no basis for any findings against the Banks. The CFTC investigation remains unresolved today, five years after it began, and as of this date JPMorgan Chase still holds short positions representing over 20% of the entire Comex silver market. Veteran traders believe price suppression continues, but remain confident that demand will ultimately overwhelm the Banks' short positions, and that silver prices will then dramatically spike to their true market values.
Summary
There are many alternatives for buying silver, and decisions to enter the silver market deserve careful thought, planning, and preparation. We hope you will find this information useful if you are contemplating an investment in silver.
Steve McCurdy specializes in investing in precious metals and is a survivalist. You can check his latest website at [http://www.goldsilverandsurvival.com]Gold Silver and Survival, and also read his article [http://www.goldsilverandsurvival.com/?p=137/]Buying Silver.
Article Source: [http://EzineArticles.com/?Tips-on-Buying-Silver:-The-Poor-Mans-Gold&id=7581028] Tips on Buying Silver: The "Poor Man's Gold"
Saturday, April 6, 2013
Gold Exchange Traded Fund Schemes
Gold Exchange Traded Fund Schemes
By [http://ezinearticles.com/?expert=Radha_Reddy]Radha Reddy
Gold exchange traded fund schemes are popularly known as Gold ETF. It is a convenient way of buying gold just like you purchase shares from any stock broker. You need to have a demat account and trading account with any stock broker in India to invest or trade in gold exchange traded fund schemes. Minimum buying quantity of purchase or sale will be in multiples of 1 unit. One Unit of Gold ETF is equal to the price of 1 gram of gold in Indian market. The objective of Gold ETF is provide returns on investments similar to domestic gold prices. You can accumulate gold by buying in multiples of just 1 gram.
Important advantages of investing in gold exchange traded fund schemes:
* All purchased units of gold exchange traded fund schemes are credited to demat account directly. So there is no problem of theft, impurity. Also no need of paying locker charges to safeguard investments in gold exchange traded fund schemes. (You many need to pay Annual Maintenance Charges of Demat Account)
* Ease of buying and selling on stock exchange just like shares. Transparency in pricing as they are traded on stock markets. Large investors who wish to buy at least the size of a unit creation size (usually 1Kg) can directly transact with a concerned mutual fund house.
* Highly tax efficient as no need to pay Securities Transaction Tax (STT), Sales Tax, Wealth Tax or VAT on investments in gold exchange traded fund schemes (Gold ETF)
* Uniform price for buying or selling anywhere as these are traded on stock exchanges.
* No premium while buying and discount while selling which is followed by most of the physical gold sellers. Banks and most of the jewelers just sell gold coins or bars but do not buy back them at same price.
* Benefits on long term capital gains.
* Can track the value of investments in real time as the price of Gold ETF is available on stock exchange websites / stock brokers offices in real time.
Points to consider before investing in gold exchange traded fund schemes:
Although investments in gold exchange traded fund schemes is a good option to invest in gold as a proxy investment, some points need to be considered.
- While many mutual funds offer Gold ETF for investment, some are not very liquid and selling or buying in them have high impact cost.
- You must purchase gold in multiples of 1 gram and may not be feasible for small investors who wish to invest small amounts in gold.
- You can only redeem physical gold in multiples of 1Kg from mutual fund house. Any units below 1Kg (1000 Units) need to be sold on stock exchange.
- For Small investors, Annual Maintenance Charges on Demat account might be high. Although no premium need not paid on gold value, still brokerage charges and other applicable taxes need to be paid by the investor.
- Returns on investments in gold exchange traded fund schemes may not exactly match with returns in domestic gold prices as mutual funds do not invest up to 5% of assets for liquidity needs.
Are you an investor who wish to invest a fixed amount every month to accumulate gold for long term needs? Do you find investment in gold exchange traded fund schemes is not a feasible solution?
You can consider investing in Gold Mutual funds through Systematic Investment Plan (SIP). You can start investing with as low as 100 rupees (For most funds it is 500 or 1000). You may like to use rel=nofollow Gold SIP Calculator to find out how much SIP you need to do every month to accumulate required amount of Gold or to calculate how much Gold you accumulate with a fixed monthly SIP
You can see http://teluguinvestor.com/gold-sip-calculator.html to know more about how much sip you may need to accumulate required gold in grams or how much gold you will accumulate with a fixed sip every month.
Article Source: [http://EzineArticles.com/?Gold-Exchange-Traded-Fund-Schemes&id=7520941] Gold Exchange Traded Fund Schemes
By [http://ezinearticles.com/?expert=Radha_Reddy]Radha Reddy
Gold exchange traded fund schemes are popularly known as Gold ETF. It is a convenient way of buying gold just like you purchase shares from any stock broker. You need to have a demat account and trading account with any stock broker in India to invest or trade in gold exchange traded fund schemes. Minimum buying quantity of purchase or sale will be in multiples of 1 unit. One Unit of Gold ETF is equal to the price of 1 gram of gold in Indian market. The objective of Gold ETF is provide returns on investments similar to domestic gold prices. You can accumulate gold by buying in multiples of just 1 gram.
Important advantages of investing in gold exchange traded fund schemes:
* All purchased units of gold exchange traded fund schemes are credited to demat account directly. So there is no problem of theft, impurity. Also no need of paying locker charges to safeguard investments in gold exchange traded fund schemes. (You many need to pay Annual Maintenance Charges of Demat Account)
* Ease of buying and selling on stock exchange just like shares. Transparency in pricing as they are traded on stock markets. Large investors who wish to buy at least the size of a unit creation size (usually 1Kg) can directly transact with a concerned mutual fund house.
* Highly tax efficient as no need to pay Securities Transaction Tax (STT), Sales Tax, Wealth Tax or VAT on investments in gold exchange traded fund schemes (Gold ETF)
* Uniform price for buying or selling anywhere as these are traded on stock exchanges.
* No premium while buying and discount while selling which is followed by most of the physical gold sellers. Banks and most of the jewelers just sell gold coins or bars but do not buy back them at same price.
* Benefits on long term capital gains.
* Can track the value of investments in real time as the price of Gold ETF is available on stock exchange websites / stock brokers offices in real time.
Points to consider before investing in gold exchange traded fund schemes:
Although investments in gold exchange traded fund schemes is a good option to invest in gold as a proxy investment, some points need to be considered.
- While many mutual funds offer Gold ETF for investment, some are not very liquid and selling or buying in them have high impact cost.
- You must purchase gold in multiples of 1 gram and may not be feasible for small investors who wish to invest small amounts in gold.
- You can only redeem physical gold in multiples of 1Kg from mutual fund house. Any units below 1Kg (1000 Units) need to be sold on stock exchange.
- For Small investors, Annual Maintenance Charges on Demat account might be high. Although no premium need not paid on gold value, still brokerage charges and other applicable taxes need to be paid by the investor.
- Returns on investments in gold exchange traded fund schemes may not exactly match with returns in domestic gold prices as mutual funds do not invest up to 5% of assets for liquidity needs.
Are you an investor who wish to invest a fixed amount every month to accumulate gold for long term needs? Do you find investment in gold exchange traded fund schemes is not a feasible solution?
You can consider investing in Gold Mutual funds through Systematic Investment Plan (SIP). You can start investing with as low as 100 rupees (For most funds it is 500 or 1000). You may like to use rel=nofollow Gold SIP Calculator to find out how much SIP you need to do every month to accumulate required amount of Gold or to calculate how much Gold you accumulate with a fixed monthly SIP
You can see http://teluguinvestor.com/gold-sip-calculator.html to know more about how much sip you may need to accumulate required gold in grams or how much gold you will accumulate with a fixed sip every month.
Article Source: [http://EzineArticles.com/?Gold-Exchange-Traded-Fund-Schemes&id=7520941] Gold Exchange Traded Fund Schemes
How Investing In Gold Protects Your Money
How Investing In Gold Protects Your Money
By [http://ezinearticles.com/?expert=Joe_Robichaud]Joe Robichaud
Investing in gold is a great way to protect your money and build wealth. Investors are flocking to gold like never before and putting their trust in this monetary metal. Gold is unique in that it is one of the rare precious metals whose value is recognized worldwide. Gold is viewed as money in any area of the world. Gold has maintained its long term value as an in demand commodity and remains a smart long term investment. There are many benefits that investing in gold provides to savvy investors.
One of the many reasons that gold is so popular is because it acts as a hedge against inflation. The price of gold is determined primarily by inflation and the fluctuation of the U.S. dollar. This means that as inflation goes up, so does the price of gold go up in response. It is worth noting that due to fluctuations in inflation, the price of gold can be volatile in the short term. Some investors might not see the returns they want if they are only seeking high and quick returns. Gold does not provide dividends or interest like most traditional investments. However, gold has impressively retained its purchasing power and value over longer periods of time.
Gold is a valuable asset at any time that offers virtually inflation proof returns. Gold investors also benefit because gold also acts as a hedge against a declining U.S. dollar. Current economic conditions have mandated a decline in the value of the dollar. Still, gold that is bought and sold in U.S. dollars continues to rise in price while the value of the dollar goes down.
Gold has the additional benefit of performing as a safe haven investment during times of economic crisis. Historically, gold has consistently outperformed other investments during unpredictable periods of fiscal unrest. Even during times of economic failures, the unique value of gold cause it to continue to be a sound investment.
The world's current gold supply has been stable for quite some time. Low levels of gold are added to the world supply each year through worldwide mining efforts. A stable gold supply is good because it also protects against inflation. Gold is also an excellent way to diversify an investor's investment portfolio. Diversification often improves overall portfolio performance and is a great way to protect your wealth. Gold is negatively correlated to most stocks which is key to an effective and diverse portfolio.
No matter how you look at it, gold is an effective and stable investment. It will help you balance your portfolio and protect your wealth now and for the future.
Did you know that some of the world's savviest billionaires hold a significant amount of their net worth in [http://www.goldirainvestinghq.com/start-gold-ira/]gold? Find out what they know that others don't by going to [http://www.goldirainvestinghq.com]Gold IRA Investing HQ.
Article Source: [http://EzineArticles.com/?How-Investing-In-Gold-Protects-Your-Money&id=7539251] How Investing In Gold Protects Your Money
By [http://ezinearticles.com/?expert=Joe_Robichaud]Joe Robichaud
Investing in gold is a great way to protect your money and build wealth. Investors are flocking to gold like never before and putting their trust in this monetary metal. Gold is unique in that it is one of the rare precious metals whose value is recognized worldwide. Gold is viewed as money in any area of the world. Gold has maintained its long term value as an in demand commodity and remains a smart long term investment. There are many benefits that investing in gold provides to savvy investors.
One of the many reasons that gold is so popular is because it acts as a hedge against inflation. The price of gold is determined primarily by inflation and the fluctuation of the U.S. dollar. This means that as inflation goes up, so does the price of gold go up in response. It is worth noting that due to fluctuations in inflation, the price of gold can be volatile in the short term. Some investors might not see the returns they want if they are only seeking high and quick returns. Gold does not provide dividends or interest like most traditional investments. However, gold has impressively retained its purchasing power and value over longer periods of time.
Gold is a valuable asset at any time that offers virtually inflation proof returns. Gold investors also benefit because gold also acts as a hedge against a declining U.S. dollar. Current economic conditions have mandated a decline in the value of the dollar. Still, gold that is bought and sold in U.S. dollars continues to rise in price while the value of the dollar goes down.
Gold has the additional benefit of performing as a safe haven investment during times of economic crisis. Historically, gold has consistently outperformed other investments during unpredictable periods of fiscal unrest. Even during times of economic failures, the unique value of gold cause it to continue to be a sound investment.
The world's current gold supply has been stable for quite some time. Low levels of gold are added to the world supply each year through worldwide mining efforts. A stable gold supply is good because it also protects against inflation. Gold is also an excellent way to diversify an investor's investment portfolio. Diversification often improves overall portfolio performance and is a great way to protect your wealth. Gold is negatively correlated to most stocks which is key to an effective and diverse portfolio.
No matter how you look at it, gold is an effective and stable investment. It will help you balance your portfolio and protect your wealth now and for the future.
Did you know that some of the world's savviest billionaires hold a significant amount of their net worth in [http://www.goldirainvestinghq.com/start-gold-ira/]gold? Find out what they know that others don't by going to [http://www.goldirainvestinghq.com]Gold IRA Investing HQ.
Article Source: [http://EzineArticles.com/?How-Investing-In-Gold-Protects-Your-Money&id=7539251] How Investing In Gold Protects Your Money
Most Popular Ways To Invest In Gold
Most Popular Ways To Invest In Gold
By [http://ezinearticles.com/?expert=Anthony_Bertucci]Anthony Bertucci
There are currently 9 known precious metals but only Gold, silver, platinum, and palladium are considered investment commodities. Of the 4 gold is definitely the most popular among investors and for good reason. Gold is known world wide since its really the original currency, in fact paper currency was originally simply a promise to pay the bearer in gold. These days investing in gold is a popular way of protecting ones assets against recessions and even national and international crises. Lets face it if the world started over tomorrow after a major catastrophe and there was only 1 society gold would be the common currency as it was up until the 1800s. Below is a list and brief description of the most popular ways to add gold investments to your portfolio.
Buying gold coins is currently the most popular way of investing in gold. Gold bullion coins are generally priced based on their weight HOWEVER a premium is always added to the current price of gold. Gold coins may be bought or sold over the counter in most Swiss banks, also by special order is many other banks. You can also buy over the internet or from local coin dealers.
Buying gold bullion bars is the most traditional way of investing in gold and as with Gold coins they can be purchased or sold over the counter in most Swiss banks, also by special order is many other banks worldwide. You can also buy over the internet or from local dealers in most cases. Gold bars are becoming less popular option for investors because of difficulties such as the verification process, transportation, and storage associated with owning gold bars. They still are my personal favorite and tend to have less of a premium then gold coins.
With a gold account, gold can be bought or sold in a very similar way that foreign currencies are traded. A gold account is backed either through NON fungible (allocated) gold storage or pooled (unallocated) storage. You may even able to get leverage when buying gold however this can be risky but like anything else gold does go up and down, if you take to much leverage you may end up having to pay more money on a margin call or risk having your gold sold at a loss to you. If you use leverage you should treat the entire amount as the investment not only what you put up just in case gold happens to go through a corrective stage and temporarily dips.
Another popular choice among investors is to invest in a gold certificate rather than buy physical gold bullion which then has to be stored and/or insured to protect against theft and other such incidents. A gold certificate allows the investor to buy and sell the commodity and eliminate the difficulties associated with owning actual gold. The downside is that you never really have the access to the physical gold.
Gold exchange traded funds (knows and referred to as GETFs) are open ended funds that present a cost efficient and secure way to invest in gold without the necessity of taking physical delivery of gold bullion. Trading GETFs is similar to trading shares in any of the worlds stock exchanges such as the Dow Jones Industrial in New York. Trading in GETFs involves payment of commission and storage fees which are charged on an annual basis. The expenses incurred in relation to the handling of the fund are charged through the selling of a certain amount of the gold as represented by the certificate. Over time, the amount of gold in the certificate decreases to cover these costs with the hope of course the price of gold itself has increased therefore making the certificate worth more then the original investment.
Some larger financial service firms can provide what is known as Contract for Difference (CFD). In this type of gold investment, two parties (a "buyer" and a "seller") enter into a contract, in which the seller agrees to pay the buyer the difference between the current value of gold and its value at contract time. In case the difference is negative, the seller receives payment instead from the buyer. A CFD, therefore, allows an investor to take advantage of long or short positions, allowing the investor to speculate on the market.
Remember to Go into EVERY investment with your eyes open, you should HONESTLY way the pros and cons of all investments you make based on your personal circumstances and willingness to commit weather your investment be buying gold or starting a brick and mortar business. http://www.007aj.com provides our users expert information about wealth building, successful investing and common investing mistakes (IN HINDSIGHT). We release at least 3-4 new articles per week on a variety of topics related to wealth building, successful investing techniques and investing mistakes.
Article Source: [http://EzineArticles.com/?Most-Popular-Ways-To-Invest-In-Gold&id=7564747] Most Popular Ways To Invest In Gold
By [http://ezinearticles.com/?expert=Anthony_Bertucci]Anthony Bertucci
There are currently 9 known precious metals but only Gold, silver, platinum, and palladium are considered investment commodities. Of the 4 gold is definitely the most popular among investors and for good reason. Gold is known world wide since its really the original currency, in fact paper currency was originally simply a promise to pay the bearer in gold. These days investing in gold is a popular way of protecting ones assets against recessions and even national and international crises. Lets face it if the world started over tomorrow after a major catastrophe and there was only 1 society gold would be the common currency as it was up until the 1800s. Below is a list and brief description of the most popular ways to add gold investments to your portfolio.
Buying gold coins is currently the most popular way of investing in gold. Gold bullion coins are generally priced based on their weight HOWEVER a premium is always added to the current price of gold. Gold coins may be bought or sold over the counter in most Swiss banks, also by special order is many other banks. You can also buy over the internet or from local coin dealers.
Buying gold bullion bars is the most traditional way of investing in gold and as with Gold coins they can be purchased or sold over the counter in most Swiss banks, also by special order is many other banks worldwide. You can also buy over the internet or from local dealers in most cases. Gold bars are becoming less popular option for investors because of difficulties such as the verification process, transportation, and storage associated with owning gold bars. They still are my personal favorite and tend to have less of a premium then gold coins.
With a gold account, gold can be bought or sold in a very similar way that foreign currencies are traded. A gold account is backed either through NON fungible (allocated) gold storage or pooled (unallocated) storage. You may even able to get leverage when buying gold however this can be risky but like anything else gold does go up and down, if you take to much leverage you may end up having to pay more money on a margin call or risk having your gold sold at a loss to you. If you use leverage you should treat the entire amount as the investment not only what you put up just in case gold happens to go through a corrective stage and temporarily dips.
Another popular choice among investors is to invest in a gold certificate rather than buy physical gold bullion which then has to be stored and/or insured to protect against theft and other such incidents. A gold certificate allows the investor to buy and sell the commodity and eliminate the difficulties associated with owning actual gold. The downside is that you never really have the access to the physical gold.
Gold exchange traded funds (knows and referred to as GETFs) are open ended funds that present a cost efficient and secure way to invest in gold without the necessity of taking physical delivery of gold bullion. Trading GETFs is similar to trading shares in any of the worlds stock exchanges such as the Dow Jones Industrial in New York. Trading in GETFs involves payment of commission and storage fees which are charged on an annual basis. The expenses incurred in relation to the handling of the fund are charged through the selling of a certain amount of the gold as represented by the certificate. Over time, the amount of gold in the certificate decreases to cover these costs with the hope of course the price of gold itself has increased therefore making the certificate worth more then the original investment.
Some larger financial service firms can provide what is known as Contract for Difference (CFD). In this type of gold investment, two parties (a "buyer" and a "seller") enter into a contract, in which the seller agrees to pay the buyer the difference between the current value of gold and its value at contract time. In case the difference is negative, the seller receives payment instead from the buyer. A CFD, therefore, allows an investor to take advantage of long or short positions, allowing the investor to speculate on the market.
Remember to Go into EVERY investment with your eyes open, you should HONESTLY way the pros and cons of all investments you make based on your personal circumstances and willingness to commit weather your investment be buying gold or starting a brick and mortar business. http://www.007aj.com provides our users expert information about wealth building, successful investing and common investing mistakes (IN HINDSIGHT). We release at least 3-4 new articles per week on a variety of topics related to wealth building, successful investing techniques and investing mistakes.
Article Source: [http://EzineArticles.com/?Most-Popular-Ways-To-Invest-In-Gold&id=7564747] Most Popular Ways To Invest In Gold
Why You Should Invest in Gold Coins?
Why You Should Invest in Gold Coins?
By [http://ezinearticles.com/?expert=Ray_Fristenson]Ray Fristenson
If you have looked at the news recently you know how difficult things have gotten for Europe, Cyprus is just about default and collapse unless they receive a bailout of $10 billion dollars. The situation is very critic and Cyprus citizens are very angry because the government wants to confiscate 10% of their life savings so they can pay and receive the bailout.
This is a very dangerous precedent, here we are talking that the Government can take your money from the bank and use it on their best interest to save the nation. This means that your money is no longer safe in the Bank, but storing it all in cash is also a bad option, because with rampant inflation you will always loose purchasing power.
The best alternative is Gold coins, gold has always been money and a store of value, as long as you have your money in precious metals no one will be able to still your wealth. The price of gold can go up or down depending on several economic factors and the timing, however gold will always be worth.
If hyperinflation hits tomorrow and you have all your money in cash you will be in serious problem, your money will be worth nothing in a blink of an eye. However if you have a good amount of your money in gold, you don't have to worry because even if there is an hyperinflation or deflation you have secured your wealth in gold, you can use it to exchange it for other value, to buy land, buy food or anything.
Gold bullion coins are the easiest way to invest in gold because they are easy to carry, they can be exchanged, they are a store of value and they are accepted anywhere in the world. There are different types of gold coins, the 3 most popular ones are:
The American Gold Eagles
Canadian Gold Maple Leafs
Krugerrand Gold Coins
But keep in in mind that if you are going to invest in gold you should own the actual gold and store it your self, there is no point in buying a precious metal if the bank will keep it for you. Certificates and Paper ETFs are not safe, you don't know if the bank has the actual gold you are buying and you don't know if they are going to give it to you when you request it.
The are many more gold certificates than there is gold to back it up, them moment that you try to get your gold out, the bank will tell you that they don't have it and that they will pay you in cash, which is worth nothing. [http://investygold.com]Click Here to Request your Free Gold Investment Kit. You can also learn more about how to invest in [http://investygold.com/gold-coins]invest in gold coins and insure your wealth before the coming economic crash.
Article Source: [http://EzineArticles.com/?Why-You-Should-Invest-in-Gold-Coins?&id=7578026] Why You Should Invest in Gold Coins?
By [http://ezinearticles.com/?expert=Ray_Fristenson]Ray Fristenson
If you have looked at the news recently you know how difficult things have gotten for Europe, Cyprus is just about default and collapse unless they receive a bailout of $10 billion dollars. The situation is very critic and Cyprus citizens are very angry because the government wants to confiscate 10% of their life savings so they can pay and receive the bailout.
This is a very dangerous precedent, here we are talking that the Government can take your money from the bank and use it on their best interest to save the nation. This means that your money is no longer safe in the Bank, but storing it all in cash is also a bad option, because with rampant inflation you will always loose purchasing power.
The best alternative is Gold coins, gold has always been money and a store of value, as long as you have your money in precious metals no one will be able to still your wealth. The price of gold can go up or down depending on several economic factors and the timing, however gold will always be worth.
If hyperinflation hits tomorrow and you have all your money in cash you will be in serious problem, your money will be worth nothing in a blink of an eye. However if you have a good amount of your money in gold, you don't have to worry because even if there is an hyperinflation or deflation you have secured your wealth in gold, you can use it to exchange it for other value, to buy land, buy food or anything.
Gold bullion coins are the easiest way to invest in gold because they are easy to carry, they can be exchanged, they are a store of value and they are accepted anywhere in the world. There are different types of gold coins, the 3 most popular ones are:
The American Gold Eagles
Canadian Gold Maple Leafs
Krugerrand Gold Coins
But keep in in mind that if you are going to invest in gold you should own the actual gold and store it your self, there is no point in buying a precious metal if the bank will keep it for you. Certificates and Paper ETFs are not safe, you don't know if the bank has the actual gold you are buying and you don't know if they are going to give it to you when you request it.
The are many more gold certificates than there is gold to back it up, them moment that you try to get your gold out, the bank will tell you that they don't have it and that they will pay you in cash, which is worth nothing. [http://investygold.com]Click Here to Request your Free Gold Investment Kit. You can also learn more about how to invest in [http://investygold.com/gold-coins]invest in gold coins and insure your wealth before the coming economic crash.
Article Source: [http://EzineArticles.com/?Why-You-Should-Invest-in-Gold-Coins?&id=7578026] Why You Should Invest in Gold Coins?
Top 3 Reasons Why Investing in Gold Now Is a Great Choice
Top 3 Reasons Why Investing in Gold Now Is a Great Choice
By [http://ezinearticles.com/?expert=Ray_Fristenson]Ray Fristenson
You may have heard people in the news say that you should consider investing in gold to diversify your portfolio and because gold may increase its value, but is it really a good option for you, who should buy gold?
Precious metals have always been a form of money and they have a lot of real value, but let me tell you the top reasons why you should consider investing in precious metals:
1) For centuries Gold has been a form of money that can be exchanged, carried and is accepted all over the world.
2) With the current financial turmoil around the world there is a lot of concern on what will happen next?, when is the next crisis going to hit? is there going to be an hyperinflation or a deflation? all those questions are making people doubt about the sustainability of our current financial system, therefore many investors are buying gold to secure their wealth.
3) Discoveries of Supergiant gold deposits have been declined, in the long term this might increase the value of gold because its a limited resource.
You may have also heard about the recent bailout problem with Cyprus where the country confiscated money from their savers so they can pay for the bailout. This situation can happen in any country that has serious debt problems, once the financial system of a country is going to collapse, the government will do anything in order to save the country. So you are better having your money invested in gold that in a bank account.
If you have decided to buy gold to diversify your portfolio or to secure your wealth, the next step is to look for a dealer that you want to buy from. However be careful not to buy just gold certificates or paper ETFs, you need to buy physical gold and store it yourself. As long as you don't have the gold in your hands you don't own it, a bank can issue a thousand gold certificates and only have enough gold to support a hundred certificates.
You should look at your options either gold or silver are great investments, gold coins are the easiest form of precious metal to invest in because they are easy to carry and to store. Do your research don't buy from a company that is new, always look for dealers that have years in the industry. [http://investygold.com]Click Here to Request your Free Gold Investment Kit. You can also learn more about how to invest in [http://investygold.com/gold-coins]gold coins and insure your wealth before the coming economic crash.
Article Source: [http://EzineArticles.com/?Top-3-Reasons-Why-Investing-in-Gold-Now-Is-a-Great-Choice&id=7580300] Top 3 Reasons Why Investing in Gold Now Is a Great Choice
XZ3SD29JU5FS
By [http://ezinearticles.com/?expert=Ray_Fristenson]Ray Fristenson
You may have heard people in the news say that you should consider investing in gold to diversify your portfolio and because gold may increase its value, but is it really a good option for you, who should buy gold?
Precious metals have always been a form of money and they have a lot of real value, but let me tell you the top reasons why you should consider investing in precious metals:
1) For centuries Gold has been a form of money that can be exchanged, carried and is accepted all over the world.
2) With the current financial turmoil around the world there is a lot of concern on what will happen next?, when is the next crisis going to hit? is there going to be an hyperinflation or a deflation? all those questions are making people doubt about the sustainability of our current financial system, therefore many investors are buying gold to secure their wealth.
3) Discoveries of Supergiant gold deposits have been declined, in the long term this might increase the value of gold because its a limited resource.
You may have also heard about the recent bailout problem with Cyprus where the country confiscated money from their savers so they can pay for the bailout. This situation can happen in any country that has serious debt problems, once the financial system of a country is going to collapse, the government will do anything in order to save the country. So you are better having your money invested in gold that in a bank account.
If you have decided to buy gold to diversify your portfolio or to secure your wealth, the next step is to look for a dealer that you want to buy from. However be careful not to buy just gold certificates or paper ETFs, you need to buy physical gold and store it yourself. As long as you don't have the gold in your hands you don't own it, a bank can issue a thousand gold certificates and only have enough gold to support a hundred certificates.
You should look at your options either gold or silver are great investments, gold coins are the easiest form of precious metal to invest in because they are easy to carry and to store. Do your research don't buy from a company that is new, always look for dealers that have years in the industry. [http://investygold.com]Click Here to Request your Free Gold Investment Kit. You can also learn more about how to invest in [http://investygold.com/gold-coins]gold coins and insure your wealth before the coming economic crash.
Article Source: [http://EzineArticles.com/?Top-3-Reasons-Why-Investing-in-Gold-Now-Is-a-Great-Choice&id=7580300] Top 3 Reasons Why Investing in Gold Now Is a Great Choice
XZ3SD29JU5FS
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