Learn How To Trade Stocks and Win

By Leslie Hayden

Once you determine which business cycle the economy is currently in you can start researching for a trade. It is better to have some kind of a system in place that will be used ahead of each trade. Here is a uncomplicated five step formula to help get you started.

5 Steps to Investing Online:

1. Get a stock This is the most obvious and most thorny step in stock trading. With well over 10,000 stocks to trade a good rule of thumb to mull over is time of the year. For instance, as I write this, it is the beginning of spring. It would make sense to consider stocks that traditionally go up, or go down if you are bearish, at this time of year.

2. Fundamental Analysis Many short term traders may argue with the need to do any fundamental analysis, but knowing the chart patterns from the past and the news concerning the stock is pertinent. An example would be earnings season. If you are thinking about playing a stock to the upside that has missed its earnings target the last 4 quarters, caution could be in order.

3. Technical Analysis This is the part where indicators come in. Stochastics, the MACD, volume, moving averages, RSI, CCI, support levels, resistance levels and all the rest. The batch of indicators you choose, whether lagging or leading, may depend on where you get your tutoring.

Keep it simple when initially starting out, using too many indicators in the beginning is a ticket to a losing trade. Become very cozy using one or two indicators to begin with. Gain knowledge of their intricacies and you'll be sure to make better trades.

4. Chart your picks After you have placed a few stock trades you should be managing them properly. If the trade is intended to be a short term trade watch it closely for your exit indicator. If it's a swing trade, watch for the indicators that tell you the trend is changing. If it's a long term trade remember to set weekly or monthly checkups on the stock.

Use this time to keep up on the news, decide your price targets, set stop losses, and watch other stocks that you possibly will want to hold also.

5. The big picture As the saying goes, all boats rise and fall with the tide. Learning which sectors are picking up piles the odds in your favor. For example, if you are long (expecting price to go up) on an oil stock and most of the oil sector is rising then more likely than not you are on the right side of the trade. Several trading platforms will give you access to sector-wide information so that you can get the education you need. - 31970

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Assets of ETFs Total over $1 Trillion

By Jeffrey Jackson

It's interesting to think that back in 1999 there were 33 exchange traded funds world wide with assets totaling $39.6 billion. By the end of 2009, assets topped off at $1.03 trillion, from 1,939 ETFs according to research from Black Rock. Most experts say it was due to the 45% increase in 2009, mainly due to the market's big rebound.

The market made huge gains in 2009 after the financial crisis of 2008 all while investors kept investing steadily into the ETF market. The S&P 500 made great strides recovering 23% in 2009 from it's drop of 38.5% in 2008. Making an even more convincing recovery was the Nasdaq rising 43.5% in 2009 from it 40.5% collapse in 2008. All indication show ETFs assets will reach $1.2 trillion by the end of 2010.

In Europe the number of ETFs grew from 6 to 815 during 2000 to 2009. In the U.S. by the end of 2009 the number of ETFs reached 772. Domestic ETF assets grew dramatically between 1999 and 2009 from $33 billion to over $705 billion.

According to the Wall Street Journal ETF assets could pass that of hedge funds. ETFs have grown faster because investors can gain such quick access to liquidity. Hedge fund assets hit $1.53 billion by the third quarter of 2009 according to Chicago-based Hedge Fund Research of Chicago.

Assets of ETFs cruised past assets of separately managed accounts by the third quarter of 2009 when separately managed accounts were at $527 billion, according to Cerulli Associates. Another source of rapidly growing funds are commodity funds. Separately manages funds grew by only $100 million in 2002 and grew by $22.2 billion in 2009.

In 2008 when the market condition weakened, investors began looking for other investment options and found ETFs to be among the best. As investors searched out alternative investments they found ETFs offered less risk, more price transparency, liquidity, better product structure, holdings transparency and less cost issues. ETFs have become among the most attractive of investment options. - 31970

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401k Rollover To An IRA Is An Easy Process

By John Kalpinski

When you leave your current employment you will need to take care of your 401(k) plan within sixty days or face a numerous amounts of charges. If you did not leave employment to go to another job you will need to rollover your account into another retirement savings account that is privately held.

Nobody really wants to pay fines and penalties. If you want to avoid all these altogether, but still desire to rollover your 401k into an IRA, then better go to a brokerage firm. The moment you decide you quit from your job, finding a brokerage company should be your primary concern. You can shop for firms like these in the internet, or go through banks and other financial institutions in your place.

Inquire of their services, the type of IRA they offer, along with their maintenance fees and return rates. Choose among the firms that can give you the best deal for your money. After that, you can immediately jump into processing your 401k rollover.

A 401(k) rollover to an IRA is pretty simple if you let the brokers handle the transaction. You should never withdraw the money and then reinvest it at a different financial firm. The IRS will see this as "early withdrawal" of retirement savings and you will be hit with penalties as well as steep taxes on this money. This can all be avoided by letting the new financial institution roll over your 401(k) to an IRA through their company.

When you have decided which company you choose to manage your money, simply request the paperwork to have your old 401(k) money rolled over into your new IRA plan with them. They will process all the paperwork, for free, once you have signed the authorization allowing them to do so.

You can see this happening anywhere. Financial firms can handle your money and process everything before the deadline. You won't have to worry about paying taxes and other fees, and your previous employer won't have any grounds to charge you of fines for leaving your account behind after you left. - 31970

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Basic Investing Strategies For First Time Investors

By Piper Marchon

How you buy stocks has changed an awful lot in the last decade. You used to have to have a broker and call him or her up to make a trade. Most everything was done over the phone or in person and that included opening the account and discussing your investment needs with the broker. If you were new to investing, having to do those things could have been quite intimidating.

Todays investor never has to have any contact with a real person if they dont want to. The computer and Internet has allowed the stock market game to change drastically and people can do everything themselves by just pushing a few buttons. Some may argue that buying and selling stock has become too easy because it allows people to have a gambling mentality. Day trading was an offshoot of this as people learned how to buy and sell back stocks within minutes, something they would have never done in years past with the old system.

If you are just starting out in your investing career, where should you go to learn more and get good advice? Other than the Internet, the public library always has some good investing books that will explain the basics of the stock market and some investment strategies you may want to explore. The Internet has information on anything and there will be abundance on stocks, but you must be careful what advice you pay attention to as there will be a lot of questionable content there as well.

After having done some research and learning a little about stock market basics, you might want to pick a stock and buy it. There is no education quite like the real thing and buying a stock will help you get your feet wet and see what it is all about. After buying your stock you can then do some more learning in preparation for your next purchase.

Although you may want to get started right away, right now the market is in the midst of one of the worst downturns in recent memory. When the market is going up every day it is easy and fun to buy stock as most likely you will come out a winner. But now the market is not doing well and you have to be prepared to lose if you decide to buy anything at this time. Although it is good to buy stock when it is low, which most stocks are now, it is also scary knowing that they may go down further. If you do want to start your stock investment journey anytime soon, it would be wise to invest carefully and not put in more money than you can afford to lose. Caution is a good thing to have in mind when you are buying stock in 2009! - 31970

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Hints And Issues To Remember When Deciding On The Most Effective Stock Picking Software

By Peter Skonctue

What to know about Stock picking software will come in handy for anyone who is thinking about investing in the stock market or is already in the market but needs to a bit of help in identifying and analyzing stocks prior to buying them. It can also come in handy when one doesn't want to allow a broker to make all trades, which can also work to prevent broker "churning."

Churning is a series of actions taken by some unscrupulous brokers who will constantly buy and sell and trade stocks or other securities on the constant basis on behalf of a client. Whether the stocks make money or lose money, the broker will be making money based on the commissions charged for each trade. Stock picking software can help a person avoid this over reliance on a broker.

Usually, software programs like these operate by automating their analysis and stock selection activities such that they will present stocks that have a high probability of solid gains. All that this means is that the software will help you do a better job at buying stock when it is low and selling stock when it is high. They work by taking real-time data and analyzing it before presenting it.

For the most part, there are several kinds of software out on the market. Each has its own set of features and benefits, though there are certain characteristics that are germane to all of them. Significance-based software works for those who have little time to evaluate the most opportune times to buy and then sell a stock. These types of software automate the process fairly efficiently.

Such software will scan stocks in what is called a target list or some sector of industry such as heavy equipment or automobile suppliers, to generate a list of the best-performing stocks. The software generates its data by extracting information from current stock exchange reports and then will present that data so that prospective traders can come to the best decisions possible for their portfolios.

A type of stock picking software known as functional software also synchronizes itself to the daily ups and downs of a given stock market. It works to review performance behaviors in the market and then examines volumes of stocks bought and sold and the prices that they are bought and sold at to come to a decision on which stocks are the most valuable. This software is also customizable.

Common features and benefits to most of these programs have to do with items that most people would expect from a broker or a stock market. This includes a stock ticker and an international quote capability. Additionally, almost every software program will track a portfolio and then alert the user if needed. Lastly, most will have graphing and charting and e-mail communication capabilities.

Keep in mind that stock picking software can make the process involved in analyzing and then picking a stock much easier, no software or promoter of software can guarantee successful results or any kind of result, for that matter. All software programs are very skilled at collecting and then analyzing data but never forget that the final output might not necessarily be completely accurate. - 31970

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How To Buy Penny Stocks

By Megan Lydia

The SEC defines penny stocks as "low-priced, speculative stocks of very small firms. While penny stocks often are quoted OTC,eg on the OTCBB or in the Pink Sheets, they might also trade on instruments exchanges, including foreign securities exchanges. In addition, penny stocks include the stocks of certain personal companies with no active trading market.".

Last Q4, the SEC took the unprecedented action of banning short sales and looking for a short cover on financial sector stocks that taken a beating by the shorts. It is a lament that penny stock firms have been bitching of for years , but went unheeded. And now these established, down-on-their-luck finance companies have convinced the american public that they are deserving of billions in taxpayer bucks because they're established firms and not traditional penny stocks as outlined by the SEC.

So what have we done for these behemoths? We've changed the meaning of penny stocks to accommodate them. We've altered the level playing field by exempting them from short sellers. And now we are giving them tax dollars like some executive backed hospital while industrious entrepreneurs have to battle for their place in this shrinking economy.

You have heard of penny stocks, but the mere name of them scares you, simply because of its hopeful sound. Yet you know that many folk claim to have made absurd profits in the penny stock market. But before you make a decision to get involved in penny stock trading, you need to become educated in all the penny stock language, so that your definition of the best penny stocks matches that of those that trade them as a living.

There are people who define the best penny stocks vis their price per single share. The instruments and Exchanged Commission, or SEC, has established a minimum price for.

Stocks to trade on the larger exchanges ; typically it is $4 or $5 per share. So the best penny stock definition, according to them, would be any stock which did not meet the threshold $4 price to get it off the penny stock exchange.

Once a stock has been sent to the penny stock exchange, it will trade there till the company is ready to re-qualify it for a bigger exchange, and this may not happen even if it is trading above $4 or $5, because other conditions have to be met. So many traders look at where a stock is trading as the best penny stock backbone.

If you have decided never to hold a stock which gets over the $2 level because the best penny stocks to trade are under $2, then you should sell all your stocks as fast as they hit $2 instead of wanting another nickel or dime. Your best chance of being one of those individuals that make money in penny stocks, finding a way to fix on the best penny stocks, and sticking wh it, is your best hope. - 31970

5 Tips To Financial Freedom With Forex Trading Education

By Todd Joyner

With the amazing enlargement of the forex market, you have been starting to see a pretty high volume of traders lose all their money. Unfortunately, they haven't followed the facile steps laid out for you. Going by these steps will give you a good the greatest chance to hit your goals.

1. Have Faith In Yourself

To reach the level of elite forex trader, you must trust in yourself and your forex trading education. You must be willing to make all your trading decisions, instead of relying on someone else's thoughts or ability (or lack of). Of course, you will prepare yourself fully before every risking any money.

2. Accept Your Learning Curve

Unless you are a veteran trader, you will certainly lose money trading in the Forex market. I don't say this to talk you out of forex trading. In fact, quite the opposite. You will be trading against others that fall to this reality. You, however, will not risk a penny until you have fully learned the skills necessary to make money trading with forex.

3. Decide What Type of Trader You Are

There have been most ways to trade the forex. Some are really active and others are really patient. The most appropriate time to which is your style is while using a the demo account. There is no need to spend a lot of money in training.

4. Get Educated

Proper education is the shortest path to elite forex trading. Regardless of your ultimate goals, you will reach them quicker with a great forex trading education. Take some time to review different options before deciding on who to trust with your forex trading education needs. A forex seminar will help shorten your learning curve drastically.

5. Continue to Get Educated

In order to improve you forex trade skills, you be always adding to your forex knowledge. Your forex education should never end. It's good to have an ongoing relationship with the people aiding you to learn more about forex.

What separates successful forex businessman from all others is their ability to be independent. Many traders have been inclined to follow signals, systems, strategies, or anything else you may call them. By using this approach, however, these traders have only been as good as the people they follow.

Most successful forex traders lead. Their decisions will be analyzed to precisely and almost to perfection. They will make decisions with no hesitation. One way to take your your forex education to the next level is with a automatd forex trading robot like Ivybot . - 31970

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Penny Stocks Trading - How It Works And How Someone Can Make Money Buying And Selling

By Eric Stein

Most of us know someone who has told us about that big stock winner. Many of these tales involve penny stocks. Penny stocks trading is ubiquitous on the Internet today. Gurus, website and even a stock picking robot claim to know the secrets to trading low priced stocks.

Prior to following an expert's advice, you should always perform your own research on penny stocks. Penny stocks can be defined as stocks that trade for less than $5.00 per share, or below $3.00. Some experts consider penny stocks to only be those that trade below $1.00 per share.

It is no secret why cheap stocks are so popular with the average trader. Due to their low cost, you can start trading with a small amount of capital. High percentage gains are a distinct possibility with these stocks. If you purchase a stock for $2.00 and it goes up $1.00, you will have a 1& gain. However, it you purchase a stock for $2.00 and get a $1.00 bump in price, you have a 50% gain. Not bad!

You can find hundreds of websites and experts offering penny stock picks for a fee. There are some who will send you free picks. You can also find a local trader or possibly a friend who trades these cheaper stocks to help you learn ways to trade. If you decide to subscribe to a service, see if you can get a free trial first as this allow you to see the picks in action and to see if they are any good!

Researching past performance and understanding the trader's philosophy is important before you use someone's picks. Penny shares can be a roller coaster ride, and you need to be able to follow them consistently and closely to make money. Getting in at the right time, watching them go up, and then selling them for a profit is exhilarating.

Most online brokers permit low priced stocks to be traded. However, watch out for extra fees on low prices shares. Some brokers do not like to deal with these cheap stocks and they may charge you for trading over 1000 shares or 10,000 shares. With low priced stocks, you will often trade large lots and these fees can subtract from your profits.

Penny stocks trading is a great way to make some money in the stock market. They are lucrative because they require smaller amounts of capital to make healthy profits. This allows the average investor to play the market with the big boys! - 31970

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Tax Advantages of ETFs

By Jeffrey Jackson

ETFs are one of the most attractive investments because of their tax advantages. Because of the way ETFs are created and redeemed, it allows investors to pay taxes upon final sale of the ETF, rather than upon making any return. One must pay taxes, however the money an investor would've paid to taxes could be reinvested to accumulate more wealth.

Any benefits or gains are attached to the marginal tax rate along with the ROI and longevity of it. Tax advantages of ETFs resemble that those of tax manages index funds. ETFs are much more advantageous than actively managed funds.

Normal mutual funds continue to accumulate unrealized capital gains liabilities for any and all stocks that have risen in value. When these stocks are sold, the fund calculates and distributes the capital gains taxes to its members in direct proportion to their ownership. This diminishes any upside gained by allowing money that would be allotted for taxes to accumulate in the ETF and grow.

Both mutual funds and ETFs have modest distribution in comparison to actively managed funds. It's important to emphasize that ETFs have much less capital gains liability than do mutual funds. Funds tend to enforce tax payment the more turnover experience there is from trying to pick stocks.

It's a somewhat hidden although real fact that active mutual fund investors end up stuck paying the bill for others who don't pay, especially in a down market. Investors that sell their stock before the day of record don't receive a tax bill while loyal investors do, and end up paying for it. This is not the case with ETFs.

A loophole with regulation exists under which ETFs are considered to be created by trading alike certificates called an in-kind trade. The IRS does not charge the same capital gain because it is viewed as trading identical items. Traditional mutual funds will exchange cash for stocks which trigger a tax liability from the IRS. ETFs have a huge tax advantage. - 31970

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The Secret To Good Stock Tips

By Michael Swanson

Learn stock tips and ideas in order to earn a big profit. Stock market investing can be a wonderful opportunity but it's also full of risks. To minimize the risk you should take your time to learn about trading stocks for profit. As a beginner you should be very careful and learn from stock market history. First of all you must learn when it's good to buy stocks and when to sell them.

Even if you have some experience in stock marketing you should always try to invest only in the most profitable companies. The risk will be very big if you start guessing. Keep in mind that this is not a lottery. You can have a bad surprise some day if you don't take it seriously.

Keep your hopes as realistic as possible. If you are hoping to double your money in a short time you should forget about it. This can only happen if you take a very big risk. If you do this you might also lose all your money. It's better to be patient and earn more money in time.

Keep in mind that you can't guess what will happen with the stocks in the short term. The stocks tend to be volatile. That why you should wait for a long time until you can sell them again. You should analyze the market and the company.

Do your best do get informed. Join discussion boards and forums. You can also read business news. This information will help you earn a nice profit from stock marketing.

Buy when the price is low and sell them when they are high. This looks like a simple rule but a lot of people are not respecting it. Usually they tend to buy when the price is getting up. This is a mistake because you can lose money. - 31970

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Building a Stock Option Trading Strategy

By Cudazi Berry

Before leaping into any sort of discussion about the development of a proper or successful stock option trading strategy it helps to first accept one cold, hard fact - you must do the research. Without knowledge about the particular underlying asset you are fundamentally operating while blindfolded, or in other words, you are just guessing.

Naturally, any investor is going to have their own opinions and personal outlook, but the facts and the data are going to usually indicate where any particular issue is headed. This means that one of the first steps for any serious investor to make is to conduct thorough research about the vehicles in which they intend to place their money.

Options trading means knowing when to procure a "call" or a "put" option, and what to do with it before it runs out. This is regarded as the foundation of any stock option trading strategy because it is the key factor to earn money in this venue.

In all reality, the exact "strategy" comes from knowing what to do with any investment in the face of market trends. For instance, common stock option trading strategy defines that a bullish market or stock requires buying call options because the asset can gain value. This is called as a long call strategy. On the other side, when a market or particular issue is decreasing (known as being "bearish") most investors set out to buy put options. This is referred to as a long put strategy. Either way, the investor is generally hoping simply to see the item move far enough in the given direction to both cover the cost of the premium and to deliver a profit.

If the above paragraph confuses you, it is just because that you require improving your knowledge about options trading. This is basically the important part of any sound strategy because an investor can make the wrong choice if he doesn't know all of the basics of options trading. Even if you are preparing to hire a brokerage or financial firm which can help you with building your portfolio, you must know what it means to function in options trading if you are going to see the greatest returns.

Once you realize whether buying or selling options are correct for the particular matter and current market trends, you will also need to understand any other issues that might affect the outcome of the investment. This is best done all the way through study; and contemporary investors have the Internet as well as formalized, guided plan to help them reach their objectives. - 31970

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Frequently Asked Questions about ETFs

By Jeffrey Jackson

Q: Are ETFs guaranteed or insured?

The Depository Clearing Corporation, a government agency, which ensure sock certificates purchased are delivered to the purchaser and assigned to the same. Anytime a new ETF is created, the SEC is sure to review and examine every application. Chances of abuse have been very low.

Q: Are ETFs only for stocks?

No, they aren't only for stocks. Liquid assets of any type linked to a published index can turn into an ETF. ETFs exist for Commodities, Emerging Markets, Bonds, Foreign Currency, Latin Top 50, Japanese Futures, Basic Materials, Precious Metals, and a whole host of others.

Q: Do other countries also have ETFs?

Yes there are. Most developed countries have them including countries in Europe and across the Pacific Rim. ETFs will gain popularity in most countries in the world as there is greater economic and political stability.

Q: Do any ETFs actually beat the market?

Actively managed funds currently beat the market by 2 or 3xs. Actively managed funds are operationally much harder to manage. It is, however, much easier to build an ETF when all participants in that process know the details of where stocks are being invested. It is in the nature of actively managed funds to be secretive in order to avoid eager parasitical resellers.

Q: Are there ETFs for the Dow Jones Industrials or S&P 500?

Of course, there are several different funds that track these indexes. It's important to keep in mind the S&P and Dow Jones stay in tact as their own indexes, and more than one fund can track an index through that fund groups license. Pick the fund, open up an account with a broker and start trading.

Q: Could ETFs possibly be a fly-by-the-night trend or fad?

It's very unlikely it's just a fad. By the end of 2009 assets of exchange traded funds totaled and astounding $656.91 billion. Year over year the steady growth of ETFs has been stronger and more consistent than other financial products. Mutual funds haven't even seem the same growth ETFs have experienced. - 31970

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Best Forex Signal: Help For New Traders

By Patrick Winters

The best Forex signal may vary from trade to trade and from currency pair to currency pair. The purpose of the signal is to help the trader determine whether it is the right time to buy or sell a particular currency pair. A signal affects just one pair. It is up to you to decide whether the market will move up or down. Forex trading is the largest single financial market in the world and is open six days each week and 24 hours per day.

Deciding on the best signal for trading Forex is best done by a trader who understands the terms and patterns that go to make up history charts. If you think you would like to be a day trader in foreign currency exchange pairs, you should start with one of the four main currency pairs. The opportunities for successful trades are much more common.

Forex signals must be available as far in advance of the market move as possible. It is impossible to always make the correct buy or sell move in the market. Signals don't forecast, they only use history to show what typically happens when there is a particular chart pattern. The trader who learns how to recognize and apply chart patterns can often pull regular profits from Forex trades.

Even if you place a trade that isn't working, you can use a signal to stop the trade so that you don't lose any more money. You can also set a profit point so that you will close out the trade when market prices reach a specific level. You can take profit in dollars or in pips.

An important feature that should be part of the trading platform you use is customer support. The technical support staff should be available when the markets are open. This will ensure that orders are filled quickly and accurately.

The best Forex signal is available on a top quality platform after learning how to read the signals. You can use the virtual account that is now available on most websites that provide Forex trades. Choose your trading style and stick with it for best results. - 31970

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Technical Analysis Defined

By Michael Swanson

If you want a definition of technical analysis think of patterns that forecast market by the direction and study of earlier market performances. It mainly keeps track of volume and prices. This done by watching what happens in various markets for long period of time.

Modern technical analysis was inspired by the development of the Dow Theory near the end of the 19th century. Watching particular items on the market is how this works. After a while one will notice a pattern in price.

Once the price pattern has been established one can then exploit that pattern to earn more money. Understanding and using the information will result in an increase in revenue. This is used mainly with traders and financial professional.

The stock market items from the past will tell us what the future is going to do. People follow this to learn what they need so they can decided what to buy and sell. This is a good method to use for most people.

If person were to use this theory and it worked they would be able to predict the rise and fall of items on the stock market. This is not an absolute prediction; it is mainly used to assist investors in what will likely happen.

The people that use this method develop charts to help them determine the long and short term information. If the charts are used properly they will help put together a view of what has happened and what is too come.

There are experts on this theory, books and classes to teach people this way of investment. However some people think that this theory is not sound enough to use on a regular basis. The approach that is used is called a top-down approach. The information that is gathered can be complex or can be simple. There is a method that is followed by all that use this theory. - 31970

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How ETFs Differ From Mutual Funds

By Jeffrey Jackson

Costs ETFs, being traded on an exchange, are subject to a brokerage commission. Typical brokerage fees range from $10-20, however can be as low as low as $3 with an online discount broker. On the contrary, mutual funds obtained from the fund company directly do not charge any brokerage fees.

Mutual funds, when compared to ETFs, have much higher expense ratios. Mutual funds also have higher share-holder related expenses. ETFs aren't required to maintain cash reserves for redemptions, fund cash redemptions nor invest cash contributions. Expenses for mutual funds can range from 1% - 3% whereas ETFs are much lower and range from 0.1% - 1%. As those mutual fund related costs begin to compound they make a considerable difference in the long run. It's also important to take note of the front or back end loads charged by mutual funds, Exchange Traded Funds have no such loads.

The structure of ETFs in the U.S. makes them much more tax efficient than mutual funds. Whenever a mutual fund realizes a capital gain not balanced out by a loss, a mutual fund must distribute a capital gain to its investors. This can happen whenever it sells portfolio securities, whether to reallocate its investments or to fund shareholder redemptions. Those who re-invest those gains in more shares of the same fund are required to pay the capital gains tax.

ETFs act conversely. As any other stock they are sold on the stock market, instead of being redeemed by shareholders as is the case with mutual funds. Capital gains are only realized when a share of stock is sold or there is a change in the original index from an index trade. ETFs have grown in popularity because of their tax advantage over mutual funds.

In the U.K., ETFs can be shielded from the capital gains tax by placing them into a self-invested pension or an individual savings account.

ETFs have the ability to perform like a traditional share of stock with all the flexibility and benefits. Some of the things that can also be done with ETFs are: limit orders, buys on margin, stop-loss orders, options (puts and calls) can be written against them, and short selling. None of the aforementioned can be done with mutual funds.

Unlike ETFs, mutual funds only permit purchasing and selling at the end of the day, and at the the fund's closing price. This disables all benefits from stop-loss orders and most brokers don't allow them. Because an ETF is continually priced throughout the day, its stock-like liquidity makes it possible for investors to make trades during normal trading hours. - 31970

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A Better Way to Calculate Earnings Yield - Value Stock Investing

By Veronica Carrillo

You might be surprised just who actually allows trading shares of companies being traded with shares as low as penny stock values. There are corporate giants with brick and mortar retail offices allowing this practice. Most brokerage firms you see in television commercials allow you to buy and sell shares of penny stocks, otherwise known as small cap stocks, pink sheet and OTC stocks.

But how to choose the best Penny Stock brokers? There is a lot of options out there. And you should choose the right one to fit your personal criteria of what all you need in a brokerage firm.

One of the ways a day trader would try and pinpoint a short term trend in a stock's price is to study the moving average for the price. When the price rises above the moving average, the trader would see it as an indication of a new trend starting and therefore buy the stock. Although long term traders sometimes also utilize indicators such as the moving average to reach a buying decision, they normally concentrate on what they call fundamental issues before deciding to buy a particular stock.

But even as a new comer, being able to pick up the phone and actually be able to reach someone to talk about a problem, issue, or concern is a great thing to be able to do. Another thing to keep an eye out for in any agreement before you sign them are all the small fine print details.

You want to check everything and re-read what all the agreement papers state. Sometimes you may stumble across something you simply cannot agree to and it is time to pass up that broker for another. But it is important to know some policies are blanketed across all brokerage firms due to laws.

Then you have your bare minimum Penny Stock Brokers who are primarily Internet based to keep prices down. While support can actually be pretty good, you may have a better feeling with going with retail firms who have the multiple offices spread around. I am sure that you are able to find a suitable company to go with for penny stock trading, there is one out there tailor fit for your needs. - 31970

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Online Stock Trading: Not For the Faint of Heart

By Myer Thompson

As Dr. Livingston was wont to say: "The tales of my demise are greatly exaggerated." So is the case with the state of the stock market today. The market is still firmly entrenched and despite horrendous losses, still maintains a fair amount of the nation's invested wealth. Volatility in the marketplace has become an acceptable risk. The Las Vegas mentality is now an investment mainstay and you either know how to legally game the system or you don't.

Day traders are those who have the most to lose. These investment mavericks have flaunted the cumbersome need for brokers and brokerage houses. These financial do-it-yourselfers want tangible control of their hard-earned cash. That is understandable. The logic of losing money you invested yourself is far more palatable than being informed via a statement of telephone call that someone else has lost your money.

Most online stock trading professionals would advise against day trading -- and in most cases, their advice would be spot on. Day traders experience a disproportionate amount of losses when compared to professional services. This is undoubtedly due to the fact that professional traders undergo a rigorous training regimen. Moreover, the gravity of buying and selling stocks with other people's money is never lost a dutiful trader.

The curriculum is taxing because finances are taxing. Though much is made about the endless string of financial terms -- they are very real terms and are, indeed, very complicated. It's easy to pigeonhole bankers and brokers and Wall Street -- and for good reason -- but it's important to remember that these institutions create real wealth for real people. Yes, bankers do indeed profit, but so do shareholders. Say what you will about Trickle Down economics, but wealth can indeed beget more wealth.

By all means, day trade away. It's your prerogative. But know the pitfalls and perils. Yes, you are in more control of your money -- but unless you are a professional, you won't enjoy some of the fail-safes and protective measures meant to protect larger financial institutions. The Federal Trade Commission can ensure your stocks are recorded and rewarded correctly, but they can do little if you happen to be defrauded or scammed. Stick with the professionals. They're not the bandits the media would have you think they are. - 31970

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Stock Market: The Land of Greed and Fear

By Leyla Maker

The major players in the stock market emotions are greed and fear. They are the forces that drives all market participants - Stockbrokers, institutional managers, traders, investors and yourself.

Perhaps you are saying that you will never let fear and greed interfere with your trading, but be assured that they will be. It is not something that you should feel ashamed of. It is one thing you have to realize, come face to face, if you are determined to be a successful stock trader or investor

How do greed and fear look in the stock market trading stage?

You have been following a certain stock for a period of time now. It is advancing in price, so you decide to buy. You bought at a low price and now it is to higher price as you expected it would.

Now your greed pops up to the scene and convince you that this security is heading up like a rocket. So you are motivated to buy more of the stock, another possibility is that your stock is advancing higher and reaches beyond the selling price that you have planned to sell for. Now greed makes you believe that the stock will continue in an uptrend till the next day and so you hold on to it.

When stocks make strong moves to the upside greed from all the cumulative market participants joins the move.

Stock prices in most situations drop faster than moving up and when this takes place, fear shows up.

Let us look at the example above, where your stock went through your get out price and you held on because greed was by your side. The next morning the stock price gaps down. There is heavy selling all morning long. Greed is telling you to hang in there the price will come back. The price keeps going down, now you get a knot in your gut, and your knuckles are turning white. Fear is now by your side, but by now it is too late, your nice profit has turned into a loss.

Everyone goes through this until they have mastered the ugly faces of greed and fear. Master this and you are well on your way to becoming a successful stock trader. - 31970

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The Rule of 72 - The Bedrock Of Investment

By Zigfred Maceren

To Albert Einstein is attributed these words: "The most powerful force in the universe is compound interest." The rule of 72 is just a simple mathematical computation of compounded interest.

Some people go as far as saying that Albert Einstein's greatest discovery was the Rule of 72, not the theory of relativity. Others say that the rule had been in existence even before Einstein was born. But most people agree that Einstein popularized it.

How could the Rule of 72 help make investment decisions?

The Rule of 72 helps in investment decisions because it determines the following:

1.) What interest rate enables you to double your money quickly? 2.) How many years do you wait before your money doubles?

For the answer, divide 72 by a certain interest rate. The result is the number of years it will take to double your money. Expressed mathematically, the Rule of 72 is: n = 72 / I, where n is the number of years it will take to double your money while i is the interest rate.

Let's use an example to illustrate: Your P100,000.00 deposit in a savings account will take 72 years before it doubles to P200,000.00 because the bank only gives a measly 1% interest rate. (72 / 1 = 72).

Because of low interest rates for savings account deposits, let's assume you preferred to keep your money in a time deposit account. In the Philippines, time deposits earn an average of 4% interest annually. Your P100,000.00 in time deposit will take about 18 years to double or become P200,000.00 (72 / 4 = 18).

In comparison, consider if you invested your P100,000.00 in a scheme that would earn 12% interest. Now, it would take only 6 years to double your money! (72 / 12 = 6).

There is a cousin to the Rule of 72 that computes the number of years it takes to triple your money - the Rule of 115. Using the same formula, just substitute 115 for 72. - 31970

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Debt Collection - How Much Time Do Collection Agencies Have To Collect?

By Mallory McGuinness-Hickey

Most people are becoming increaslingly aware that they owe a debt that is being pursued by a debt collections agency, yet few know exactly how much time has passed before creditors can go after that debt. Debt Collectors are guided by what is called the Statute of Limitations.

What this means is that after a certain length of time agencies can no longer collect from debtors. Factors include the amount of time, which can vary from state to state, the type of debt, and if there is a signed contract or not.

One example is the state of New Hampshire, where the time alloted to collect a debt is 3 years. If it was a foreign judgement, the Statute of Limitations is as high as 20 years; on a domestic one it is also 20 years. For goods the Statute of Limitations is four years but with a written and signed contract is is three years.

Debtors that do not believe that they owe the money, they can fight the creditors claim may actually withold information regarding invoices or balances due and request proof demonstrating the validity of the debt.At this point, collection agencies must present backup documentation to support their claim.

For more information regarding the Statute of Limitations, it is wise to speak to a legal advisor in your own state. While there are many collections agencies out there that use unreputable practices, there is also a number of legitimate agencies who are willing to help out. Agencies such as Rapid Recovery Solution are always willing to help out. For more information, consult rapidrecoverysolution.com. In this trying time of economic hardship don't be bullied by illegal tactics by illegitimate collection agencies. There are laws out there to protect debtors and everyone should know their rights. - 31970

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Day Trade Your Life Away

By Myer Thompson

There is no room for mistakes. In fact, never make the mistake of thinking day trading is something you can dabble in. It is not a dabbler's field. Though you think you might have a great hunch or have the inside scoop, one bad trade could wipe you out. Losing all the money you ever had is not an experience that lifts people from the doldrums of their day-to-day lives.

There are no quick fixes and no easy answers. Though the high point of day trading as a means of making a buck had its heyday in the late 1990s, people still think they can make the crucial decisions that can help grow their financial portfolios. For the most, this may true. There are some very successful day traders who do their homework, invest widely, and don't jump the gun when it comes to downturns and losses.

Making a good run boils down to one thing: knowing the score. The key to their success is a fair amount of learning. You can't expect to pass a test without studying. You can't expect to make a career -- or even a lucrative pastime -- out of day trading without knowing the terms and best practices. You wouldn't just start taking your car engine apart. Why would you just start day trading without having the necessary skills?

Men and women don't do this just for the sheer thrill. In fact, what drives most day traders is a sense of control and deep desire to not be taken advantage of. People have a difficult time believing what happens at large brokerages. There is a massive gray area that dominates the minds of most investors. Is by broker qualified? Am I being taken advantage of?

Putting the kibosh on these pesky questions is what tends to drive people into take charge of their time investing in the Stock Market. If you're going to lose, it may as well be you making the decisions. The key to not losing, whether you're doing this all by yourself or not, is knowing the tricks of the trade. That you can only get from the professionals. - 31970

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Learn More About Taking A Stock Market Course

By Johnny M Junior

There are some simple aspects about trading you will need to know before trying to get in on the many profits made by the stock market, especially if you are not familiar with the procedures and methods. Taking a stock Market Course is vital in making the right decision on your money. You can find Stock Market Course software online and in book stores. If you are just wanting to see if its for you, you can find free online starter kits that will help you make sure this is something you want to do.

Learning how to trade in company stock and derivatives is important. Making sure you that you know how to buy, sell, and trade at a agreed price. Since the beginning of October 2008 the size of the worlds markets were at $36 trillion US. There is enough money to go around and this is why its so important to take a course.

Stock investors are in one place and one place only. They are the ones that work to make everything go round. Auction markets were created for providing a market place buyers and sellers to safely trade. The concept for trading money between business and individuals came from France in the 12 century. Shortly after the trades began, in 1351 bankers began to trade in government securities.

It is very important to learn how to buy, sell, and trade. In order to do this effectively and efficiently. It can and will get rather confusing if you try to do this on your own with little to no knowledge of the trade. Taking a course will ensure that you get the right set of skills to achieve what you are looking for.

Having the educational skills to learn the correctly buy, sell, and trade is more than important. When you know the nature of trades, it makes it easier to understand the changing market. On going with a course will ensure that you get the right knowledge for what you are doing. Just in the last 18 months the opportunity for traders has greatly improved.

The skills you will acquirer from taking a educational class, are skills that we teach every day in our 30 financial education centers worldwide. Join us at a free workshop to learn more about how you can acquire these skills and have more success in the market.. - 31970

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Tips And Guidelines For The Stock Market

By Jimmy Villaruel

Two well known traders discuss entry and exit points and stock market tips are discussed. They also answer a question about how to find good momentum trades.

David: A question has been asked to us about entry points. 'Every entry I make, the trade seems to go against me. I've tried every indicator known to man and different timeframes. I've tried other people's systems and they don't work either.'

Stuart: It's often not the entry that's at fault. Often it's the exit that's at fault. We may be using an inappropriate exit and not allowing the conditions that got us into the trade work their magic and do what we want them to do for us in the trade.

Maybe the entry is too complicated and perhaps they were changing it or shifting it because it was too complicated. Ditch the indicators. They'll work for some people and that's fine. My personal opinion is to ditch them because they don't provide much for me. Keep things simple, and it may be worth looking at the exits more than the entries.

David: For the next question: out of the thousands of stocks that are out there, how do I pick a few that have moved with a chance of high probability each day every day without scrolling through each one.

Stuart: You've got to have a way to narrow them down. I remember this when I started out. There are two thousand stocks on the ASX and I only want four or five to get going. How do I narrow it down to four or five? I think the easiest way, and one of the best stock market tips, is to get software that allows you to input you own entry criteria, the conditions you want to see in stocks. Software and PCs now does it within minutes or seconds and presents you with a small list for you to then assess yourself each chart by itself.

You need software which allows you not just to bring up the chart, but to go through data, perform calculations and identify your own criteria.

David: If you do not have access to charting software, come up with a trading method that is calculated, based on some data you might find in newspapers. Some newspapers will mark which stocks are making new six month highs or fifty-two week highs. That might be a way to thin the thousands of stocks to a few. But get yourself a charting package.

Stuart and I use Metastock, but there are plenty out there, and one can start with that.

For the next question is how to find good momentum trades.

Stuart: Find stocks that are already in well established trends. I do that all the time. I just buy things that have gone through that period of consolidation and have now started to move up. Look for higher peaks, higher troughs, sitting above their medium term moving average whether it be 30, 50, 60 day moving average and showing the capacity and the potential to keep moving higher. With a fifty week high, clearly this stock has an upside, because with a fifty two week high there must be great demand for this stock. This is a simple way of doing that.

David: The next question is entry and exits - what is a good stop? For entry, have a methodology to identify what's going up. Exit points - choose an appropriate one. For good stops, you can use percentage, ATR or technical and the lowest low.

Find the appropriate entry and exit points and buy some software to sort out the best stocks to buy. These are the best stock market tips for any beginner trader. - 31970

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Beginners Overview Of ETF Trend Trading

By Patrick Deaton

There are many programs and services available on the Internet that offer services when a person wants to participate in ETF Trend Trading. When choosing a service or program an individual will want to take some time to consider what their needs are and how the service or program can help in making successful trades.

When doing an accurate technical analysis a person will need an analytical tool. There are many available that will give the detailed information that will help to identify trends and patterns in a sector. The programs usually are broken into short term, intermediate, and long term trends within a sector. Some of the programs offer other charts and graphs that provide information on the trends that are occurring within trends.

A trend trader does not just rely on the analytical tools that are available. They also do the historical research necessary on the sector to find the trading volume, moving average, and other technical trends that will help to identify trends within the trends. In many cases, a disruption in a trend may be the result of a significant event within the sector.

However, this trend may not be repeated again in the sector for several years. A person making a future trade based on the indicators of the analytical data alone would not know this and the trade made would not be as successful as might be expected.

The idea of ETF trend trading is to jump in when a stock is on the rise or fall with the idea that is going to continue in that direction for a period of time. When the stock is rising a person takes a long position. When it is dropping a person takes a short position. In either case, when the trend begins to reverse, a trade is made. The most closely that the beginning and end of a trend can be predicted, the better the gains will be on the trade.

When an individual is going to begin doing the necessary analytical work to make effective trades they will want to take a holistic approach. Including historical data, current market climates in that sector, and any anticipated significant changes to that sector will all act to make trades more successful.

Setting buy and sell limits will act as a safety net, should a trend begin to reverse too soon. When a person gets involved with a sector through analytical and historical analysis, they sometimes get too involved. It is important to have a limit and stick with it when trend trading.

There is a lot to learn when one wants to delve into ETF trend trading. It is very helpful to visit websites and forums run by successful traders to use different types of trading, methods, and strategies to widen the base of knowledge that one has about trading. By getting information from people who are successful, it is much easier to develop a technique and strategy that will be most effective in making the successful gains that are possible with ETF trading. - 31970

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