Quick Investment News

57. What Traders Know About Interest Rates Part 2

2009-05-09T08:49:00.000-07:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

The second lesson of two on interest rates, why they are so important to the stock market and to traders and investors in the stock, futures, and forex markets with a...

Build a Financial Planning Business

2009-05-09T08:44:00.000-07:00

Financial planning is gaining ground as a popular career choice. Individuals in this profession assist clients with money management both for the short- and long-term. A career in financial planning can be extremely rewarding. The following steps will guide you as you start your new business.

Get the right education. Though a degree is not needed to start your own financial planning business, it is almost impossible to form a legitimate and successful venture. Consider obtaining a degree in accounting, business, economics or finance.

Consider accreditation and membership from a professional industry organization. Though certification or a license is not necessary to be a financial planner, becoming a member of a professional organization has benefits including access to networking and educational opportunities. This can only help you with credibility and building a client base.

Decide whether you want to provide additional services such as the trading of bonds, stocks, mutual funds, or helping clients with real estate investments. Make sure to secure the necessary licenses applicable to your state.

Create your business. Your next step will be to file the necessary paperwork to create the framework of your business. This means registering your business name, deciding what type of company you want to start, and opening up the necessary bank and credit accounts.

Invest in promotion. Now that you have your company legally set up, it's time to promote your services. You should create a marketing strategy based off of your budget, target population and long-term goals. The more viable promotion that you can introduce to the market, the more clients you will attract.

Create relationships with financial institutions and other businesses in your area. Once you have started to get a client base as well as a reputation, it's time to start making as many business connections as you can. Having local business connections will only aid in new client referrals.

Tips & Warnings

Even though there is not a specific licensing or education requirement to run a financial planning business, remember that you are going to be helping your clients with money. If you do not know what you are doing you could do a great amount of damage to the finances of your clients.

56. How Interest Rates Move Markets - What Traders Know

2009-04-13T09:48:00.000-07:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on the second two components of the US Economy the Private and Government Sector and how these each affect forex, futures, and stock traders. In our last...

Use the current ratio when evaluating a stock

2009-04-13T09:46:00.000-07:00

This article will tell the reader how to calculate a company's current ratio and exactly what this figure tells the investor about the company.

The first thing that you will need to do is obtain a company's balance sheet. Lets say that you wanted to calculate Wal-Mart's current ratio. An easy way to get their balance sheet is to go to www.yahoo.com and type in their ticker symbol in the quote area. On the left side of the page is a list of different pieces of data about the company. Under the Financial tab click "Balance Sheet". Next Click the Annual tab at the top.

Now we need to introduce the Current Ratio formula. It is as follows:

Current Assets / Current Liabilities

This step is easy. On the Balance Sheet find the Total Current Assets title and get their latest value recorded. Now under the Liabilities section locate the Total Liabilities section and get the latest value recorded. Now just plug these values into the formula discussed above. For example here is WMT's current ratio:

47,585,000 / 58,454,000 = .8140 (Current Ratio)

Now we need to understand what this figure means. Simply Put this figure tells us that Wal-Mart can convert their current assets to cash and pay off about 81% of their current Liabilities.

You might be asking yourself "Is this Good?" Now you might want to evaluate what some of WMT's competitors current ratio's are. Costco has a current ratio of 1.058 and Target has a Current Ratio of 1.529. Both of these companies can pay off all of their current liabilities and still have current assets left over. In this evaluation Target has the most favorable current ratio because they can pay off their liabilities a little over 1.5x with their current assets. Remember to always compare a companies current ratio to other companies within the same industry. In this example Wal-Mart would still have about 18-19% of their current liabilities remaining they used their current assets to pay off their obligations.

55. The Business Cycle and Fiscal Policy - What Traders Know

2009-04-12T05:23:00.000-07:00

How to Compare Investment Brokers

2009-04-12T05:19:00.000-07:00

Investing is both a risky and rewarding experience. An investment can be risky due to the unknown factors such as the economy, but on the other hand, a good investment can yield a great return for the investor. There is always some level of expertise needed in order to make an informed and rewarding investment decision. By comparing investment brokers, you can seek out the best options available to assist you in securing your financial future. Use the information below to assist you in comparing investment brokers.

Surf the Internet. Today's technology makes it easy to compare investment brokers. Go to the website linked in the Resources section below, and research various investment brokers from the comfort of your home.

Find an investment broker who can accommodate your financial investment plans. Keep in mind things like stock commissions, option commissions, bond trading, mutual funds and annual fees (if applicable). Many brokers will charge a stock commission and/or option commission. Commission fees range in price anywhere from $4.95 to $19.95 or higher, depending on the broker. There are brokers who do not charge a stock commission, but they may charge an option commission, so be sure to find out what commission, if any, the broker charges.

Decide on your financial goals and choose the investment broker accordingly. Though it is possible to manage your investments on your own, many people tend to gravitate towards hiring an investment broker to manage their investments for them. Look for local advisers so you can meet with them in person. This can be very reassuring, since you can deal directly with a person and receive one-on-one attention.

Choose the investment broker that you feel offers what you need in terms of options and services provided. After deciding on the broker you feel meets your needs, carefully read their terms and agreements--really read the information they provide you and don’t just look over it. Be sure you know the services and options you are paying for in advance to eliminate any future miscommunication.

Tips & Warnings

Make an informed decision about the options and services you want.
Take your time to research the broker before investing.
Never do business with a broker before seeking professional financial advice.

Understand Aggressive Growth Funds

2009-01-20T21:13:00.000-08:00

The stock market and its lingo can be confusing sometimes, but it is important to know about the economy. Here is a brief tutorial on what aggressive growth funds are and what they mean for you!

Know that an aggressive growth fund is a specific type of mutual fund. Its main goal is to achieve the largest capital gains possible. Due to this, it is not as diverse as other funds that you may choose from.

Understand that aggressive growth funds are most accommodating for investors who are willing to take the higher risk to produce a bigger return on profit, but still want the safety net of a fund rather then an individual stock.

Realize that these types of growth funds are also beneficial for those who want a closer balance between mutual fund returns and stocks. However, as mentioned before, these types of mutual funds are not risk averse compared to something like an index fund.

Know that aggressive growth funds tend to produce fantastic results in good economic times, and horrible results during bad economic times like a recession.

by ehow.com

54. Simple Explanation of The US Economy For Traders Part 2

2009-01-20T21:09:00.000-08:00

Thrive in Harsh Economic Times

2009-01-19T02:36:00.000-08:00

When "The Secret" aired on Oprah, showcasing the Law of Attraction; people began to furiously think positive thoughts to magically transport what they wanted into their lives. Many unrealistic expectations were dashed because of what became better known as "wishful thinking". These same people didn't realize they needed to envision what they wanted with clarity and ask for it, be patient and take note of opportunities that came along, AND take action to bring what they wanted into their existence.
Soon after the law of attraction (via The Secret) hit the airwaves, the US economic climate began it's most noticeable landslide. No one knows where it's headed and fear is in the air. Is it possible, to not only survive, but thrive in the harsh times of today? Many believe it is. Read on to find out how from one perspective.

HAVE PATIENCE:

Many Americans can remember tough times. The Depression Era symbolized hardships of epic proportions. My grandmother is an active 96 years young and would be hard pressed to say that anything we're facing now is as bad as it was then.

In a statement, John D. Rockefeller said that "These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again." (Quote from Wikipedia-see resource below.)

Patience will be key in thriving in the current harsh economy.

BE PREPARED:

Although waiting it out patiently is important, so too, is being prepared.

Be cautious what financial institutions you place your money in.

Pay equal attention to current, and future, investments. A savvy investor will realize that the current situation with the stock and real estate markets may very well be a cloaked opportunity.

With mounting food prices; you may want to watch more closely for sales, begin using coupons, store some staples in bulk amounts, eat at home more, and pare down on non-essentials.

Shop thrift stores for excellent buys on gently worn (and often times high quality, or designer, clothing).

Carpool when you can and save from making multiple trips when unnecessary.

Learn other skills to expand the value of your current work situation; or in the possiblility of losing your job and your income.

FIND PERSPECTIVE:

The harsh economic forecast is on the television, radio, internet, talked about around the water cooler and over coffee in restaurants. It's a non-stop projection of doom and gloom.

*How does one find perspective?

Start with a news fast. This is simply a break from the media -generated "top stories". It means DON'T start your day with the morning news and end it with the late news before bed. In fact, don't listen to any of it.....at least for a day or more, if you can stand it !

*Consider the following sobering thoughts and questions:

-Do you have a job? Many people in our country and all over the world are unemployed, or work for pennies.

-Do you have a home, electricity, running water, heat? Millions of people will sleep on the street, under a park bench, in an unheated shack on a dirt floor tonight. Running water is rain. Electricity is unheard of. Heat is a prayer that it won't reach low temperatures and a piece of cardboard or newspaper for a blanket.

-Have you eaten one, or more, meals today? Millions, including children and the elderly, will not eat this day...or the next. Or perhaps they will find scraps in a trash can or be fortunate enough to have rice broth.

-Do you have your health, in full, or partially? People all over America and the world will suffer, or die, today because they will not have access to medical facilities or treatment.

Perspective is a way of seeing things differently. If one chooses to chime in with the country-wide mindset of panic and forecasts of recession and depression, then that will be YOUR experience according to the Law of Attraction. This law states that what you focus on is what you will draw to you. If you think about your life, you'll realize that it is so.

Tips & Warnings

Consider what you can be grateful for. Friends, family, a home, warm clothing, food, a job?
Support your local merchants and business' to boost your community's economy.
Shop "made in the USA" if possible.
Try to maintain a more positive perspective by reading articles and blogs from others who are interested in helping people to improve their lives; physically, mentally, and spiritually - such as eHow writer and blogger: Kevin Freeman. See resource below.
If you eat, sleep, and breathe bad news on the state of our country's economy, then by the Law of Attraction you will contribute to it.

by ehow.com

Tell if My Money is Safe or is Your Money Safe

2009-01-19T02:31:00.000-08:00

Is my money safe? This is a question that many people are asking in these unknown financial times. Read on to learn how to tell is your money safe?

First you need to take stock of all your investments, whether it is in savings account or in municipal bonds.

Next remember that your bank investments and CDs will not drop depending on the stock market, so keep that money where it is.

Look at your stock investments and decide whether you think stocks will go lower. When stocks are low it is not a good time to sell. If you do not need the money then keep the money in the market and know that the stocks will rebound and decide is my money safe?

By ehow.com

53. A Simple Explanation of the US Economy for Traders

2009-01-19T02:28:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

An overview of the US Economy and the first two components of the economy which are natural resources and the labor force. Explanation meant for traders of the..

Pick the Best 2009 Investments

2009-01-05T19:38:00.000-08:00

2008 was the year of investment turmoil. Although economists claim the first half of 2009 will have a few more market cartwheels, the time is ripe to make specific investments. In the first few months of 2009, market bottom picks will offer the savvy investor a chance to feather his portfolio.

Look for that oil slick investment in 2009. With rock bottom prices for a barrel of crude, this is the time to buy oil, especially in domestic production as OPEC is currently negotiating to further reduce oil production in an effort to raise prices.

Try your hand at some Funds predicted to do well in 2009. ProShares UltraShort and Merger Fund look like top performers and don't count out Hussman Strategic Growth fund when you're shopping. All three are among the best potential performers for this year.

Expect big movement from JNJ (Johnson and Johnson) in the 2009 investment market. With a steady growth rate and the pharmaceutical industry working overtime to keep up with new drug demands, JNJ looks like a winner.

Tread carefully in 2009. After the housing bubble burst and subsequent market losses, the fallout is not yet over for that sector. The drop in housing values will likely see foreclosures, which will drive home values even lower throughout the first part of 2009. Direct investment in localized areas where industry advancements are expected could net you a tidy nest egg by next summer when the market is slated to be in full upturn.

Tips & Warnings

Avoid stocks that were volatile in 2008.
Invest in the big giants, such as Microsoft early in 2009.

by ehow.com

Learn about the Recession History

2009-01-05T19:32:00.000-08:00

Recession and its history is something of great importance to all of us, for it is a part of our lives, regardless of our race, gender, age, religion, and ethnicity. Understanding and learning about the recession history will help you prepare for the future. Even more, this will give you the experience and knowledge so you can be least affected by the recession.

Go to http://recession.org/history. This site is the best resource for learning about the United States Economic Recession.

Begin to briefly read the earliest recessions of U.S. history.

Write down important pieces that state the cause of the recession, and how the U.S. got out of it. Do this for each possible recession period.

Thoroughly study and read the current (or most current) recession. Take notes as you did for the other past recessions, but this time be as detailed as possible.

Create a list of the factors that have created or caused a recession(s), as well as the factors that help either prevented a recession form happening or got out of it altogether.

With that list you have made, decide how you can incorporate all the positive aspects into your life, as well be sure to create a ways that will prevent from the recession to negatively affect your life in any possible way.

With all of you paperwork/ homework, contact as many possible marketing and government professionals so that they can advise you on your situation within the recession, as well as describe details to a recession.

Tips & Warnings

Any specific professional that you have found to be affected by a recession, then contact someone who can be of as much assistance to you as possible.
The more professionals you can contact and work with the better prepared you will be, and the more you will ahve learned about the recession history.

by ehow.com

52. Fundamental Analysis and The US Economy

2009-01-05T19:31:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on the basics of fundamental analysis, the top down and bottom up, and the US Economy for traders of the stock, futures, and forex markets. there are two

How to Read The Signs of The Stock Market

2009-01-01T05:35:00.000-08:00

Reading signs from the stock market can be very difficult, but in the end the stock market is a very good predictor of many other things so those who can read the signs of the market are a step ahead of the rest.

The way the stock market trades over a period of time is generally a sign of something, but it can be very difficult to discern exactly what it is. Experience following the market and watching market trends helps a great deal. What else can help you read the stock market? Look below.

A large amount of volatility, or huge swings in both directions is generally a sign of uncertainty on Wall Street. This kind of volatility is particularly evident in bear markets and when the economy is going into a recession.

The stock market generally moves several months in advance of the economy as a whole. For example, if the economy is recovering from a recession the market generally bounces back six months or so before the actual economy does.

Wall Street hates uncertainty The number one thing that the stock market does not like is uncertainty. It has been said that the market can deal with good news and bad news, but it cannot handle uncertainty and I completely agree with that. Even when the news is bad, transparency is what the market wants.

When too many traders get either bullish or bearish it is often the time that a contrarian trade works well. Extremely high levels of strategists and traders that are bullish generally means the market is near a high and vice versa.

The number one most important rule of reading the stock market is to make sure you don't make too much of one day's trading. A day does not a trend make, so you'd be wise to keep that in mind!

by ehow.com

Protect Yourself From Economic Crisis

2009-01-01T05:33:00.000-08:00

This is a question I think we all can relate to. In a failing economy how does one protect themselves from economic crisis? Lets Face it the economy is in a critical status. People are loosing their jobs companies are exporting work over seas and people are loosing their homes left and right. I'm surprised that the stock market hasn't crashed completely. With all this economic turmoil what is one to do? As they say if you do not learn from history you are doomed to repeat it. With all this bad news there is a ray of hope and it all comes down to the way your respond to the situation.

Protect your assets. If you own a home or are planning to buy a home, attempt in every way to keep your 30 year mortgage rate fixed and not a variable rate. In addition if you're having trouble with your mortgage, contact you're lender asap and see what you can work out. A lot of people don't know that it cost the lender roughly $60,000 dollars to foreclose your home, so it's in their best interest to help you keep your home.

If you invest in stock or have a 401k plan, I urge you not to concentrate all your money on one particular stock niche,or just your companies 401k . Instead look at your portfolio and diversify your stocks as much as you can to protect yourself. I hate to say this but the dollar is on a steady decline and your best bet is to invest in foreign stock. I suggest you make an appointment with a trusted professional to view your options.

Invest in gold bullion or precious metals. I can't tell you how important this is. Money has always been back up by gold unfortunately with the advent of fiat money the standard has been changed, however gold is always the more valuable commodity, in addition to other precious metals such as platinum, silver, Palladium etc.

Last but not least attempt in every way to reduce and manage your debt. I don't care how much debt you have, if you are adding to the pot you are hurting yourself. Instead find a way or seek professional help to manage your debt. It's terribly unreasonable to say eliminate debt, Instead I encourage you to manage the debt that you have.

By ehow.com

51. Maximize Trading Profits with Correct Position Sizing 2

2009-01-01T05:25:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on the % Volatility Method for determining position size for traders of the forex, futures, and stock markets. The Link that I refer to in the video is her...

Profit From an IRA Mortgage Investment

2008-12-18T08:19:00.000-08:00

Bothered by all the fallout in the subprime mortgage industry? This article shows you how to find a reliable borrower and profit from it instead.

If you have a traditional IRA and decide that you want to diversify yourself into private mortgage investing, the first step is to find an IRA custodian that facilitates this kind of investment and initiate a tax-free transfer to that custodian. Most major financial institutions can do this, but other companies such as Pensco (see Resources below) may have fewer net worth and income requirements.

Once the funds have been moved, you will need to authorize the IRA custodian to invest in a specific mortgage note. Either you can find the note yourself or a mortgage note broker can find you one for a fee. A quick Internet search for private notes should locate a broker in your area. Novice investors should probably pursue this avenue, at least until they become familiar with the process.

Although there are exceptions, in most cases you will need at least $50,000 to begin this type of program. You can purchase either a new note or an existing loan, usually at a discount. There are many loan servicing companies and brokers that also offer payment collection services and go after delinquent borrowers. Sellerloans.com is one such company (see Resources below).

Historically, this type of direct investment has yielded returns in the 9 to 14 percent category, and the yields at this point are nearing the high end of the spectrum due to the lack of liquidity.

Tips & Warnings

Many bank trust departments and brokerage firms can provide this service, but as mentioned previously, they may have net worth and income requirements that must be met before they will proceed.
Investing directly in mortgage notes can be an involved process in some cases, therefore investors should do their homework and research the matter thoroughly before committing.

By ehow.com

CNBC's Million Dollar Portfolio Challenge

2008-12-18T08:16:00.000-08:00

CNBC has just started another million dollar portfolio challenge. This has been a huge hit for CNBC.com in its past contests, so they decided to come back with another contest despite the terrible current conditions of the stock market.

First things first, if you aren't registered for CNBC.com you must do so. It only takes a couple of minutes to register so it really isn't that big of a deal. You select a username to be known as in the market contest as well.

Understand the contest time period. The Million Dollar Portfolio Challenge began November 17th and will end on February 9th. You can signup anytime during this period, but the sooner you signup the better your chances of winning.

Understand the rules of the contest. You are given 1 million CNBC bucks, fictional money, to trade stocks and ETF's. You are allowed to create up to five separate portfolios to compete in this contest. There are weekly winners for the first ten weeks and then those ten weekly winners will face off for the overall top prize. The overall top prize in this contest is $500,000.

Take some risks! How should you go about trying to win this Million Dollar Challenge on CNBC.com? You have to understand that this is not at all like a normal stock portfolio, rather it is a short term game. You won't win this game if you don't take big risks. Remember you are playing with fictional money, so you can afford to do that.

To win the cash you must move fast! You must keep up with this portfolio constantly if you wish to be a weekly or overall winner. The market is moving faster than ever now, and you must be able to trade and make huge profits in the short run to come out on top.

Tips & Warnings

Signup soon to make your chances better.
Trade in stocks that are low priced stocks and ones that are extremely volatile.
Don't use a typical buy and hold strategy or you won't win this contest.

By ehow.com

How to not lose all your money in the forex market

2008-12-18T08:13:00.000-08:00

Foreign exchange trading is not a new investment but nowadays is more easily accessible to the not so wealthy. Whenever venturing out into any type of investment your number one goal should be to NOT lose money.

First things first. Before even opening a demo account much less a real account. You'll need to know how money works. Yes I said how money works. Money always prefers to be treated nicely. Money follows where it is treated best. Lets use an example in step two so you can get an idea of what I'm talking about

Alright. In this example we are going to use two countries. The united states or America and Canada. Now lets say the united states has an interest rate of 2.75 percent and Canada has an interest rate of 3.75 percent. Money is going to tend to flow towards a higher interest rate. So that means investors are going to start dumping there money in bonds with Canada because they can make more money. If I had a choice between 2.75 percent and 3.75 percent naturally I'm going to pick 3.75 percent.

Pretty simple so far right? Well its not that simple unfortunately. You see there are other factors you have to account for as well. Is Canada's unemployment rate higher than the united states. If so investors might seem unsure of the direction of Canada's economy. While Canada would have a higher interest rate the united states would seem a safer place to park money even if it had a lower interest rate. Is inflation on the rise in the united states if so investors and/or banks might think that the united states is headed for trouble and view Canada as a safer bet.

The point i'm trying to make to you wether you have a live forex account or kinda tinkering around with a demo account is that there are countless factors that affect the forex market. Don't just look at your charts, see a currency move up and decide "hey i think i'll buy" it may be moving up in a short term but the foundation of the currency might be cracking from underlying problems with the country of its orgin and ready to collapse. You do not what to get caught in a collapse. When I first started trading i got caught in one and lost about a thousand dollars in roughly two hours. Not a good feeling trust me and i don't want that to happen to you.

Well i hope this little how to helped out some. I hate to see people lose money. I trully beleive in the law of abundance. This law states that there is enough money to go around for everyone. We just have to make good decisions but we need to do our homework first to make those decisions. Remember that bulls make money, bears make money, pigs get slaughtered. Words to live by in the investment world.

Tips & Warnings

Always make an informed trade
Never get greedy take your profits and be happy with them
Never trade based on hope and faith
Never buy forex signals, they don't work, none of them
Never buy forex material, everything you need is free on the internet just search around for it
Please research before making a trade

By ehow.com

50. How to Set Trade Position Size for Maximum Profits

2008-12-18T08:11:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A leIn yesterday's lesson we talked about the martingale and anti martingale methods of trading which are the two categories which position sizing methodologies fall...

NOT Buy and Hold Stocks

2008-12-15T06:29:00.000-08:00

"Buy and Hold" is a popular investment strategy. This article attempts to prove that strategy wrong, and provide a better alternative.

"Buy-and-Hold" is a passive investment strategy in which an investor buys stocks and holds them for long periods of time, regardless of movements in the market. An investor who uses a "buy-and-hold" strategy selects stocks, and once they are purchased, is not worried about short-term price movements or technical indicators.

Conventional investing wisdom tells us that with a long time horizon, stocks generate a higher return than other assets like bonds. But there is debate over whether a buy-and-hold strategy is actually better than an active investing strategy. Both sides have valid arguments. A buy-and-hold strategy has tax benefits, because long-term investments tend to be taxed at a lower rate than short-term investments. But now let's look at how a more active investing strategy would render greater returns.

Look at the picture for this article. The graph represents the performance of Apple's stock from July of 2005 to the end of 2006. The stock goes from $40 in July of '05 to $87 in February of '06. Then it goes back down by July of '06 and back up to $90 in December. If you were a buy-and-hold investor and bought Apple stock at $40 in July of 2005 and sold it at $90 in December of 2006, you would have made a great profit - more than doubling your money.

Now let's examine what a more active investor might have done (obviously hindsight is 20/20). Ideally, you would have bought the stock at $40. At that point, you must be constantly researching the stock, following its fluctuations, and looking for an opportunity to sell the stock to take some profit. If you were doing this, you might have been able to sell the stock at let's say $80.

Continuing to follow your stock, you would have had the opportunity to buy Apple stock back at around $50, and sold it after it went back up past $85 to $90. This strategy of active investing obviously has the potential to generate much greater returns than the typical buy-and-hold style. * I will not attempt to teach in this article how exactly to know when to buy and when to sell a stock (I have written other articles titled "How to Know When to Buy a Stock" and "How to Know When to Sell a Stock"). But through reading books and practicing yourself, you will be able to create your own investments strategy that best suits your personality and needs.

By how.com

How to not lose all your money in the forex

2008-12-15T06:27:00.000-08:00

Tips & Warnings

Always make an informed trade
Never get greedy take your profits and be happy with them
Never trade based on hope and faith
Never buy forex signals, they don't work, none of them
Never buy forex material, everything you need is free on the internet just search around for it
Please research before making a trade

By ehow.com

Make Money Online with FOREX

2008-12-15T06:25:00.000-08:00

Looking for a big way to make money online or work from home? More and more people are discovering the benefits of working with Forex. Here's how to get free info, free Forex practice, and start your work from home adventure.

FOREX = FOREIGN EXCHANGE. Forex trading is exchanging one type of currency for another. For instance, trading American dollars for the equivalent value of Euro. In this scenario, you are selling American dollars and buying Euros. It is a form of trading that does not involve the transfer of property or assets other than money/currency.

MAKING MONEY WITH FOREX. Trading currency for profit is a guessing game, often referred to as 'speculation'. You 'speculate' that a particular currency will go up or down in value. Like trading stock, when you believe a currency is about to go up in value, you move to purchase it at its current low rate. You do this by selling a currency you believe will be of less value than the currency you are purchasing. EXAMPLE: You have $50 US dollars that you believe will be less valuable in the near future. At the same time, you see that the Euro is about to go UP in value. As a Forex trader, your speculations would suggest you should exchange the $50 US for the equivalent value of Euro. If, as you predicted, the Euro increases in value while the US Dollar does not, you will earn money as your Euros rise. However, if your speculations are wrong, and the US Dollar thrives while the Euro takes an unexpected dive, you will lose money.

LEARN ABOUT FOREX. Before you invest in Forex trading, you should have a good idea of the rules. Gain Capital Group's website, Forex.com provides basic tutorials and advanced instruction for traders of all experience levels. Learn about trends and warning signs in the market. Make use of their free resources to make an informed decision about working from home as a Forex trader.

PRACTICE FOREX. Rarely are we given the chance to try our hand at making money before we invest. Forex trading is unique in that you have the ability to try it without investing a cent, for as long as a month. To making money online with Forex, visit the link listed in the resources. This will direct you to a 30 day practice session with Forex trading. In this practice session, you will not be using real money, so there is no chance of financial loss if you are not particularly good at Forex trading. Likewise, if you discover your practice investments make money, don't forget that it's not real money. You will not make or lose money with the 30 day free practice session. However, you might discover you have a wildly profitable talent to make money online as a trader.

JOIN A FOREX TRADING GROUP. If you are pleased with your results from the 30 day free practice session, and you feel confident about your ability to make money online with real Forex trading, you will have to join a trading group. This is a simple process that generally requires a small fee. Simply perform a Google search for such groups.

Tips & Warnings

REMEMBER!!! YOU COULD LOSE BIG MONEY!!! While the practice session uses make believe money, real Forex trading takes directly from your wallet. This is real money and you can REALLY lose it. While the potential for massive gains exists, the potential for huge financial losses is real as well.
SUCCESSFUL PRACTICE IS NOT A PROMISE. Even if you have 30 days of perfect practice trading, there's no promise your real trading will always go as well. Even the most successful Forex traders experience loss at times. Limit your investment to reflect a level of financial loss you would be comfortable with.

By ehow.com

49. Trading The Martingale and Anti Martingale Strategies

2008-12-15T06:20:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on the two different categories that position sizing strategies fall into when used in the forex, futures, and stock market. ur last lesson we looked at

Make Money Faster

2008-12-11T08:10:00.000-08:00

Making money is not hard to do, but making lots in a short time span can be. Here are some great ways you can make money faster.

Time. For the most part time has a lot to do with making money. The amount of time and effort you spend on something typically will reflect your return. Whether that be in starting your own business, the stock market, etc. So the more time you invest, the bigger the payoff.

eHow. Starting out writing articles for ehow can sometimes be discouraging by listening to how well other people are doing, while you are making pennies. But do not fret, this can be you as well. Give yourself an amount of time each day to write, the more you write, the more you are likely to earn. Before you know it, you could be making hundreds a month through ehow.

The stock market. The more money that you invest at one time will yield you a bigger return. But be sure that you have done your research for the certain stock or stock option that you have invested in. Because just as quickly as you can earn the money, you can lose it too.

By ehow.com

Learn How to Day Trade

2008-12-11T08:07:00.000-08:00

There are many ways that you can teach yourself on how to become a successful day trader and here are a few of them.

Take a business class. This is a great way to learn how to day trade. Make sure the class you sign up for has to do with stock market and not just business in general. That way you will learn specifics not just about trading daily. This will help you when you start to day trade.

Youtube. Youtube has many people that have submitted lessons on the stock market. While some are not very helpful, many of them are. So be sure to look around youtube for some great advice. Make sure that the person actually knows what they are talking about though.

Watch the market. Day trading has a lot to do with real time trading. So you want to make sure you are constantly watching what is going on. Because within minutes a stock can plummet and you don't want to lose all of your money.

Books. Many bookstores will carry books over the stock market and how to make good decisions with your money. They have information on anything you want to know, such as, stocks, stock options, techniques, high risk, low risk, etc.

48. Why Fixed Position Sizing Is Not the Best Way to Trade

2008-12-11T08:04:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on how using a standard amount per trade when trading the stock, futures, or forex markets is not the best way to go. In yesterday's lesson we introduced

How to Invest Young

2008-12-05T15:48:00.000-08:00

Start early and use the time advantage you have in hand to learn, research and build your future.

Save or invest your money automatic! You need to have a plan to do so. If you work and your company offer 401K plan you can start contribute toward your future by automatically contribute to your retirement plan every month from your paycheck.

Pay yourself first Pay yourself first! Save some percentage of your income every month in separate account before you use it for anything else. If you don't do this you may end up spending all of your money. Then in the future you can use this account to invest in real estate, businesses, paper asset, etc.

Invest your time Invest your time to learn! There are many different investment vehicle out there. You need to invest your time to learn before you invest your money.

Learn to invest your money Learn about trading stocks, options, commodities, index, volatility, etc. Learn about real estate investment such as rental houses, apartment, commercial property and other income producing properties.

Building a business Learn about building a business base on your hobby or your interest! In example if your hobby is writing and traveling then you may can start a blog about traveling. If your hobby is art and craft you may can sell them offline and online. In the future you can monetize your blog or have your own art and craft store offline and online (e-commerce).

By ehow.com

Keep Your Money Safe in a Recession

2008-12-05T15:46:00.000-08:00

You’re nervous. The stock market is acting like a roller coaster and you would love to have a crystal ball to plot your next more. While reading tealeaves might not be a bad idea right now, there are some more conventional ways to keep your money safe when the nation is teetering on the brink of an economic downturn. Learn how to assess Money Market funds and shift your money to safe investments.

Find out how safe your money is in the bank. Check out EDIE – The Estimator. Run by the Federal Deposit Insurance Commission, EDIE allows you to search each bank where you have money to see how safe it is. (See Resources below)

Choose a less aggressive Money Market fund if yours is earning over 2 1/2-percent. Anything over that is too risky in a bear market. Reinvest in a more modest Money Market fund and stay safe.

Buy up some Treasury bills. These are safe investments in a bear market with a recession on the horizon. Select from 30-cay, 60-day or 90-day maturity dates if you have cash to invest. You can buy Treasury bills online at the Treasury Direct website. (See Resources)

Take out a HELOC now, before you need it. If you have a lot of equity in your home and are nervous about your income or your ability to pay your bills, ask your bank about taking out a Home Equity Line of Credit now, while you’re financially healthy. That way, you’ll have it available if you fall on hard times.

By ehow.com

47. Why Position Sizing is So Important in Trading

2008-12-05T15:45:00.001-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on why position sizing is one of the most important aspects to consider when trading the stock, futures and forex markets. So far in the lessons leading u...

How to invest like Warren Buffett

2008-12-03T08:23:00.000-08:00

Investing like Warren Buffett is certainly not easy, but using some of his basic principles makes a lot of sense. Don't expect to get the amazing returns that Buffett has, but use his bottom up approach to finding stocks that have value in order to prop up your bottom line.

Warren Buffett has become the most famous investor in the world by being extremely successful finding valuable companies trading at a discount. Buffett credits his mentor, Benjamin Graham, as the reason for his successes. Understanding the basics of Graham and Buffetts philosophy can help you be much more profitable in your investing. Ben Graham's Security Analysis and The Intelligent Investor are both books that help provide some of that much neededed information.

Stocks or businesses? One of the keys to investing like Warren Buffett is understanding that you are buying businesses and not stocks. When you buy a stock you are becoming a partial owner in that company, meaning you have a stake in their success. Don't treat it just as a piece of paper or something from your computer screen, but rather a business you have a large interest in.

Invest and do not trade. Warren Buffett believes completely in buying undervalued companies and holding onto them for the long run. Buffett believes that things such as derivatives are harmful to the normal investor and that day trading isn't the way to make a living in the stock market.

Can this company coin money year after year? Understand a company's economic moat. A company is said to have economic moat when it's cash flows are protected from competition. It is a continuous and sustainable competitive advantage that a company has over its peers. Buffett has consistently said that a wide economic moat is one of the most important things in any investment choice.

Keep emotions out of investing and use intrinsic values to guide your investment judgement rather than the pundits predictions. The market often overshoots on both the upside and the downside so Buffett is famously coined as saying "Be fearful when others are greedy and greedy when others are fearful."

Tips & Warnings

In order to understand Buffett's ideas even better, check out what he owns in his own company, Berkshire Hathaway.
Do not get trigger happy with stocks. Allow your investment to have time to play itself out.

By ehow.com

How to invest like Peter Lynch

2008-12-03T08:20:00.000-08:00

Peter Lynch is one of the greatest investors ever, so quite obviously you would want to get the returns he did. How did he go about managing a top performing fund and how can you apply that to your portfolio?

First of all, who is Peter Lynch? Peter Lynch is now a research consultant for Fidelity Investments. He has worked with the company since 1966. Between 1977 and 1990 he managed Fidelity Magellan, the world's most successful mutual fund during that period. He achieved a stunning annual return of 29% over those years.

Look for these books at a nearby bookstore Peter Lynch has written two great books called "One up on Wall Street" and "Beating the Street." These are two great ways to get inside of the mind of an investment genious that can help you make money.

Peter Lynch's biggest key to investing in a company is to know what you own. Lynch believes that an investor should be able to be completely understand the company and how it works and earns money before they invest in it.

Good management is absolutely vital to a company's well-being. Lynch states numerous times that one of the main lessons he learned is to do your research and see how the current management has done and if it is poorly, even if the product seems great you should stay away. There are lots of ways for bad management to ruin a great idea.

In order to invest like Peter Lynch you must be a long term investor. Lynch believes that predicting where the market will be in 2 or 3 years is a coin flip, but over a 10 or 20 year period the market is relatively predictable. Do not worry yourself with short term fluctuations.

Don't ignore that light bulb Don't shy away from buying stock in companies you deal with on a daily basis. Use the information that you have about a specific company or product to your advantage. By doing this you are actually ahead of the wall street insiders. Buy what you already know!

By ehow.com

46. How To Protect Your Trading Profits with Trailing Stops

2008-12-03T08:18:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on how to traders use trailing stops when trading the stock, futures, and forex markets. In yesterday's lesson we talked about some of the psychological

Invest in the Stock Market During this Financial Crisis

2008-12-01T08:12:00.000-08:00

Our economy has experienced some tumultuous times of late. Has the market hit a bottom? Is it time to jump back in and invest in the stock market....?

The stock market has dropped about 37% in the past year. Investment accounts and retirement funds have undoubtedly plummeted as well. It is tough to know what to do in this environment. Experts disagree with each other daily on CNBC. The big mutual fund managers have lost money too. I don't pretend to be any smarter than all the experts. So you can take my advice for what it's worth. But I do believe that I can provide some valuable tips.

Be Cautious This has to be the most important aspect of your investment strategy. Caution. Don't begin investing all your cash in the market at once. It it too difficult to 'call a bottom'. You nor I nor anyone knows when exactly the bottom is. Maybe we already hit a bottom. But maybe not. And that's why you have to be cautious.

Do Your Research You must know everything about the stock or mutual fund you plan to purchase. Read every single news story about it before you buy it. Look at the cash flow statement (available on Yahoo Finance) - make sure the company has sufficient cash to operate in this crazy environment.

Buy Slowly Once you have made your decision to buy a stock, don't buy it all at once. For example, if you plan on buying 100 shares total, buy it in four sets of 25. This way, if it goes down after your first purchase, you can buy some more - on sale. After you've made your decision to buy, be firm with that decision. If it goes down, don't panic. Use it as an opportunity to buy more shares at a better price. These steps are obviously basic, but very essential.

By ehow.com

Invest in Real Estate with Little Money or Experience

2008-12-01T08:03:00.001-08:00

If you are thinking of investing in real estate and have very little money and less experience, there are still ways you can do this. There are many people who have made quite a bit of money doing this. With interest rates at an all time low this is the time to invest. The money you can make when you buy property and either resell or rent it can be an income that you can live on.

Consider foreclosures and tax aales. There are many ways to buy real estate with little money. Finding a foreclosure or a tax sale home can be the way to go. There are also for sale by owner homes that many people will carry the note on if you have a down payment. When you purchase a home this way, you can either rent it for more than the mortgage payments or you can resell the home, pay it off, and have extra to purchase another home.

Consider apartment complexes. One of the ways you can make even more money would be to purchase apartment complexes. The potential for earnings using this method is quite a bit more than purchasing a home. If you buy an apartment complex that has as few as four apartments, consider what your monthly income could be if the real estate is in an area that rents for a good price. The amount could pay your mortgage and leave enough for you to live on comfortably. If you invest in several apartments, hire a management company to take care of everything for you and sit back and collect the rent, you will be generating a good income.

Utilize government programs. Some options are available through government sponsored programs, cities and counties. Some counties or cities will allow you to buy homes at a very cheap price if they need renovating to help the economy and to keep from having them torn down. This is especially true in areas where housing is at a premium and people are having a hard time finding homes.

Know your options. There are various ways to purchase homes with little money or experience. All you have to do is be willing to check into a few options and check with your city or county about laws and procedures that are required when you buy property. The tax sales that your county has are another excellent way of purchasing property. The back taxes are paid by you and the owner of the property has a time limit to either pay you the taxes back with interest or the property becomes yours. This is a no-lose situation and many times homes have been purchased for a fraction of their worth. By purchasing property so cheaply, if you decide to rent or resell, the money you will be making will be all profit after the taxes are paid.

In conclusion, there are many options for investing in real estate with little or no money. Simply consider foreclosures and tax sales, apartment complexes, government programs, and more. By doing this, you will be able to find a great deal and profit handsomely for your efforts. Good luck!

By ehow.com

45. Stop Your Mind From Causing You to Take Profits Too Soon

2008-12-01T07:56:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on psychology of trading and how it relates to people's inability to let their profits run when trading the stock, futures, or forex markets.

Invest in Methane as an Alternative Fuel

2008-11-30T08:18:00.000-08:00

Investing in methane as an alternative fuel is an investment in our environment. Methane fuel, more commonly known as natural gas, is felt to be more environmentally friendly than gasoline or diesel. It produces a much lower level of carbon dioxide than other hydrocarbons. Another great benefit of methane fuel is the wide variety of naturally occurring sources where it could be harvested. In addition to finding it in the common natural gas fields, it can also be created through the fermentation of manure, wastewater sludge and landfill waste as well as the ocean floor, coal deposits and scientists are working on chemical reactions that produce methane. It is even found in our solar system!

Seek out mutual funds which are targeted specifically towards alternative fuels. Your stock broker can advise you on this. Investing in a mutual fund which covers a variety of alternative fuels may remove some of the financial risk involved.

Look into the various groups performing scientific studies on methane gas and consider buying stock in their company or those who are financially backing their endeavors.

Purchase stock in companies with operations/development in alternative energy sources, industry services and renewable energy. EnergySTOX is a great resource for this. They list more than 700 such companies which you could research. (link in resource section)

Look for online investor conferences. Renewable energy stock promoters on the internet sometimes offer this as live tapings. If you can't find them live, you can certainly find archived recordings of them. They can be a wealth of knowledge for the beginning alternative fuel investor.

Tips & Warnings

Investments in alternative energy are riskier than some investments. Be certain to research stock price histories and make informed choices. Methane is likely one of the safer alternative fuel source investments due to it's strong availability and information already existing on it's possible usage.

By ehow.com

Invest in Commercial Real Estate for Future Wealth and Security

2008-11-30T08:15:00.000-08:00

Unless you have not been paying attention to the news lately, you have heard on numerous occasions that the United States economy is in a very bad state. Recently, the Senate has approved an economic package that is designed to bailout the failing banking system. This would be the largest financial intervention by the Federal Government since the Great Depression. As far as I’m concerned, this package is just a limited remedy for our already struggling; it would be like putting a band-aid on a headache. I’m sure that you will agree with me when I say that $700 billion is an enormous amount of money by anybody’s standard. Quite frankly, I wouldn’t even know how to count that much money, and if I did, it would probably take me a lifetime to do so. Well, the banks have been rescued, but what about you and me. Where is our bailout? In these times, financial security is more a pressing matter than ever before, and it is up to you and me to address it far more seriously than we’ve done in the past. Investing in corporations is far too risky now. Investing in anything these days is far too risky now. Except commercial real estate.

Why Commercial Real Estate? - Millions of savvy real estate entrepreneurs are investing in single-family homes, and have been very successful. However, few have ever considered making the easy transition to commercial properties. Yes, I said “easy”. They think it's too expensive and too complicated to get into, and therefore never take the next step to the money-making, low-risk potential of commercial real estate. As a real estate professional myself, I would not advise buying commercial real estate solely because you have heard that a lot of people have made money in it. There are just as many people who have lost money in commercial real estate as there are those who have made money in it. So, why commercial real estate? First, the money-making potential is higher than that of residential. Second, it is much easier than residential real estate. Lastly, you can easily increase the value of a commercial property, and do so in as little as 30 days. This is not entirely true of residential real estate, and is definitely not true of stocks, bonds or any other type of Wall Street investment. Most importantly, anyone can invest successfully in commercial real estate without prior knowledge, experience, advanced academic education, or a real estate license. Needless to say, you will need to be trained properly how to do it.

Determine the CAP Rate - CAP Rate is a shorter term for capitalization rate. Cap rate is a discount rating that is used to determine the current or present value of a property that will create future earnings. The rate is calculated in a simple fashion as follows: Net Operating Income (NOI) / Purchase Price = Capitalization Rate For example, if you were to purchase a Class “A” office building for $1,000,000 and it produces $100,000 in positive net operating income (NOI) each year, then the formula would be as follows: Net Operating Income / Purchase Price = CAP Rate $100,000 / $1,000,000 = 0.10 = 10% Therefore, the commercial property’s capitalization rate is 10%, which would be the annual return on your investment. This would be considered a good rate of return.

Determine the Cash Flow - Cash flow is simply the movement of money going in and out of your investment, and is determined by three things: the annual rents, the annual expenses, and the annual debt service. The formula for cash flow is as follows: Annual Rents - Annual Expenses - Annual Debt Service = CASH FLOW The annual rents on your Class A office building is $100,000. The annual expenses are $40,000. The annual debt service is $35,000. This means that in order to find out what your cash low is, you would follow the formula: $100,000 - $40,000 - $35,000 = $25,000 Therefore, you would have $25,000 flowing into your office building each year

Determine the Cash-on-Cash Return - The cash-on-cash return is the ratio of annual before-tax cash flow to the total amount of cash invested. The formula is as follows: Cash Flow / Down Payment = Cash-on-Cash Return If you had put down $250,000 for your office building, your cash-on-cash would be: $25,000 / $250,000 = 0.10 =10%

Determine the Return-on-Investment (ROI) - The return-on-investment cash dictates how much profit you will make on your office building investment. Total Financial Benefits / Down Payment= Return-on-Investment (ROI) Let’s assume that before you bought your office building, you were informed that your total financial benefits were $35,000. You would figure out your return-on-investment as follows: $35,000 / $250,000 = 0.14 = 14%

Get Trained - To get started, you will first want to get some training. I suggest not paying thousands of dollars on boot camps. Many of them are rip-offs are don’t teach you the things that you need to know to become successful. Instead, I would recommend joining real estate organizations in your local area that specialize in commercial real estate. Also, you might want to join real estate forums on the web. Get on some of the real estate webinars. They are generally free and provide great information for both beginners and experts. Make it your mission to educate yourself as much as possible.

Get Going - Talk to commercial real estate professionals with many years of experience. Many of them can give you guidance on how to begin with your investment focus. They can teach you about financing options, and can help you find properties that will be correlate with your investment goals. Get good at doing commercial investment analysis, and learn how to do the computations just as we did them in the previous sections.

Get Serious About this Type of Investing Long-Term - As I had stated earlier, the purpose of investing in commercial real estate is not strictly to make a lot of money. Commercial real estate is very lucrative, and anyone can ultimately become wealthy investing in it. However, I wish to encourage you to think of your investing in commercial real estate as a long-term engagement. Your goal should be to accumulate wealth for your retirement, and for the future of your children and grandchildren.

Tips & Warnings

Invest in training. Training is an absolute must if you are planning for success in this industry.
Seek out the experts. Talk to commercial real estate professionals, attorneys and other professionals about investing in commercial properties.
Talk to other investors who specialize in commercial real estate.
Join webinars and real estate focus groups.
Join as many commercial real estate organizations as you can.
Stay away from so-called experts selling their programs through boot-camps. Many of them are expensive and completely worthless.
Stay away from scam artists.
Don't bite off more than you can chew in the beginning. Start slow and increase your knowledge.

By ehow.com

44. How Successful Traders Use Indicators to Place Stops

2008-11-30T08:06:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on how to incorporate the use of technical indicators when placing stops in the forex, futures, and stock market. In our last lesson we learned how many

How to Compare Tax Free Municipal Bonds

2008-11-29T08:31:00.000-08:00

Tax free municipal bonds, also called ‘munis’ are government bonds that are free from federal taxation. In many states, you can buy tax free municipal bonds which are also free from the state tariff as well. The following article will tell you how to compare tax free municipal bonds with traditional investments.

Consider GO or General Obligation. General obligation (GO) tax free municipal bonds are used for purchasing new schools, building roads, courthouses and other necessary long term investments. Because the nature of the investment is a necessity and is unlikely to turn out to be unnecessary these are often considered to be a more secure investment.

Consider Revenue Munis. Revenue tax free municipal bonds are issued by state and local government sanctions, such as the water company, in order to enhance facilities or processes or even general maintenance. These are less secure because the return is based on the revenue producing probability of the invested party.

Once you have decided which type of tax free municipal bonds to invest in, compare them with their taxable counterparts. Here is the formula for doing so: Yield divided by (1 minus Tax Bracket) Example: If you are in the 20% tax bracket and the yield on the tax free municipal bond is 4.5% you would do this. 4.5/(1-.20)=5.625% taxable yield equivalent

Compare the estimated taxable yield with taxable investments. If the tax free municipal bond’s taxable yield less than traditional investments then it is better to go with the traditional investment. If it is more than or equivalent then the tax free municipal bond is the better investment.

Tips & Warnings

If the investing party is non-profit or not for-profit, they are traditionally better off investing in tax-free corporate bonds.
If the investing party is in a high tax bracket they are usually going to be more successful with tax free municipal bonds.
Larger investments means a more secure and predictable return on the investment.

By ehow.com

Buy Property Tax Liens

2008-11-29T08:28:00.000-08:00

Local governments rely on property taxes to pay for expenses. If a property owner fails to pay their property tax, there are still expenses to pay. One way governments compensate for delinquent payments is to sell property tax liens. Investors pay the delinquent property tax, and then the government has money to pay expenses. When the property owner finally pays their taxes, they pay the investor back, plus interest. If the property owner fails to pay the taxes back within a specific timeframe, the investor can foreclose on the property and gain clear title.

Shop locally. When you first begin investing in real estate tax liens, stay close to home, so you can check out the property before investing. If you are relatively new to investing in real estate tax liens, purchasing liens from across the country may not be prudent.

Discover if the state you are shopping is a lien state or a deed state. The process is different for each type. In a deed state, delinquent taxes are paid by auctioning off the property. A lien state is one where the investor purchases a tax lien on the property. More due diligence is required in a deed state, and the investor’s goal is to own the property, whereas in a lien state, the primary goal is to make high interest.

Check to see if there is an IRS or other tax lien on the property. Typically a property tax lien will trump other liens on the property, even a mortgage with a bank. If an investor forecloses on a house that has a mortgage, they do not owe the mortgage, as the property tax supersedes the mortgage. But, if it is an IRS lien, that debt may remain with the property.

Avoid buying vacant land that you are unfamiliar with. If you pay a tax lien on swamp property, and the owners don’t repay the taxes and interest, do you really want to end up owning swamp land?

Approach commercial real estate with caution. Business property might be more likely to have IRS or other tax liens attached.

Go online to the county website for the area you are investigating. Many county websites post the procedures for purchasing real estate tax liens, along with available properties.

Don’t expect to end up gaining full ownership to the real estate when purchasing property tax liens. Although it does happen, property owners tend to eventually repay their taxes before loosing their property.

Negotiate the interest you will earn on your investment. Some states offer 16%, 24% 5%, and other rates. If more than one investor wants to purchase the lien on one piece of property they will make a bid. The lowest bid wins, meaning the investor receives less interest than the standard rate, and the government gets to keep the difference as profit.

By ehow.com

43.How to Reduce the Chances of Being Stopped Out on a Trade

2008-11-29T08:27:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on how to incorporate multiple support or resistance levels into a trading strategy for the stock, futures, or forex market to reduce the chances of being

Buy Homebuilder Stocks

2008-11-27T08:52:00.000-08:00

Investing in homebuilder stocks in this market might seem counterintuitive. But this article explains why now is the best time to invest in homebuilder stocks.

Investing in homebuilder stocks before the housing market makes its turn-around might not seem like a good idea at first. But if you want to make the most money off of homebuilder stocks, it is imperative that you buy before the turn-around officially starts.

Once the turn-around begins, keep your eye out. All the big mutual funds will begin to put their money into the stocks, making the prices rise quickly. At the time that you think everything is going perfectly, that there is no way your homebuilder stocks will go down, that time is the time to sell. Remember - you haven't made a profit until you've sold the stock.

Before you buy a homebuilder stock - do your research. These stocks can be quite volatile. Read everything you can about them. Here are a few stocks that I think are the best of the group: KB Home (ticker: KBH) Lennar (LEN) Meritage Homes (MTH).

By ehow.com

Buy Financial Stocks

2008-11-27T08:50:00.000-08:00

Investing in financial stocks can be a great move at times. This article explains how to invest in the right financial stocks.

Investing in financial stocks is almost always going to be a risky investment, especially during our economy's current financial crisis. The important thing to remember in times like these is that more than ever, it is essential that you do your research before purchasing any financial stock.

When investing in financial stocks, keep in mind that lower interest rates are always better for the companies. As interest rates approach 5% or higher, I would recommend selling all financials.

I would only consider (obviously) investing in the best of the best. So here is a list of what I believe are the best financial stocks to own (in order): Goldman Sachs (ticker: GS) JP Morgan Chase (JPM) Morgan Stanley (MS) Wells Fargo (WFC) Bank of America (BAC) A good place to learn more about investing is the Investment Strategies forum.

42. How to Up Your Chances for Profit When Setting Stops

2008-11-27T08:44:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on how to incorporate technical analysis in identifying support and resistance and incorporating this into setting your stop loss when trading the stock

Buy Energy Stocks

2008-11-25T09:41:00.000-08:00

With Oil plummeting as of late, now is the perfect time to start investing in energy stocks.

Oil has been plummeting in price during the past couple months. This price drop has brought down with it all stocks related to energy services.

Now is the time to buy! Please use discretion before purchasing a stock, especially in this volatile market. Do extensive research on any company before you buy its stock. But below I included a few stocks that are definitely worth considering.

A list of some top performing energy stocks to possibly invest in (with the ticker symbols in parenthesis): Exxon Mobile (XOM) Chevron (CVX) Headwaters Incorporated (HW) Petrobras (PBR)

By ehow.com

How to buy Corporate Bonds

2008-11-25T09:38:00.000-08:00

Corporate bonds are a great way to diversify your portfolio. These types of bonds do pose certain that you need to factor in but they are extremely profitable. With a little research you can greatly reduce your risk and make a ton of money in corporate bonds.

First your going to need a broker. There are many discount brokers to be found online that offer corporate bonds with low transaction cost. Be sure to choose one that offers a big selection of corporate bonds to choose from.

Always buy corporate bonds for major companies. These are companies with huge market caps. These bonds a little less than smaller companies but are a lot safer. Be sure to inspect the companies credit rating. Triple A credit ratings are the highest and safest.

While the terms of the bonds differ greatly avoid buying bonds with long term maturity dates. Even if a company is a safe bet you don't know what is going to happen to the market for them in ten years. Stick to bonds between one year and five years.

Always buy bonds at a discount. There are many great quality bonds you can buy that are at a discount. This is important. We are buying corporate bonds to make money not lose it.

Check out the company issuing the bond. Do they have the biggest market share of their industry? Have they been consistently turning a profit for the past five years. You need to know that the company is going to pay you back your money plus interest.

41. How to Use the Average True Range (ATR) To Set Stops

2008-11-25T09:36:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on how to include volatility in setting for traders of the stock, futures, and forex markets. In our last lesson we looked at determining how much you are...

Buy Chinese Stocks

2008-11-24T07:00:00.000-08:00

China is an up and coming world power. If you know what to invest in, you can make a lot of money. This article teaches a few ways to buy Chinese stocks.

China is on the rise. It will be one of the premier global powers very soon. But when investing in China, one must be very careful. It is an extremely volatile market. But there is plenty of money to be made - if you know what you are doing.

Step2

Before making any purchases of Chinese stocks, you must do extensive research. As I said, the market is very volatile. I would read every news story about the particular stock before you buy it. Study everything out thoroughly. Here is a list of quality Chinese stocks to consider, with the ticker symbol in parentheses and its industry: China Fund (CHN), banking China Mobile (CHL), telecommunications China Life Insurance (LFC), insurance Baidu (BIDU), search/advertising Petrochina (PTR), oil Canadian Solar (CSIQ), solar energy

Step3

Again, research is critical. I recommend typing the ticker symbol into Yahoo Finance and then clicking on the "Analyst Estimates" tab on the left. This will show you what the analysts covering the company expect them to earn next quarter and next year. I good rule of thumb (although it may seem counter-intuitive) is to buy the stock when everyone is saying there is no way it can go up. That's when you look for a good buying opportunity. Similarly, sell the stock when everyone is saying that there is no way it can go down.

Buy Brazilian Stocks

2008-11-24T06:57:00.000-08:00

Brazil is an up and coming world power. If you know what to invest in, you can make a lot of money. This article teaches a few ways to buy Brazilian stocks.

Brazil is on the rise. It will be one of the premier global powers very soon. But when investing in Brazilian stocks, one must be very careful. It is an extremely volatile market. But there is plenty of money to be made - if you know what you are doing.

Before making any purchases of Brazilian stocks, you must do extensive research. As I said, the market is very volatile. I would read every news story about the particular stock before you buy it. Study everything out thoroughly. Here is a list of quality Brazilian stocks to consider, with the ticker symbol in parentheses, and its industry: Petrobras (PBR), Oil Vale (RIO), Mining Brasil Telecom (BTM), Telecommunications Vivo (VIV), Telecommunications Gol Linhas (GOL), Airline

Video Review: Trading for a Living by Dr. Alexander Elder

2008-11-24T06:54:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A video review of the book Trading for a Living by Dr. Alexander Elder.

Buy an Index Fund

2008-11-23T07:12:00.000-08:00

Investing in an index fund is a great way to diversify. But it is very important that you buy the correct index fund for your needs. This article tells you how.

An Index Fund is a type of investment that seeks to duplicate the movements of an index of a specific financial market, like the S&P 500. Owning an index fund is a great way to diversify. You can create your own personal "index fund" by investing is hundreds of different stocks, but this proves to be very costly and quite time consuming. Therefore, investing in an actual index fund provides you with the return of the index that it's tracking with low fees and low time management.

Since there are many different types of indexes, there are many different index funds. The following is a list of indexes, and the ticker symbols of the best index funds that track them: S&P 500 (most common) - SPY, VFINX, SWPPX, FSMKX S&P 400 (mid-size companies) - SPMIX, VIMSX S&P 600 (small-size companies) - SMCIX NASDAQ 100 (largest NASDAQ companies) - RYOCX Russell 2000 (small companies) - NAESX Wilshire 5000 (almost all U.S. stocks) - VTSMX, FSTMX

The United States economy has been going through some tough times lately. All of these indexes are down sharply from their all-time highs reached in 2007. If you have some extra money to use for investing, but not much time, I would highly recommend slowly buying some shares of an index fund.

As far as deciding which index fund is for you - that depends on how okay you are with risk, and how soon you might need your money. In general, smaller companies are more riskier than larger companies. So invest accordingly. But remember - the greater the risk, the higher the potential return. Good luck and please feel free to ask questions!

Buy Alternative Energy Stocks

2008-11-23T07:08:00.000-08:00

With oil plummeting as of late, now is the perfect time to invest in alternative energy stocks.

Investing in Alternative Energy stocks is not too difficult. And with the way oil is rising, it is the time to start. Research is necessary before purchasing any stock. But there are some areas that are better than others to invest in.

Step2

The typical Alternative Energy sectors that investors focus on are Solar and Wind stocks. Taking a long-term view of the economy and the environment, these stocks should steadily continue to rise over time.

Step3

Here is a list of some good alternative energy stocks to consider (including the ticker symbols): First Solar (FSLR) Canadian Solar (CSIQ) Clean Energy (CLNE) Broadwind Energy (BWEN) And for a less direct play, General Electric (GE).

By ehow.com

40. Money Management: How To Determine Initial Stop Levels

2008-11-23T07:06:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A less on how traders determine their initial stop levels when trading the stock, futures, and forex markets. In our last lesson we looked at the difficulty of over...

How to Buy Agriculture Stocks

2008-11-22T08:14:00.000-08:00

Investing in agriculture stocks can be a great move, especially since we all depend on them for food. This article explains how to do so.

We all need the services of the agriculture industry. Therefore, investing in agriculture stocks will always be a good investment, as long as you time it right. These stocks are sensitive to the economy. They depend strongly on legislation from the government (i.e. tax breaks, etc.).

Step2 Do your research thoroughly before buying an agriculture stocks. Here are some names to consider (ticker symbols included): John Deere (DE) Mosaic (MOS) Potash (POT) Bunge (BG) Monsanto (MON)

How to Buy a Mutual Fund

2008-11-22T08:13:00.000-08:00

Understanding how to buy a mutual fund is essential for a relaxing retirement. This article teaches how to invest in mutual funds.

A mutual fund is a professionally and actively managed investment tool that pools money from many investors and invests it in stocks, bonds, and various other securities. It can have a broadly diverse portfolio or a narrowly focused portfolio. A mutual fund may be extremely high risk or very safe. Some pay dividends, some have transaction fees, and some require minimum investments. How do you decide which mutual fund is the best one for you to invest in...?

The first thing you need to do is assess your risk tolerance. Generally, the greater the risk = the greater the potential profit (or loss). Your risk will largely depend on your time frame. Buying a mutual fund when you're 30 years old is a lot different than when you're 60. The closer you are to retirement, the less risk you should be exposed to.

There are many different companies that offer mutual fund investing. Vanguard, Fidelity, eTrade, Schwab, and Ameritrade are some of the best. I will provide the names and ticker symbols of some leading mutual funds to consider for your investment. Please do your research and risk assessment before purchasing any mutual fund. The number to the right of the fund name represents the level of risk associated with the fund (5 is the highest risk): CGM Focus Fund (CGMFX) - 5 Fidelity Fifty (FFTYX) - 4 Fidelity Dividend Growth (FDGFX) - 3 Allianz Dividend Value (PEIDX) - 1 Third Avenue Small Cap (TASCX) - 5 Janus Enterprise (JAENX) - 3 Again, these are just for your consideration. I do consider them to be some of the best in the industry. Good luck and please feel free to ask questions!

By ehow.com

39. How to Join the Minority of Traders Who Are Successful

2008-11-22T08:10:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on the importance of the preservation of capital as part of a trading strategy for traders of the stock, futures an forex markets. In our last lesson we...

Yield High Capital Gains Distributions

2008-11-20T08:51:00.000-08:00

Capital gains refers to the profits realized by a mutual fund when it sells its securities (for example, stocks or bonds). Capital gains distribution is the payment of the profits to mutual fund shareholders. Capital gains distribution usually happens once a year, although it may occur monthly with some types of bond funds. If you want to yield high capital gains distributions, you must invest for either a long period of time, or choose riskier investments that will yield higher gains.

Understand How to Yield High Capital Gains Distributions

Invest in mutual funds with the lowest possible fees and expenses.

Choose mutual funds with the highest risk you can afford, considering your risk tolerance.

Invest as much as you can afford. Higher investments yield higher gains distributions.

Set a limit on how much you can lose before you sell, for example, 25%. So if you invest when shares are $20, you sell if they drop to $15. If shares go up to $32, you sell if they drop to $24.

Avoid selling while your mutual funds shares are increasing, and reinvest the money you make during this time.

Tips & Warnings

Capital gains distributions are taxable income, so you may want to consider automatic reinvestment of your capital gains into your mutual fund to avoid paying capital gains tax.
Capital gains distributions are dependent on the mutual fund's performance: the better the fund does, the higher the gains you'll yield.
Keep your tax advisor in the loop. Investing in mutual funds can have significant tax consequences. Make sure your tax planner knows about the investments you plan to make.
Know that fund expenses affect your bottom line. Fund expenses dilute your returns in ways that can add up significantly over time. Calculate the effect of expenses to get a true picture of a mutual fund's performance.
High capital gains distributions mean high taxes. Be prepared for the government to take its share of your gains.
Riskier investments may pay off a great deal more than, say, index funds, but you may lose your entire investment. Don't invest more money than you can afford to lose.
As an investor, you aren't really in control of the capital gains distributions. All you can do is invest wisely and hope that your intelligent investing will yield high results.

By ehow.com

38. Profit Expectations: What Millionaire Traders Know

2008-11-20T08:49:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on how most traders have unrealistic profit expectations which cause them to lose all their money and what realistic profit expectations are when trading...

Use Prosper for Socially Responsible Investing

2008-11-19T08:13:00.000-08:00

Have you ever wished you could make and invest in your own mutual fund, based on your personal selection criteria? With Prosper.com, you can. Prosper is a peer-to-peer lending site that matches prospective borrowers with lenders. Lenders can bid as low as $50 on borrower listings, and you can pick and choose based on your preferences.

Determine your loan selection criteria. Consider your values, beliefs, and causes you currently support. For example, are you an advocate of the green movement? Then you may wish to bid on alternative energy business loan requests. Are you a vegetarian? Then you may choose not to bid on loan requests for restaurants that serve meat.

Review loan listings. Besides fitting your socially responsible investing standards, you may want to consider the borrower's ability to repay the loan, the borrower's credit history, the borrower's income and employment history, the borrower's description of the loan purpose, whether or not the borrower will have the monthly payment amounts automatically deducted from the borrower's bank account, etc.

Bid on loans. Diversification helps spread the risk of any one borrower defaulting, so you may want to start small (bidding the minimum $50 for any one loan) and bid on several loans. Two $50 loans to different borrowers may have a lower risk of default than a $100 loan to a single borrower. Select a high enough rate of return to compensate for the potential risk of default.

Be patient. If you are committed to certain selection criteria, then be wary of loosening your standards in order to bid on loan listings. If there are no loan listings that meet your selection criteria, you may want to wait until you find those that do. Be careful not to make your selection criteria too narrow, else no one will fit.

Tips & Warnings

Invest in what is important to you. If you would not buy a product, frequent an establishment, or support a certain cause, then you may not want to bid on loans that would promote such items.
Invest in what you know. If it sounds too good to be true, it probably is.
Diversify, if possible. Try to spread the risk of default and possible losses among many loans/borrowers.
Be careful that your selection criteria is not too narrow.

By ehow.com

use "moving averages" to buy stocks.

2008-11-19T08:11:00.000-08:00

You always want to be in "harmony" with the markets when trading stocks. Here's a simple tool that will keep you on the "right side" of the trade.

WHAT IS A MOVING AVERAGE?: Simply take the last 20 days closing prices, add them together, then divide by 20. This price is plotted along a line (moving average). Most all charting software does this for you.

Only buy a stock if prices are trading above the 20-day moving average.

Institutional investors (hedge-funds, banks, mutual-funds, etc.) control most stock prices. They will "support" the stock at the 20-day moving average if they think it's going higher in the short-term. Use this to your advantage

Tips & Warnings

This is an important rule that should not be broken or you will be fighting the "trend." Something you never want to do. "Flow" with the trend, never fight it.
See our other trend trading articles for more tips.
This is the opinion of the writer and not a offer to buy any securities. Investing in securities involves risk. Consult a professional before making any investment decisions.

By ehow.com

37. Trading Psychology: Think as a Group, Lose Your Money

2008-11-19T08:02:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on crowd psychology and how it relates to trading the stock, futures, and forex markets. The best summary that I have seen on this subject, as well as a...

Understand Penny Stocks

2008-11-18T06:34:00.000-08:00

Investment and stock market lingo can be confusing sometimes, but it is important to know about the economy. Here is a brief tutorial on what penny stocks are.

Know that a penny stock is a stock investment that is traded in the market (usually small markets as opposed to the major exchanges) for substantially low prices.

Step2

Realize that penny stocks in many cases are considered fairly risks due to their decreased capitalization and their prices. Why are they so cheap after all? Another thing to consider is that penny stocks are not as well researched and information about them are often minimal to say the least.

Step3

Remember though that even with its low price, is it worth it to risk money on an investment that doesn't have a lot of following or a confident history behind them? Remember, penny stocks are not actually sold for a penny! You do have some sort of investment in them, so you must weigh the pro's and con's of the lower price with the higher risks. Most penny stocks though sell for less then a few dollars per share, and there are some bigger name companies that do sell shares for this amount so looks can be deceiving! It is always best to research the stock and its company before buying. It will save you more money in the process.

By ehow.com

Understand Bear Markets

2008-11-18T06:31:00.000-08:00

Investment and stock market lingo can be confusing sometimes, but it is important to know about the economy. Here is a brief tutorial on what a bear market is.

Know that a bear market is actually a condition in the economy when the prices of options, stocks, bonds, etc. falls. It is a period in which the negative views of the stock market actually become a self fulfilling prophecy and contribute to more slowdowns in the market and more people selling their investments.

Know that major falls in percentage points in the Dow Jones index or the S&P 500 over a sixty day period or more is a typical sign of a bear market entering. After all, those two specific indexes are benchmarks for performance measurement in the stock market.

Realize that bear markets are typically a bad time for people to initiate themselves into investing or continue doing so as very few people have great successes during a bear market. The timing is hard, and when everything is falling it is very easy to lose a lot of your investments in a very short period of time. About the only investors who can make any sort of accomplishment during a bear market are those that short sell and are in the market for a very short period of time.

By ehow.com

36. Two Trading Mistakes Which Will Destroy Your Account

2008-11-18T06:29:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on two of the most common mistakes that traders make when trading the stock, futures and forex markets. One of the most common mistakes is sticking in a...

Understand Absolute Returns

2008-11-17T06:12:00.000-08:00

Investment and stock market lingo can be confusing sometimes, but it is important to know about the economy. Here is a brief tutorial on what absolute returns are!

Know that an absolute return is the return from an investment (ex. mutual fund) you receive over a specific period of time. Absolute returns compare the appreciation or depreciation of a particular investment with a percentage during this time period..

Know that an absolute return fund's goal would be to make positive returns on your investment by using a variety of management strategies that typically differ from your average mutual fund.

Realize that some of these absolute return fund strategies include options, futures, and using short selling. This form of mutual fund has become so popular that it is also known by another name. Absolute return funds are also called hedge funds.

Understand 401K Plans

2008-11-17T06:10:00.000-08:00

Investment and stock market lingo can be confusing sometimes, but it is important to know about the economy. Here is a brief tutorial on what a 401(k) plan is.

Understand that a 401(k) plan is created by the company, your employer, which allows you to defer portions of your salary as contributions into investments. Earnings on these 401(k) plans are on a tax-deferred basis as well.

Know that many times, employers make the decision to match the contributions of their employees to motivate them to contribute to their 401(k) plans. This, from my experience, often works and is beneficial to both the employer and the employee.

Realize that employees are not left in the dark on the investments made in the plan! As the employee, you may choose from an array of options including mutual funds, bonds, stocks and a variety of money market investments.

Recall that 401(k) plans are often used as retirement plans, and thus is one of the most popular retirement plans available. They are often used as well because of its convenience -- as an employee benefit, 401(k) plans must be sponsored by your employer. Due to this, it becomes easy for even the non-investment savvy person to become involved with this plan and interact with investments.

35. Master the Psychology of Trading: The Effect of Losses

2008-11-17T06:00:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on how the ability and willingness to take losses when trading the forex, futures, or stock markets is one of the key factors that differentiates successful...

Survive the Economy

2008-11-16T09:05:00.000-08:00

Money’s tight right now. For some of us, money has BEEN tight. So, what do we do? Get practical and real. Consumer spending helps the economy. The more people spend, the more people make money. But what about the individual? Spend less, invest smarter.

Take a look at your spending habits. Where can you cut some fat? In some places, maybe that’s literally. Spend less on food. The average person today eats WAY too much. Sometimes, we buy food that we never even eat. That’s a lot of wasted money right there.

Do you really need to go to the movies this weekend? How about staying in for the night? Break out an old movie you haven’t seen in awhile. Other options are watching movies on hulu.com or on fancast.com. Free movies are everywhere for us to watch!

Cut back on electricity. Right now, at least where I live, is a perfect time to open up the windows and let the “fresh” air in. Use fans instead of air conditioning. In the winter, dress warmer and/or use a blanket instead of turning on the heat. Turn off the lights in rooms you’re not using. Unplug electricity vampires. Those chargers you’re not using right now ARE costing you money if they’re plugged in!

Not enough? The reality of it is, maybe you DO need a second job! You’d be surprised how much easier it can be to pay the bills and get by with just a few extra hours of work a week at a second job! There are plenty of night and weekend jobs out there, and you don’t need them to pay the same amount as your fulltime job! That extra income will help pay off credit cards, saving you money that would be wasted on interest.

The stock market… Oh yeah… Get more conservative with your investing. Penny stocks are risky in a healthy market, let alone a falling market. Some stocks may spike up and earn someone some nice cash, but are you in on that end, or on the losing one.

Stocks are sexy, mutual funds aren’t as sexy, bonds… eh… datable, savings accounts? They’re like a family member. It seems the more money you COULD make, the greater the risk of losing it all is. And sexy is a risk. Is someone still making money off of sexy? You bet! Are you? Maybe not. In hard times, stick with family. It might not fix the world’s economy, hell, it might even hurt it more, but who’s looking after you? The world, or you? And who are you really responsible for looking after? The world, or yourself and maybe your family? Look after yourself and your family for a bit. You worked for it, you deserve it.

Tips & Warnings

I’ve said it before, and I’ll say it again, I’ve got an E_Trade savings account and it’s pulling in at 3.30% interest right now. 3.30% is good enough for me right now.
Bonds should be pretty good right now from what I understand. They should be cheap enough right now and have a decent enough payout once they mature.
Now could even be a good enough time to get in low on a nice mutual. Be sure it’s a conservative mutual for the long term investment.
Be CAREFUL what BANK you even use now! Even banks are changing left and right these days!
If you can help it, make sure your money is FDIC insured! The market is pretty unstable right now. Keep your money safe!
Investing, even in a stable market has its risks! ALWAYS DO YOUR RESEARCH!

By ehow.com

Start Family Investments

2008-11-16T09:00:00.000-08:00

When most people think of investing they think of one person. The fact is when it is a family why not work together to build a family portfolio.

Start by setting up the formula. Depending on the age of the children, each will be able to contribute certain amounts to any investment. Payout will be based on the percentage put into the account. Also, agree nobody will withdraw money for a certain extended period of time and set yearly limits on the amount to be taken out.

Seek out an internet broker. This way the transactions are in your hands. There are many to pick from including Sharebuilder.com, E Trade and many more.

Search out stocks that are safe. Perhaps even go after mutual funds and avoid the individual stocks. If investing in individual stocks, seek out those with dividend payments.

Keep the flow of money coming each month or week. Even if this means keeping a large amount in a money market fund, but it should pile up quickly and in the end all will be happy.

Tips & Warnings

I am not a professional financial advisor, this article is intended to provide basic ideas. For specific financial advice on stocks or other issues, please seek out professional advice.

By ehow.com

34. Why Most Traders Lose Money and The Solution

2008-11-16T08:57:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on the importance of money management in trading and how most traders of the stock, futures, and forex markets ignore money management because they do not...

How to Save Money if a Deep Recession or Depression Comes

2008-11-15T09:49:00.000-08:00

I placed $2000.00 in a mutual fund in 1999 to start up a Roth IRA. At the time all of the “experts” were saying the same thing they do now – Over the long term, you’ll make at least seven percent on your investment. Now nine years later, that original $2000.00 plus another $1000.00 invested in the same fund sits at $543.00. Hmm…let’s see…that’s a negative $2457.00 in earnings and I don’t even know what the percentage would be. I haven’t put much money in that mutual fund over the years but I have in other various retirement accounts and I would say overall I’ve lost at least 25 percent. I did find a way, though, to save some money (even if banks fail and the FDIC can’t cover them) and have simplified it into five easy steps for you.

1.Pay your bills and pay for enough food and water until your next paycheck.

2.Go to your bank and withdraw the remaining money.

3.Proceed cautiously home with your money.

4.Place the paper money under your mattress. Place the coins in a jar.

Repeat steps 1 through 4.

Tips & Warnings

ProTip: Don’t think about stealing my coin jar, you would hardly be able to lift it up.

By ehow.com

How to Research Oppenheimer Mutual Funds

2008-11-15T09:46:00.000-08:00

In the early 1950s, Oppenheimer & Co. was initially established as a brokerage firm, but in 1960, the Oppenheimer Management Corporation (now called OppenheimerFunds, Inc.) was created in order to more effectively manage the Oppenheimer Fund. In the 1990s, OppenheimerFunds began extending its focus from retail mutual funds to offer more investment products and services. It now claims over $200 billion in assets, many of which are bond funds.

Research Oppenheimer Mutual Funds

Use the award-winning Oppenheimer website to track fund performance (see Resources below). Oppenheimerfunds.com received a rating of "Excellent" from the DALBAR WebMonitor in the first quarter of 2007 for its innovative and functional approach to providing financial services online.

Research one of Oppenheimer's top-rated municipal bond funds, the Oppenheimer CA Municipal fund (OPCAX), which is managed by Ronald H. Fielding and got its start in 1988. Over a billion dollars in assets are invested in various CA bond funds in order to achieve a high level of tax-exempt interest income.

Check out the Morningstar rating for the Oppenheimer CA Municipal fund, which is 5 stars. This high rating is due in part to the average annual returns of the last few years: 7.71 percent in 2006, 10.94 percent in 2005 and 8.40 percent in 2004. A negative annual return was posted in 1999.

Prepare to spend at least $1,000 for your initial investment in this fund. Subsequent investments require a minimum of $50.

Research another one of the bigger and more successful Oppenheimer mutual funds, the Oppenheimer NJ Municipal fund (ONJAX), which was created in 1994. Like the Oppenheimer CA Municipal fund, the Oppenheimer NJ Municipal fund invests the majority of its half billion in assets in New Jersey municipal securities, and it also aims to make its investors money through tax-exempt interest income. It is also managed by Ronald H. Fielding.

Review the impressive 5-star Morningstar rating for the Oppenheimer NJ Municipal fund, as well as its annual returns in the past. The annual return was 7.76 percent in 2006, 10.10 percent in 2005 and 8.53 percent in 2004. The last time the fund posted a negative annual return was in 1999.

Pull together at least $1,000, which is the minimum for the initial investment in the Oppenheimer NJ Municipal fund. Prepare to spend at least $50 on subsequent investments.

Look into one of the other mutual funds provided by Oppenheimer. There are about 70 mutual funds available through this company, many of which focus on domestic and international stocks in addition to municipal and taxable bonds.

Tips & Warnings

If investing in municipal bonds mutual funds, it is important to realize that the tax exemption only applies to the interest-generated income. You will be expected to pay taxes on any capital gains you earn by selling your shares at a higher price than you paid to purchase them. You will want to factor this into your research.

By ehow.com

33. How to Trade the Inverted Hammer/Shooting Star Patterns

2008-11-15T09:42:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on how to trade the Inverted Hammer and Shooting Star Candlestick Chart Patterns for active traders and investors using technical analysis in the stock...

How to Research Fidelity Mutual Funds

2008-11-14T09:54:00.000-08:00

Fidelity is one of the best-known and most prolific of the big-name mutual funds. The Johnson family mostly controls this privately owned company, and it is often associated with the infamous Peter Lynch, who took the company's once little-known Magellan fund from $18 million in assets to $14 billion in assets over a 13-year period starting in 1977.

Research Fidelity Mutual Funds

Appreciate Fidelity's innovative approach to fund management: the company is responsible for several "firsts" in the world of investing. For instance, Fidelity was the first to allow investors the option of purchasing funds through an 800 number, and it was also the first to provide many industry- or sector-specific mutual funds to its investors.

Research the company's Contrafund (FCNTX), its largest and top-rated fund. Managed by William Danoff, this is a large-growth fund begun in 1967, and it targets capital appreciation by investing mostly in growth and value stocks from U.S. based issuers, although stocks from foreign issuers may also be included in the portfolio. It also seeks to invest in the securities of companies that it believes are not valued properly in relation to their industry-specific competition.

Look at the numbers for the Fidelity Contrafund. It has a 5-star rating from Morningstar due in part to its average annual returns: the annual return was 11.54 percent in 2006, 16.23 percent in 2005 and 15.07 percent in 2004. The last negative annual return was posted in 2002.

Prepare to spend a minimum of $2,500 for your initial investment in the Contrafund and a minimum of $250 for each subsequent investment.

Research the company's Magellan fund (FMAGX), its second-largest mutual fund. Begun in 1963, this large-growth fund is currently managed by Harry W. Lange, and like the Contrafund, it aims for capital appreciation by investing in growth and value stocks from domestic and foreign companies. The fund's "go everywhere" approach means there is no specific strategy other than improving performance.

Check out the performance of the Fidelity Magellan fund. Morningstar has given this fund a 5-star rating, and the total annual return was 7.22 percent in 2006, 6.42 percent in 2005 and 7.49 percent in 2004. That said, the fund posted a negative annual return of 23.66 percent in 2002.

Collect at least $2,500 for your initial investment in the Magellan fund. The minimum for subsequent investments is $250.

Research one of the many other mutual funds from Fidelity. There are over 300 to choose from, and their assets include domestic stocks, international stocks, municipal bonds and taxable bonds.

Tips & Warnings

Before you research Fidelity mutual funds, realize that investing always carries risk as the FDIC does not guarantee or insure mutual funds.

By ehow.com

How to Receive Mutual Funds Newsletters

2008-11-14T09:52:00.000-08:00

Once you've decided to invest in mutual funds, it's a good idea to continue your education and keep up-to-date on all the latest information. One good way to keep up with the latest trends is by subscribing to one or more mutual funds newsletters. You can receive newsletters from your own mutual fund, which may have monthly or quarterly newsletters, or you can sign up for one of many independent ones and receive them in your e-mail box. Mutual funds newsletters can be a great help for investors, but you should be careful when choosing to follow any newsletter's advice.

Receive Mutual Funds Newsletters Online or by Mail

Take advantage of the wealth of information provided in mutual funds newsletters. Not only do they show the benefits of investing, but they also provide strategies, tips and insights to improve your portfolio.

Check out the links to the newsletters recommended by your friends or financial advisor.

Read through sample newsletters to find one with a style that works for you.

Consider subscribing to the Hulbert Financial Digest to find the highest-rated mutual funds newsletters available.

Choose your method of subscription. Options usually include online delivery or regular mail delivery.

Go online and visit your favorite investment sites and take note of the newsletters these sites offer or recommend.

Tips & Warnings

Although many mutual funds newsletters are free, you may want to receive the Hulbert Financial Digest, a premium newsletter. It is an independent newsletter that rates other mutual funds newsletters. Many newsletters refer to the Hulbert Financial Digest.
Choose newsletters associated with informational websites you already like and visit, or try out ones suggested by friends or your financial advisor.
Stay with established newsletters and avoid any untried ones.
Even though newsletters provide guidance and tips, it is always prudent to read a mutual fund's prospectus before actually investing.
Make sure that any newsletter you subscribe to is a Registered Investment Advisor.
Avoid newsletters attached to a mutual fund company or other investment service other than your own.
Keep in mind that some newsletters are trying to sell specific mutual funds. Always check their source.
Know that many newsletter publishers often take advantage of their first amendment rights and occasionally misstate mutual fund returns.
Not all newsletters are free and some will require a credit card to maintain a subscription.

By ehow.com

32.How to Trade the Morning/Evening Star Candlestick Pattern

2008-11-14T09:46:00.001-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on how to trade the morning and evening star candlestick chart patterns for active traders and investors using technical analysis in the stock, futures, and...

Your Form 1099-DIV

2008-11-13T08:33:00.000-08:00

Many investors who receive dividend income are confused by the way this income is broken down on the 1099-DIV form. This article explains how to interpret the numbers in each of the commonly used boxes on this form.

Look at box 1a of your 1099-DIV. This box is labeled "ordinary dividends." This means that the income reported in this box is taxed as ordinary income. Ordinary income is always taxed at your top marginal tax rate. This income is reported either directly on the form 1040 or on Schedule B.

Box 1b of your form is labeled "qualified dividends." These are dividends that qualify for the lower 15 percent or zero capital gains tax rate. They are reported separately on the 1040.

Box 2a shows total capital gains distributions from a mutual fund or real estate investment trust (REIT). This income will be reported either on Schedule D or directly on your 1040.

Boxes 2b and 2c are used to report capital gains or income recapture from various types of real estate transactions. This type of income is much less common than the type of income realized in the previous boxes.

Box 2d will contain the amount of captial gain received from the sale of a collectible or antique item. This type of income never qualifies for capital gains treatment, regardless of your holding period or tax bracket.

Box 6 shows any foreign tax that has been paid to other countries. This is usually the result of investing in an international or global mutual fund, but can be from any type of foreign investment.

Tips & Warnings

For more information on dividend income, visit the IRS website at irs.gov (see link below) and type "dividends" or "1099-DIV" into the search bar.
This article is intended to provide a rudimentary introduction on the Form 1099-DIV. It is not intended as specific financial or tax advice, but rather alert you as to whether claiming this credit might be possible. For further clarification on this matter, you should consult your tax advisor.

By ehow.com

Your 1099-INT Form

2008-11-13T08:31:00.000-08:00

Not all interest income is taxed the same way. There are a few different kinds of interest income and they are reported in different boxes on the 1099-INT. This article shows you how to understand what you see on your 1099-INT.

The first couple of boxes on the 1099-INT are pretty straightforward. Box 1 of your 1099-INT form shows regular taxable interest, like bank account interest, that is taxed as ordinary income (meaning at your top marginal tax rate.)

Box 2 of your 1099-INT shows any amount you paid in early withdrawal penalties from CDs or other securities. This amount can be carried to Schedule A of the 1040 as a miscellaneous investment expense.

Box 3 of your 1099-INT shows interest you received from U.S. Government securities, such as T-bills, notes and bonds. This income is only taxable at the federal level. No state or local tax is assessed on U.S. Government interest. Some of this interest may be excluded from taxation altogether, depending upon certain factors. The numbers from boxes 1,2 and 3 are all carried to Schedule B of the Form 1040.

Box 6 shows foreign tax paid. This is tax that you paid during the year on a foreign investment, such as an international mutual fund. This number will be carried to the 1040 and used as either a credit or deduction.

Box 8 shows tax-free interest, such as interest that is paid from a municipal bond. This number is also carried to the 1040 to be used in performing certain calculations.

Tips & Warnings

For more information on the Form 1099-INT, visit the IRS website at irs.gov (see link below). Type in "interest" or "1099-INT" in the search bar and a list of related topics will come up.
This article is intended as a general guide and should not be construed as specific tax advice. If you have further questions on this subject, you should consult your tax advisor.

By ehow.com

31. How to Trade the Hammer Hanging Man Candlesticks

2008-11-13T08:25:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on how to trade the Hammer and Hanging Man Candlestick Chart Patterns for active traders and investors in the forex, futures, and stock markets. Like the...

How to Read Mutual Funds Symbols

2008-11-12T06:03:00.000-08:00

Mutual fund symbols can look pretty strange, but once you learn how to read them they make a lot of sense. Mutual funds, like stocks, use ticker symbols as abbreviations for the fund's name. Different types of investments have different ticker symbols. Mutual fund symbols are 5 letters long and end in X. Symbols after the fund's name tell you more information about the type of fund it is.

Understand Mutual Fund Symbols

Open your newspaper or go to your online resource and read about the mutual fund in which you are interested. These are generally listed alphabetically to help you find them easier.

Know that the fund's name or ticker symbol appears on the left side, with information about it appearing in columns to the right.

Look for 'NAV'. This is the Net Asset Value of the fund. It tells you how much money each fund share is worth.

Search for the term 'offer price' or 'buy price'. This is how much you have to pay for a share of the fund, including any sales fees. If the offer price says 'NL,' it means the fund is a no-load fund and you would pay the same price to buy it as you would if you were to sell it.

Read the final column. This should tell you the amount of the fund's appreciation the previous day. A plus symbol (+) means the fund has gained money, while a minus symbol (-) shows how much it has lost.

Check the fund's ticker symbol. Letters after the name have different meanings. An 'r' means the fund has a back-end load, or a fee you pay when you redeem or sell your shares. A 'p' designates a fund with a 12B-1 fee. A 't' means there is a 12B-1 fee and a deferred sales charge. An 'f' means the most recent numbers for the fund are not available.

Tips & Warnings

Mutual fund symbols always have 5 letters and end in X. If you are only interested in investing in mutual funds, you can ignore any shorter symbols.
Pay close attention to the symbols after the fund's name, as these let you know what types of loads or fees you can expect with that fund.

By ehow.com

How to Read a Statement of Additional Information

2008-11-12T06:01:00.000-08:00

Not sure whether a potential fund will fit your expectations? For a better look at the inner workings of a fund before you purchase, be sure to carefully read the Statement of Additional Information (SAI). Often overlooked by potential investors, the Statement of Additional Information can give you a good idea about what the fund is capable of, general fund expenses and who represents your interests on the Board of Directors.

Understanding a Statement of Additional Information

If your fund doesn't routinely hand out a Statement of Additional Information, you'll need to request one using the contact information found on the back of the fund's prospectus.

The first section of the statement will offer a brief overview of the fund and investment objectives and policies. You may discover the history of the fund, as well as what types of shares the fund is authorized to issue.

After explaining the investment objectives, the Statement of Additional Information will introduce the current Trustees, officers of the Trust and principle shareholders. Supplemental background information, such as vital statistics, current position with the fund and previous employers, may be given.

Immediately following the management introduction, you will find details on Trustee and shareholder compensation and fund shares beneficially owned by the Trustees.

Find out how much money was spent on portfolio transactions and brokerage fees by perusing the section after the management introductions and costs. You'll also discover valuable information about the circumstances in which the fund is authorized to purchase or sell securities.

Pay careful attention to the section explaining the procedures for the purchase or redemption of fund shares. Since most funds have specific regulations regarding the purchase and sale of shares, it is important to thoroughly read and understand this section in order to avoid any surprises in the future.

Learn about the fund's financial history by studying its explanation of how income is derived, how it determines its net asset value (NAV) and how its overall performance is calculated.

Tips & Warnings

Mutual funds and closed-end funds are not required by law to provide investors with a Statement of Additional Information. However, if a SAI is requested by an investor, it must be furnished free of charge.
Although a Statement of Additional Information is a valuable document for investors, it should be used in conjunction with the fund's prospectus for a clearer look at the fund's finances and management.

By ehow.com

30. How to Trade the Bullish/Bearish Engulfing Candlesticks

2008-11-12T05:59:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on how to trade the Bullish and Bearish Engulfing Candlestick Chart Patterns for active traders and investors using technical analysis in the stock, futures...

Rank Fidelity Mutual Funds

2008-11-10T07:53:00.000-08:00

Fidelity is a brokerage firm based out of New York. Fidelity deals with mutual funds, trading and active trading, annuities and 401(k) retirement rollovers. Fidelity is a large and well-known company with active managers for their mutual funds. Fidelity manages over 150 mutual funds. If you choose to use a brokerage firm like Fidelity, you need to know how to rank their mutual funds compared with others. There are several Web sites that will tell you how to rank Fidelity mutual funds according to their own criteria, but you should examine your own needs and base your decision on those.

Find Fidelity Mutual Fund Rankings

Visit an online ranking site like Morningstar or Lipper.

Find the ticker abbreviation or the name of the mutual fund in which you are interested.

Go to the Morningstar or Lipper Web site and click on 'funds'. Alternatively, use the search feature to find the mutual fund you want.

Look for the mutual fund you want within its family. In this particular case, Fidelity.

Select the mutual fund you're interested in and read across on the same line to find the rating.

Create Your Own Ranking for Fidelity Mutual Funds

Make a list of reasons you're investing and goals you hope to achieve. Arrange them from most important to least important.

Search the Fidelity Web site for mutual funds that match your list. You can also search Fidelity for different types of mutual funds and tips on getting started.

Tips & Warnings

Morningstar uses a five-star system to rate mutual funds, with 5 stars being the highest rating and 1 the lowest. The mutual funds are all risk-adjusted, which means they account for the risk involved in investing in the fund.
Lipper uses an alphabetic system to rate mutual funds, with A being the highest rating down to E, the lowest.
Keep your tax advisor in the loop. Investing in mutual funds can have significant tax consequences. Make sure your tax planner knows about the investments you plan to make.
Remember that past rank performance is not an indicator of future returns. Your mutual fund may have done well in the past only to tank in the future. All ratings can do is let you know how well the funds have done in the past.

By ehow.com

Pump Up the Value of Your Portfolio by Avoiding

2008-11-10T07:49:00.000-08:00

In such an uncertain economic time, adding a percentage point or two to your investment portfolio will add necessary value. So how can you add that valuable couple extra points? By avoiding fees. For instance, if you have a $10,000 investment that grows at 8% a year. After 10 years, you may have $22,000 but if there is just a 2% fee associated, the returns are decreased to 6% and you end up with $18,000 – 23% less money. The fees add up.

Avoid High Load Fees - A load fee is a charge applied to a mutual fund or insurance policy at the time of purchase. Sites like morningstar.com compare load fees to help you chose the least expensive one.

Examine Management Fees - Portfolio managers charge management fees, and depending on the type of fund the fee can vary. Equity funds tend to be higher than fixed income, and actively-managed funds have much higher fees than index funds (the average on an actively-managed fund is about 1.5% per year).

Undisclosed Fees - These fees are often related to trading and are often undisclosed to the investor. Since fund managers cannot make a trades for you without paying an institutional broker, this fee is then passed on to you and can be unlimited especially if a particular fund has many trades.

By ehow.com

29. How to Trade Spinning Tops and Doji Candlestick Patterns

2008-11-10T07:46:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on how to trade the Spinning top and Doji Candle Stick Chart Patterns for traders of the stock, futures, and forex markets. In our last lesson we learned...

How to Protect Your Portfolio From Inflation With Minimal Risk

2008-11-08T08:33:00.000-08:00

Protecting your portfolio from inflation doesn't have to be a high-risk proposition. This article shows you a simple way to guard the purchasing power of your nest egg.

Conservative investors, particularly retirees, take a risk that they may not understand. Inflationary risk is the loss of purchasing power that comes with inflation. The only sure way to guard against this is to invest in something that has historically outpaced inflation, such as stocks or real estate.

In a liquid portfolio, this means that probably about 30 to 40 percent of your assets should be invested in either stocks or real estate. This will allow a portion of your portfolio to grow faster than inflation without putting the majority of assets at risk. The smart way to invest in stocks or real estate in a liquid portfolio is through either Unit Investment Trusts or mutual funds.

Some good funds to choose from are the Davis New York Venture Fund and the Davis Real Estate Fund. These funds are conservatively managed equity funds that have shown consistent growth over time. Another good fund is the Franklin Income fund, which invests in both debt and equities, and has posted a steady dividend since 1948.

You should probably ladder the remaining portion of your portfolio in safe fixed-income securities like CDs or T-bills. This allows a set portion of your portfolio to mature periodically to meet liquidity needs and protect you from interest rate risk.

By ehow.com

How to Profitably Invest in Mutual Funds

2008-11-08T08:32:00.000-08:00

There are ways that conservative or aggressive investors can invest with ease and diversity. If you are planning for your retirement, a child's college, or for a vacation, here are tips to help you understand mutual funds.

If you are charting a financial plan for your retirement, a child’s college expenses, or merely a vacation in the Caribbean, there are ways to let your money work for you. Whether you choose the goal of aggressive growth or conservative income, let the pros help you. And since you should not put all your eggs in one basket, diversification is essential.

The answer is a mutual fund. A mutual fund is a diversified portfolio of stocks, bonds, and/or short-term money market instruments, managed by seasoned professionals. They are sold by shares, usually with a commission, and can be purchased through a stockbroker or directly through a mutual fund.

There are different types of mutual funds to buy depending on your investment objective. Some funds are designed for aggressive growth by buying and selling stocks of small companies just starting up, turnaround companies, and companies possibly targeted for buyouts. These may be risky stocks to buy on your own.

Some mutual funds are conservative, purchasing highly rated, blue chip, large capitalization stocks. Many of these companies have been around a long time, some even paying dividends. These corporations often provide essential goods, such as oil or food.

Others are specialized funds, such as those buying technological companies, environmentally-friendly stocks, or foreign firms. Still other mutual funds track popular stock indexes, such as the Dow Jones Industrial Average or the Standard & Poor 500 index.

Some investors prefer income mutual funds. These funds offer a portfolio of stocks, such as utilities, which pay a high dividend yield. Other funds offer a mix of corporate and/or government bonds with a sprinkling of short-term money market instruments yielding interest. There are even some mutual funds which combine utility stocks and bonds.

If you have a good broker who you trust, ask him for information about the type of mutual fund which would meet your investment objective. If you don’t, you may contact various mutual fund companies by phone or e-mail. Request a mutual fund prospectus for more details about the fund. A prospectus will tell you about the fund’s money managers, fees, financial highlights, historical performance, risks, longevity, and reputation.

Mutual funds are good investments for retirement plans, such as 401-Ks and IRAs. Most mutual fund families have various types of funds to offer the investor, like growth, income, foreign, tech, blue chip, money markets, and so forth. Once in the family, the investor may move between the various funds, depending on the objective. Plus, shares may be sold, if needed. Mutual fund prices are quoted every week day in major newspapers.

Mutual funds may be the ideal way for an investor to meet his objectives, whether it be growth, income, or liquidity. Although past performance is no guarantee of the future, there are many long-established, well-run funds which may meet your needs.

By ehow.com

28. How to Trade Candlestick Chart Formations Part 1

2008-11-08T08:25:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

The first lesson in a series on how to trade candlestick chart patterns for traders of the futures, forex, and stock markets.

How to profit off from oil

2008-11-07T09:04:00.000-08:00

Oil is up is it at a loss or are there possible gains.

Oil prices are up and will probably continue to go up. Is this a bad or a good sign. Answer much worse than good. The good first. Pollution is down which means less erratic storms. That's it. The bad, it costs 10 dollars to go to the store. Is that it not by a long shot. Sales are down for corporations including profit and well people are even poorer than before. Plus heating and electric a bigger blow than car usage. Is this all necessary though. Very necessary. The higher gas prices have contributed to lower pollution which is cleaner air which has cause the crazy weather to subside which a lot of people have noticed because this problem seemed to be solely in USA. The number one polluter in the world.

Is there still profit off of Oil. Yes surprisenly enough. Where is the profit it seems in startup American oil companies including the Canadian oil sands. Why huge oil reserves and its not foreign which has become a problem for America. Expect these companies to grow and big time. The other American Profitter are the funds. With some growing as much as 25% last year. What this all mean Big oil is making more money than before and this will continue for the time being. Until more efficient stuff comes to the market don't expect oil prices to come down it just won't happen. The profit is there and it is still all located in America.

One other oil venue for people may be Russian Oil. Why they sell to America and Europe and will become a chief exporter for both. Why they sell it cheap and affordably at a good price and a dont have ot worry about the money being used to exert extreme profatibility. The oil will come from Russia and it will be a fair deal for all of those involved. It will probably be Russian oil that will see the biggest gains.

Tips & Warnings

Invest in funds risky ones could mean very high profits.
High risk

By ehow.com

Pay Less Taxes on Mutual Funds

2008-11-07T09:03:00.000-08:00

The only thing worse than paying capital gains on bullish mutual funds at the end of the year—is paying them on bearish ones. This article shows you how you can lower your tax bill next year.

Virtually all stock mutual funds pass along a proportionate share of their annual capital gains distributions to their investors each year. This happens regardless of whether the fund actually made money or not; every fund has appreciated positions that are liquidated during the year, and the gains from these profits must be reported to the shareholders.

Tax-managed funds are mutual funds that are managed so as to minimize declarable gains within the portfolio and include strategies such as harvesting losses on stocks to be carried forward for seven years. They also sell specific groups of shares with the highest cost basis and use them to offset other appreciated stock lots. These funds often have little or no capital gains distributions at the end of the year. An example of this type of fund is the Eaton Vance Tax-Managed Growth Fund.

Another tax-efficient alternative is an index fund. These funds are not actively managed either, and not only provide the growth of broader market, but do so without the annual gains generated from the buying and selling of the portfolio managers.

Finally, a third alternative for long-term investors is UITs. These investments are similar to mutual funds, except that they simply buy and hold a set portfolio of securities for a set period of time. Although gains will be realized when the trust matures, there are no declarable gains for the duration of the trust, which can last for up to five years in some cases.

Tips & Warnings

This article is intended to be purely educational and should not be construed as tax advice. For more information, consult your investment or tax advisor.

By ehow.com

27. How to Trade the Parabolic SAR - Stocks, Futures, Forex

2008-11-07T08:58:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on how to trade the Parabolic Stop and Reversal (SAR) indicator for traders of the forex, futures, and stock markets. In our last lesson we learned about ...

Passive or Active Management

2008-11-05T09:10:00.000-08:00

Stock mutual fund investors have the choice of investing in either passive or active funds. What is the difference and why does it matter?

WHAT ARE ACTIVE FUNDS? Actively traded mutual funds are probably the oldest and most common form of mutual fund. Actively traded funds have a fund manager who oversees the selection of stocks which will be in the fund in an effort to meet his stated objective.

Step2

WHAT ARE PASSIVE FUNDS? Passive funds are more or less on autopilot. They are funds comprised of a pre-determined basket of stocks, usually mimicking a particular stock index like the S&P 500, Dow Jones Industrials, or Russell 2000. Passive funds are commonly referred to as "index funds". The passive fund therefore normally has very little "turnover" or changes in the individual stocks within the fund. A sale or purchase may happen when a company is added to or subtracted from the index.

Step3

FEES - Because passive funds are based on an index and are basically on auto-pilot, it takes very little oversight to keep them running according to their objective. Consequently passive fund investors enjoy lower costs in their funds relative to active managers. You can easily find passive S&P500 index funds, for example, that charge as low as %0.10 per year. Not bad! On the other end, active fund managers have significnatly higher administrative costs, including for example salaries for the fund managers, equity analysts, office managers, marketing managers, etc. Consequently it is common to find that these funds charge an "expense ratio" in the neighborhood of 1.0%-%1.7%. Obviously, lower is better all things being equal. Of course if the manager has a proven strong track record, some people will argue that he deserves his higher fee... but passive index investors don't agree.

Step4

PERFORMANCE - The bottom line! It is commonly said that 70% of all active managers fail to outperform their benchmark index after fees. That's pretty amazing when you consider how much money is invested in active managers! Anyhow, for this reason index funds have become increasing popular as investors can outperform 70% of active managers primarily because of the lower cost. Why do people continue to invest in active funds? Some people find investing in indexes just too boring! And they also believe they can identify the 30% of managers who do beat the index. Beyond that, they also believe that if they fail at finding a winning manager, the downside probably won't be so bad, whereas the upside could be great! The irony behind the situation is that passive investors couldn't exist if it wasn't for all the active managers out there who make the market efficient and rational. If everyone invested in passive funds, the market would become irrational and active managers could find ways to beat the index! But you don't have to worry about that - there will always be enough active investors to keep the passive investors smiling and winning 70% of the time!

By ehow.com

Manage Stock Mutual Funds

2008-11-05T09:08:00.000-08:00

If you're looking for fast growth, stock mutual funds are an attractive option. Historically, stocks have performed better than bonds and cash over the long term. But that doesn't mean they're without risk. Investing in stock mutual funds usually requires a lot of buying and selling. The best way to make sure your investment is properly managed is by finding a qualified financial advisor to help you along the way.

Understand Stock Mutual Funds

Learn about stock mutual funds. These types of funds invest strictly in stocks, as the name implies. Stock mutual funds are also known as equity funds.

Discover your options. There are many different types of stock mutual funds for you to choose from. Some of the more popular types include growth, blend, sector and aggressive growth funds.

Choose a Financial Advisor

Admit when you need help. Investing is a risky venture. Inexperienced investors find that consulting with a financial advisor helps them make conscientious, well-rounded decisions.

Consider your financial goals ahead of time. Having a general idea of how you want to invest your money will point you in the right direction when choosing a financial advisor. At the very least, you'll know if you need to consult with a specialist.

Research your advisor. It's a good idea to call your state's licensing boards to make sure you're not being presented with fraudulent credentials.

Prepare a list of questions before your interview. You'll want to cover the specifics, like payment and experience. It's also helpful to come up with a hypothetical scenario to see how your potential advisor would manage the situation.

Tips & Warnings

Keep in mind that choosing a financial advisor may take some time. You shouldn't rush the process or hire the first person you interview if you're not entirely comfortable with the situation.
Walk away from any financial advisor who pressures you to invest in funds you're not at ease with. If your advisor is pressuring you to buy, he or she is probably not the best person to manage your portfolio.

By ehow.com

26. How to Trade the Average Directional Index (ADX)

2008-11-05T09:07:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on how to trade the ADX for traders of the stock, futures, and forex markets. Link to the formulas behind the ADX: http://hubpages.com/hub/ADX Link to Ad...

Manage Class B Mutual Funds

2008-11-03T07:18:00.000-08:00

Class B shares are the second most preferred type of class stock. Occasionally, Class B shareholders are given more voting power than their Class A counterparts. In addition, Class B shares do not come with a front end sales load. However, there are potential drawbacks to Class B shares. As with every potential investment, carefully study the benefits and disadvantages to decide whether this type of share will work with your financial goals.

Work with your financial advisor to locate mutual funds that offer class shares. Not all funds have these types of shares, so you may need a professional to help you find and manage your funds.

Learn about the shareholder services and distribution arrangments for Class B shareholders for the funds in which you're interested. These services and arrangements will vary widely, so pay careful attention to what each mutual fund is offering you.

Find out whether the mutual funds you want charge a front end sales load, however slight. Although Class B shares are technically bought without a front end sales load, funds can charge a fee up to 1/4 percent and still be considered a 'no load' fund.

Ask about contingent deferred sales loads (CDSL) for early redemption. Most mutual funds waive the CDSL once you've owned the shares for a specified amount of time, usually around 6 years.

Consider the 12b-1 fee attached to most Class B shares. This fee pays for shareholder services, financial advisors and insurance agents. Class B shareholders are charged a 12b-1 fee annually until they sell or convert their shares.

Find out whether your Class B shares will convert into Class A shares in a few years. This will help you decide whether to invest in a mutual fund long term and will give you ideas on how to manage it.

Tips & Warnings

If you want to manage mutual fund with class shares, it may be wise to start with Class B shares. You won't pay the front end sales load and there's a good chance your shares will convert to preferred Class A stock after 5 years.
Watch out for exhorbant 12b-1 fees. Some mutual funds use these fees in place of front end sales loads. Unscrupulous brokers are encouraged to sell the Class B shares with the knowledge that they'll receive kickbacks from the mutual fund in the form of 12b-1 fees.

By ehow.com

Manage an Institutional Fund

2008-11-03T07:15:00.000-08:00

Traditionally, corporations, endowments, pension funds and wealthy individuals have been the primary investors in institutional funds. With a typical minimum investment requirement of $1 million, it's not hard to see why. Lately there has been an increase in individuals without a great deal of personal wealth investing in institutional funds. Discount brokers have made it possible for the average investor to get started with as little as $1,000 or $5,000 to invest. Read on to learn more about institutional funds, how to manage them and how to make them a part of your portfolio.

Understand Institutional Funds

Find out what an institutional fund does. Institutional funds try to reduce risk by investing in hundreds of different securities.

Learn how institutional funds work. By trading securities rather sporadically, institutional funds are able to keep operating costs to a minimum. These savings are then passed on to investors.

Buy Institutional Funds

Locate an institutional fund you can invest in. Historically, it was impossible to invest in an institutional fund with less than $1 million. Now, thanks to discount brokers, it is possible to purchase shares for as little as $1,000.

Evaluate the fund's past performance using a ratings indicator.

Ask for a copy of the prospectus. The prospectus will give you a good idea of who will manage your fund, what expenses are incurred and the investment philosophy of the fund.

Determine whether the institutional fund is right for your investment needs. Based on the fund philosophy, management style, performance and rating, you should have a good idea of whether or not you want to invest in the fund.

Find out how you can invest in the fund. You can find this information by looking at the stock quote on a financial Web site or by calling the fund directly.

Tips & Warnings

Even if you can't invest in an institutional fund, that doesn't mean you can't learn from one. Watch to see where the big companies are investing their money. In doing so, you may get some investment ideas of your own.
Don't get an institutional fund confused with an institutional investor. An institutional investor is a person or organization involved in trading a large enough quantity of shares to qualify for preferential treatment and discount broker fees. Since institutional investors have a great deal of knowledge about the investment world and know how to successfully manage their portfolios, fewer protective regulations are in place for them.

By ehow.com

25. How to Trade Bollinger Bands - Stocks, Futures, Forex

2008-11-03T07:12:00.000-08:00

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A Lesson on Bollinger Bands for active traders and investors using technical analysis in the forex, futures, and stock markets. The link that I refer to on Stand...

Manage an Aggressive Growth Fund

2008-11-02T07:13:00.000-08:00

For investors who want rapid gains, there are few options more attractive than aggressive growth funds. However, these funds come with a high level of risk. They can also be difficult for investors to manage, especially novice investors. Find out exactly what aggressive growth funds are and why they can be good for your portfolio. You'll also discover common pitfalls of these funds as well as how to make a conscientious investment decisions.

Understand Your Aggressive Growth Fund

Learn about the goals of your fund. Aggressive growth funds aim to give the highest gains possible through high-risk investments with high profit potential.

Discover your options. The most typical types of investments involved in aggressive growth funds are high-risk stocks, such as initial public offerings (IPOs). Portfolio managers who deal with aggressive growth funds are attracted to these stocks because of their potential for fast growth.

Buy an Aggressive Growth Fund

Make an outline of your long- and short-term goals before you look at aggressive growth funds. This will help you determine whether the risk is worth your investment.

Consult with a financial professional before investing in an aggressive growth fund. An adviser with solid experience managing this type of fund will be in a good position to weigh the pros and cons of investing in a high-risk stock.

Compare several aggressive growth funds to see which one would be best for your retirement goals. You can find information about funds by visiting a financial Web site, like Moody's or Morningstar, or you can look through the financial section of your newspaper.

Look at the prospectus for every fund you may invest in. You'll find valuable information about the board of directors plans to manage the fund, how the fund has performed in the past and information about the distribution agreements.

Purchase your shares the least expensive way possible. When you buy directly from the fund, you'll save yourself a lot of money. You can also buy from a fund supermarket or a licensed broker.

Tips & Warnings

If you're a first-time investor, it may be a good idea to consider investing your money in a less-risky mutual fund until you get the hang of buying and selling shares.
Give yourself more stability by investing in other stocks and bonds in addition to an aggressive growth fund.
Keep in mind that aggressive growth funds are among the riskiest and most volatile mutual funds. Although the potential for high returns is great, aggressive growth funds require consistent monitoring for the best results.

By ehow.com