More Than Just Invest and Forget With Bonds

By Rick Amorey

Many consider a bond investment to be the safer alternative to stocks. It has become so safe, in fact, that many people invest in it without even understanding how it works. If you want to maximize your yield in bond investing, you'll take notice of these five tips that I have penned for you:

1. Know the key terms with bonds. What do the terms par value, coupon rate, and maturity mean? These are the basic concepts of bond investing that you should be familiar with; if you can explain it adequately to someone, then that means that you understand them.

2. Calculate the yield. Do the number crunching and then compare it with other potential investments that interest you. This is easy to compute; get the interest that the bond pays in a year and divide it by it's current price, and voila! You have just computed the yield.

3. Check out the bond's rating. These ratings indicate the stability of the bond issuer's finances. Always review the bond's rating before you decide to invest. The standard is; the higher the rating, the better the bond's quality will be.

4. Know your interest rate risk. If your interest rate turns left, then chances are your bond price will turn right. Basically, interest rate risk is the term that describes the risk that a bond's price will change as the interest rates fluctuate. Be careful of this when dealing with long-term bonds, those are the ones more susceptible to interest rate risk.

5. Lastly, don't forget to think before selling. Ideally, a bond's price will stay the same; money is made or lost in bonds when you decide to buy or sell before the maturity date. Factor in the transaction costs and interest rates to these trades to have an inkling of whether or not it will be beneficial for you. - 23200

About the Author:

The trading business carries no guarantee that you'll profit, and don't let anyone tell you otherwise. Rick Amorey instead suggests the comprehensive program of Emini Trading. Be an educated trader with the help of Emini Trading System, and secure your future at a consistent pace.

How to Buy Penny Stocks

By Mark Boucher

Are you willing to gamble a little bit of disposable income to possibly earn a big return? If so, penny stocks might be an option for you to consider. While you should always use caution and not invest money you can't afford to lose, penny stocks offer you the opportunity to become involved in the trading world for an affordable amount.

What is a penny stock? It is simply a stock that is selling for less than five dollars for each share. These stocks are not traded on the major exchanges (AMEX, NASDAQ and NYSE), but rather over Pink Sheets (so called because of the original color of the paper used). This is often known as OTCBB, or Over the Counter Bulletin Board. This is simply an electronic system that reports changes. Be aware that it is regulated by the NASD, but is not considered a NASDAQ stock exchange.

Buying penny stocks is considered a high-risk investment, meaning that you may lose big. But this also means that you can earn extremely high returns in a short time. The risk and potential earnings are what keep people trading these stocks. Sometimes the return can be several hundred percent a day. Risks with these stocks are limited liquidity, the lack of financial reports and potential fraud.

When buying penny stocks, the lack of buyers may make it difficult to sell stocks. The lack of reporting and volatility of these stocks make it easy for brokers to manipulate as well. This is why fraud is so rampant for these trades. There is no regulatory listing requirement for these stocks either.

The news is not all dismal, though. Penny stocks are popular because of the huge returns some investors find. In order to get started in penny stocks, first find a brokerage who offers this type of service. Your stock shares will be drawn from your investment account through the brokerage. You set the amount you want to invest, and decide how much of your investment will go into the high risk stocks.

Having a broker is important for sound advice, just do your research to find the one best for you. Make sure you have someone reputable that wants to see you earn good returns. The best advice when investing money after making sure you can afford the investment is to spread your money over different types of stocks. If you like the gamble and want a high return, absolutely put some money in penny stocks. You are able to see the highest returns on these stocks, but risk higher losses. Make sure you keep some money in a safer market while you play the penny stock game. - 23200

About the Author:

Buying Penny Stocks, 1000 Penny Stocks, Best Charts for Penny Stocks, Best Free Penny Stocks, Bot Software For Penny Stocks, Chinese Penny Stocks, Finding Penny Stocks, 1000 Penny Stocks, Free Daily Stock Picks information at pennystocks.theinfostop.info

Know Currency Correlations

By Hass67

All the currency pairs are interrelated in the forex markets. They keep on affecting each other. As a forex trader, you need to understand that the price action of each currency pair is not mutually exclusive.

Most of the currency pairs move relative to one another. Understand that different currency pairs are correlated. These correlations can be positive or negative.

Knowledge of the strength of this relationship and its direction can help you in developing your trading strategies. Correlation numbers have the potential to become a great trading tool for you.

Correlations are numbers that range between +1 and -1. These numbers are calculated based on past pricing data between different currency pairs. They can provide you with information that can maximize returns, minimize risk and avoid counter productive trading.

Lets make it clear with an example. Suppose USD/JPY and USD/CHF had a positive correlation of +0.83 last month. This number is close to +1 and means that both pairs are moving together most of the time in the same direction.

Now, if you are trading USDJPY and USDCHF at the same time, it will double up your position if you take long positions or short positions on both at the same time. If you lose a trade on USDJPY, the chances are that you will also lose the trade on USDCHF 83% of the times.

Lets take another example. EUR/USD and USD/CHF both have a negative correlation of -0.9 in the last month. It means both the pairs were moving in opposite directions last month. If you take long position on one, it is not a good strategy to take short position on the other. It will only double up your position again and increase risk.

If you are investing in two currency pairs simultaneously, try choosing such pairs that have correlations near zero. Zero correlation means the two pairs are independent of each other in price action.

Always keep this in mind that currency markets are constantly changing. The correlation between currency pairs also keep on changing. It would be a good idea to calculate the correlations between pairs on a monthly basis. - 23200

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading; stocks and forex. Read about Trend Forex System. Best Forex Signal Service. Download Forex Scalping Cheat Sheets!

Forex Trading: Cutting Thru The Smoke And Mirrors

By John Eather

Forex trading is an industry that supports hundreds of traders daily. What are their keys to success? This article will inform you of a few basic techniques of forex trading in a bullet point format. Keeping these suggestions at the front of your mind will assist you in seeing the "bigger picture" while considering your trades.

1. Trades Consist of Two Currencies, Not One - You should never undertake a forex trade without considerable knowledge of the both currencies involved. Take the time to research any currencies you are considering prior to pulling the trigger on your trade.

2. Fx trading secrets: If one is keen to make profits from forex market then they should know the basics of the forex market. Most of the time forex market is influenced by the global news and events. One should know exactly which the authentic news is and which rumors are so accordingly they can take decisions.

3. All Money Isn't Good Money! (Know Your Trades) - Inexperienced traders may find themselves compelled to jump at a tight order in order to make profit that is small in comparison. Unfortunately, most tight trades have difficulty reconciling between the bid and asking prices. Make sure your trades leverage both your short term and your long term interests.

4. Fail to Plan, Plan to Fail! (Strategies) - A well defined strategy is one of the greatest "secrets" of the forex trading market. There are hundreds of profit making strategies to choose from. While most traders prefer a fundamental trade analysys, take the time to research a few and find one that you feel most comfortable with.

5. Business, Never Personal! (Stay Level Headed) - Forex trading, as with most business ventures, is a rational endeavor. If you are experiencing outside stresses or pressures unrelated to forex trading, you should consider taking that day off. Your pockets will thank you.

6. Stats Are Your Friend! (Technical Analysis) - Technical analyses can provide vital clues on when to buy and sell your trades. Is it a long or short market? Is the market over extended? All of this can be discovered via a well-prepared technical analysis.

7. Confidence Is The Key - Most failed forex trading stories come attached with signs of being underprepared or overmotivated, leading a lack of capital and, more importantly, confidence. Become familiar with the market and master the basics and you'll reinforce your success. You'd be surprise how much your confidence will rise when the profits start rolling in. - 23200

About the Author:

Be sure you check out John Eather's excellent free ecourse and reports about Online Forex Trading. Get the latest information on the most up-to-date trading robots and trading systems available on the market today. Go to MoneyMakingFxTrader.com to learn more.

Automatic Forex Trading Software

By Brian Bodine

Automatic Forex trading software is for people who either have little to no experience, don't want to have to lift a finger or trust the robots more then they trust themselves. All of these are good reasons and make sense. It is important to find a product that works with one's trading style and investment temperament.

Investors that have not done a lot of currency investing may need to rely on automated programs to make the tough decisions. They may not be able to spot a good deal and so relying on these kinds of systems will likely save them time and prevent them from incurring big losses. Because individuals that create these types of products often have a significant amount of experience in the industry, they will be able to code software in such a way that it is able to spot a profitable deal. This can be a crucial lifeline to individuals who have no idea what they are doing but still want to make profits from the FX market.

There are also folks who do not want to do any work at all and want a totally hands-off approach. They would rather let the program do "its' thing" so that they can go off and do the things that they enjoy. They do not want to figure out when a good deal is available, read signals/charts or make any trades on their own. Automatic Forex trading software is best for this group of investors. It fits best with their temperament. Fortunately, there are companies that offer systems such as these.

Lastly, there is another group of people that simply trust Automatic Forex trading software to make better decisions than they can. Normally, these are folks who have some experience in investing and have made some losses in the process and are not as confident in their own prowess.

Instead of risking their own money attempting to buy and sell currencies based on their own knowledge, they would rather rely on the expertise of a well respected product created by individuals who have extensive experience in the foreign exchange market. - 23200

About the Author:

For information on a way to do Automated Forex trading follow the links. We have