Currency Trading Online - Quick And Easy

By John Eather

Available online currencies: The list of online currencies available for trade on the foreign currency market is almost endless depending on the program, software or interface you use. The most commonly traded currencies in the world are US Dollar/Yen, Euro/UD Dollar, GBP/US Dollar, US Dollar/ Can Dollar, US Dollar/ Franc and Australian Dollar/ US Dollar.

Trading rates: The software will come standard with a trading rate calculator in real-time value. However it's important to also know the formula use to calculate the conversion rates. The formula is as follows Y-to-X exchange rate =1/ X-to-Y exchange rate.

Pro's to online: The biggest advantage to online trading is that the market is open for business twenty-four hours a day, seven days a week. The favourability of the markets' liquidity is even more attractive if accessible by a mere click of a mouse. Order limits and strategies to curb loss can be setup on the system. Gearing or leveraging allows for great profit opportunities while still keeping risk minimal. Bear markets can also be used turned into bull markets by use of short and long positions depending on pair values.

Disadvantages to online: To be successful in the foreign currency markets, you have to have a good knowledge and understanding of the market type. Do not be an impulsive buyer and seller, have a strategy or plan and follow it to a t. Do not transact with funds you do not have or are willing to possibly loose. Volatility is the greatest disadvantage. Your risk and reward must balance. Significant moves occur everyday in this market making prices extremely sensitive. Leverage can also work against you with margin calls taking place when risk is too high for your account size.

Realistic risks: You should realise that risk is very real. These markets are over-the-counter and spot foreign exchange transactions. You will trade directly with counter-parties as no clearing houses are involved thus there is no guarantees on this already risky market. Speculation is the main purpose of forex markets. There is a possibility of losing your total cash balance if a only small move happens in the market. - 23217

About the Author:

Make sure you sign up for John Eather's excellent free ecourse and reports about Online Forex Trading. Receive the most recent info on the most up-to-date trading robots and trading systems available on the market today. Go to MoneyMakingFxTrader.com for more details.

Options Trading Strategy: The Vertical Leap

By Jordan Weir

Many investors view options as strictly a short term tool. This is because the idea of a highly leveraged tool with the potential to make big bucks quickly appeals to the risk taker inside all of us. Just like a card counting black-jack player, options strategies can be used to make significant short term profits, provided the player is careful, and knows what they're doing. But while options are usually employed solely by that group of high-octane traders, they actually have enormous benefits that tend to go unnoticed by many a long term investor.

The strategy I'm about to reveal is rarely used. I've only briefly heard mention of them on obscure websites, and even then, not in enough detail to give an example. So here it is, what I believe may be the biggest secret kept from long term investors on wall street. The stock option strategy for the long term investor.

The strategy is a vertical option spread, using leap options. How this technique works is you buy one option, while simultaneously selling another option for the same month, but at a different strike price. While XYZ is often my standard ticker, I will use a real stock in this case. Keep in mind, this is NOT a recommendation. In fact, it would probably be a terrible idea to invest in the example I'm about to give. Its just an example. Yet to get realistic prices for this strategy, it may be helpful to use a legitimate stock.

note:I wrote this part of the article about a short time ago, prices may not be 100% current. at this time GE is currently at 10.41 per share. In this case, let us talk the January 2011 options, giving GE a large amount of time to go the direction we believe it will. So if you thought GE was an excellent long term buy, it would be reasonable to think it is going to at least $20 per share by that point. By January 2011, consensus is believe the recession to be over, and that single development alone should lead to a substantially higher stock price.

Buy one option to start the vertical spread, and sell a second option at a higher price to complete it. With our price target of at least $20, and given the current price, 10.41, I would buy the 12.50 strike call option, and sell the 17.50 strike call option. The 12.50 option can be bought for 2.71 at the moment, while the 17.50 can be sold for 1.40, giving us an total cost of 1.31 per share for the option spread.

Now lets look at this trade for a second. If GE is trading below 12.50 on the January 2011 expiration, both options expire worthless, and the 1.31 per option spread invested is gone. On the other hand, if GE is trading above 17.50, then the 12.50 option will be worth exactly $5.00 more then the 17.50 option, and so the position has a value of $5.00 per share. If its between 12.50 and 17.50, the call we sold expires worthless, while the call we bought will have value equal to the difference between the stock price and the strike price; 12.50 in this case. How do you calculate the break even? Well we paid 1.31 for the vertical spread, so if its exactly 1.31 higher then 12.50 (13.81), then well be at break even if the stock is at that point.

That gives us an amazing return of 281% if GE is above 17.50, for an annualized return of 107% (holding period is 22 months). Because of the high potential for risk - a complete loss of investment if GE is below 12.50 in Jan 2011, you shouldn't put more then you're willing to risk in the trade. Definitely a speculative play. Yet with how much time there is, it's a much surer bet then short term options, and much more profitable then just buying the shares.

So now that the basic idea is out of the way, what are some examples of vertical spreads I would consider? I'm a strong believer in investing in emerging markets, so I am long term bullish on EEM (IShares MSCI Emerging Markets Investment Index). The January 2011 25-30 vertical on EEM is only going for about $1.88 at the moment, with EEM trading at 25.30 so I think that would be a wise investment. Above 30 it would be worth $5 at expiration, while below 25 it would be worthless. Unless the economy stays sour until then, I can't imagine that occurring.

Similarly, I expect FXI (iShares FTSE/Xinhua China 25 Index) to go up. The "China miracle" isn't over, merely in a subdued state due to temporarily reduced demand. The 30-35 vertical Jan 11 vertical would be worth $5 at expiration if FXI is above 35, which from its current price of 28.51, is perfectly within reason. That vertical spread currently has a $2 price, so that would be an even 150% return from now until January 2011.

An infinitely more controversial play would be Bank of America. While the trader in me screams to short the stock, I foresee it being far more valuable then it currently is a couple years down the road. The simple reason is that yes; the financial sector has been hammered by the current collapse. Yes, some banking companies have gone bankrupt, or have been on the verge of bankruptcy. Is the financial system going to completely collapse? No. Are rampant bank runs going to drive them out of business? No. Are people going to want to borrow money again after this recession ends? YES! Is pent up demand in housing going to cause a rush to buy houses at prices not seen in a decade? YES! Are banks going to profit from this? Most DEFINITELY. If BAC is above 10 at the January 2011 expiration, the 7.50-10 vertical for Jan 2011 would be worth 2.50, while only costing about $0.65. That would give a 286% return, or 108% annualized. The risk of course, is that BAC goes bankrupt, or BAC flounders under the $7.50 per share mark past January 2011. In either case, you would lose your investment. Yet with prices as low as they are now, that isn't very likely.

For many people, the financial markets are not the place to make a quick buck. While some short term traders will have great success with these option strategies, long term investors should use these same strategies while remaining focused on the longer term, to achieve gains vastly exceeding those of the regular stock market, while limiting risk. - 23217

About the Author:

Want to hear more about this amazing Stock Trading Strategy? Come to my website and find out all you need to know to become a stock market master. Find out what sectors to invest in and when, and learn the Stock options strategys the big players use to make money in the markets.

Property Investment - Guidelines to Smart Property Bargain Hunting

By Daniel Bennett

Property investment can definitely be a money-making endeavor if you take the time in making the right choices. Seeking the counsel of real estate pros and doing your homework will enable you to succeed. If you decide to be an expert in this niche through your own experiences alone, then be warned that that route may cost a lot of time and money down the drain. This text offers numerous tips you need to know if you want to be successful with investing in real estate. Read on to find out how to get in touch with one of the best providers of advice for property investment.

The first step to successful property investing is to find a qualified buyers agent. This person can help you find real estate with the best potential and guarantee that you receive only the best price for your property. A buyers agent can provide you with the information you need to invest wisely in the region you're interested in. He will also provide some guidelines to enable you to pick out the best properties for your intentions. When making a property investment, your buyers agent will make a big difference in the searching, negotiating and purchasing processes.

A property coach may also be required to help in the search for a great real estate investment. These individuals are experts in procuring investment properties so you'll get a good supply of tips and advice from them. A good property coach will go beyond informing you about how to discover great real estate opportunities; he'll also teach you how to fund and supervise them as well. They will also give advice on how you can find properties with the makings for great profit and how to procure them at the best rates possible. Selecting a good property coach is key to ensuring you get great property advice.

When selecting a positive geared property, keep in mind the growth of the neighborhood and the value of the property. Champion cities will offer growth potential with an infrastructure already in place to reduce risk. You can usually find these areas just beyond city borders, and they entail various types of properties. It is also a good idea to focus in on the lower end of the market, since it tends to be more resilient than median markets might. These aspects will enable you to locate the property with the best possible return.

Also, focus your hard work on only a few areas at a time. This will enable you to really appreciate what real estate is really worth in those regions. If you narrow your search and focus on a few areas only, you'll be in a better position to spot bargains as soon as they hit the market. - 23217

About the Author:

Read this site if you want property investment in Sydney information. Learn more on the topic of investment property advice.

Learn How To Make the Best Stock Pick Online

By Zachary Riff

Learning how to choose and select the best stock pick is easy. With the information and courses available online, even beginners can now do trading. Learning how to trade online is easier nowadays because of the many sites that offer trading services and applications that enable beginners like you to know how to trade stocks. Online stock firms are your best bets for learn the tools for making the best stock pick on the lot.

Online Brokerage - Start by surfing for an online brokerage firm that offers start-up accounts that are easy to use and understand. There are many sites that offer turnkey applications and solutions for beginners like you to learn quickly about making the best stock pick. So choose one that you're most comfortable with when you sign up. Many sites will also show the steps and ways for you to manage your stock and keep track of your stock investments. That way, not only are you learning something new, you'll be able to guarantee your investments yourself, and make the bst stock pick you want.

If you're a beginner who want to learn how to make the best stock pick, you'll find these sites online stock services helpful. Many online brokerage sites offer real-time stock quotes so you can stay informed of the current trends and shifts in the stock market. Other financial and market online news sites may also offer information about the stock market, and specifics stocks and options you may be looking to buy.

Firsthand-Information - To be on the safe side, try searching for sites that offer the best ways for you to get firsthand information from the market. When making stock decisions and determining the best stock pick, key information about the trading is your edge to buying or selling stock. Asides from online stock trading sites, there are also sites that keep track of the various stock markets all over the world and provide information about the best stock pick, new stocks, and other developments, to professional stock traders, brokerage firms and non-professionals like yourself.

Online stock brokerage firms can provide you with information on stock pick developments, stock quote data, and other stock trading updates. These information may be delivered in delayed or real-time or real-time formats. Getting real-time stock information is a requirement if you're interested in making the best stock pick. On the other hand, delayed stock quotes (that can be "delayed" from ten minutes to twenty-four hours) like after hours stock quote reports are often used for stock analysis and market projections.

They may also throw in some information on stock performance, as well as trading speculations and other news that may influence the value of your stock during the next trading day, week, or even month. You can also use these information in developing your own stock trading strategy, while earning the experience to make the best stock pick.

The Difference - However, trading stocks online is not as instantaneous as it is on the floor. The lag time from the moment you make the best stock pick of your choice and elicit a buy offer for it, till that offered is closed, twelve or even twenty-four hours, may have elapsed. Thus, if the stock you're interested moves rapidly, your best stock pick could be the worst on the floor. This is because, the Internet cannot duplicate the market hours.

Be sure to keep a pulse on what's happening to your stock trading and investments so you can make the necessary adjustments. Keeping updated with the latest stock information is the best lesson to learn about online stock trading and making the best stock pick. - 23217

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Discover tips on how to make the best stock pick! Practice stock trading online now.

How To Trade Forex?

By Hass67

Learning forex trading should not be difficult. With decent understanding of money management rules and a good trading strategy, you should be ready for conquering the forex markets.

Always try to understand the big picture. You should start each trading session by looking at the daily charts and than zooming into 4hr, 1hr, 30min, 15 min etc charts. Forex trading is all about interpreting the past as well as about interpreting the future.

You need to know whether the market is ranging or trending before each trade. You should try to know any long term patterns that have developed by looking at the charts. By taking a general look at the different charts you will develop a feel of how the forex markets are behaving in the short as well as the long term.

You should try to figure out the general direction of the currency markets. You can use candlestick analysis and moving averages to identify long term patterns and reversals.

Bollinger bands applied to 4hr charts can be used to identify the daily trading range. Most of the price action is expected to be within the Bollinger bands. Any moves outside the bands can be viewed as short term abnormalities and ignored.

You need to do some scenario planning for each day, once you have a general overview of the market for that day. You should know what fundamental news is scheduled to be released for that day and how the markets are expected to react.

Understanding the big picture does not mean that you should know the whole picture. Try to focus on your favorite pairs. It takes a lifetime to understand a currencys behavior, how it reacts to things like oil prices, interest rates etc. So concentrate only on a few pairs and stick with them.

You should always try to take notes and keep a daily trading journal. Start each entry in the trading journal by analyzing the general direction of the markets for that day. What you think how the markets are going to react to different news that is expected to be released that day? What should be your entry and exit for the trade. How many pips you are expecting to make?

After each trade try to analyze what went wrong and how to avoid it in the future! In case of a winning trade, analyze how many more pips you could have made and how to tweak your strategy for better results in the future trades.

Keep these general tips in mind while you learn forex trading. Never ever trade without putting stop losses! Practice on the demo account for at least three months before starting live trading with your real money. - 23217

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Learn Forex Nitty Gritty. Read about Trend Forex System. Try Netpicks Forex Signal Service.