What Is The Best Way To Buy Stocks ?

By Richard Moran

The initial cause of the Great Depression and stock collapse of October 1929 was all the stock that had been purchased on margin. When the stock prices fell many of the people who had purchased on margin could not cover the margin calls and went bust. That of course was before the financial controls imposed by the government in today's market and theoretically that situation could never happen again although many of those who lost money in the past year may disagree. You can still buy stock by putting only a portion of the cost in hard cash down with the balance being covered by your credit standing and therefore on margin.

Cash is still king when it comes to purchasing stock

When you initially open a brokerage account most stock firms will make you pay for your initial purchase. Most require a minimum equity of $2000 before they will even discuss any margin purchases. Remember unless you are paying cash there will be interest charges due on any stock you buy on margin. Therefore, in order to make a profit not only does the stock have to go up in value enough to cover your investment and the firms charges, but you will also have to cover the interest you have paid over the time you have owned the shares. Most times unless you are a market maven you will come out way ahead using cash to purchase your stock.

Buying on Margin

When you buy stocks on margin, you are requesting a loan for the money to purchase those stocks. In return for the loan from the brokerage firm, you will pay interest on that loan. The brokerage firm is virtually making money on your loan and will hold your stocks as collateral against the loan. If you do not pay the firm back, they sell the stocks. In short they have little risk involved in loaning you the money for the stocks. On the other hand, you have to see to it that the stocks you select make enough in profits to not only put money in your pocket but to pay the loan back to the brokerage firm.

The Real Magic Is Knowing What Stock To Buy

One way of ensuring you can pay back the loan on your investments is to know your stocks. You should study your stocks before making a purchase. It is important to know how they have been effected by other aspects of the market, how often they drop, how long they remain on a rise and what the average rise for them is. By studying the stocks you want to invest in, you may find that you dont need to borrow money in order to invest.

So Which Way Should You Go?

It comes down to your mindset when it comes to risk. If you will get ulcers worrying about the money you owe on margin it might be a good idea to stay out of the market all together, or buy mutual funds and let someone else worry about the return. Paying cash leaves you in a more flexible position while the margin gives you greater potential. The most important thing is to do your research and invest with your head not your heart. - 23217

About the Author:

Richard Moran is a Financial Consultant and writer for Money Helpers. The Blog contains hundreds of articles, charts, and calculators to aid you in your financial well-being. All the aspects of the Blog are free and it is updated on an almost daily basis. If you are looking for any financial aids or products they can be found on Money Helpers.

Great Experience at Tanger Riad with Loved Ones

By Kevin Azgzaou

In tanger riad your vacation can give you the kind of services and facilities to suit your personal needs and that of your loved ones. Anyone visiting Morocco will always find such place as a perfect spot to stay and relax and enjoy the beauty of nature. Staying in such an awesome place gives you the feeling of elation as if you are in Heaven while on Earth.

With its tanger riad service and amenities you can enjoy at reasonably affordable price more and more people are honed to the place. It keeps attracting potential investors throughout the globe because of the fact that the properties in most of the largest cities of Morocco are offered to investors at half price compared to famous European strongholds such as Spain or France. Tangier is a popular place known for its attractive potentials in the hotel industry with teams of genuine hospitable people that make your unforgettable stay an experience for a lifetime!

The tanger riad is one place that is not easy to find in any traditional real estate investment in countries of other parts of world. Smart investors have their preferred choices for investing in Morocco. In fact, established realty developers from Europe and other parts of the hemisphere are constructing luxurious estates particularly in Tanger because of its proximity to Spain. This is also the main reason why big investors in all major European countries invest in this place with the foresight of best returns on their investments.

Tanger Riad has characteristics which are unique as compared to other places. Its nearness to Europe has contributed to the modernization of the city. Its geographic location makes it easy to see Spain across the Gibraltar Strait in a clear day. As carefully scrutinized by several European nations, tanger riad offers the best vacation rentals for tourists from all walks of life. According to statistical surveys, Tanger is found to be an energetic city aside from being truly adorable. Nowadays, it is a place that is famous worldwide for its beautiful resorts and attractive apartments.

If you want to spend a luxurious dream vacation with your loved one in a home away from home, all you need to do is visit some sites online and find out how to reach there. You will experience an enjoyable like a dream come true if you come to Morocco especially with your loved ones. The best place to stay on this planet is in a place where you feel the heavens while your feet are still rooted to the ground of tanger riad. - 23217

About the Author:

If you happen to visit Morocco, you should try a perfect place like tanger riad. It is one of the best places you can get while in the area. You get to see and experience the soothing breeze of the sea and find time to relax and suit yourself. There is no place where you can get satisfaction guaranteed.

Understand Forex Leverage

By Ahmad Hassam

One of the features of forex markets that differentiate it from other financial markets is the astronomical level of leverage that is commonplace in the forex world. Whats so special about Forex Leverage?

Some Forex brokers can offer up to 400:1 leverage on the average retail trading account. The usual level of leverage is 100:1. The implications of this are mind boggling. This means that $1 in a traders forex account can control up to $400 in a currency trade. No other financial market offers even close to this level of leverage.

Forex leverage can both be a very positive feature as well as a very negative one. Leverage is type of financial magnification by definition. Forex leverage is a double edged sword. While it is true that high leverage magnifies profits, it also magnifies losses equally.

Used with a great deal of caution, however, high leverage of the magnitude found in forex trading can offer tremendous possibilities to the upside as well as the downside. However often, this high level of leverage summarily wipes out otherwise healthy trading accounts.

Stock brokers only offer leverage ratio of 2:1 on margin account. FCMs offer leverage of 10:1 to futures traders. But in case of forex trading, common leverage ratios offered by forex brokers range from 50:1 on the low side all the way up to 400:1 on the high side. The sheer magnitude of this leverage, even on the lows side, far eclipses, the amount of leverage available in other financial markets.

400:1 leverage is too much. Some forex brokers use it to entice new people who have never traded before. Never use this high leverage even if someone offers it to you on a silver platter. Suppose that 400:1 leverage is utilized by you. In practical terms, what this means to you as a forex trader is that a standard lot of $100,000 for example can be traded in EUR/USD currency pair with only $250 in trading account margin.

In other words, for every $1, you as a forex trader are in fact controlling a whopping $400. In this particular example, $250 in your forex trading account can control a trade of $100,000 using 400:1 leverage.

Some brokers even advertise that you can open a trading account with $50. With $50 you can trade a mini lot of $10,000 using a 200:1 leverage ratio. The fact that a small amount of money can control a large amount of money in forex trading can certainly serve to magnify potential profits. Can you handle this much leverage while trading? The amount of risk involved in using this high level of leverage is also equally magnified, however on the flip side of the coin.

Leverage is required by aggressive traders who are willing to take risk. But most of the traders like you and me need to be balanced in their risk taking behavior. Highly leverage trading is aggressive trading that is both characterized by high risk and high reward potential. Therefore, it is advisable to use caution when trading with the substantial leverage common in forex trading.

Why too much leverage is dangerous? When the market moves in your favor, even a small movement in the market can be magnified many times by using leverage making large profits for you. But the dark side of using too much leverage is that when the market moves even a small amount against your position, your whole trading account can get wiped out.

You need to know the safe level of leverage you can use in your trading. In the beginning, dont use more than 5:1 leverage in your trading. You can increase that level to 10:1 or 20:1 with experience, but this much leverage would be sufficient for you. Once you really start trading like a professional trader than you can use 100:1 ratio to trade a standard lot. - 23217

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Try 1500 Pips a day Forex Signals. Discover a revolutionary Forex Robot Trading System!

Tanger Immobilier and Real Estate Industry of Morocco

By Kevin Azgzaou

With tanger immobilier you will be able to look into Moroccos lengthy beachfront line and tropical climate which have transformed it into an ideal holiday zone for tourists particularly from Europe, the United States and other countries from different parts of the globe. The great vision to build a popular tourist destination spot by the year 2010 is now the focus of the real estate business in Morocco. As a coastal country situated at the southern point of Spain, Morocco is also proximate to some European countries like France and Italy.

With the growth of the tourism industry, the development of the real estate business has also flourished. It is expected that more tourists are coming in and the construction of apartments, hotels and restaurants will definitely increase. It is also the right time to invest on these properties where you can have a good chance of selecting the most prominent areas at a lesser price yet.

As soon as the influx of tourists gain a full blast it is expected that prices will soar as demands for new hotels, villas and apartments increase. Thus, it is a wise move to make your investment on residential properties at the earliest time possible. The boom of the real estate industry goes hand in hand with the height of tourism. You can avail of a residential property which is a bit near the beach, golf course or other tourist attraction spots. You might also be able to make money out of this in the near future.

Make sure that you contact can see through the genuineness of the titles and documents concerned to avoid unwanted liabilities in the future. It is very important that you contact a tanger immobilier representative that is very conversant and reliable to give provide you relative information concerning the overall set up of the country in relation to the immobilier a Tanger in general. It is vital that a knowledgeable person can shed light on the legalities of the acquisition of any Property in the regions.

In setting for a residential property in Tanger, it is a good idea to settle for one that is proximate to all essential utilities that is from food, shopping areas, transportation accessibility and other necessities. This can be advantageous to you for tourists can be renting your property and you surely derived income out of that. It will also give you easy access in making the regular visits and check up for your property. You can always seek the assistance of trustworthy individuals who can assist you in your choice for residential assets by dealing with representatives of tanger immobilier. - 23217

About the Author:

Tourism is one great concern in Morocco that is why they have tanger immobilier which allows them to build a popular tourist destination in the near future. They want to invite as much tourists to enjoy the beautiful scenic spots which these guests want to see and visit. People get to experience the true essence of this purpose.

US Dollar Currency Profile (Part I)

By Ahmad Hassam

US Dollar is the most heavily traded currency in the global economy. It is important for the currency traders to have a good grasp of the general economic characteristics of the most commonly traded currencies.

You should know as a trader what moves the currencies particularly the pairs that you are interested in trading. Traders need to also know the difference between the expected and the actual data. Some currencies tend to track commodity prices while others may move in complete contrast.

The correlation between the currency markets and news is very important. News or data that is in line with the expectations has less of an impact on currency movements than unexpected news or data. Therefore short term traders need to closely monitor the expectation of the currency markets.

US GDP is approximately five times the size of Germany, three times the size of Japan and seven times the size of UK. United States is the worlds leading economy. The US economy is now a service oriented economy with almost 80% of GDP coming from real estate, finance, health care, transportation and business services.

United States has the worlds most liquid and deep equity and fixed income markets in the world. The manufacturing sector is still formidable and US Dollar is particularly sensitive to the development within the sector.

The import and export volume of US also dwarfs the countries. This maybe due to the sheer size of US as true import and export represent only 12% of the GDP. Foreign Direct Investments (FDI) into the US is equal to almost 40% of the total net inflows for United States. Investors from all over the world purchase US assets due to their liquidity and safety.

US economy is facing the paradox of the twin deficits. One is the Budget Deficit and the other is the Current Account (CA) deficit. US is running a large CA deficit for more than a decade now.

The large CA deficit makes the US Dollar highly sensitive to changes in the capital flows. US need to attract a few billion dollars of capital inflows daily in order to prevent the decline in the value of US Dollar.

United States is a member of the World Trade Organization (WTO). This means that United States is heavily committed to the free trade idea. A weaker US Dollar will help boost US exports whereas a stronger US Dollar makes the US exports expensive and US imports cheap. US trade is equal to roughly 20% of the world trade. United States is the trading partner of many countries across the globe.

Leading export markets for United States are: Canada, Mexico, Japan, EU and UK. Leading import sources for United States are: Canada, China, Mexico, Japan and EU. The growth and political stability in countries that are leading export markets for US are important. For example, should Canada growth slow; its demand for US exports will fall that will have a ripple effect on US growth. - 23217

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Try Strignano's Forex Signals free. Discover a revolutionary Forex Robot Trading System!