Article Notices for 'Stock Market' Category

Mutual Funds Investing in Russia

Friday, July 13th, 2007

If the growth rate of the current economy is sustained, Russia will become the second-largest economy in Europe after Germany and the sixth-largest in the world within a few years. High oil prices would help with this level of growth.

Housing prices have more than doubled in Moscow. What happens in Moscow is extremely important to the country as a whole: despite having only 10% of the Russian population, Moscow contributes one third of the country’s GDP. Moscow’s economy is therefore a good indicator of where the country as a whole is heading.

For more information about Mutual Funds Investing in Russia click here.

Top Ten Mutual Funds Returns

Monday, July 9th, 2007

Top ten Mutual funds always have their returns posted in a standard way.

These returns are displayed in five distinct categories: a year to date, one-year return, three-year return, five-year return, and ten-year return.

The reason that returns are posted in this fashion is due to the inherent volatility of top ten mutual funds: if top ten mutual funds and their reporting agencies posted returns ranging from one through to ten years, it would give an inaccurate picture of the fund. In addition, a static return of each year’s performance is nowhere near as informative as a compound rate of return.

For more information about Mutual Funds click here.

Mutual Fund Performance

Friday, July 6th, 2007

Investing in a mutual fund is one of the safest ways to invest offshore. That doesn’t make it a foolproof move though, and investors must take the utmost care in selecting their mutual fund, based on the mutual fund performance.

This includes looking at a number of elements - one of which is the mutual fund performance - to evaluate the fund’s efficiency. I cannot stress enough the importance and significance of taking a look at all the fund’s figures, specially the mutual fund performance.

To find out more about Mutual Fund Performance click here.

The Basics Of Stock Options

Friday, July 6th, 2007

Stock options are traded security that is a derivative product.

By derivative product we mean that it is a product whose value is based upon or derived from the price of something else. Since we are talking about stock options, a stock options is based upon, among other things, the price of the underlying stock.

There are also options on other traded securities such as currencies, indexes and interest rates, but here we will limit our discussion to stock options, or options based on stocks.

A distinguishing factor of stock options is that is a depreciating asset in the sense that it has a limited life, and has to be used before the date on which it expires. As time goes by, the stock options lose value as it moves closer to its expiration date.

To read more, go to the Stock Options website by clicking on this link.

When Is The Best Time To Give Your Stop Loss Orders?

Wednesday, June 27th, 2007

The next area that we need to discuss is how to calculate our stop loss and when to give our stop loss orders. The stop loss is simply the predefined point at which we exit a stock. This exit point is determined before we even enter the trade. Giving stop loss orders is when you tell your broker to actually sell the diminishing stock. You see anytime that we enter a position, we don’t know at one point we’re actually entering into the trend. We might be entering into a stock just before the trend changes.

Before we can give the stop loss orders, we need to set a stop loss. Effectively, it’s like drawing a line in the sand underneath the share price, and we say, “If the share price falls below this line, then the stock hasn’t done what we thought it was going to do, therefore we’ll exit the position by giving our stop loss orders.” This allows us to cut our losses short and we all know how important that is, and here’s why – psychologically humans are hard wired into believing that they must be right. When 95 percent of traders enter into a position, they’re expecting to profit from this trade.

To read more, go to the Stop Loss Orders website by clicking on this link.

Finding an Offshore Broker

Thursday, June 21st, 2007

If you can find an offshore broker that is also a successful millionaire, then that is worth his or her weight in gold.

However, do not assume just because an offshore broker is wealthy that this makes them an expert in the field of investing: I once had an offshore broker that was exceptionally well-off but later found out he made his money in real estate, and not in the types of securities that he was recommending.

To find out more about finding Offshore Brokers click here.

Opening a Low Cost Offshore Bank Account

Friday, June 15th, 2007

Some offshore banks now have a section on their low cost offshore bank account application forms asking permission for them to contact your current bank. If you ask them not to for privacy reasons, they will respect that and it should have very little bearing on the opening of your low cost offshore bank account.

For the more patient investors, open your low cost offshore bank account and let them check with the bank; twelve months later, open another low cost offshore bank account in another jurisdiction, using a reference from your original offshore bank.

To find out more about low cost offshore bank accounts click here.

When Not To Follow Stock Market Trends

Thursday, June 14th, 2007

Certain traders on Wall Street, basing their views on stock market trends, had decided that BRUCE’S book value and earnings indicated that the stock’s price should not be more than $30 a share. Therefore, they had started to sell the stock short between 45 and 50, confident they would be able to fulfill their bargains by buying it back at a price much nearer 30.

They made a grave mistake following these stock market trends, because there was one factor they did not know about. A New York manufacturer named Edward Gilbert was trying to oust the Bruce family from control of the company. He and his associates were trying to obtain a majority of the 314,600 shares outstanding which the Bruce family owned. It was this move that had rocketed the price. The volume was terrific, and following the stock market trends, more than 275,000 Bruce shares were traded during a period of ten weeks.

The short-sellers who had so misjudged the market jostled each other to push the stock to dizzy heights in their frantic efforts to follow the stock market trends and buy it.

To read more, go to the Stock Market Trends website by clicking on this link.

Money Management Strategies – The Only Way To Ensure Trading Profits

Tuesday, June 5th, 2007

In the markets it’s possible to be right, and to still lose money. In fact, it’s pretty common. Traders who win on a high percentage of their trades often end up with their capital eaten away, and nothing to show for their work. They lose their gains because they don’t have money management strategies.

Being a good manager of your own money is one of the most difficult trading skills to learn. But if you don’t use good money management strategies to lock in profits, take small losses on the picks you’re wrong about, and control your use of margin, eventually you’ll lose everything, no matter how good of a trader you are. You need to make protecting your capital and developing money management strategies your priorities if you want to be successful.

As a trader, your capital is the most valuable thing you have, you have to practice money management strategies. Without it, you can’t trade at all. For this reason, bringing in no profits on a trade is better than losing any part of your capital. If your account is intact, you can always make a profit another day. If your capital has suffered a loss, you’ll be wasting effort playing catch-up.

To read more, go to the Money Management Strategies website by clicking on this link.

How Do You React When Your Stocks Are Down

Tuesday, May 15th, 2007

How do you react when you’ve found yourself in a losing position? Do you stick your head in the sand and hope that the stock price will rebound? Trading losses are a fact of life for investors. How you react to it is the difference between great stock market investor and the rest of those trading large and small caps.   Full article at Investing In A Declining Stock Market

Oil Stocks As A Long Term Investment

Sunday, May 6th, 2007

The demand for world oil is increasing while world reserves are decreasing. This is a known fact. The current price of oil can certainly confirm this statement. Consensus also agrees that we will never see $25.00 oil again. The logical conclusion to our above statement is oil stocks should be a good long term investment.  However, the location of the oil companies’ reserves can affect their bottom line and valuation.

Full article at Alberta Oil Sands

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