Sunday, April 26, 2009

Afraid of Loosing in Online Forex Trading?see My Results by Frank junior

A lot of people have joined the for-ex market but unfortunately clash and loose all their hard earned income, the fact behind all this is that a lot of people don't know what is obtainable in the forex market, well if you are one of those that such thing happed to, well you are lucky today because am going to reconstruct the image you have about forex trading, before you start trading in the forex market make sure you learn the up and down of forex don't join the forex market because you have the zeal of making money or as income earning or generation join the forex market as an investor, the way to ensure that you reach you cardinal point in forex trading is by not having the zeal to make quick money but join it with the zeal of investing with that approach you will make it big by being a long time forex trader, take time to learn forex techniques such as fundamental and technical analysis, and learn from the techniques of real time forex traders that actually works and as well the techniques that does not give fake signals, most people neglect fundamental analysis and use technical analysis for you to get a maximum result in forex market you have to combine both of the strategies to get a maximum and efficient result. Ignoring this two is like driving with one eye and listens to the direction of another persons is unfortunate he won't give you the signals on time. Another aspect is sticking to it! I promise you that success will be yours.

Monday, April 20, 2009

What are ETFs (Exchange-Traded Funds)?

Exchange-Traded Funds, or ETFs, are basically like mutual funds that trade on stock exchanges, with a few important differences. This gives them many of the benefits of stocks while removing some of the disadvantages that mutual funds have.

Purpose of Them Have you ever wanted to trade shares of an index like the Dow Jones Industrial Average or the S&P 500? Well, you can't do that directly but you can do it indirectly through ETFs. The managers who run them usually invest in the same stocks or futures that make up an index or commodity in an effort to make the fund's value per share track a certain index or commodity up and down. This allows anyone with access to stock trading the ability to easily trade indexes or commodities indirectly.

Example: SPY - SPDR Trust Series I: One of the most popular ETFs, its goal is to track the price and performance of the S&P 500 index. It will not be the same price as the index but its chart should have the same shape as the index, within one or two percent most of the time.

Example: QQQQ - PowerShares QQQ Trust, Series 1: The goal of this fund is to track the Nasdaq-100 index by issuing and redeeming shares of all the stocks that make up the index.

Example: EEM - iShares MSCI Emerging Markets Index Fund: This fund seeks to track the price and performance of the MSCI Emerging Markets index, which tracks performance of international stocks. This fund is actually non-diversified, which means it is not as safe as other funds because it is focused on a specific sector.

Example: USO - United States Oil Fund LP: This commodity ETF attempts to track the price and performance of oil prices, West Texas Intermediate light, sweet crude oil, to be exact. This is accomplished by continually trading futures contracts for oil, natural gas, and several other things. It is also non-diversified but a very convenient way to make trades based on oil prices.

Benefits of Them The main benefits of ETFs include diversity, the same tradability as stocks, low costs, tax efficiency, and transparency of assets.

What are They Exchange-Traded Funds are somewhat complicated to explain, but they are funds that can be structured in a few different ways. They are usually passively managed, which means the managers do not have to constantly decide which investments need to be bought and sold in order to increase the value of the fund. Instead, the managers simply have to make sure the fund tracks a certain index or commodity as closely as possible, which can be as simple as owning the stocks that make up an index and adjust the shares accordingly so that the price follows the index's chart.

Where to Find Them Many financial websites, including brokerages, offer a free stock screener, along with an ETF screener. Yahoo! Finance has a good one that lets you view a list of the best performers in several different categories. by Nicholas Swezey

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