When asked about futures trading, or day trading in general, the average fellow on the street will generally answer with something along the lines of, dabbling in the market is like Las Vegas, you can get lucky or be unlucky I always get a chuckle out of this answer, as the fellow is obviously not trained in trading futures, or the stock market in general.Do you believe the market is just a matter of luck?Most day traders will tell you about...more
Green chips refer to environmentally friendly stocks and they are gaining in popularity. With the government having an expanded renewable energy target of 20% by 2020, how can you know which companies will turn out to be the winners? Green investments Renewable energy refers generally to: * Wind * Wave * Geothermal * Solar or * Nuclear Developing companies When looking at investing in these companies, it's important to separate...more
Most people know that the sharemarket is a vehicle for growing your wealth but we also know that not all shares grow. So what is it that differentiates the dogs from the pack leaders? The power of investing in companies in the sharemarket is the power of compounding which you do not get to the same extent with any other investment. I've talked about compounding before so now I want to take you through the steps on how to choose a company that applies compounding to its profits. Compounding profits Let's take for example JB HiFi (JBH). This is a company that has seen its share price soar to new heights.But the real beauty of JB HiFi is when the power of compounding is applied to the profits that it makes. In its last result, the company made 88c per share. The company gives 50% of what it makes as a dividend and then keeps 50% as retained earnings. That means 44c is paid as a dividend and 44c is reinvested back into the business. The great thing is that because the company is able to provide such a strong return on investment, the 44c it reinvests can make another 18c. How did I figure that out? I simply took the return on equity rate of 42% (which you can find under 'Historical...more
The sharemarket has now fallen for four consecutive days with a loss of around 5%. Perhaps now is the time to take stock of where the market is at and whether this is a healthy sign for a sustainable rise. Bottomed out It's true that when sharemarkets fall, it becomes cheaper to buy stocks. The problem is that if the sharemarket falls even further,...more
With the Australian dollar hitting a yearly high, it's great if you're heading overseas. But it also impacts you in terms of investing. Commodity prices The Australian dollar is at the highest level in 14 months. In 2009 so far, the Aussie dollar has risen 30% against the US currency. That's great news for commodity prices, because commodities are...more
The market is full of analyst recommendations on stocks. Some good, some bad and some just okay. So how do brokers come up with these recommendations and what should you consider before acting on these recommendations? Intrinsic value Most brokers will have a research area where the heart of their job is to come up with an 'intrinsic value' or 'real value' for the company that is listed on the sharemarket. If the stock is trading below that intrinsic value, it is considered a buy. If it is trading above, it is considered a sell. So what do analysts take into account when determining an intrinsic value? Future earnings The first thing to consider is that in trying to determine what a stock is worth, analysts will make a guess of what they think future earnings for the company will be. The better the analyst understands the company, the more credibility their rating is given in the market place. Recommendation changes The problem with this is that the guess or estimate that the analyst makes is based on the current situation. We really cannot know what the future actually holds and that is why these recommendations change as new information is revealed. So you need to remember to...more
Real time forex allows you to engage in this business as the trades happen and just in time for the changes in the values. It allows you to plot your next move and which markets will prove to be profitable in a given time. Real time forex makes use...more
If you need help because of an injury in an accident, no win no fee lawyers can assist you. These skillful professionals can ensure you receive ample compensation for your medical expenses and any lost wages. The term no win no fee means you will not...more
If you've though about buying gold bars lately, you're far from alone. Investing in precious metals such as gold bullion and silver bullion is the smart investment of choice for savvy investors worried about the value of their traditional...more
Technology has aided us in many ways and automated forex robots are another boon of technology to us. Till now we did not have the means to determine how the forex market is going to fluctuate and where the profit would come from. We could not...more
There are many things in life that we call security blankets and when we are dealing with the forex market then the best forex robots are our security blankets. The best forex robots will help us to acquire the knowledge that we need in order to deal...more
The forex market is unstable and is subject to large fluctuations. In such a scenario you need an Expert advisor that works so that you do not enter into a swamp of looses that will engulf away all your money. There is actually ample opportunity for...more