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Thursday, September 24, 2009

Online Investing In Times Like Today

By Michele Perdue

Online investing is the act of investing money or funds in an online enterprise with the expectation of profit without the physical presence or meeting the parties involved. In early 90s and late 80s the fastest and only way to invest is either through telephone, fax or physical meeting, but with the advent of online investing, it is much easier and faster to invest comfortably while sitting in your room. However, it is worthy to note that E-trade in 1991 was the pioneers of online services via AOL and CompuServe services.

Steps to Online Investing

Capital: How much are you investing? It is advisable to start off with something small and then increase with time. Never invest what you cannot afford to lose, do not borrow or seek a loan for online investment, do not start off with your life savings. You can, however, start with as little as $250, learn the ropes and rules then thrown in more money.

Open an online account: When you have decided about how much to invest, the next step is to open an online virtual account. It can be a personal account like individual or joint, retirement account like IRA or Rollover. Check the pros and cons of each type of account and consider diligently the requirements and tax margins of each type.

Get a broker: Before choosing a broker, check for the broker?s insurance level, his past records, reputation, reliability and commission percentage.

Where to invest: You can choose either to invest on forex, securities, mutual funds or stocks. Take the time to do full research on both and to learn as much as you can about the companies, market and brokers before you invest.

Research, Read and get information. Armed with the above information, you are now ready to enter the online investing world, but still you need to keep yourself abreast with what is happening online at the investment world. You have to read the information and protect yourself from online fraud and protect yourself against identity theft and password phishing. - 23222

How To Invest In The Australian Stock Market

By Michele Perdue

The heart of the stock market system in Australia is the Sydney Stock Exchange. The exchange lets investors both foreign and domestic supply the regional companies with the funds that are needed in order to expand the economy of Australia. You can be among the investors that deal with the yop-performing companies in the Australian market in just a few simple steps.

Your first step is to hire a broker that is registered with the Australian Stock Exchange; this stockbroker will be able to help you fill out the agreement forms, set up your international account for the trades and give you valuable advice on the changes and trends before you begin to invest.

Investment clubs are popular because they let the investors share the learning experience of how the stock exchanges work; you should gather some friends and fellow investors in an investment club to follow the Australian stock market together. When your club meets you should discuss your individual portfolios as well as observe the rising stocks.

In order to counteract the riskier investments it is advisable to purchase some futures in the Australian stock exchange. The people who invest in the futures will sell their shares back at a predetermined time with the price established before any transactions are made. Using this investment too you can have longer range stocks mixed in with the day trading.

One of the rapidly expanding industries in which to invest is the biotechnology industry. Take advantage of the rapid expansion of the biotechnology industry by investing in some of the hundreds of publicly owned and traded biotech firms that are accessible to the foreign investors. These are the ideal stocks if your intent is to invest over a long term in an industry that is gradually growing.

There are other things to consider and more investing options, Andrew Baxter who is an expert investor and hedge fund manager can offer you some great insights about investing in the Australian Share Market. - 23222

Developing Your Own Forex Trading System

By Bart Icles

A forex trading system is one of the things that you must give much consideration if you intend to enter the volatile but rewarding world of currency exchange. There are various kinds of forex trading systems available, all of which are designed according to the different needs of forex traders. Some are patterned from the typical requirements of an everyday trader, while some involve complex calculations that can help traders call positions at almost precise timings.

If you have invested time, money, and effort on your forex education and training, then you must have an idea of the significance of the learning stage in the forex market. You must also understand that apart from general information about the market, you must also keep yourself abreast of updates in the specific type of trading that you are interested in. However, a lot of currency traders overlook the importance of being informed. Many novice traders, and even seasoned traders, do not take the time to educate themselves before they jump into currency trading.

Part of your learning process is familiarizing yourself with different kinds of forex trading systems. Most of these systems are available online but you also have the option to create your own system. In developing your own trading system, you must understand that you should base your system on the principle that you will make a trade when you believe that the odds are in your favor. This signals the time when almost all fundamental and technical indicators point in certain directions that confirm one another.

Using fundamental and technical indicators, as well as chart patterns will help you determine a starting point for you to come up with trading strategies that have big chances of working. In making your own trading system, you will also be making use of trend lines, double tops, bottoms, Fibonacci levels, pivot points, and candle stick patterns.

Creating your own forex trading system will require you to be familiar with certain mathematical principles. Developing your own system is quite a challenging task. You will need to take some time off to think about all the hard work and effort that you will need to put in in developing your own trading system. You should understand that there is more to trading systems than just a bunch of indicators and confirming steps that need to be taken. There are still variables that you will need to consider and understand. - 23222

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What Impacts the Price of a Stock? How Useful is Historical Data?

By Marv Doniger

There are a myriad of factors that are commonly used by investors to evaluate potential stock investments. These investment opportunities are often identified through the use of the numerous stock screeners that are readily available to investors. Common searches seek to identify companies that have a low Price Earnings, Price to Book Value, or Price to Cash Flow Ratio; high Dividend Yields; high Returns on Assets, Invested Capital, or Earnings; low Debt to Equity; and high Cash balances. In fact there are pre-defined stock screeners such as the Contrarian Strategy, Dogs of the Dow, Momentum Stocks, New 52-Week Highs, etc. that can be used to identify stocks in which to invest. The implicit assumption in using stock screeners is that there is a relationship between this data and the future performance of a stock. Should this assumption be valid then all one would have to do is run his/her magic screener and buy those stocks with his/her favorite criteria such as low Price Earnings Ratio and high Dividend Yield. In order to validate the premise that the data obtained from stock screeners influences the price of a company's stock, the change in the price of the Dow 30 Industrial stocks from 1999 to 2009 was compared to changes in the Returns they generated, their Financial Condition and Performance over that same time period. Returns included Returns on Equity, Invested Capital and Assets as well as Dividends paid to investors. Financial Condition included Current Ratio, Debt to Equity Ratio, along with Interest Coverage and Dividend Coverage. Performance included Sales, Earnings, Book Value and Cash Flow trends. A correlation analysis was conducted to determine the relationship of the price of each of the companies comprising the Dow Industrials and these factors. The hypothesis being that there was a statistically valid relationship between these factors.

As the following chart shows, dividends had a statistically significant impact on the change in the price of the stock of Exxon Mobil, Hewlett-Packard, Merck, and Verizon. It had a moderate impact on the price of the stock of Alcoa, Bank of America, DuPont, General Electric and JP Morgan Chase. Earnings had a strong impact on the price of Citigroup's and Exxon Mobil's stock. The stock price of Caterpillar, Chevron, Johnson & Johnson, McDonalds, Proctor & Gamble, and United Technologies was moderately impacted by earnings. Price changes in the stock of Exxon Mobil were statistically significantly impacted by its Dividends, Cash, Earnings, Book Value and Cash Flow and moderately impacted by its Return on Invested Capital, Dividend Coverage and Sales. Another company whose price movement could be partially explained by change in these factors is Caterpillar. There were moderately statistically significant relationships between its price and its Returns on Equity, Investment and Assets; its Interest and Dividend Coverage; as well as its Earnings and Cash Flow. Perhaps one of the most astonishing results is that there were no statistically meaningful relationships between the changes in the price of the stocks of 3M, American Express, AT&T, Boeing, Intel, IBM, Kraft, Microsoft, Pfizer, Coca-Cola, Home Depot, and Wal-Mart and the measures of Returns, Financial Condition, and Performance used in the analysis. To put it another way, the price movement of 40 percent of the Dow Industrials bore no statistically meaningful relationship to changes in these factors.

FACTORS AFFECTING STOCK PRICE of DOW 30 INDUSTRIALS RETURNS FINANCIAL CONDITION PERFORMANCE Dow 30 Components Company Equity Invested Capital Assets Dividends Current Ratio Debt to Equity Interest Coverage Dividend Coverage Cash Sales Earnings Book Value Cash Flow 3m Co Alcoa Inc ● American Express Company, AT&T Inc. Bank of America Corporation ● Boeing Co., Caterpillar Inc. ● ● ● ● ● ● ● Chevron Corp ●● ● ● ●● ● Citigroup, Inc. ●● ● E.I. du Pont de Nemours and Co ● Exxon Mobil Corp ● ●● ● ●● ● ●● ●● ●● General Electric Company ● General Motors Corporation ● Hewlett-Packard Co. ●● ● Intel Corporation International Business Machines Johnson & Johnson ● ● ● JP Morgan & Chase & Co ● Kraft Foods Inc. McDonald's Corporation ● ● Merck & Co., Inc. ●● Microsoft Corporation, Pfizer Inc, The Coca-Cola Company, The Home Depot, Inc. The Procter & Gamble Company ● ● ● ●● United Technologies Corporation ● ● ● Verizon Communications ●● Wal-Mart Stores, Inc. Impact ● Moderate ●● Significant Data Standard & Poor's

Based on the previous examination of the relationships between the price of the Dow Industrials stocks and certain measurements of their historical data, it should be apparent that stock screeners, in and of themselves, are not sufficient tools to use in selecting potential stock investments. Even if there were statistically significant relationships between the historical price movement and the data used in the stock screener, it does not mean that those relationships would continue in the future. Wall Street constantly warns that past performance is not indicative of future results, yet investors search the past to divine the future. It is like driving in traffic by looking through the rear view mirror and missing the collision ahead that is about to happen. As events of the past eighteen months have proven, highly improbable events can occur and inflict unforeseen casualties on investors. Since equity markets are supposedly discounting future events, investors should look through the windshield to see what is ahead of them and use the rear view mirror to see if the vehicle behind them has any relevance to their ultimate destination.

Marvin Doniger, Managing Partner of Doniger & Associates, is the author of A Common Sense Road Map to Uncommon Wealth, which is a treatise on managing careers and finances. His perspectives have been developed from his lifelong study of investing, his actual experiences as a registered representative, an individual investor, as well as from working for large companies in industry and as a management consultant to Fortune 500 companies. He is a leader in his industry. - 23222

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Forex Made Easy It's Simpler Then You Think

By Anthony McDonald

Is it possible, forex made easy? Can you make a fluctuating currency market easy to profit from and predict? Long term income possible?

Many people haunt themselves with these questions; if forex was made easy then I could do it as well. Trading in the foreign exchange market can be easier than you think. Today's foreign exchange market is larger than ever before with hundreds of thousands of people globally involved. More and more people are getting into it every day, and that means more money in the market. There are ways where forex made easy is what it's all about. What could you add to your systematic trading tactics or approach that would boost your trading potential?

With all the technology today, there's a way for forex made easy. Today there is software that can teach you all the ups and downs of currency trading. Know which currency pairs to trade in and what times to trade. Trading with forex can get you into a well rewarding career. Depending on how much you want to put into it, you can turn it into a well paying payroll. Working when you want, and for as long or short as you want is a great part of the foreign exchange market. Once you make it your full time job, you have more freedom.

If your like me, you just want forex made easy. Sometimes it is hard to make such a market so called "easy", it is possible, but just how? Well lets start off with saying that you need to be well educated in forex if you want to succeed, but where do you start? You need something to keep you going through your learning curve. Well thanks to technology today, this is possible, and you can profit while you learn. You need not any knowledge to start. Today there is a trading program that can make better trades then the average trader, this trades 24 hours a day, 7 days a week. If you could have a good start to your forex trading, this would be it.

Believe it or not, you can make forex made easy. Getting yourself into more trades can equal more money, but how if you don't have the time yet. Get a forex trading robot, this robot trades better then the average trader. Imaging a robot trading for you and making you money while you are out for a walk. Why not make your computer work for you, not the other way around. Get the insiders edge to forex trading and get a forex robot to make your profits soar. - 23222

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