Trading

What Does the IMF do for Financial Markets

10/05/2012
By
financial_market

With the financial markets as volatile as they are today, we tend to highlight things we may not have noticed before and question the governing institutions that have direct and clear influence over the economy. One such financial markets institution is the IMF otherwise known as the International Monetary Fund and sometimes known simply as “The Fund. Although there have been a few red flags of late leading to increased scrutiny of the IMF, most still don’t know what the institution does, how it works or where it came from. Let’s look at some of aspects of the IMF as we try to understand how they influence financial services and markets today. The Founding of the IMF In July 1944, the United Nations conceived an idea to create an institution that would stabilise the world’s monetary system, much in the same way the United Nations sought to stabilise amicable...

Read more »

What is the Advance Decline Line?

30/04/2012
By
forex

The most appropriate definition of the Advance/Decline Line is that it is a technical indicator chart which presents the changes in the value of the advance-decline index over a certain period of time. The points plotted on the chart are evaluated by calculating the difference between the number of advancing/declining issues and then summing up the result with that of the previous values. The formula of the A/D line is as follows: A/D Line = (# of Advancing Stocks – # of Declining Stocks) + Previous Period’s A/D Line Value The previous periods A/D line value can also be the values of the day before. Therefore the equation can be rewritten as: A/D Line = (# of Advancing Stocks – # of Declining Stocks) + Yesterday’s A/D Line Value The equation above is used by people monitoring the market to predict the likelihood of a reversal. When the points...

Read more »

The History of the Stock Exchange

12/03/2012
By
stock market

Today the stock market is an integral part of our economy, and it is hard to imagine a time when it didn’t exist. That time was over 300 years ago. But, towards the end of the 17th century, when trading started in Jonathan’s Coffee House, situated near the Exchange Alley in the city of London, things began to change. In 1698 businessman and coffee drinker John Castaing issued a document called The Course of the Exchange and other things‘ which was essentially a list of goods which could be bought or sold. Of course, people have always traded goods for thousands of years but this is first official record we have of any sort of organised and premeditated buying and selling. The word spread fast and soon people were flocking to Jonathan’s Coffee House to do business. This carried on for a few years until men were regularly being...

Read more »

The Best Investments You Wish You’d Spotted

23/02/2012
By
Investment

The best investments you wish you’d spotted may have got away from you because you didn’t realise how the world would change over time. With hindsight, shares in Ford, Coca Cola, McDonalds, Disney and Tesco would have been good buys, if a little left field, in their early days. Technology is the Golden Goose Technology stocks are perceived as big money earners. Facebook’s 2012 flotation may be a ticket to fortune, but some pundits believe it’s past its prime, as is the way with technology: things move fast. Microsoft was one some didn’t believe would last. $21 shares in March 1986 would be worth around $8000 today. Although it has been higher, a $10,000 stake then is worth about $3 million today. Apple is even more impressive. If instead of buying an iPod when they were released in October 2001 you’d invested the $400 in Apple stock, today you...

Read more »

Gaining Investment From The Private Equity Market

09/02/2012
By
Gaining Investment From The Private Equity Market

Private equity refers to all equity in businesses that are not publicly traded The cumulative value of this equity is known as the private equity market. Why private equity? The private equity market has been growing since the 1970′s and continues to do so despite the difficult economic conditions globally Tens of millions of pounds in private equity is invested each year, and significantly more equity is generated from private investors than from venture capital businesses Private investors are becoming a more viable option to businesses of all types and sizes, capitalising on the wariness of the banks to lend money against the currently volatile economic backdrop. What will private investors look for? Private investors are looking for a return on their money As simple as that sounds, and as easy as it may be to assure investors you have a winning business which can potentially make millions, there...

Read more »

4 Reasons Why You Should Invest in the Stock Market

02/01/2012
By
stock market

A lot of people think that investing in the stock market is risky. And it is – if you don’t know what you are doing. Because the truth is anything is risky if you don’t know what you are doing. With the world wide recession going on today the stock market is seen as an even greater risk. Stock prices have been fluctuating like crazy. Companies are going bankrupt left and right. Why put your money at risk? The bank is safer, right? Wrong. Despite the craziness that has been going for quite sometime now, the stock market is still a very good investment vehicle. Here are 5 reasons why you should invest in the stock market. The stock market has good interest rates. I have nothing against banks – except their low interest rates. You only get about 2% tops if you put your money in the bank....

Read more »

Plan for Losses: The Key to Sound Trading

22/12/2011
By
Stock trading

Risk lies at the very core of trading. Without risk profit would not be possible. On the flip side of the coin, because of that risk there is the danger of big losses befalling you. However, as necessary as taking risks is if you’re to turn a profit, by using stop losses intelligently, you can protect yourself from the nasty surprises that compromise an unavoidable part of trading. Indeed, employing stop loss orders properly is a function of having the right mental attitude to be a successful trader; knowing that you cannot and will not win every time. Putting on a seatbelt when you step into a car isn’t something you do because you are expecting to crash, or because you doubt your own abilities as a driver. You do it (aside from the fact that it’s illegal not to) because you are acknowledging that out there on the...

Read more »

4 Indicators That Predict Rising Gold Prices

09/11/2011
By
Gold Prices

Over the last few years, gold has experienced a sudden price spike, similar to what occurred in the 1980′s. As of today (Nov 3, 2011), gold sits at $1762 an ounce, which is down $134 from an all time high of $1896 (on September 2011). Experts are mixed as to whether gold is teetering on the edge of a bubble, or if it will continue to gain value in the long term. If we look at past events which contribute to increases and decreases in the price of gold, we may be able to determine its future value by examining these “predictors”. Predictors of Gold and Precious Metal Prices Inflation – Stimulus programs are currently propping up the economy and have been introduced in many other countries to fight the global recession. As more money is printed, paper currencies tend to be worth less. The inflation of currency makes...

Read more »

Martingale Strategy in Forex

23/06/2011
By

If forex traders were told that there exists a 100% profitable trading strategy, most of them would treat this information quite skeptically. However, such kind of strategy really exists, and it is called martingale. It was devised for gambling chiefly. As far as gambling is concerned, martingale refers to any gambling system in which the stakes are raised, usually doubled, after each loss. However, you would be surprised to hear that this strategy can be applied in forex trading as well. And it doesn’t have any shady flavor at all, but it is quite adventurous, though. However, one important point about the martingale strategy must be mentioned – it is only possible in case the trader is very well-funded. And. What is more, one missed trade can sweep away the whole trading account. In addition, the amount of risk is far greater than the prospective gain. In other respects,...

Read more »

Online Trading Services That Are Worth a Try

17/02/2011
By
services

There are number of online trading services available on the web today. A beginner investor is therefore often confused about which tool and service is best to use. I am presenting some of the tools and services I use and have proven to be very helpful to me. Virtual Trading for Beginners First tool I would like to recommend to beginners is to set up a virtual trading account, where they can paper trade and this way examine different trading strategies and ideas without risking real money. You can set up such account for FREE at WallStreetSurvivor.com. Not only you can learn trading for free, you can even win prizes while doing it. Understanding the Market Moves If you would like to be in the 1% group of those traders and investors who actually understand market moves, consider joining the Elliot Wave International, world largest market forecasting firm. You...

Read more »