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Friday, October 2, 2009

Investment Research Provides Real Answers

By Lilia Germann

For many years, I have actively participated in the achievement of my financial goals by making sound investment decisions. When I first became an investor, my activity was limited to participation in a 401K program and several CD purchases. I met a financial planner that gave me life-changing advice. My new financial planner let me know that my current investment strategy would not be able to provide for me, financially, when I retired. The financial planner let me know that I would only receive $400 per month, starting at age 65, based on my current investments.

I was shocked and afraid when I heard this news. Based on this advice, I knew I had to change my investment strategy. After this, I began working with an investment brokerage; they started providing me with research. Their research included financial newsletters, stock market newsletters, and investing newsletters; I actively read each one. Their research didn't provide me with enough information to apply to my investment decisions.

I thought that the investment research lacked forward-thinking. Constantly it seemed as though they only paid attention to the U.S. market " specifically the Dow Jones " and forgot all of the other elements that effect market forces. Another problem was that their research was posed only at very conservative, long-term investments. Conservative investments are fine, but I don't want to miss out on an opportunity just because that investment has a higher level of risk. Investments with higher risks must have made the investment brokerage afraid. That fear must have been caused by their lack of knowledge; I felt it indicated they were doing a lot of guess-work.

I began surfing the web, looking for other alternatives. After days and days of reading other reports and forecasts, I located MyStrategicForecast.com.

Based on facts, My Strategic Forecast offers really valuable investment research. They take many factors into account besides economics when compiling their investment information. A mild storm season was predicted for the Atlantic by meteorologists, as one example. My Strategic Forecasts stock newsletter predicted a slightly lower return for home improvement companies after taking this information into consideration. They also mentioned that a mild season is usually followed by an active one. As a result, I held onto my stock, because I wanted to see what next years hurricane season would bring. They were absolutely right.

By using a historical perspective, My Strategic Forecast is able to provide all the necessary information to tell where the market is headed. I was able to use their forecast abilities to gain even more and build up my portfolio. - 23218

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Evolutionary Investing

By Michele Perdue

Our hard wiring through evolution has resulted in a short circuit that makes us more apt to risk losing money if we start worrying about not earning it. The majority of investors are busy worrying about their missed opportunities.

Reflection is important but attention should be focused on the purchases that were mistakes rather than the non-purchases that we regret. Mistakes are costly and the missed opportunities do not affect us but to be there as a reminder that we chose the wrong investments.

A useful analogy might be found in a book (more than a decade old) called Unweaving the Rainbow by Richard Dawkins. This science writer, evolutionary biologist and provocateur talks about strategies that are available to the animals with high metabolisms, such as small birds, that has the need to find food often in order to stay alive. Imagine that the bird is flying around seeking its prey and is surrounded by twigs that may hold some cleverly camouflaged caterpillars. If the bird got close and examined the twig a moment it may be able to distinguish between twig and caterpillar quite readily.

But, this is problematic for the bird as it cannot examine each of the numerous twigs lest it starve while looking for its first meal. It needs to take a faster approach, scan rapidly at a more cursory level even if it means missing out on many caterpillars. Finding the right balance between a deep scan and one that is more cursory but still effective is important. Too cursory will mean that the bird never finds anything and starves; to detailed and the bird may find too few and starve.

This is the same thing we must do as investors. If we waste time on a twig, we?ll never find a caterpillar; and we really can't afford to think about all those missed caterpillars. An optimal investment strategy will be profitable while leaving a number of the good opportunities untouched. Birds don?t fret over their missed caterpillars and neither should you.

Investing is a tricky thing to master. Get some great advice and investment tips from a leading expert and hedge fund manager, Andrew Baxter. - 23218

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. - 23218

Online Or Traditional Investing: Some Basic Information Is A Must About Securities

By Michele Perdue

Before we get into different types of securities it is important to know the very basic definition of investment securities. Investment securities are form of certificate or documents that shows that you have invested in a company or a business or a government entity. The two key types of securities are equity securities and debt securities.

Some basic securities types are as follows:

Bond: This follows in the debt security type wherein the issues of the bond pay interest at a predetermined rate. Bonds are issues by companies, public authorities, government and at times credit institutions. The method used for bond issuing is known as underwriting. The issuer keeps paying interest at regular intervals and pays the principal amount at a later date. Some of the different types of bonds are as follows:

Treasury bonds, Bearer and registered bonds, Participation bonds , and Convertible bonds

Derivatives: These are indirect financial instruments that are depended on direct securities such as bonds, equities. They are also known as hedging instruments. Some of the different types are as follows:

Futures Swaps, Index options, Covered and uncovered calls

Equities: These are the most common type of investment securities. They are in the form of stock or shares that gives the ownership in the company. General public has the option of becoming a shareholder in a large company. Some of the different options are as below:

Common stock, Preferred stock Dividends, Book value, Par value, and Depository receipts

Another unusual form of security is the contract to buy and sell commodity such as tea, coffee, wheat irrespective of the change in its quality. This is also one form of security that involves a contract.

If you wish to find out more valuable information about online investing then check out the best site with all of the needed content on online investing today. - 23218

Stock Options Trading Principles

By Mark Swithin

Stock option trading is a high levered market play. An option is a contract between a buyer and a seller that gives the buyer the right?but not the obligation?to buy or to sell a particular asset (the underlying asset) at a later date at an agreed upon price. In return for granting the option, the seller collects a premium from the buyer. The Wall Street Journal, Stock Option Trader, amongst others, analyze market conditions and trends.

A call option gives the buyer the right to buy the underlying asset; a put option gives the buyer of the option the right to sell the underlying asset. If the buyer chooses to exercise this right, the seller is obliged to sell or buy the asset at the agreed price. An option trading tutorial or often free Wall Street reference guide is essential to successful trading.

The options buyer may choose not to exercise the right and let the option expire. The underlying asset has value however the option expires worthless under such circumstances.

Statistical models are used to determine the actual value of options allowing one to gauge risk and tolerance levels more accurately. These models form a backbone for one?s assumptions in calculating risk vs. reward.

Exchange-traded options form an important class of options which have standardized contract features and are traded on public exchanges. The low-cost leverage feature that options provide make them an extremely attractive financial instrument.

There are many indicators and tools used to predict price movement. Don?t try and use all of the indicators and signals at the same time since you will never see all of them in agreement, and you will get far more information than you can process. Information gleaned from stock option trader sources, the Wall Street Journal and other sources aid in option and stock trends.

As such there are leading and lagging indicators. A leading indicator gives a buy signal before the new trend or reversal occurs. A lagging indicator, as you may guess, gives a signal after the trend has been initiated, and trend momentum is established.

Using a very broad stroke for categorizing indicators, there are oscillators, and momentum indicators . Oscillators are leading indicators, and momentum indicators are lagging indicators. While the two can be supportive of each other, they can frequently give conflicting signals. This is not to say that one or the other should be used exclusively, but you must understand the potential pitfalls of each. - 23218

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