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Friday, December 25, 2009

Getting To Know More About Forex Pips

By Bart Icles

What are Forex pips? Pips, more popularly known as percentage in points, is a term in which your gains and losses are gauged when trading in the forex market. This is the basic measurement of trading in the forex market that all traders are aware of. Trading in the FX trading market is made more accurate by using Forex pips, since it is the smallest price measurement used. When trading a certain currency, a forex pip is the fourth and last decimal point a certain currency is priced.

For someone who has just started to learn about Forex and forex trading, this information about forex pips might appear to be brain damaging or very hard to understand. Although if you try to listen and read carefully, you will realize that it is actually easy to understand. By understanding the various concepts and terms used in trading, such as Forex pips, you will be able to do your trading quite easily and smoothly. You have to understand all of these so that you will avoid being fooled in trading with other, more experienced forex traders.

So, why is a forex pip important to traders?

Again, it is a must that you have a full understanding of how pips are utilized and valued in forex trading because these are the ones used in computing how much you have already earned or lost in a specific trade. If you have calculated that you have already made around 13 or 16 pips, this could be interpreted as having already earned a lot. However, if you have already lost a lot of pips, then you should be wary of the trades you are getting into because losing pips could be a sign that you might lose an even bigger loss.

Since various international currencies' prices are erratic, it is expected that a pip's value will either go up or down every now and then. While trading, you should always be updated of how much pips you have gained or lost so that you are also aware of how much these are valued in real time, despite the constant price changes.

Learning about trading in the Forex scene could be mind boggling. But if you really want to learn faster, you should be really motivated to learn and keep your interest growing. You should continue to browse through different forex-related information so that you will be equipped with knowledge that will become useful when you start trading. By being motivated and industrious, you could become the best trader that you could be. - 23218

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How To Invest In Diamonds

By Owen Jones

Everyone loves diamonds and no one looks bad in diamonds, do they? It is not actually within the remit of this article to propose whether diamonds are a good investment or not, but their supposed worth is colossal. As an alternative, I would like to discuss where the optimum place to procure a diamond is, since it is more important that you acquire your diamond from a trustworthy dealer with a warranty than that you think you got a decent deal on eBay by buying somone's granny's engagement ring, which might not be authentic.

Consequently, before you commence shopping for diamonds, consider dealing with a bonded jeweller. Bonded jewellers sell bonded diamonds and there are not many bonded jewellers in the world. In fact, of the jewellers in the world, only about 5% of them are bonded.

Buying a bonded diamond will cost more than buying a non-bonded diamond, although when you look at what you get with the bonded option, you will see that it is well worth the extra outlay.

First, bonded diamonds have a buy-back policy for the life of the diamond. No matter how long you keep the diamond, you can take it back to the bonded jeweller and sell it back to him or her, for a 100% refund.

If a jeweller does not offer a 100% buy-back promise, for the life of the diamond, then you ought to take a nearer look at the diamond to see what is amiss with it. Just joking, they will always offer you a 100% buy-back guarantee or tell you why not.

Bonded diamonds also have a breakage policy. If the stone breaks or chips, the bonded jeweller will replace it with a new one - one time. No jeweller would ever offer such a policy on any stone that was not 100% natural, so just the offer of such a policy should give you peace of mind concerning the quality of the diamond. Bonded diamonds are natural and untreated.

Bonded diamonds increase in value, with a fixed increase rate that is designed to keep up with inflation. This means that a diamond that is worth a particular amount of money today will be worth more in the future, as the price of diamonds continues to rise. This normally does not relate to buy-backs, although. It normally applies to trade-ins.

On the other hand, by buying a bonded diamond, you are protected against the prospect of a market collapse. If a market collapse does happen, the price of diamonds will go down. However, the bonded jeweller guarantees to reimburse you the discrepancy between what the diamond is now worth and what you paid for it before the market crash.

It could be tricky to find a bonded jeweller in your vicinity, but if you can, this is who you need to do business with, as opposed to dealing with a non-bonded jeweller. Specifically inform the jeweller that you are only interested in bonded diamonds. You can discover a bonded jeweller in your area by using various online resources like Google or Yahoo, or by calling the local jewellery stores. - 23218

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Stock Investing for Beginners: Things You Need to Know Before Buying Your First Investment

By Trent Matthews

Stock investing for beginners can really be overwhelming, especially if the investment novice doesn't have the slightest idea on what the stock market is all about, let alone the purpose of stocks and why companies use them. So before you embark on your investment plans, here are some of the things that you should know.

The most challenging part of stock investing for beginners is to do investment planning. But before you get started with your plans, beginners should get familiar with stocks and the stock market. A stock is having an ownership in a company. When you have stock, you have a stake in that company. Once you become an owner, you can sell pieces of your ownership when you sell your stock and the additional money raised in that sale goes toward the company capital. This capital is used for company expansion or the acquisition of certain assets. Company debts can be paid down as well. Some of the most well known large companies have public listed shares.

So you want to know what the stock market is. Just imagine an auction between buyers and sellers, but what is being traded is stock on the stock exchange websites. Because there is a constant trading going on, stock prices will be influenced by supply and demand for these stocks. The prices will fall for a stock if the demand goes down and vice versa.

Now that you are familiar with the general concepts, it is time to look into building your investment portfolio. It is highly recommended for beginners to get a broker. Brokers are actually mediators for buyers and sellers. You can purchase bonds, stocks, different investments and mutual funds through them. These brokers will earn a commission which is a small cost within the total transaction cost. Many traditional brokers will be able to provide you with your options concerning stocks and what investments may be great for your situation; however, discount brokers will allow you the freedom of choosing your investments you would like to invest in.

The success of stock investing for beginners is dependent upon how motivated you are to learn the stock market and how well you build your portfolio. It will take some time to start having much success, so expect to win some and lose some. As a precaution for beginners, do not use the money in that you can't afford to lose. - 23218

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Utilizing An Online FOREX Trading Course

By John Eather

Using an online FOREX trading course can be a lot of help for those just starting out with FOREX trading. FOREX focuses on trading different pairs of currencies and many people have started trading FOREX when it became possible to use the internet for trading. Originally FOREX trader occurred over the phone and this was made difficult by different time zones. Much of FOREX trades were done solely by large financial companies.

For those just getting into FOREX trading there are many different course available in many different forms. The courses can provide you with all the information you need to start trading. You will find trading courses that are free and those that will have an associated fee. You do need to be careful with free training courses.

You need to see who the individual is offering the course. Are they an expert in the field or just writing who wanted to publish a book? What type of course are they offering? Many courses come in the form of a book while others may be a series of videos or lessons. If it is a free site try to find out why they are providing this information for free.

You need to be careful with free online FOEX trading courses as many times they will be pushing you to use one specific site or you may have to enroll in a specific program. Many times a book may push you to use a specific system or program. It is important you answer these questions as many times free information may not necessarily be honest.

You also may find texts that offer some great training or a specific FOREX trading software may offer its own tutorial or course and by learning how to use the software you learn all about the FOREX market.

The individuals who write these articles are experienced FOREX traders and they can provide some of the best information available. The best online courses are the ones that are not limiting, for good courses you should see what established companies have to offer. - 23218

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ETF Trend Trading Strategies That Have Proven Effective

By Patrick Deaton

There are a number of of ETF trend trading strategies that have proven effective over time. The markets seem to be recovering lately and those interested in exchange traded funds may be able to use these investment vehicles -- which are kind of like a mutual fund -- in order to begin making a nice income stream. They are also somewhat similar to stocks and how they are traded.

What goes into ETF trend trading is basically the tracking and analysis of trends in a given market or markets. People skilled in this kind of trending analysis can time market movements so that they invest in and then get out of markets quickly enough to make a fair profit in many cases. Many people who believe in trend trading often say that they spent less than 20 minutes a night doing so.

There are a number of highly rated trading systems online that can help a user participate in exchange traded funds and trend trading or -- as many of the systems call it -- trend following. Take a few moments to go over each system's rules for trend following before deciding to invest in the system. With some smarts, you can make a decent return on investment over a predefined period of time.

There are normally three solid ways or strategies to go about using exchange traded funds in a trend trading manner. The first is known as a fundamental strategy. A small investor will normally work through a trading system to follow trends that are based on a long timeline of observations of activities on the broader markets or a predefined market.

With a fundamental strategy, a user or trader in an ETF can keep solid control over not only costs (ETF's tend to be low in cost) but also in taxes that will result as a result of profits and losses within the trading activity over a set period of time. Portfolios involved in a fundamental strategy tend to be very traded at very infrequent intervals though they do provide broad exposure to markets.

Another good trend trading strategy that can be utilized is what's called a sector strategy. It examines movement and certain market sectors, and sector strategists spent quite a bit of time following trends as much as possible so that they can move into and out of the market fairly quickly. Portfolios belonging to sector strategists are known for being traded and monitored at all times.

People using a sector strategy are also constantly looking for ways to get in and out of markets extremely quickly. Normally, they employed a momentum-based strategy to do so and they try to analyze things to the point where they know the best times to jump into and jump out of a market. Most beginners, though, are devised to use what experts call a blended strategy.

This means that the trader or investor will use ETF trend trading in such a way that a 200 day moving average will tell them which areas in the market are moving and in which direction. Blend strategies require the use of set signals that allow you to stay in the market during long uptrends. Also, blend strategies require the use of a stop loss in order to put a cap on any losses. - 23218

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