BizCorner | Investments | Forex | e Business | Learning

Online Forex Trading Basics

2006-05-07T20:40:00.000+08:00

Forex trading has become extremely popular the world over and has people from all different countries and backgrounds trading like only the professional traders could do just a short time ago. Until recently Forex trading was performed mostly by major banks and large institutional traders. The technological advancements that have occurred of late have transformed Forex into the playground of average traders like you and me.

It's easy to find an online FX trading system, platform or software that can make it easy and fun to trade the market. Simply browse the web and you will be inundated with many exciting offers and promotions. There are many firms that sell or even give away free training software, charts or other useful tools for your future in Forex trading.

Foreign currency trading is done in pairs or combinations. For example, trading the Dollar versus Yen, the Euro vs. the Dollar or the British Pound against the dollar. The most popular currencies that are used for trading and investment purposes are the United States Dollar (USD), Japanese Yen, British Pound, Euro and Swiss Franc. The make up the major portion of all currency trading.

When you come across these currencies in the market you will see them written as a pair: USD/JPY (U S Dollar and Japanese Yen), EUR/USD (Euro and U S Dollar), USD/CHF (U S Dollar and Swiss Franc) and GBP/USD (British Pound and U S Dollar).

The vast majority of all day trades of foreign currency involve these five major currencies. Your goal as a trader is to pick out which currency will appreciate against another. If you can find or develop a system that will allow you to choose the correct direction a currency will be taking it is possible to make good profits in the FX market.

Most trades on the FX market are done by Forex brokers and dealers at major banking institutions across the globe. And since it is a world wide market that makes it a 24 hour a day market. The brokers or dealers work in different shifts so that major institutional traders can perform their trades 24 hours a day around the clock.

However, don't be alarmed. You do not have to be awake all day and all night to trade the market. It is a simple matter of placing stop orders with brokers to buy or sell at pre-determined price levels even while you are sleeping. If your pre-specified price points are met the order will go through as planned. If your price points are not met the orders will not be placed or carried out. This is the key to stopping potentially big losses. You'd hate to be asleep when the market turned against you without a way to get out. Having specified price levels can save you a lot of stress in the market place. With stop orders you don't have to constantly follow your currencies every second of the day. You can place your orders and then go about your normal daily routine.

The FX is unlike stock exchanges in that stock exchanges can be very volatile. The FX market is ordinarily a great deal smoother and doesn't gyrate up and down as quickly or rapidly. The market is actually very easy to trade and is very liquid, meaning you can get your money in or out at any time. Placing an order can be done in a matter of seconds. If you have the temperament for this type of activity it can be a very worthwhile endeavor.

Original article by Larry Johnson, www.my-forex-trading.net. Source: www.articlealley.com

Crush the Stock Market Without Trading Stocks

2006-05-05T21:21:00.000+08:00

Do you look at the stock market and wish you'd bought some Google stock back when it was first offered for $104? You'd have gained nearly 300% on that investment in the first year - that's roughly 9.2% each month! That's a Wall Street level of success!

Imagine if I could show you an investment opportunity that could easily give you over 14% monthly? What if 21.5% per month was within reach? These yearly returns of anywhere from 500% to 1000% are possible for anyone who has the initiative to go out and get them. That's 2-4X MORE than GOOGLE, one of the fastest growing stocks IN HISTORY! We're talking about an investment opportunity where your returns will crush even the top gainers of the stock market. Are you starting to get curious about how these numbers are attainable?

You can beat the stock game by playing a different game, the Foreign Exchange trading game. Also referred to as Forex, the Foreign Exchange market is where one country's currency is traded for another's. You can buy €1100 Euros for $1000 US Dollars while the exchange rate is at 1.1 Euros/Dollar. Then you can sell the Euros back to dollars for $1100 (and a nice $100 profit) if the exchange rate moves to 1 Euro/Dollar.

$100 may be nice, but that 1% return on the $1000 doesn't sound like the path to your 500% returns, does it? Here's how that 1% gets its power: Leverage. With Forex, if you have $300 in your account, you can control a $10,000 trade. That makes your money a lot more powerful than the $1-$1 control you get in the stock market! If you're thinking that you can lose more money this way too, just read on, you'll learn why that won't happen.

Consider this: The Foreign Exchange market has a DAILY trading volume of around $1.5 trillion dollars. That's 30 times larger than the combined volume of all U.S. equity markets (that includes the NASDAQ and NYSE). This is an untapped resource, and you're about to learn five simple steps towards taking your share out of that market and into your pocket.

1. Get Educated!
As with all things, the more you know about trading, the more likely you are to success. A little effort spent learning up front can save you hundreds and thousands of dollars of mistakes later.

2. Have a Strategy!
A simple repeatable system can turn trading into a low-risk mechanical system. Know when you should trade, how often you should trade, how much money to spend per trade, when to cut your losses, and when to take your profits. Push the right buttons at the right times, and you'll make money.

3. Practice Makes Perfect!
Most Forex brokers will allow you to sign up for a practice account, where you can trade imaginary money until you've solidified your winning strategy. Don't risk your hard-earned cash until you've proven that you'll succeed

4. Scrape Together $300
That's 2 months of brown-bagging lunch instead of buying it; or a few months of cutting down on the daily coffee-shop visits. If you start now, by the time you've learned a strategy and perfected it on your practice account, you'll be ready with your $300 to start earning real money. More money is always better, but $300 is the minimum you'll need to get started.

5. Go Out and Succeed!
By the time you get to Step 5, you KNOW you will succeed, and you'll spring out of bed every day ready to make your profit. Some days you'll lose a little money, but you won't worry. Your strategy allows you to lose a little money from time to time; you proved that losing money periodically wasn't the end of the world when you practiced; you'll get up tomorrow and make it back by following your proven strategy.

Starting with your $300, if you made "Google Gains", you'd have $862 in a year. That's not bad. With Forex gains, though, you could easily turn your $300 into $1500-$3000 in a year! Who need the stock market?!?

Saving the best for last, here's the shocking truth: The 500-1000% yearly returns are possible, but with a smarter strategy you could turn your $300 into over $10,000 in less than a year without increasing your risks! Best of all, you can do all of this over the Internet without leaving home. That's 3000% while wearing pajamas. With these kinds of returns, you could realistically quit your job and trade full-time!

Original article by Jeff Watt, owner of www.SimpleForexTrading.com, free Forex e-Book available.

Mistakes in a Trading Environment III

2006-05-04T16:30:00.000+08:00

[ How to deal with mistakes ]

There are many possible ways to properly manage mistakes. We will suggest the one that works better for us.

Step one: Belief change

Every mistake is a learning experience. They all have something valuable to offer. Try to counteract the natural tendency of feeling frustrated and approach mistakes in a positive manner. Instead of yelling to everyone around and feeling disappointed, say to yourself “ok, I did something wrong, what happened? What is it?

Step two: Identify the mistake made

Define the mistake, find out what caused the mistake, and try as hard as you can to effectively see the nature of that mistake. Finding the mistake nature will prevent you from making the same mistake again. More than often you will find the answer where you less expected. Take for instance a trader that doesn’t follow the system. The reason behind this could be that the trader is afraid of loosing. But then, why is he or she afraid? It could be that the trader is using a system that does not fit him or her, and finds difficult to follow every signal. In this case, as you can see, the nature of the mistake is not in the surface. You need to try as hard as you can to find the real reason of the given mistake.

Step three: Measure the consequences of the mistake

List the consequences of making that particular mistake, both good and bad. Good consequences are those that make us better traders after dealing with the mistake. Think on all possible reasons you can learn from what happened. For the same example above, what are the consequences of making that mistake? Well, if you don’t follow the system, you will gradually loose confidence in it, and this at the end will put you into trades you don’t really want to be, and out of trades you should be in.

Step four: Take action

Taking proper action is the last and most important step. In order to learn, you need to change your behavior. Make sure that whatever you do, you become “this-mistake-proof”. By taking action we turn every single mistake into a small part of success in our trading career. Continuing with the same example, redefining the system would be the trader’s final step. The trader would put a system that perfectly fits him or her, so the trader doesn’t find any trouble following it in future signals.

Understanding the fact that the outcome of any trade has nothing to do with a mistake will open your mind to other possibilities, where you will be able to understand the nature of every mistake made. This at the same time will open the doors for your trading career as you work and take proper action on every mistake made.

The process of success is slow, and plenty of times it is attributed to repeated mistakes made and the constant struggle to get past these mistakes, working on them accordingly. How we deal with them will shape our future as a trader, and most importantly as a person.

Original article by Raul Lopez, founder of www.straightforex.com a forex training company. Article Source www.articlealley.com

Mistakes in a Trading Environment II

2006-05-04T08:29:00.000+08:00

[ Second Scenario: System does not signal a trade ]

1. No trade is taken

Outcome of the trade: Neutral

Experience gained: Good discipline, we only need to take trades when the odds are in our favor, just when the system signals it. Confidence gained in both the trader self and the system.

Mistake made: None

2. A trade is taken, turns out to be a profitable trade

Outcome of the trade: Positive, made money.

Experience gained: This mistake has the most catastrophic effects in the trader self, the system and most importantly in the trader’s trading career. You will start to think you need no system, you know better from them all. From this point on, you will start to trade based on what you think. Confidence in the system is totally lost. Confidence in the trader self turns into overconfidence.

Mistake made: Take a trade when there was no signal from the system.

3. A trade is taken, turned out to be a loosing trade

Outcome of the trade: negative, lost money.

Experience gained: The trader will rethink his strategy. The next time, the trader will think it twice before getting in a trade when the system does not signal it. The trader will go “Ok, it is better to get in the market when my system signals it, only those trade have a higher probability of success”. Confidence is gained in the system.

Mistake made: Take a trade when there was no signal from the system

As you can see, there is absolutely no correlation between the outcome of the trade and a mistake. The most catastrophic mistake even has a positive trade outcome, made money, but this could be the beginning of the end of the trader’s career. As we have already stated, mistakes must only be related to the violation of rules a trader trades by.

All these mistakes were directly related to the signals given by a system, but the same is applied when getting out of a trade. There are also mistakes related to following a trading plan. For example, risking more money on a given trade than the amount the trader should have risked and many more.

Most mistakes can be avoided by first having a trading plan. A trading plan includes the system: the criteria we use to get in and out the market, the money management plan: how much we will risk on any given trade, and many other points. Secondly, and most important, we need to have the discipline to follow strictly our plan. We created our plan when no trade was placed on, thus no psychology barriers were up front. So, the only thing we are certain about is that if we follow our plan, the decision taken is on our best interests, and in the long run, these decisions will help us have better results. We don’t have to worry about isolated events, or trades that could had give us better results at first, but then they could have catastrophic results in our trading career.

Original article by Raul Lopez, founder of http://www.straightforex.com

Mistakes in a Trading Environment I

2006-05-03T21:26:00.000+08:00

When it comes to trading, one of the most neglected subjects are those dealing with trading psychology. Most traders spend days, months and even years trying to find the right system. But having a system is just part of the game. Don’t get us wrong, it is very important to have a system that perfectly suits the trader, but it is as important as having a money management plan, or to understand all psychology barriers that may affect the trader decisions and other issues. In order to succeed in this business, there must be equilibrium between all important aspects of trading.

In the trading environment, when you lose a trade, what is the first idea that pops up in your mind? It would probably be, “There must be something wrong with my system”, or “I knew it, I shouldn’t have taken this trade” (even when your system signaled it). But sometimes we need to dig a little deeper in order to see the nature of our mistake, and then work on it accordingly.

When it comes to trading the Forex market as well as other markets, only 5% of traders achieve the ultimate goal: to be consistent in profits. What is interesting though is that there is just a tiny difference between this 5% of traders and the rest of them. The top 5% grow from mistakes; mistakes are a learning experience, they learn an invaluable lesson on every single mistake made. Deep in their minds, a mistake is one more chance to try it harder and do it better the next time, because they know they might not get a chance the next time. And at the end, this tiny difference becomes THE big difference.

[ Mistakes in the trading environment ]

Most of us relate a trading mistake to the outcome (in terms of money) of any given trade. The truth is, a mistake has nothing to do with it, mistakes are made when certain guidelines are not followed. When the rules you trade by are violated. Take for instance the following scenarios:

First scenario: The system signals a trade

1. Signal taken and trade turns out to be a profitable trade.

Outcome of the trade: Positive, made money.

Experience gained: Its good to follow the system, if I do this consistently the odds will turn in my favor. Confidence is gained in both the trader and the system.

Mistake made: None.

2. Signal taken and trade turns out to be a loosing trade.

Outcome of the trade: Negative, lost money.

Experience gained: It is impossible to win every single trade, a loosing trade is just part of the business; our raw material, we know we can’t get them all right. Even with this lost trade, the trader is proud about himself for following the system. Confidence in the trader is gained.

Mistake made: None.

3. Signal not taken and trade turns out to be a profitable trade.

Outcome of the trade: Neutral.

Experience gained: Frustration, the trader always seems to get in trades that turned out to be loosing trades and let the profitable trades go away. Confidence is lost in the trader self.

Mistake made: Not taking a trade when the system signaled it.

4. Signal not taken and trade turns out to be a loosing trade.

Outcome of the trade: Neutral.

Experience gained: The trader will start to think “hey, I’m better than my system”. Even if the trader doesn't think on it consciously, the trader will rationalize on every signal given by the system because deep in his or her mind, his or her “feeling” is more intelligent than the system itself. From this point on, the trader will try to outguess the system. This mistake has catastrophic effects on our confidence to the system. The confidence on the trader turns into overconfidence.

Mistake made: Not taking a trade when system signaled it [1]

Original article by Raul Lopez, founder of http://www.straightforex.com

Forex Currency Day Trading For Beginners

2006-05-02T09:47:00.000+08:00

You sell your money to the bank (or other) and it allocates some interest payments to your savings account from its profits. Have you seen a Bank's profits?

What do Banks do with your money? Well, they accumulate many small savers' money to lend to a borrower. The borrower buys his loan and repays it with added interest. The difference between interest rates is used by the institutions to pay salaries, pensions buy buildings and the usual business expenses.

The World Press occasionally reveals. "Insider Dealings" where an individual is accused of amassing huge profits from a fast book financial transaction that proves to be illegal.

Sandwiched between "Insider Trading" and interest are a range of products on sale by banks. Mortgages, shares bonds and so on . Very rich individuals and organizations do not leave all their wealth in savings accounts. They trade in art. gold, diamonds, huge properties huge film productions, rare cars and such. Some buy and sell consumer items such as coffee, tea etc.

So can individuals with a few hundreds of their own currency hope to buy and sell something for a smiling profit? There's eBay. Antiques. Some gamble on a wide variety of events such as roulette, horse racing etc. On-line poker (5m PC users play every day).

Now revealed. There is a legal ethical place where you take profits and not interest. You buy and sell without taking delivery. It's far from the bottom layer of the sandwich, situated above shares. It's Foreign Currency.

Forex attracts about 2 trillion dollars a day in transactions. Someone may tell you that this makes dealings in shares small fry. Forex used to be the exclusive realm of the world banks, but computerization replaced old style traders. Banks fund Forex Trading rooms, worldwide.

Immediately, the reader identifies with a PC. Your machine may be capable of earning you a tiny, tiny part of the 2 trillion dollars. You may start with just a few hundred dollars of your own currency, but you essentially need some education, Powerful information to enable you to trade like a professional. You, buy and sell money?

How can there be a risk if you buy something and don't sell it, until there's a higher price? Forex systems eke out patterns of transactions, perhaps following the big loaves, expecting a crumb. Stories of $300 becoming $30,000 within a year: have you heard them? Banks make profits because they trade from especially designed rooms.

You do not need a degree in maths, experience or qualifications to make money 24/7 from anywhere in the world. Forex Day Trading is legal, ethical, exciting and profitable long term. A simple technique at the roulette wheel explains - the pattern is red, black, red, black - what would you choose next? That the pattern continues or is likely to finish? Make a decision and wait for that pattern to appear on any table's display, then act.

Whilst you may take the banks interest in one hand, the staff are elsewhere making huge profits.

Original article by Michael Lindley

The Pros and Cons of Trading a Forex Trading Demonstration Account

2006-05-01T09:30:00.000+08:00

Trading is a skill that takes time to learn. Think of it like Boxing it’s also a skill that takes time to learn. If you get into a professional boxing ring without any training, you’ll get beat up physically! If you get into the Forex ring without any training, you’ll get beat up financially!

The similarities are that both the examples are Skills, and both require psychological preparation. The difference is that one is physical and the other is financial.

We can get over a physical beating usually in a few days or weeks, BUT a financial beating can be devastating and easily affect us for the rest of our lives, not only does it hurt our hip pocket but it can cause problems with our relationships and family. So when we get into the Forex ring we have to be prepared.

[ The Professional Boxer ]

When a professional boxer gets in the ring he has already been practicing in a safe environment usually for years, this safe environment is where he can make mistakes without having medical treatment. He can also spar with other opponents that have more skills and experience then he does and he learns from them. He also has someone there to watch him and give advice and guidance.

Then when he is ready, he gets into the ring and boxes for real, he’s accepted the risk and KNOWS that he can get hurt, but he’s also studied his opponent and done his home work, so he KNOWS he has a good chance. He can still lose this round but if he wins most of them he will take the money home.

BUT! What about the psychological side? Does he fear getting into the ring? Sometimes! But he’s aware of it and he can control how it affects him in a way that is beneficial. Will he be thinking about the money he’ll make? Or will he be thinking about the fight as is happens and planning his next moves during the breaks? He’ll be analyzing the results from the previous rounds and making changes in his strategy for the next round.

[ The professional Trader ]

Can you see what’s coming next? If so than, you’ve learnt to analyze what you read and form a projection into the future. (A very valuable skill for the FOREX Trader)

A forex trader, like the professional boxer, will not get into the Forex trading ring without being prepared first. He might not spend years practicing in the Demonstration Account, but he will at least have spent a month or two or three, sparing with the Forex Market in a safe environment that he won’t get beat up in.

He’ll practice trading forex against all the other traders and learn from them, and he’ll also have someone watching him and giving advice, and guidance.

Then when he is ready, he’ll get into the Forex trading ring and trade forex for real, he’s accepted the risk and KNOWS that he can get hurt, but he’s also studied the Forex market and done his home work, so he KNOWS he has a good chance. He can still lose on this trade but if he wins most of the trades he will take the money home.

BUT! What about the psychological side? Does he fear getting into the forex trading ring? Sometimes! But he’s aware of this fear, but he can control how it affects him, in a way that is beneficial to his forex trading. Will he be thinking about the money he’ll make? Or will he be thinking about the things that are influencing the market as is happens and planning his next trades while he waits for the results? He’ll be analyzing the results from the previous trades and making changes in his strategy or continuing with the one that’s working, and planning for the next Forex Trade.

So it” easy to see that trading with a Forex Trading Demonstration account is something everyone should do before getting into a live Forex Trading account.

The practice account will give the trader MOST of the skills necessary, to be able to trade profitably, giving them the training ring to spar in.

BUT A BIG WARNING!!!

Like the Boxer the Forex trader has learnt to manage his emotions, this is often overlooked by new Forex Traders. BUT is probably what separates the successful investor from the ones that keep getting beat up! If you are considering getting into the Forex trading Ring, then be sure to practice first, and find all the information you can about controlling your emotions.

Fear, greed, impatience, are the main culprits of financial bashings, so keep an eye out for them, and learn how to beat them before you get in the ring with them.

Understanding these emotions will enable you to use them to your advantage in understanding the market, the market is influence by these emotions and if you understand them you can have them on your side, thus giving you an advantage.

Original article by Bill Boyd owner of www.fx-t.com

FOX Forex

2006-04-28T15:35:00.000+08:00

Fox Forex is within the Fox Investment Division of Man Financial Inc. in Chicago. As a division of Man Financial, Fox is recognized for its strength, integrity and leadership in the financial community. Located in the historic Chicago Board of Trade, Fox Forex's mission is to bring excellence to its clients in all aspects of the financial services industry.

The FoxFire Account™ offers a solution which permits accounts of all sizes to participate in a professionally managed trading program without having to buy into a managed futures fund or establish a large account with a CTA. The FoxFire Account™ offers a flexible and elegant solution for all clients.

In a FoxFire Account™ the client is able to participate in trades regardless of account size. The traders take a cumulative or "notional" view of all the accounts they manage and consider the total equity of all the accounts when placing a trade. Since Forex traders can buy and sell in virtually any amounts, rather than standard preset futures contract sizes, investors of all sizes can participate. Each individual account comprises a portion of a "notional" account value. With this approach even smaller accounts can be accommodated. Each account gets a "piece" of the trade, and the profit and/or loss realized from the trade is automatically allocated to individual accounts based on the percentage of assets in the account relative to the total combined assets in all the accounts.

Company Name:
FOX Forex

Website Address:
http://www.foxforex.net

Year of company's foundation:
1783

Year of company's forex division foundation:
2005

Regulated by:
NFA - CFTC (USA)

Client base:
Not Released

Leverage:
100:1

Commissions:
None

Pip spread on majors:
2/3 pips

Mini Account:
yes

Minimum account size for Mini Accounts:
$1,500

Regular Account:
yes

Minimum account size for Regular Account:
$5,000

Services:
Managed accounts, Fox Logix system education, interactive training, Focus/FX advisory services with pair specific buy/sell and stop/loss signals, and full commentary. Choose either the Fox MetaTrader or Fox Direct Dealer trading platforms. Fund manager platforms also available.

Languages:
English

24 Hour trading:
Yes

Free demo account:
Yes

Live support chat:
No

Headquarters:
141 West Jackson Blvd., Suite 1800-A, Chicago, IL 60604 USA

Phone:
+1 888-469-3455

Fax:
+1 312-528-3332

E-mail:
info@foxforex.net

Exchange Rate

2006-04-27T19:08:00.000+08:00

In finance, the exchange rate (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specifies how much one currency is worth in terms of the other. For example an exchange rate of 120 Japanese yen (JPY, ¥) to the United States dollar (USD, $) means that JPY 120 is worth the same as USD 1. The foreign exchange market is one of the largest markets in the world. By some estimates, about USD 2 trillion worth of currency changes hands every day.

An exchange rate is the rate at which one currency can be exchanged for another. In other words, it is the value of another country's currency compared to that of your own. If you are traveling to another country, you need to "buy" the local currency. Just like the price of any asset, the exchange rate is the price at which you can buy that currency. If you are traveling to Egypt, for example, and the exchange rate for USD 1.00 is EGP 5.50, this means that for every U.S. dollar, you can buy five and a half Egyptian pounds. Theoretically, identical assets should sell at the same price in different countries, because the exchange rate must maintain the inherent value of one currency against the other.

[ Fixed Rate ]

There are two ways the price of a currency can be determined against another. A fixed, or pegged, rate is a rate the government (central bank) sets and maintains as the official exchange rate. A set price will be determined against a major world currency (usually the U.S. dollar, but also other major currencies such as the euro, the yen, or a basket of currencies). In order to maintain the local exchange rate, the central bank buys and sells its own currency on the foreign exchange market in return for the currency to which it is pegged.

If, for example, it is determined that the value of a single unit of local currency is equal to USD 3.00, the central bank will have to ensure that it can supply the market with those dollars. In order to maintain the rate, the central bank must keep a high level of foreign reserves. This is a reserved amount of foreign currency held by the central bank which it can use to release (or absorb) extra funds into (or out of) the market. This ensures an appropriate money supply, appropriate fluctuations in the market (inflation/deflation), and ultimately, the exchange rate. The central bank can also adjust the official exchange rate when necessary.

[ Floating Rate ]

Unlike the fixed rate, a floating exchange rate is determined by the private market through supply and demand. A floating rate is often termed "self-correcting", as any differences in supply and demand will automatically be corrected in the market. Take a look at this simplified model: if demand for a currency is low, its value will decrease, thus making imported goods more expensive and thus stimulating demand for local goods and services. This in turn will generate more jobs, and hence an auto-correction would occur in the market. A floating exchange rate is constantly changing.

In reality, no currency is wholly fixed or floating. In a fixed regime, market pressures can also influence changes in the exchange rate. Sometimes, when a local currency does reflect its true value against its pegged currency, a "black market" which is more reflective of actual supply and demand may develop. A central bank will often then be forced to revalue or devalue the official rate so that the rate is in line with the unofficial one, thereby halting the activity of the black market.

In a floating regime, the central bank may also intervene when it is necessary to ensure stability and to avoid inflation; however, it is less often that the central bank of a floating regime will interfere.

[ Quotation ]

An exchange rate quotation is given by stating the number of units of a price currency that can be bought in terms of 1 unit currency. For example, in a quotation that says the EUR-USD exchange rate is 1.2 USD per EUR, the price currency is USD and the unit currency is EUR.

Quotes using a country's home currency as the price currency (e.g., £0.5747 = $1 in the UK) are known as direct quotation or price quotation (from that country's perspective) and are used by most countries.

Quotes using a country's home currency as the unit currency (e.g., $1.7399 = £1 in the UK) are known as indirect quotation or quantity quotation and are used in British newspapers and are also common in Australia, New Zealand and Canada.

Direct Quotation: Home Currency / Foreign Currency

Indirect Quotation: Foreign Currency / Home Currency

Note that, using direct quotation, if a unit currency is strengthening (i.e., appreciating, or becoming more valuable) then the exchange rate number increases. Conversely if the price currency is strengthening, the exchange rate number decreases and the unit currency is depreciating.

When looking at a currency pair such as EUR/USD, many times the first component (EUR in this case) will be called the base currency. The second is called the counter currency.

Branding VS Offering

2006-04-24T17:15:00.000+08:00

You've taken great strides into the online space and search engine optimization is proving extremely successful. But how successful are you really? The strength of search engine marketing allows instant placement, creative manipulation and accountability - provided you are using some form of tracking tool - but are you spending good money on words and phrases that don't covert and is your brand name keyword bolstering an otherwise mediocre campaign?

This article looks at how brand name and brand presence within search engine marketing plays a crucial and sometimes masking role on the success of your search campaign.

The most important factor that must be considered first and foremost is the brand or organization itself. The Internet has demonstrated that through low barriers to entry and minimal start up costs a large number of Internet firms have sprung up. Adversely the pitfalls of starting a business in this fashion have demonstrated that only companies with a sound business plan or solid brand name have succeeded; just think how many internet brands you can name past eBay, Amazon.com, Google, or Yahoo!

So what does this mean? It means that there are two distinct groups of online organization, those with a sound offering but no brand name and those with a solid brand name (such as high street retailers or household brand names) - understanding these groups and the grouping in which your organization fits will allow you to apply rational to the selection of phrases for search engine marketing. So let's take a look at these two groups:

Companies with limited brand recognition. The challenge here is an easier to identify, above all else you must find your unique selling point (USP) and promote it via your listings. With engines such as Google, Find What and Overture preventing the use of inflammatory statements such as 'The best' or 'Web's Favorite' the only choice you have is to meet one or more of the online users expectations, these commonly being; 24/7 access, speedy delivery, convenience and in many instances cheap price. Therefore, your search engine creative must contain not only a call to action - buy, save, compare, find - but also within the description it must contain a USP such as 'free shipping', 'low prices', 'great value' or 'same day delivery'

Companies with a strong or recognized brand name. The challenge for a company in this position is a great deal harder - why? - Because not only do you have to compete with all of the above mentioned firms and suggested techniques but you have to make sure you use your brand name well and not at the cost of your other efforts. Now this needs further explanation so here goes. Your brand name is often the term that drives most conversions from a search engine at the lowest cpc (thus the highest ROI). As there are few companies who will bid on the same keyphrase as yours within an Overture or Google, and within reason you can prevent them from doing so if you wish, you can drive a large amount of traffic to your site at next to no cost. As the searcher is using your brand to find your site chances are they are already aware of what you do or sell and as such they are much more likely to convert. For many companies this is the case and from a portfolio of keywords and phrases within an engine the 80:20 rule applies with 80% of your revenue coming from 20% of your listings, which unsurprisingly are your branded campaigns or products or services that are unique to you. The problem that exists is that if you don't: a) manage this process and b) track each and every word within the engines the poorer performing campaigns are supported by these branded campaigns and as such the channel, be it Google, Overture or whomever, will still seem extremely successful.

So what do you do? The challenge is working out which words are converting and which aren't, how do I know that if I remove a word today that it won't convert tomorrow, if I remove my branded campaigns will I loose revenue, adversely if I leave my branded campaigns in am I paying for a click at number 1 when the term at number 2 is a free listing? The following suggestions give an insight into practices and procedures for answering these issues:

1) Utilise a tracking solution to measure individual keyword success - this is such an important factor that even the engines are starting to offer ROI tracking per keyword.

2) Match your keyword listings by seasonality - if you are worried about selecting words to remove check you past history of sales to see the success of the product or service for that particular time period.

3) Have you optimized your site for organic (free search)? - If you have then check whether your paid for listing is appearing just above your free listing. Then determine the following, with a free listing you have no control over the title and description so when special offers or seasonal messages have to be pushed they aren't represented; however, your click cost is zero. Paid for listings are controllable and creative can be changed so if you are willing to pay for a click then make sure the listings represent that information.

4) Manage your bids - bid prices on many terms can run wild, make sure your non branded campaigns aren't converting or delivering an acceptable ROI because: a) your bid price is too high or b) you've let you listing slip out of the top placements to get into the larger search network.

Original article by James Colborn, an Account Director for Inceptor Inc. (www.inceptor.com)

Hedge Fund

2006-04-23T19:37:00.000+08:00

A hedge fund generally refers to a lightly regulated private investment fund, often a partnership rather than a corporation in form, and characterized by unconventional strategies (i.e., strategies other than investing long only in bonds, equities or money markets).

The term hedge fund dates back to the first such fund founded by Alfred Winslow Jones in 1949. Jones' innovation was to sell short some stocks while buying others, thus some of the market risk was hedged. While most of today's hedge funds still trade stocks both long and short, many do not trade stocks at all.

For U.S.-based managers and investors, hedge funds are simply structured as limited partnerships or limited liability companies. The hedge fund manager is the general partner or manager and the investors are the limited partners or members. The funds are pooled together in the partnership or company and the general partner or manager makes all the investment decisions based on the strategy it outlined in the offering documents.

In return for managing the investors' funds, the hedge fund manager will receive a management fee and a performance or incentive fee. The management fee is computed as a percentage of assets under management, and the incentive fee is computed as a percentage of the fund's profits. A "high water mark" may be specified, under which the manager does not receive incentive fees unless the value of the fund exceeds the highest value it has achieved. The fee structures of hedge funds vary, but the yearly management fee typically ranges from 1-2% of the assets under management and the incentive fee is usually 10-20% of the profits of the fund. Certain highly regarded managers demand higher fees. In particular, Steven Cohen's SAC Capital Management charges a 50% incentive fee (but no management fee) and Jim Simons' Renaissance Technologies Corp. charges a 5% management fee and a 44% incentive fee.

Research shows that incentive fees correlate to higher returns in mutual funds (Elton, Gruber, and Blake, 2003), perhaps suggesting the attractiveness of hedge funds, where incentive fees can be much higher and restrictions on trading are less.

Offshore hedge funds are usually domiciled in a tax haven and, for U.S.-based fund managers, are designed to allow the manager to manage the assets of foreign investors and tax exempt U.S. investors. In this structure, the manager will receive a management and incentive fee as in an onshore fund.

The typical hedge fund asset management firm includes both the domestic U.S. hedge fund and the offshore hedge fund. This allows hedge fund managers to attract capital from all over the world. Both funds will trade 'Pari passu' based on the strategy outlined in the offering documents.

[ Privacy ]

As private, lightly regulated partnerships, hedge funds do not have to disclose their activities to third parties. This is in contrast to a fully regulated mutual fund (or unit trust) which will typically have to meet regulatory requirements for disclosure. The hedge funds are typically domiciled in an offshore jurisdiction, e.g. Bermuda, Cayman Islands, Virgin Islands, where regulation of investment funds permits wider powers of investment. Hedge funds have to file accounts and conduct their business in compliance with the less onerous requirements of these offshore centres. Investors in hedge funds enjoy a higher level of disclosure than investors in mutual funds including detailed discussions of risks assumed, significant positions, and investors usually have direct access to the investment advisors of the funds. This high level of disclosure is not available to non-investors, hence the notion of privacy attached to hedge funds.

A byproduct of this privacy and the lack of regulation is that there are no official hedge fund statistics. An industry consulting group, HFR (hfr.com), reported at the end of the second quarter 2003 there are 5660 hedge funds world wide managing $665 billion. To put that in perspective, at the same time the US mutual fund sector held assets of $7.818 trillion (according to the Investment Company Institute).

The combination of privacy and rich investors means that hedge funds are a target for criticism whenever markets move against some group's interests. For example, hedge funds were widely blamed for the speculative run-up in the bond market that preceded the global bond crisis of 1994, although the major players in the bond spree were actually large commercial and investment banks.

Forex as a Home Business

2006-04-23T09:21:00.000+08:00

Many people are looking for something legitimate to get into when it comes to starting a home based business. The FOREX market just may be the perfect opportunity when it comes to working at home. FOREX is the process of simutamously buying one currency and selling another.

I’ll be the first to say that 99% of home based businesses are scams. After losing nearly $10,000 in work at home opportunities, I was looking for a way to make a decent amount of money though a legitment business. I’ve heard of FOREX trading before, but wasn’t really quite sure just exactly what it was and how it worked.

In January of 2005, I decided to run a search on FOREX in Google and began reading articles and forums on the subject matter. It seemed that FOREX was the perfect home based business to start. I opened a demo account with $500 and started trading. Within my first 25 trades, I won 23 and lost only 2. I thought to myself I was ready to start trading on a real account.

Little did I know that there was a huge difference in trading on a demo account as opposed to trading real money. My entire psychology changed and I could not implement the same trading strategies that were previously winning on a consistent basis. Needless to say I blew out my first live FOREX account of $600. I decided to fund my account again with $400 this time trading under strict guidelines and much more discipline. Over the next month I managed to gain back my initial loss of $600 and gain a small amount of profit.

When starting out in FOREX, you will have the opportunity to choose between many different brokers. My suggestion is to choose a reputable broker that is well known. Most brokers offer a 3 pip spread on all the majors, some will offer a spread as little as 1 or 2 pips.

If you are not familiar with FOREX, another thing you might want to look into is a managed FOREX account. There are many FOREX signals providers that will send you entry and exit points, however only a selected few of them actually work.

It’s now been a little more than a year since I started with FOREX as a home based business and I have compiled over $40,000 in profits. Attaining these results did take a lot of work and research on my part. The FOREX market can be extremely volatile. Do take caution and be sure to do your homework before trading with a live account.

Original article by Tim Rohrer, http://www.forex-investing.us

Link Popularity and Press Release

2006-04-21T08:33:00.000+08:00

The quantity of links to your site is used by the search engines (like Google) to calculate the importance of your site. This measure of incoming links is called “Link Popularity”.

Press releases are a powerful way in which you can promote your site, service or product while at the same time increasing your link popularity.

[ Search Engine Optimization ]

Search Engine Optimization (SEO) is a process of fine tuning your website to get higher rankings on Internet Search Engines like Google, Yahoo and MSN. Broadly speaking there are two types of optimization, “on-page” and “off-page”. On- page optimization deals with the layout and format of a web page to make it attractive to a search engine. Off-page optimization deals with external factors like the number of people linking to your page. Let's look at off-page first.

Off-Page
In trying to quantify the importance of a website, search engines have developed sophisticated algorithms that rank web pages for their quality. The largest factor in determining quality is the number of links to a web page. Links are an almost impartial method of determining how popular a website or a web page is. Or to put it another way, quality websites are the most popular and so have the most links to them. AS previously mentioned this is called “Link Popularity”. So to improve your standing on the search engine you need a higher link popularity.

Another very important factor in off-page optimization is the text used to link to your site. This is called the anchor text. Adobe rank the highest in the search engines for the words “click here”. Why should that be? The word "click here" isn't in the title of the page, nor is it in the page itself! So why does a search engine like Google rank Adobe so high for this term? Because many of the websites linking to Adobe used the words "click" and "here" many times in the anchor text of their links to Adobe.

Press Releases
A press release is a written communication that you submit to journalists in the media (newspapers, radio, television, magazines, etc.) They are used to make announcements which are newsworthy. The mistake that many people make when writing press releases is that they don't find the angle necessary to make their announcement newsworthy. Press releases aren't for customers or consumers they are for reporters, journalists who will use them as a starting point for a larger story or feature. Press releases written as sales pieces will be completely ignored.

There are various ways to submit free press releases on-line. Some of the popular sites are:
www.free-press-release-center.info
www.prweb.com
www.prleap.com

Press Release Help Your Link Popularity
Most of the free press release services are text-based which means you will not be able to add any HTML tags and so you can't add any keyword-optimized links into the press release. However others like the Free Press Release Center (FPRC) allow you to also supply some keywords for that press release. When that page is viewed by someone, including the search engines, the keywords will be used to create links within your press release back to your website.

This means:
There is a one-way link to your website
The link uses the anchor text of your choice
The link is within a natural context of the press release.

Traditionally, a press release is short lived, it has a limited amount of time make your impact on the media before it becomes old news and is replaced by fresh press releases. Some services like FPRC allow you to buy a cheap upgrade, which means your press release will remain permanently in their system. This means that your “in context” links with the anchor text of your choice remain permanently for search engines to find and so helping improve your rankings.

When preparing your press release you should optimize it for the keywords which are important for your site, product or company. This means that when someone searches for information in your industry, your press release will be seen as relevant by the search engine.

On-Page
There are several factors in on-page optimization. The first is the title of the page. This is almost the first thing the search engine reads when it visits a page. All of the free press release services use the title of your press release as the title of the web page. So when preparing your press release try to put some of your important words in the headline, however don't force them in as then you will alienate your readers (the journalists).

After the title is the heading tags on the page. Like the title of the page, your headline will become the first heading on the page. Again you should optimize your headline.

If you prepare an optimum press release and select good keywords you can gain valuable incoming links to your site as well as gaining exposure through the media.

Original article by Gary Sims - www.hungrypenguin.net

Spencer Financial

2006-04-20T07:43:00.000+08:00

Spencer Financial, LLC ("Spencer") was formed as a foreign exchange trading firm with the goal of providing a variety of currency related services to high net worth individuals, international corporations and institutions, and to offer the advantages and opportunities of the underserved markets.

Spencer is organized to flexibly accommodate the specialized and individual needs of corporate, institutional, and personal trading accounts. Our powerful online trading platform provides unparalleled connection to the FOREX market, supplemented by sophisticated trading tools, analytics, audit trails, and account reporting.

Company Name:
Spencer Financial LLC

Website Address:
http://www.spencerfx.com

Year of company's foundation:
2003

Year of company's forex division foundation:
2004

Regulated by:
CFTC - NFA (USA)

Client base:
Spencer Financial provides online brokerage services to a worldwide base of retail and institutional traders and money managers, having discovered Spencer directly, or through an Introducing Broker. Spencer also offers white-label strategic partnership to established institutions.

Leverage:
100:1

Commissions:
None

Pip spread on majors:
2/3 pip

Mini Account:
yes

Minimum account size for Mini Accounts:
$300

Regular Account:
yes

Minimum account size for Regular Account:
$300

Services:
Comprehensive solutions for retail and institutional forex trading focusing on quality of service, value, and openness. Some of the most competitive terms on the market - 2 pips spread on USDJPY and EURUSD. Rewarding IB programs. 24-hour Support. Live chat.
SFXTrader platform supports: trading on the charts using real-time price feed, full reporting and back office, multiple-account money management, automatic lot allocation for group orders, ticket history monitoring, real-time news ticker, support for English, Russian, Spanish, Chinese, and Polish languages.

Languages:
English, German, Italian, Chinese, Russian, Polish

24 Hour trading:
Yes

Free demo account:
Yes

Live support chat:
Yes

Headquarters:
125 Maiden Lane, 3rd Floor, New York, NY 10038, USA

Phone:
+1-646-649-8080

Fax:
+1-646-219-6623

E-mail:
fxstreet@spencerfx.com

Day Trading

2006-04-19T17:24:00.000+08:00

Day trading is defined as the buying and selling of a security within a single trading day. This can occur in any marketplace but is most common in the foreign-exchange (forex) market and stock market. Typically, day traders are well educated and well funded. They utilize high amounts of leverage and short-term trading strategies to capitalize on small price movements in highly liquid stocks or currencies. Day traders serve two critical functions in the marketplace - they keep the markets running efficiently via arbitrage and they provide much of the markets' liquidity (especially in the stock market). This article will take an objective look at day trading, who does it and how it is done.

Day trading most commonly refers to the practice of buying and selling stocks during the day such that at the end of the day there has been no net change in position: for every share of stock bought an equivalent share is sold. A gain or loss is made on the difference between the purchase and sales prices. A primary motivation of this style of trading is to reduce the risk of holding a position overnight (where the open price may have significantly changed from the previous day's closing price). Stock traders performing day trading are called day traders.

Day trading is not necessarily more risky than any other trading activity. However, the common use of buying on margin (i.e. using borrowed funds) amplifies gains and losses such that substantial losses or gains can occur in a very short period of time. It is commonly stated that 80-90% of day traders lose money. An analysis of the Taiwanese stock market suggests that "less than 20% of day traders earn profits net of transaction costs".

Day trading used to be the preserve of financial firms and professionals and some savvy private investors and speculators, but in recent years has become notoriously common amongst casual traders taking advantage of new facilities offered via the Internet.

NASDAQ officially defines "pattern day trading" as placing four or more round-trip orders over a five-day period. A pattern day trader is treated differently from other traders: a broker may allow margin levels as low as 25% as opposed to the usual 50% e.g. a day trader can leverage the $100 in his account to buy $400 worth of stock; a broker may require the trader maintain a minimum liquidation value e.g. if the account value falls below $25,000 no day trading is allowed.

Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest-rate futures, and commodity futures.

[ Characteristics of a Day Trader ]

A professional day traders - which, those that trade for a living - are typically well-established in the field and have in-depth knowledge of the marketplace. Here are some of the prerequisites to day trading:

Knowledge and experience in the marketplace
Individuals who attempt to day trade without an understanding of market fundamentals often end up losing money.

Sufficient capital
One cannot expect to make money day trading. Day traders use only risk capital, which they can afford to lose. Not only does this protect them from financial ruin, but it also helps eliminate emotion from their trading. A large amount of capital is often necessary to capitalize effectively on intra-day price movements.

A Strategy
A trader needs an edge over the rest of the market. There are several different strategies that day traders utilize, including: swing trading, arbitrage as well as trading news, among others. These strategies are refined until they produce consistent profits and effectively limit losses.

Discipline
A profitable strategy is useless without discipline. Many day traders end up losing a lot of money because they fail to make trades that meet their own criteria. As they say, “Plan the trade and trade the plan.” Success is impossible without discipline.

Website Hosting Affect at Google's Rank

2006-04-18T23:38:00.000+08:00

After planning and developing a website the next part is to host it on the internet. Web Hosting is indeed an issue to be spent time on but the question arises if you need to look at it with your SEO eye or not? The issue of ‘Web Hosting’ is not just related to the price and features of web hosting provider offered but website owners who are far sighted consider some other factors too and one of those factors is search engine optimization.

Does choosing a host provider makes any difference in rankings at search engines. If you submit your site again and again to Google but still isn’t able to get it indexed then you must give a thought to your host provider who may be responsible. There is a strong belief that a website to rank higher must have a unique IP address but on the other hand it doesn’t seem necessary because these days most of the websites are hosted on shared IP’s. On a single computer many servers run side by side and serve different domains from single IP’s.

If you look at any of those SEO forums, you will see several topics old and new trying to talk about web hosting concerns as well as name servers issues!! The question people have in mind is “A ‘cheap’ web hosting company hosts my site but, by the price of it, also may be hosting numerous spammers, scam sites, or other banned sites like Gambling and or Porn. (But for less then $10 per month they'll give you 5000 MB and unlimited domains!). Does that affect my rank and does it risk my website?

The answer in plain words is Yes and No. It may affect you to some extent and No it may not affect you in other concerns. Read in detail below.

Well there are certain situations like if the domain sharing your server and IP is penalized by Google on account of spamming then your website is also expected to be banned or penalized. Another situation can be that your website is residing on the server containing illegal adult content, and that site too is on the hit list of Google resulting in your website to be banned too. But it is never taken for granted that if such co incidence happens then your website is surely affected because it is common sense that for a mistake by one person another one cannot be punished. Still to be on the safer side certain points should be made clear while hiring a web host.

Host should be 24/7 up:
For proper website services it must be up 100% of time so that users aren’t encountered with blank page at times. Similarly search engines have no specific timings to come to a website for crawling so it must be up at all times in order to make search engines happy. If googlebot encounters a 404 error it will come again in the next crawl, so to be on the safer side ensure 100% uptime of your site. Yes maintenance tasks all hosts do but they should inform well in advance that for such and such period the site will be down due to maintenance so that you can plan accordingly but on the other hand if your host doesn’t inform you and you browse your site to see a 404 error then you must consider moving to another one. Google is believed to have a smaller crawl daily and a deep crawl once a month which implies that googlebot can come anytime. So your website must be ready to receive this welcome guest.

Clean record:
The record of the host should be good at Google, although there is no mechanism to know about it but web hosts that are very popular and extensively used by big websites could be trusted rather than unpopular ones. Have a look at http://support.easystreet.com/abuse/banned_ip.html. For example a host hypermart.com offers very good and reasonable packages of hosting for general as well as dedicated hosting but a website hosted on it could face problems with optimizing at Altavista because this host service has got banned by Altavista and miss the traffic coming from this popular search engine. But such cases are rare and in a nutshell look for the prominent and reputable names in this field.

Virtual shared IP’s:
Virtual shared IP is a system by which a web server uses the same IP address for different domains. Instead of having new computer for a server multiple virtual servers are made to reside on the same computer. Some web hosts can host 2000 domains on a single IP address; it all depends on the processing power and resources available to the server and the quality of service that the host wishes to provide to its clients. In this case the web page feed to the search engines would be very slow. However these days virtual shared hosting is a common scene as being a cheap and reliable option and mostly accepted by engines especially Google. Google does not ban sites by virtue of their sharing an IP address with a misbehaving site. In the words of Craig Silverstein of Google at an interview “Actually, Google handles virtually hosted domains and their links just the same as domains on unique IP addresses. If your ISP does virtual hosting correctly, you'll never see a difference between the two cases. We do see a small percentage of ISPs every month that misconfigure their virtual hosting, which might account for this persistent misperception”. This makes it quite clear that Google does not penalize a site on account of virtual hosting if it is configured the proper way.

URL restructuring:
With web hosting maintaining the proper structure of your URL’s is also important, search engines face problems while indexing dynamic URL’s (URL’s having many parameters or long query strings). Google is considered to be happy only with one or two parameters and more of the parameters the more it will be difficult to index them. Try to convert your dynamic pages to static ones, or let the server do it for you the other way to reduce the number of parameters passed in the URL which will help the page to be indexed fast. Apache is the most popular web server and employs a special “rewrite” module that allows you to convert the dynamic long URL’s to search engine friendly web addresses, this module (mod_rewrite) is not installed by default on the server but many hosting companies install it additionally being very easy. Ensure that your host has this module working to enjoy the benefits.

Hosting does not matter that much although certain exceptions are always there i.e some host is penalized by Google but that way Google is intelligent in its operations and cannot deploy it unless compelled to do so. It is preferable to look for individual IP address so that risk of index removal is minimized. An expert advice can always save your time and money a great deal that is very precious which otherwise you learn by experience. Another thing that can be inferred is that sites hosted by free web hosts aren’t expected to rank high in future at Google for most competitive keywords because of the obvious reason that free sites are mostly prone to depleted content. In a nutshell you must be thorough with your web host and always clarify all issues before selecting one. These small considerations can make you safe for your further plans towards search engine optimization.

Original article by Nakul Goyal, a Master of Sciences in IT from Panjab University. Website: www.nakulgoyal.com

MIG

2006-04-17T10:15:00.000+08:00

MIG Investments SA is a Swiss Online Foreign Exchange and Bullion broker regulated by the Swiss Federal Department of Finance and located in Neuchâtel in Switzerland.

MIG supplies a unique and individualized service to Forex traders worldwide. MIG are dedicated to providing the absolutely best service in the market.

MIG offers a 24 hour online trading experience based on MIG advanced online trading software: the MIG Trading Station.

MIG Investments SA caters to both private and institutional clients. MIG have a strong commitment to maintaining a long term relationship with their clients.

Company Name:
MIG INVESTMENTS SA

Website Address:
http://www.migfx.ch

Year of company's foundation:
2003

Year of company's forex division foundation:
2003

Regulated by:
SFDF (Switzerland)

Client base:
Private Investors, Banks, Introducing Brokers, Asset Managers, White Labels.

Leverage:
200:1

Commissions:
None

Pip spread on majors:
2 pip

Mini Account:
yes

Minimum account size for Mini Accounts:
$2,000

Regular Account:
yes

Minimum account size for Regular Account:
$2,000

Services:
MIG offers a 24 hour dealing service on 20 currency pairs + spot Gold and Silver, unbeatable 2 pip spreads on six currency pairs. Exceptional margin conditions, no commission on all transactions. Free daily technical analysis and market commentary, WAP & mobile phone trading.

Languages:
English, Spanish, German, French, Arabic, Russian

24 Hour trading:
Yes

Free demo account:
Yes

Live support chat:
Yes

Headquarters:
Passage Maximilien-de-Meuron 1, 2000 Neuchâtel, Switzerland

Phone:
+41 32 722 17 80

Fax:
+41 32 722 17 70

E-mail:
info@migfx.ch

MAN Financial

2006-04-15T20:58:00.000+08:00

The Man Group can trace its origins back to 1783 when James Man first established a sugar broking business in the City of London. The Group operated as a traditional partnership for over two hundred years and was engaged mainly in the agricultural markets of sugar, coffee and cocoa.

In October 1994 the Group floated on the London Stock Exchange (stock code EMG). In March 2000, the Group sold its original agricultural products businesses so that today it is a focused financial services group, comprising a specialist fund manager called Man Investments and an international broker called Man Financial.

Man Investments is a leading global provider of alternative asset investment funds. The investment funds use systematic trading strategies across a diversified range of international markets as well as offering fund of funds products. These are sold on both an individual basis and through composite guaranteed structures.

Man Financial, the Group's Brokerage division, is the worlds largest independent futures broker and commands a global financial presence with offices in New York, Chicago, Kansas City, London, Paris, Singapore, Taiwan, Sydney and Brisbane. Today the division provides agency broking and other related services to a worldwide client base, which ranges from banks, 'CTAs', 'Hedge Funds' and major industrial groups to individual private clients.

The acquisition of GNI Holdings Ltd in October 2002 also resulted in the Man Group plc becoming a leading broker in the European CFD market.

Company Name:
Man Financial Limited UK

Website Address:
http://www.tradeatman.co.uk

Year of company's foundation:
1783

Year of company's forex division foundation:
1992

Regulated by:
FSA (UK)

Client base:
Banks, Hedge Funds, Brokers, High Net Worth Individual Customers

Leverage:
40:1

Commissions:
None

Pip spread on majors:
0/3 pips

Mini Account:
no

Regular Account:
yes

Minimum account size for Regular Account:
$25,000

Services:
Full service broking - internet trading and telephone service- FX daily research - in addition to our Foreign Exchange services we can offer Futures and options, CFD's and traditional stockbroking. On-line brochure.

Languages:
English, Italian

24 Hour trading:
Yes

Free demo account:
Yes

Live support chat:
Yes

Headquarters:
Sugar Quay, Lower Thames Street London EC3R 6DU

Phone:
0207-649 3031

Fax:
0207-285-1792

E-mail:
tradenow@manfinancial.com

CANSLIM

2006-04-14T18:38:00.000+08:00

CAN SLIM is a two word acronym for the investing strategy made widely known by William J. O'Neil and described in his book How to Make Money in Stocks: A Winning System In Good Times or Bad, 3rd Edition (May 23, 2002) ISBN: 0071373616.

It is a growth stock investment strategy based on an exhaustive study of 500 of the greatest stock market winners dating back to 1953 and blends both technical analysis and fundamental analysis. The strategy, which initially began developing in the early 1960's, aims at discovering leading stocks right before they make their major price advances, and buying specifically at "buy points" that are emerging from sound price consolidation areas (or "bases"). Each letter in CAN-SLIM stands for common characteristics found in the greatest stock market leaders over the past 50 years:

* C = Current earnings per share. They should be up 25% or more.

* A = Annual earnings. They should be up 25% or more in each of the last three years.

* N = New. The company should either be under new management, have a new product, or have a new service. It should also have a new high for its stock price.

* S = Supply and demand. Look for a company that has large trading volume. High demand = increasing prices.

* L = Leader or laggard? Within an industry, always choose the company that is leading the way, not one that is following in another's footsteps.

* I = Institutional sponsorship. Make sure large mutual fund companies (and other institutions) are investing in your stock - you can ride on their capital. Also, focus on the better performing institutions buying your stock.

* M = Market trends and market indices. Recognize the cup and handle pattern, as well as other market correction footprints. Know when a stock has peaked out. Also, buy stocks only when the Dow, S&P 500, and Nasdaq are going up.

The strategy is one of the very few that strongly encourages cutting all losses at no more than 7% or 8% below the buy point, with no exceptions, to minimize losses and to preserve gains. It is stated in the book, that buying stocks from solid companies should generally give you less chances of having to cut losses, since a strong company (good current quarterly earnings-per-share, annual growth rate, and other strong fundamentals) will usually shoot up--in bull markets--rather than descend.

William J. O'neil has stated in interviews and books that the CAN SLIM stragety is not "momentum investing", which is a term sometimes given to CAN SLIM by some analysts and reports who don't understand how the strategy really works. They tend to say it's "buying stocks that have gone up the most in price" and that have the strongest relative price strength. He says, "No one in their right mind should invest this way." What the system does is identify companies with strong fundamentals--big sales and earnings increases which is a result of unique new products or services--and then buying their stocks when they emerge from price consolidation periods (or "bases") and before they advance dramatically in price.

Investors.com is the official website for Investor's Business Daily (IBD), the national business and financial daily newspaper, from William O'neil + Co. offering individual investors investing tools tailored to finding and researching stocks with the CAN SLIM strategy in mind. William O'neil + Co., incorporated in 1963, is considered by many to be one of the most respected institutional investment research firms worldwide.

In addition, the investors.com website offers a free learning center for CAN SLIM.

Short Selling

2006-04-13T13:56:00.000+08:00

In finance, short selling is a way to profit from the price of a stock or other security declining. Most investors "go long" on an investment, hoping that price will rise. To profit from the stock price going down, a short seller can borrow a security and sell it, hoping that it will decrease in value so that they can buy it back at a lower price and keep the difference. For example, assume that shares in XYZ Company currently sell for $10 per share. A short seller would borrow (say) 100 shares of XYZ Company, and then immediately sell those shares for a total of $1000. If the price of XYZ shares later falls to $5 per share, the short seller would then buy 100 shares back for $500, return the shares to their original owner, and make a $500 profit. This practice has the potential for an unlimited loss, for example, if the shares of XYZ that one borrowed and sold in fact went up to $25, the short seller would have to buy back all the shares at $2500, losing $1500.

However, the term "short selling" or "being short" is often used as a blanket term for all those strategies which allow an investor to gain from the decline in price of a security. Those strategies including the buying and selling of options known as "puts and calls". In fact, what is many times labeled short selling is options or futures activity, since this activity greatly magnifies the gain that results from a securities price loss. For example, if the next earnings release of XYZ company is going to show that its profits declined somewhat in some of its divisions, its stock might decline only 5 percent when that information is released. Someone within the company who wants to trade in inside information however would probably not be satisifed with only a 5 percent gain on his short sell and instead would buy put options or other derivatives or futures to gain possibly 20 or more percent on the decline in the stock price of XYZ.

[ The Concept ]

Short selling is the opposite of "going long". The short seller takes a fundamentally negative, or "bearish" stance, anticipating that the price of the shorted stock will fall (not rise as in long buying), and it will be possible to buy at a lower price whatever was sold, thereby making a profit ("selling high and buying low," to reverse the adage). The act of buying back the shares which were sold short is called 'covering the short'. Day traders and hedge funds will often use short selling to allow them to profit on trading in stocks which they believe are overvalued, just as traditional long investors attempt to profit on stocks which are undervalued by buying those stocks.

The short seller owes his broker and must repay the shortage when he covers his position. Technically, the broker usually in turn has borrowed the shares from some other investor who is holding his shares long; the broker itself seldom actually purchases the shares to loan to the short seller.

Example: Borrowing 100 shares from someone, selling them immediately at $1.00 - when the stock drops, you buy them back for $0.50 and give the 100 shares back to the original owner keeping the profit.

In the U.S., in order to sell stocks short, the seller must arrange for a broker-dealer to confirm that it is able to make delivery of the shorted securities. This is referred to as a "locate", and it is a legal requirement that U.S. regulated broker-dealers not permit their customers to short securities without first obtaining a locate. Brokers have a variety of means to borrow stocks in order to facilitate locates and make good delivery of the shorted security. The vast majority of stocks borrowed by U.S. brokers come from loans made by the leading custody banks and fund management companies (see list below). Sometimes, brokers are able to borrow stocks from their customers who own "long" positions. In these cases, if the customer has fully paid for the long position, the broker can not borrow the security without the express permission of the customer, and the broker must provide the customer with collateral and pay a fee to the customer. In cases where the customer has not fully paid for the long position (meaning, the customer borrowed money from the broker in order to finance the purchase of the security), the broker will not need to inform the customer that the long position is being used to effect delivery of another client's short sale.

Stock exchanges such as the NYSE or the NASDAQ typically give short interest or the Short ratio that gives the number of shares that have been sold short as a % of the total float. Alternately, these can also be expressed as Short interest ratio or the short ratio which is the number of shares sold short as a % of the average daily volume. These can be useful tools to spot trends in stock price movements.

CMS Forex

2006-04-11T19:41:00.000+08:00

Since its founding in 1999, CMS has striven to serve the emerging retail segment of the Forex community. Through a staunch commitment to technological innovation, fair dealing practices and excellence in customer service, CMS has become a major force in today’s Forex landscape.

CMS is a registered Futures Commission Merchant (FCM), a member of the National Futures Association (NFA) (Member ID# 0313199) and is regulated by the Commodity Futures Trading Commission (CFTC). To learn more about NFA registrants and their background information, please visit the NFA Background Affiliation Status Information Center (BASIC).

Company Name:
Capital Market Services LLC

Website Address:
http://www.cmsfx.com

Year of company's foundation:
1999

Year of company's forex division foundation:
1999

Regulated by:
NFA - CFTC (USA)

Client base:
More than 6,000 customers from all over the world. We serve private investors, financial institutions, corporations, money managers and introducing brokers.

Leverage:
400:1

Commissions:
None

Pip spread on majors:
3/4 pip

Mini Account:
yes

Minimum account size for Mini Accounts:
$200

Regular Account:
yes

Minimum account size for Regular Account:
$200

Services:
CMS offers trading using the VT Trader platform where clients can execute orders automatically based on their own trading systems with FX AutoPilot. CMS features exclusive daily, weekly, and monthly commentary by world renowned forex analyst Hans Nilsson.

Languages:
English, Spanish, German, French, Italian, Portuguese, Chinese, Japanese, Korean, Arabic, Russian, Polish, Taiwanese, Mandarin, Cantonese

24 Hour trading:
Yes

Free demo account:
Yes

Live support chat:
Yes

Headquarters:
Empire State Building, 350 Fifth Ave., 64th Floor, Suite 6400, New York, NY 10118, USA

Phone:
1-212-563-2100

Fax:
1-212-563-4994

E-mail:
fxstreet@cmsfx.com

Currency Trading Market

2006-04-10T19:17:00.000+08:00

Unlike the trading of stocks, futures or options, currency trading does not take place on a regulated exchange. It is not controlled by any central governing body, there are no clearing houses to guarantee the trades and there is no arbitration panel to adjudicate disputes. All members trade with each other based upon credit agreements. Essentially, business in the largest, most liquid market in the world depends on nothing more than a metaphorical handshake.

At first glance, this ad-hoc arrangement must seem bewildering to investors who are used to structured exchanges such as the NYSE or CME. However, this arrangement works exceedingly well in practice: because participants in FX must both compete and cooperate with each other, self regulation provides very effective control over the market. Furthermore, reputable retail FX dealers in the United States become members of the National Futures Association (NFA), and by doing so they agree to binding arbitration in the event of any dispute. Therefore, it is critical that any retail customer who contemplates trading currencies do so only through an NFA member firm.

The FX market is different from other markets in some other key ways that are sure to raise eyebrows. Think that the EUR/USD is going to spiral downward? Feel free to short the pair at will. There is no uptick rule in FX as there is in stocks. There are also no limits on the size of your position (as there are in futures); so, in theory, you could sell $100 billion worth of currency if you had the capital to do it. If your biggest Japanese client, who also happens to golf with Toshihiko Fukui, the Governor of the Bank of Japan, told you on the golf course that BOJ is planning to raise rates at its next meeting, you could go right ahead and buy as much yen as you like. No one will ever prosecute you for insider trading should your bet pay off. There is no such thing as insider trading in FX; in fact, European economic data, such as German employment figures, are often leaked days before they are officially released.

Before we leave you with the impression that FX is the Wild West of finance, we should note that this is the most liquid and fluid market in the world. It trades 24 hours a day, from 5pm EST Sunday to 4pm EST Friday, and it rarely has any gaps in price. Its sheer size (it trades nearly US$2 trillion each day) and scope (from Asia to Europe to North America) makes the currency market the most accessible market in the world.

What did We Buy in Currency Market?

"Nothing". The retail FX market is purely a speculative market. No physical exchange of currencies ever takes place. All trades exist simply as computer entries and are netted out depending on market price. For dollar-denominated accounts, all profits or losses are calculated in dollars and recorded as such on the trader's account.

The primary reason the FX market exists is to facilitate the exchange of one currency into another for multinational corporations who need to trade currencies continually (for example, for payroll, payment for costs of goods and services from foreign vendors, and merger and acquisition activity). However, these day-to-day corporate needs comprise only about 20% of the market volume. Fully 80% of trades in the currency market are speculative in nature, put on by large financial institutions, multi-billion dollar hedge funds and even individuals who want to express their opinions on the economic and geopolitical events of the day.

Because currencies always trade in pairs, when a trader makes a trade he or she is always long one currency and short the other. For example, if a trader sells one standard lot (equivalent to 100,000 units) of EUR/USD, she would, in essence, have exchanged euros for dollars and would now be "short" euro and "long" dollars. To better understand this dynamic, let's use a concrete example. If you went into an electronics store and purchased a computer for $1,000, what would you be doing? You would be exchanging your dollars for a computer. You would basically be "short" $1,000 and "long" 1 computer. The store would be "long" $1,000 but now "short" 1 computer in its inventory. The exact same principle applies to the FX market, except that no physical exchange takes place. While all transactions are simply computer entries, the consequences are no less real

Although some retail dealers trade exotic currencies such as the Thai baht or the Czech koruna, the majority trade the seven most liquid currency pairs in the world, which are the four majors:
» EUR/USD (euro/dollar)
» USD/JPY (dollar/Japanese yen)
» GBP/USD (British pound/dollar)
» USD/CHF (dollar/Swiss franc)

and the three commodity pairs:
» AUD/USD (Australian dollar/dollar)
» USD/CAD (dollar/Canadian dollar)
» NZD/USD (New Zealand dollar/dollar)

These currency pairs, along with their various combinations (such as EUR/JPY, GBP/JPY and EUR/GBP) account for more than 95% of all speculative trading in FX. Given the small number of trading instruments - only 18 pairs and crosses are actively traded - the FX market is far more concentrated than the stock market.

Mutual Fund Intrododuction

2006-04-09T15:14:00.000+08:00

A mutual fund is a form of collective investment that pools money from many investors and invests the money in stocks, bonds, short-term money market instruments, and/or other securities. Legally known (in the U.S.) as an "open-end company", a mutual fund is one of three basic types of investment companies available in the US.

The portfolio manager trades the fund's underlying securities, realizing a gain or loss, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. The securities held by a fund may gain or lose value. There are more mutual funds than there are individual stocks.

Outside of the U.S., mutual fund is a generic term for various types of collective investment. In the UK and western Europe (including offshore jurisdictions) other forms of collective investment are prevalent including unit trusts, Open-Ended Investment Companies (OEICs), SICAVs and unitized insurance funds.

The first open-end mutual fund, Massachusetts Investors Trust was founded on March 21, 1924 and after one year had 200 shareholders and $392,000 in assets. The entire industry, which included a few closed-end funds, represented less than $10 million in 1924.

The stock market crash of 1929 slowed the growth of mutual funds. In response to the stock market crash, Congress passed the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws require that a fund be registered with the SEC and provide prospective investors with a prospectus. The SEC (U.S. Securities and Exchange Commission) helped create the Investment Company Act of 1940 which provides the guidelines that all funds must comply with today.

In 1951, the number of funds surpassed 100 and the number of shareholders exceeded 1 million. Only in 1954 did the stock market finally rise above its 1929 peak and by the end of the fifties there were 155 mutual funds with $15.8 billion in assets. In 1967 funds hit their best year, one quarter earning at least 50% with an average return of 67%, but it was done by cheating using borrowed money, risky options, and pumping up returns with privately traded "letter stock". By the end of the 60's there were 269 funds with a total of $48.3 billion.

With renewed confidence in the stock market, mutual funds began to blossom. By the end of the 1960s there were around 270 funds with $48 billion in assets. The first retail index fund was released in 1976, called the First Index Investment Trust. It is now called the Vanguard 500 Index fund and is one of the largest mutual fund ever with in excess of $100 billion in assets.

One of the largest contributors of mutual fund growth was Individual Retirement Account (IRA) provisions made in 1981, allowing individuals (including those already in corporate pension plans) to contribute $2,000 a year. Mutual funds are now popular in employer-sponsored defined contribution retirement plans (401k), IRAs and Roth IRAs.

Mutual funds can invest in many different kinds of securities. The most common are cash, stock, and bonds, but there are hundreds of sub-categories. Stock funds, for instance, can invest primarily in the shares of a particular industry, such as technology or utilities. These are known as sector funds. Bond funds can vary according to risk (high yield or junk bonds, investment-grade corporate bonds), type of issuers (government agencies, corporations, or municipalities), or maturity of the bonds (short or long term). Both stock and bond funds can invest in primarily US securities (domestic funds), both US and foreign securities (global funds), or primarily foreign securities (international funds).

By law, mutual funds cannot invest in commodities and their derivatives or in real estate. However, there do exist real estate investment trusts, or REITs, which invest solely in real estate or mortgages, and mutual funds are allowed to hold shares in REITs. A mutual fund may restrict itself in other ways. These restrictions, permissions, and policies are found in the prospectus, which every open-end mutual fund must make available to a potential investor before accepting his or her money.

Most mutual funds' investment portfolios are continually adjusted under the supervision of a professional manager, who forecasts the future performance of investments appropriate for the fund and chooses the ones which he or she believes will most closely match the fund's stated investment objective. A mutual fund is administered through a parent management company, which may hire or fire fund managers.

Mutual funds are subject to a special set of regulatory, accounting, and tax rules. Unlike most other types of business entities, they are not taxed on their income as long as they distribute substantially all of it to their shareholders. Also, the type of income they earn is often unchanged as it passes through to the shareholders. Mutual fund distributions of tax-free municipal bond income are also tax-free to the shareholder. Taxable distributions can either be ordinary income or capital gains, depending on how the fund earned it.

Profit on Margin

2006-04-08T14:39:00.000+08:00

The most important goal of a company is to make money and keep it, which depends on liquidity and efficiency. Because these characteristics determine a company's ability to pay investors a dividend[*], profitability is reflected in share price. As such, investors should know how to analyze various facets of profitability, including how efficiently a company uses its resources and how much income it generates from operations. Calculating a company's profit margin[**] is a great way to gain insight into these and other aspects of how well a company generates and retains money.

[ Profit-Margin Ratios ]

The bottom line is the first thing many investors look at to gauge a company's profitability. It's awfully tempting to rely on net earnings alone to gauge profitability, but it doesn't always provide a clear picture of the company, and using it as the sole measure of profitability can have big repercussions.

Profit-margin ratios, on the other hand, can give investors deeper insight into management efficiency. But instead of measuring how much managers earn from assets, equity or invested capital, these ratios measure how much money a company squeezes from its total revenue or total sales.

Margins, quite simply, are earnings expressed as a ratio - a percentage of sales. A percentage allows investors to compare the profitability of different companies, while net earnings - an absolute number - cannot.

Consider this example. In its final quarter of 2003, personal computer-maker Dell had an annual net income of $749 million on sales of about $11.5 billion. Its major competitor, HP, earned about $990 million for the year on sales of about $19.9 billion. Comparing HP's net earnings of $990 million and Dell's $749 million shows that HP earned more than Dell, but it doesn't tell you very much about profitability. If you look at the net profit margin, or the earnings generated from each dollar of sales, you'll see that Dell produced 6.5 cents on each dollar of sales, while HP returned less than 5 cents. That difference wasn't huge, but it was one of the reasons why the market valued Dell more than HP.

There are three key profit-margin ratios: gross profit margins, operating profit margins and net profit margins.

[ Gross Profit Margin ]

The gross profit margin - or gross margin for short - tells us the profit a company makes on its cost of sales, or cost of goods sold. In other words, it indicates how efficiently management uses labor and supplies in the production process.

Gross Profit Margin = (Sales - Cost of Goods Sold)/Sales

Let's say a company has $1 million in sales and the cost of its labor and materials amounts to $600,000. Its gross margin rate would be 40% ($1,000,000 - $600,000/$1,000,000).

Companies with high gross margins will have a lot of money left over to spend on other business operations, such as research and development or marketing. So be on the lookout for downward trends in the gross margin rate over time. This is a telltale sign of future problems facing the bottom line. When labor and material costs increase rapidly, they are likely to lower gross profit margins - unless, of course, the company can pass these costs onto customers in the form of higher prices.

It's important to remember that gross profit margins can vary drastically from business to business and from industry to industry. For instance, the airline industry has a gross margin of about 5%, while the software industry has a gross margin of about 90%.

[ Operating Profit Margin ]

By comparing earnings before interest and taxes (EBIT[***]) to sales, operating profit margins show how successful a company's management has been in generating income from the operation of the business:

Operating Profit Margin = EBIT/Sales

If EBIT amounted to $100,000 and sales equaled $1 million, the operating profit margin would be 10%.

This ratio is a rough measure of the operating leverage a company can achieve in the conduct of the operational part of its business. It indicates how much EBIT is generated per dollar of sales. High operating profits can mean the company has effective control of costs, or that sales are increasing faster than operating costs.

Operating profit also gives investors an opportunity to do profit-margin comparisons between companies that do not issue a separate disclosure of their cost of goods sold figures (which are needed to do gross margin analysis). Operating profit measures how much cash the business throws off, and some consider it a more reliable measure of profitability since it is harder to manipulate with accounting tricks than net earnings.

Naturally, because the operating profit-margin accounts for not only costs of materials and labor, but also administration and selling costs, it should be a much smaller figure than the gross margin.

[ Net Profit Margin ]

Net profit margins are those generated from all phases of a business, including taxes. In other words, this ratio compares net income with sales. It comes as close as possible to summing-up in a single figure how effectively managers run the business:

Net Profit Margins = Net Profits after Taxes/Sales

If a company generates after-tax earnings of $200,000 on its $1 million of sales, then its net margin amounts to 20%.

To be comparable from company to company and from year to year, net profits after tax must be shown before minority interests have been deducted and equity income added. Not all companies have these items, and investment income, wholly dependent upon the whims of management, can change dramatically from year to year.

Again, just like gross and operating profit margins, net margins vary between industries. By comparing a company's gross and net margins, we can get a good sense of its non-production and non-direct costs like administration, finance and marketing costs.

You'll recall that the international airline industry - comprising companies such as British Airways, United and Quantas - has a gross margin of just 5%. Its net margin is just a tad lower, at about 4%. On the other hand, discount airline companies such as Southwest Airlines and JetBlue generate average gross margins of about 29%. Their net margin is about 11%. These differences provide some insight into these industries' distinct cost structures: compared to its bigger, international cousins, the discount airline industry spends proportionately more on things like finance, administration and marketing, and proportionately less on items such as fuel and flight crew salaries.

Then there is the software business. It has an exceedingly high gross margin of 90%, but a net profit margin of 27%. This shows that its marketing and administration costs are very high, while its cost of sales and operating costs are relatively low.

When a company has a high profit margin, it usually means that it also has one or more advantages over its competition. Companies with high net profit margins have a bigger cushion to protect themselves during the hard times. Companies with low profit margins can get wiped out in a downturn. And companies with profit margins reflecting a competitive advantage are able to improve their market share during the hard times - leaving them even better positioned when things improve again.

[*] Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. The dividend is most often quoted in terms of the dollar amount each share receives (i.e. dividends per share or DPS). It can also be quoted in terms of a percent of the current market price, referred to as dividend yield.

[**] A ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings.
Profit margin is very useful when comparing companies in similar industries. A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors. Profit margin is displayed as a percentage; a 20% profit margin, for example, means the company has a net income of $0.20 for each dollar of sales.

[***] An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is also referred to as "operating earnings", "operating profit" and "operating income", as you can re-arrange the formula to be calculated as follows:
EBIT = Revenue - Operating Expenses

WestCapFX

2006-04-07T20:46:00.000+08:00

The Company was established in Geneva (Switzerland) in February 1990 as an investment advisor and financial markets analyst. Over the years the Company gained experience in market analysis as well as in managing funds for its own account and for various international clients.

Since early 2000, Western Capital Forex S.A.has been regulated by the OAR-G which is one of the self regulatory bodies in Switzerland. The Company is also member of the Swiss roup of Independent Financial Advisors (GSCGI).

In order to better service its clients Western Capital Forex S.A. is using the latest techniques and works with one of the best trading system on the market today. A multilingual support service is operating 24 hours a day and is trained to assist the clients in every question relating to the use of the system.

Company Name:
Western Capital Forex S.A.

Website Address:
http://www.westcapfx.com/

Year of company's foundation:
1990

Year of company's forex division foundation:
2005

Regulated by:
OAR-G (Switzerland)

Client base:
Client's base is intermediate and experienced individuals

Leverage:
200:1

Commissions:
none

Pip spread on majors:
2/3 pip

Mini Account:
yes

Minimum account size for Mini Accounts:
$5,000

Regular Account:
yes

Minimum account size for Regular Account:
$5,000

Services:
Demo and real accounts, Meta Trader and Meta Trader Mobile - free download, 24 hours live support, News, Signals.

Languages:
English, German, French, Arabic, Russian, Polish

24 Hour trading:
Yes

Free demo account:
Yes

Live support chat:
Yes

Headquarters:
17, Bd des Philosophes CH 1205 Geneva, Switzerland

Phone:
+41223200303

Fax:
+41223216790

E-mail:
info@westcapfx.com

AdWords Account

2006-04-07T11:01:00.000+08:00

Advertising is a must in an online business campaign. When you're considering using a pay per click advertising, it would be a wise decision to join some reputable ads service such a google or yahoo. Joining some 'niche' PPC search engine which have a more specific user might give you a fewer result but cheaper.

PPC is a great method on internet advertising. Some of you might be don't have any clue on how to start it. In this article, i'll explain a step-by-step on how to set up a google adwords account. Here they are :

1. Sign Up.
Navigate your browser to AdWords.Google.com select and click on the 'Sign Up Now' area. The other way is by clicking an underlined text "Advertise on this site" on a Google ads, which would redirecting you to an On Site Sign Up if you're willing to advertising in that site.

2. Select the appropriate language and geographical targeting
'Regions and cities' if you are a local business, 'Global or nationwide' if you serve all regions (we'll use this setting for our example). Click the 'Save and Continue' button.

3. Next you choose your countries.
If you are a North American business, I highly recommend selecting 'United States' only. To do this - go to the right hand box entitled 'Selected Countries' and highlight 'All Countries' with your mouse. Then click the 'Remove' button. The 'Selected Countries' box will now be empty. Go to the left column and highlight 'United States' - then click the 'Add' button. Click the 'Save and Continue' button.

4. Now you name your ad group and create your first online ad.
Don't worry - you can always go back and edit your ad at anytime. Just have fun with it for now! To get started, think up a name that you want to call your first group of ads. Type this name into the box labeled: 'Name this Ad Group'.

Now go to section A: 'Create Ads' just below. You simply fill in the boxes and Google does this cool 'automatic update' that shows you what your ad will look like as you are filling in the boxes. When you have an ad that you like - click the 'Save and Continue' button.

5. Choose the keywords that will trigger your ad.
If you sell 'Used Car' then start with that keyword. If you sell 'Digital Camera' then start with that. Once you have typed in a search term, you can always use the 'Keyword Suggestion Tool' link on the same page to expand your list. Google will automatically suggest words that may expand your traffic. Be sure to do a reality check against this list - it's automated and some terms may not be appropriate for your business. Once you have a list of keywords, click the 'Save Keywords' button to continue.

6. Choose your maximum bid.
I suggest you to set this to $.05 (five cents) to start. This is Google's minimum bid amount. You can always change it later if you need more traffic. Type in .05 and click the 'Calculate Estimates' button. Ignore the resulting estimates - they are almost always wrong. Simply click the 'Save and Continue' button. At this step Google will ask if you want to create another ad group - simply bypass this step by clicking the 'Continue to Step 3' button.

7. Now you specify you daily budget.
I suggest being conservative here as well. You can always increase this later. For now - figure out how much you can spend each month for traffic and divide by 30. Put in an amount that is this number or even lower. Try to start with $5 per day as a maximum at first. When you've decided, simply click the 'Save and Continue' button.

8. Entering your contact information and password.
This step requires you to give Google a valid email address that you can check - in order to send you to the final confirmation and billing step. Fill in your email and pick a password that you can remember - preferably one that has at least 1 numeral and is difficult to duplicate easily.

When you've filled in your information, click the 'I agree - Create my AdWords account' button.

At this point you should see the following message: ''Thank you for signing up with AdWords. Please check your email (you@youremail.com) for a message from Google containing a link to our verification program.'' Follow the link in that message to confirm that we have your correct email address.

9. Check your email and finish setting up your account.
Go to your email and retrieve the Google email. Follow the link inside - this will verify that your email is valid. Then simply login to your AdWords account using the email address and password that you supplied in the last step.

10. Once you log in you will see the following message: ''Note: Your account hasn't been activated.
Payment information is required in order to run your ads. Please provide your payment information on the Billing Preferences page in the "My Account" section. Typically, your ads will begin running almost immediately after you submit this information.'' Simply follow the 'Billing Preferences' link and enter your credit card information. When complete click the 'Save Changes' button.

11. Your AdWords account is now active.
You will see traffic from your ads coming to your site almost immediately if you have selected popular keywords.

Good luck and remember if you ever have any problems with the account running through too much cash - you can simply 'pause' the account giving you time to reduce your bids, or delete keywords.

Website

2006-04-06T20:48:00.000+08:00

Sub Category: | Web Hosting || Domain || Web Traffic || Web Development |

Last Update:

Date
Title
Category

: 21/Apr/2006
: Link Popularity and Press Release
: Web Traffic

Keyword:
Web Hosting, Dedicated Hosting, Resell Hosting, Web Host Reviews, Linux Hosting, Windows Hosting, E Commerce Hosting, Domain Name, Web Traffic, Web Site Design, Web Hosting Glossary.
[sorted by popularity]

[ Web Hosting ]

» Web Hosting ?
» Web Hosting Explained
» Dedicated Server
» Hosting Reseller Arrangement
» Windows VS Linux Hosting
» How to Choose Web Hosting
» How to Choose Most Suitable Web Hosting
» Hosting Option for eCommerce Website
» eCommerce Hosting Considerations
» List of Web Hosting Company
» Website Hosting Affect at Google's Rank
» Web Hosting Glossary

[ Domain ]

» Domain Name ?
» Choosing Effective Domain Name

[ Web Traffic ]

» Web Traffic
» Increasing Web Traffic
» Traffic Exchange
» Link Popularity and Press Release

[ Web Development ]

» Getting Your Own Site
» Building a Website
» How to Design Your Website for Optimal Productivity

Forex

2006-04-06T11:44:00.000+08:00

Sub Category:
| Forex Common || Forex Learning || Forex Book Review || Forex Brokerage Review |

Last Update:

Date
Title
Category

: 07/May/2006
: Online Forex Trading Basics
: Forex Learning

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Biz Development

2006-04-05T19:59:00.000+08:00

Sub Category: | Online Business || Internet Marketing |

Last Update:

Date
Title
Category

: 24 April 2006
: Branding VS Offering
: Internet Marketing

Keyword:
Business, e Commerce, Pay Per Click, Advertising, Search Engine, Web Design, e Commerce Web, e Commerce Hosting, Merchant Account, e Currency, e Gold, Online Business, Pay Per Click Search Engine, Internet Marketing, Adwords, Web Traffic, Glossary.
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» e Commerce
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[ Internet Marketing ]

» Internet Marketing
» Online Marketing Activities
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» PPC Search Engine List
» How to Maximize Paid Search Result I
» How to Maximize Paid Search Result II
» Branding VS Offering
» Protecting Your Profits on PPC
» Google Adword
» Adwords Account
» Pay Per Click Glossary

Stock

2006-04-05T13:24:00.000+08:00

Sub Category: | Stock Common || Stock Learning |

Last Update:

Date
Title
Category

: 04/Apr/2006
: Stock Glossary
: Stock Common

Keyword:
Stock, Stock Trading, Online Stock Trading, Stock Trading Learning, Trade Stock, Online Brokerage, Stock Glossary, Stock Analysis, Trading Strategy, HYIP, Investment.
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[ Stock :: Learning ]

» Introduction To Fundamental Analysis
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» Stock Glossary

IFX Markets

2006-04-04T21:24:00.000+08:00

IFX Markets Inc. is a Futures Commission Merchant registered with the CFTC and is member of National Futures Association. It is the US subsidiary of the London-based international market maker IFX Markets Ltd, which provides its institutional and retail clients with a wide range of innovative leveraged financial products, principally in the foreign exchange and global equity markets.

IFX Markets Ltd has operated since 1995 in the foreign exchange markets with a full range of currency products for both institutional and retail customers. It has a long established reputation for professional dealing with its clients and a robust technology platform that will both support and develop IFX Market's foreign exchange services.

IFX Markets Ltd is regulated by the Financial Services Authority and has passports to do its business throughout the European Union and is a member of the London Metal Exchange. IFX has over 20,000 retail customers.

IFX Markets Ltd's parent company, IFX Group plc, has been listed on the London Stock Exchange since 1965.

Company Name:
IFX Markets

Website Address:
http://www.ifxmarketsinc.com

Year of company's foundation:
1933

Year of company's forex division foundation:
1995

Regulated by:
NFA - CFTC (USA); FSA (UK)

Client base:
Novice, Intermediate, Experienced Individual / Corporate Traders. IB Program: CTAs, Brokerage firms, and other Financial Institution.

Leverage:
100:1

Commissions:
$1.25/lot transaction Fee

Pip spread on majors:
2/3 pip

Mini Account:
yes

Minimum account size for Mini Accounts:
$500

Regular Account:
yes

Minimum account size for Regular Account:
N/A

Services:
IFX offers 24-hr Interbank trading in Forex to hedge funds, money managers and self-traders. The fast and easy to use platform provides free charting and streaming news, with hedging, entry, limit and traditional and trailing stop orders capabilities. Client support is available 24-hrs by phone and email.

Languages:
English, Spanish, German, French, Italian, Chinese, Japanese, Arabic, Russian, Farsi

24 Hour trading:
Yes

Free demo account:
Yes

Live support chat:
No

Headquarters:
One America Square, 17 Crosswall London, EC3N 2LB, United Kingdom

Phone:
1-617-357-0682

Fax:
1-617-357-0055

E-mail:
Info-FXS@Cbfx.com

Stock Glossary

2006-04-04T20:01:00.000+08:00

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

1y Target Est
This value is an estimate provided by analysts following this stock.

12(b)-1 Fee
Fee assessed shareholders by the mutual fund for some of its promotional expenses. A 12b-1 fee must be specifically registered as such with the Securities and Exchange Commission and the fact that such charges are levied must be disclosed.

13 Week Treasury Bill - IRX
The T-Bill index - (IRX) is based on the discount rate of the most recently auctioned 13-week U.S.Treasury Bill. The new T-bill is substituted weekly on the trading day following its auction, usually a Monday.

50 Day Avg. Daily Volume
This is the average share volume for the past 50 trading days. This field allows you to compare today's trading to the average daily volume.

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Actual EPS, CPS, or DPS
Reported annual Earnings Per Share (EPS -Trailing 12 months), cash flow (CPS) or Dividends Per Share (DPS) for a company for the fiscal year indicated. For companies which report on a quarterly basis, this information will contain the sum of the actual earnings, cash flow or dividends for the previous four quarters. For companies that report semi-annually, the field will contain the sum of the previous two semi-annual actuals.

After Hours Best Ask
The price at which someone who owns a security offers to sell a Nasdaq security during the current day’s After Hours market; also known as the asked price. Investors may trade in the After Hours Market (4:00-6:30 p.m. ET for Nasdaq stocks and 4:00-8:00 p.m. ET for NYSE and Amex stocks). Participation by Market Makers and ECNs is strictly voluntary and as a result, this session may offer less liquidity and inferior prices. Stock prices may also move more quickly in this environment. Investors who anticipate trading during these times are strongly advised to use limit orders. NASD Rule 3350 (the Short Sale Rule) will initially not apply during 4:00 p.m. to 8:00 p.m. ET.

After Hours Best Bid
The price a prospective buyer is prepared to pay at a particular time for trading a Nasdaq security during the current day’s After Hours market. Investors may trade in the After Hours Market (4:00-6:30 p.m. ET for Nasdaq stocks and 4:00-8:00 p.m. ET for NYSE and Amex stocks) on The Nasdaq Stock Market. Participation by Market Makers and ECNs is strictly voluntary and as a result, this session may offer less liquidity and inferior prices. Stock prices may also move more quickly in this environment. Investors who anticipate trading during these times are strongly advised to use limit orders.

After Hours High
The after hours high represents the highest price a person purchased this security during the current day’s After Hours trading session. Investors may trade in After Hours Market (4:00-6:30 p.m. ET for Nasdaq stocks and 4:00-8:00 p.m. ET for NYSE and Amex stocks). Participation by Market Makers and ECNs is strictly voluntary and as a result may offer less liquidity and inferior prices. Stock prices may also move more quickly in this environment. Investors who anticipate trading during these times are strongly advised to use limit orders.

After Hours Last Sale
An electronic entry by an NASD Member firm representing the price involved in a transaction of a Nasdaq security during the current day’s After Hours session. The trade report must be submitted to Nasdaq within 90 seconds after the execution of the trade. Investors may trade in the After Hours Market (4:00-6:30 p.m. ET for Nasdaq stocks and 4:00-8:00 p.m. ET for NYSE and Amex stocks). Participation by Market Makers and ECNs is strictly voluntary and as a result may offer less liquidity and inferior prices. Stock prices may also move more quickly in this environment. Investors who anticipate trading during these times are strongly advised to use limit orders.

After Hours Low
The after hours low represents the lowest price a person purchased this security during the After Hours trading session. Investors may trade in the After Hours Market (4:00-6:30 p.m. ET for Nasdaq stocks and 4:00-8:00 p.m. ET for NYSE and Amex stocks). Participation by Market Makers and ECNs is strictly voluntary and as a result may offer less liquidity and inferior prices. Stock prices may also move more quickly in this environment. Investors who anticipate trading during these times are strongly advised to use limit orders.

After Hours Volume
An electronic entry by an NASD Member firm representing the number of shares involved in a transaction of a Nasdaq security during the current day’s After Hours session. The trade report must be submitted to Nasdaq within 90 seconds after the execution of the trade. Investors may trade in After Hours Market (4:00-6:30 p.m. ET for Nasdaq stocks and 4:00-8:00 p.m. ET for NYSE and Amex stocks). Participation by Market Makers and ECNs is strictly voluntary and as a result may offer less liquidity and inferior prices. Stock prices may also move more quickly in this environment. Investors who anticipate trading during these times are strongly advised to use limit orders.

After Hours % Change
After Hours Percent change represents the percent increase/decrease between the last sale and the Market Close. See Market Close.
Weighted Alpha
The Alpha is a measure of how much a stock has risen or fallen over a one-year period. The original research was restricted to large cap stocks, so the corresponding rise in the S&P 500 index was subtracted; however, as there are a number of interesting stocks that do not fit well into any category, and others that fit into more than one category, the results are presented without subtracting any index.
Barchart.com takes this Alpha (measure of how much a stock has changed in the one-year period) and weights this, assigning more weight to recent activity, and less (0.5 factor) to activity at the beginning of the period. Thus the weighted alpha is a measure of one year growth with an emphasis on the most recent price activity.
A stock whose price has risen over the one-year period will have a positive Weighted Alpha. A stock whose price has not changed in the period will have a small Weighted Alpha and a stock whose price has dropped over the period will have a negative Weighted Alpha.
N.B. The Weighted Alpha is limited in the amount it may change from one day to the next, thus eliminating large price jumps from the calculation .
American Depositary Receipt (ADR)
A security, created by a U.S. bank, that evidences ownership to a specified number of shares of a foreign security held in a depositary in the issuing company's country of domicile. The certificate, transfer, and settlement practices for ADRs are identical to those for U.S. securities. U.S. investors often prefer ADRs to direct purchase of foreign shares because of the ready availability of price information, lower transaction costs, and timely dividend distribution.

American Stock Exchange (AMEX)
The second-oldest U.S. stock exchange, located on Wall Street in New York City. Started as an alternative to the NYSE, the AMEX originating on the curb outside the NYSE, where brokers traded stocks that failed to meet the Big Board's listing requirements. Considerably smaller in market capitalization and trading volume than NASDAQ and the NYSE, the AMEX conducts trading through a centralized specialist system and is home primarily to small and medium-sized companies

AMEX Composite - XAX
The AMEX Composite Index - (XAX) the American Stock Exchange introduced a new AMEX Composite Index with a new ticker symbol, XAX, on January 2, 1997. The XAX is a market capitalization-weighted, price appreciation index, and replaces the AMEX Market Value Index (XAM) which, since its inception, has been calculated on a "total return basis" to include the reinvestment of dividends paid by AMEX companies. The new AMEX Composite Index is more comparable with other major indexes, which reflect only the price appreciation of their respective components.

Analyst
A person with expertise in evaluating financial investments; he or she performs investment research and makes recommendations to institutional and retail investors to buy, sell, or hold; most analysts specialize in a single industry or business sector.
International Analyst Coverage
NASDAQ.com displays US research coverage only; in many cases, non-US related research coverage can be accessed on the homepage of respective companies.
Announcement Date
The date on which the company first made news of the split public.

Ask
The price at which someone who owns a security offers to sell it; also known as the asked price. (See also "Best Ask".)

Assets
Any possessions that has value in an exchange.

Average Daily Share Volume
The number of shares traded per day, averaged over a period of time, usually one year.

Average Maturity
The average time to maturity of securities held by a mutual fund. Changes in interest rates have greater impact on funds with longer average life.

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Beginning Net Asset Value
The market value of a fund share on a predetermined start date.

Best Ask
The price at which someone who owns a security offers to sell it; also known as the asked price. Please note that the New York Stock Exchange and the American Stock Exchange do not provide Ask information on a delayed basis. (See also "Ask".)

Best Bid
The price a prospective buyer is prepared to pay at a particular time for trading a unit of a given security. Please note that the New York Stock Exchange and the American Stock Exchange do not provide Bid information on a delayed basis. (See also "Bid".)

Beta
A measure of the volatility of a stock relative to the overall market. A beta of less than one indicates lower risk than the market; a beta of more than one indicates higher risk than the market. Nasdaq.com uses the S&P 500 as the underlying index to measure the overall market for beta.

Bid
The price a prospective buyer is prepared to pay at a particular time for trading a unit of a given security. (See also "Best Bid".)

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Capital Gains Distribution
Payments to mutual fund shareholders of profits from the sale of securities in a fund's portfolio. Capital gains distributions (if any) are usually made annually.

Common Stocks
The basic form of equity ownership in a corporation.

Consensus Rating
The average of analysts recommendations for a single entity. As many brokers have different ratings systems, their recommendations must be standardized so that a consensus can be calculated. The I/B/E/S ratings are calculated using a standard set of recommendations, maintained by I/B/E/S, each with an assigned numeric value:

1. Strong Buy
2. Buy
3. Hold
4. Underperform
5. Sell

Each recommendation received from the analysts is mapped to one of the I/B/E/S standard ratings. Assigning a numeric value to the broker text enables I/B/E/S to calculate a consensus recommendation. This consensus recommendation appears as the mean (average) of the assigned values.

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Date of Record
The date on which a shareholder must officially own shares in order to be entitled to a dividend.

Days to Cover
Calculated as the aggregate short interest for the month divided by the average daily share volume traded for the period between short interest settlement dates. If days to cover is between 0 and 1, it is rounded up to 1 on Nasdaq.com

Debt to Equity Ratio
Long-term debt divided by shareholders' equity, showing relationship between long-term funds provided by creditors and funds provided by shareholders; high ratio may indicate high risk, low ratio may indicate low risk.

Deleted
A security is no longer included in The Nasdaq Stock Market.

Distribution Date
Date on which the payout of realized capital gains on securities in the fund portfolio occurred.

Diversification
The acquisition of a group of assets in which returns on the assets are not directly related over time. Proper investment diversification is intended to reduce the risk inherent in particular securities. An investor seeking diversification for a securities portfolio would purchase securities of firms that are not similarly affected by the same variables. For example, an investor would not want to combine large investment positions in airlines, trucking and automobile manufacturing because each industry is significantly affected by oil prices and interest rates.

Dividend
Distribution of earnings to shareholders, prorated by the class of security and paid in the form of money, stock, scrip, or, rarely, company products or property. The amount is decided by the Board of Directors and is usually paid quarterly. Mutual fund dividends are paid out of income, usually on a quarterly basis from the fund's investments.

Dow Jones Industrial Average - DJIA
The Dow Jones Industrial Average index - (DJIA) is a price-weighted average of 30 actively traded blue chip stocks, primarily industrials but including American Express Co. and American Telephone and Telegraph Co. Prepared and published by Dow Jones & co., it is the oldest and most widely quoted of all the market indicators. The components, which change from time to time, represent between 15% and 20% of the market value of NYSE stocks. The DJIA is calculated by adding the closing prices of the component stocks and using a divisor that is adjusted for splits and stock dividends equal to 10% or more of the market value of an issue as well as substitutions and mergers. The average is quoted in points, not in dollars.

Down on Unusual Volume
Refers to a decrease in stock price for stocks exhibiting unusual volume. See our FAQs section for additional information regarding Unusual Volume.

Dual Listed
For the purpose of this website - A company which lists its securities on both The NASDAQ Stock Market and the New York Stock Exchange.

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EBITDA
Earnings before interest, taxes, depreciation, and amortization.

Effective Annualized Seven-Day Yield
Yield for 7 day period including the day reported, calculated by adding 1 to the base period return used in calculating the standard 7 day yield raising the total to the power of 365 divided by 7 and subtracting 1 (NOTE: To be reported on Wednesday only).

Earnings Per Share (EPS)
The EPS listed on our infoquote and Summary Quote page is "12-mos Rolling". EPS represents the portion of a company's profit allocated to each outstanding share of common stock. Net income (reported or estimated) for a period of time is divided by the total number of shares outstanding (TSO) during that period; See growth rate measures for EPS.

Electronic Data Gathering, Analysis, and Retrieval EDGAR
An electronic system implemented by the SEC that is used by companies to transmit all documents required to be filed with the SEC in relation to corporate offerings and ongoing disclosure obligations. EDGAR became fully operational mid-1995.

Ending Net Asset Value
The market value of a fund share on a predetermined end date.

Ex-dividend
Interval between the announcement and the payment of the next dividend.

Ex-dividend Date
The date on or after which a security begins trading without the dividend (cash or stock) included in the contract price.

Expense Ratio
The proportion of assets of a mutual fund required to pay annual operating expenses and management fees. If a fund charges an annual fee of 50c per $100 of net assets, the expense ratio will be .5%. The expense ratio is independent of any sales fees.

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Family of Funds
Group of mutual funds managed by the same investment management company. Each fund typically has a different objective; one may be a growth-oriented stock fund, whereas another may be a bond fund or money market fund. Shareholders in one of the funds can usually switch their money into any of the family's other funds, sometimes at no charge. Family of funds with no sales charges are called no load families. Those with sales charges are called load families.

Fiscal Periods
Because not all companies have the same fiscal year end, we, in cooperation with I/B/E/S, use FY1, FY2, etc., to identify unique fiscal periods for forecast data. For comparison purposes, I/B/E/S rounds off the quarter end dates to the nearest month end.

The following is a description of how this labeling works:

FY = fiscal year
Q = quarter
SAN = semiannual

The most recently reported earnings number is denoted with a zero (0). Then, the first estimate year is denoted with a one (1), the year after that, a two (2), and so on. So, as an example, if FY0 corresponds to the December 96 year end reported, then FY1 data refers to estimates for December 97, FY2 refers to estimates for the December 98 year end, and so on. Use the same conventions for interim periods (quarter and semiannual).
Footnotes:
Footnote A
To be used if the fund's return to shareholders may differ due to capital gains or losses. This footnote applied to money market funds only.
Footnote B
To be used if there are any sales charges or account charges which impact yield. This footnote applies to money market funds only.
Footnote C
Return of Capital information is being submitted for the year in the Capital Gains Distribution field.
Footnote D
To be used on any day that a mutual fund's net asset value is reduced by a capital gains distribution.
Footnote F
To be used by any type of fund that reports quotations as of the day prior to the day of reporting.
Footnote G
To be used if the fund's capital gains figure includes short term gains.
Footnote N
To be used by mutual funds when the fund does not have a sales load, i.e. there is no front-end and no contingent deferred sales load.
Footnote P
To be used by mutual funds if the fund has adopted a rule 12(b)1 distribution plan under which a specific charge is made against the net assets of the fund.
Footnote R
To be used by mutual funds with redemption fees, contingent deferred sales charges, or other charges deducted from net asset value upon redemption (other than charges for special services such as wire transfer).
Footnote S
To be used on the ex-date for stock splits or stock dividends.
Footnote T
To be used if the fund began reporting prices to Nasdaq during the current year (in this case 1999).
Footnote X
To be used by mutual funds on any day a fund goes ex-dividend.

Foreign
A non U.S. company with securities trading on The Nasdaq Stock Market.

Forward P/E (1yr)
A widely used stock evaluation measure. For a security, the Price/Earnings Ratio is given by dividing the Last Sale Price by the Average EPS (Earnings Per Share) Estimate for the specified fiscal time period. The forward P/E refers to the value for the next full year.

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Gold - GOX
The CBOE Gold Index - (GOX) is an equal-dollar-weighted index composed of 10 companies involved primarily in gold mining and production. The index is re-balanced after the close of business on expiration Friday on the March quarterly cycle.

Growth Rate Measures for EPS

* Current year/last year % growth shows the percent change between the current year's Forecasted mean EPS estimate and the last reported actual EPS
* Next year/current year % growth shows the percent change between next year's forecasted mean EPS estimate and the current year's forecasted mean estimate
* Historical EPS growth % (historical 5 year growth)shows the average annual EPS growth for the company over the past five years
* 5 year growth median is the median annual growth forecast over the next five years
* 12 Month Forward % Growth is the projected growth in the company's EPS over the next 12 months (PEG Ratio)

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Held
A situation where a security is temporarily not available for trading (e.g. Market Makers are not allowed to display quotes).

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Inside Market
The highest bid and the lowest offer prices among all competing Market Makers in a Nasdaq security, i.e., the best bid and offer prices.

IPO Date
The date that the security started publicly trading.

IPV
Ordinarily calculated during the trading day, based upon the current market value of the securities in a Creation Unit together with an applicable cash amount on a given business day, and represented on a per ETF-share basis, as described in its prospectus

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Last Sale Reporting
An electronic entry by NASD Members to The Nasdaq Stock Market of the price and the number of shares involved in a transaction in a Nasdaq security. The trade reported must be submitted to Nasdaq with 90 seconds of the execution of the trade.

Limit Order
A Limit Order is an order to buy or sell a stock at a customer specified price.

Load Fund
Mutual Fund that is sold for a sales charge by a brokerage firm or other sales representative. Such funds may be stock, bond or commodity funds, with conservative or aggressive objectives.

Long Term Gain
A gain on the sale of a capital asset where the holding period was twelve months or more and the profit was subject to the long term capital gains tax.
Management's Discussion and Analysis (MD&A)
A key area looked at by analysts; an interpretive section of the prospectus and of the annual report, frequently called the Financial Review.

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Margin account
A brokerage account that permits an investor to purchase securities on credit and to borrow on securities already in the account. Buying on credit and borrowing are subject to standards established by the Federal Reserve and by the firm carrying the account. Interest is charged on any borrowed funds only for the period of time the loan is outstanding.

Market Category
The market it trades on, either Nasdaq National Market(NNM) or Nasdaq Capital Market (NCM).

Market Close
An electronic entry by NASD Members to The Nasdaq Stock Market of the regular trading day's last reported trade. Investors may trade during the regular trading session from 9:30am - 4:00pm. Trades must be submitted to Nasdaq within 90 seconds of the execution of the trade by an NASD Member Firm.

Market Close Date
Date on which the closing Net Asset Value (NAV) was last calculated.

Market Makers
The NASD member firms that use their own capital, research, retail and/or systems resources to represent a stock and compete with each other to buy and sell the stocks they represent. There are over 500 member firms that act as Nasdaq Market Makers. One of the major differences between The Nasdaq Stock Market and other major markets in the U.S. is Nasdaq's structure of competing Market Makers. Each Market Maker competes for customer order flow by displaying buy and sell quotations for a guaranteed number of shares. Once an order is received, the Market Maker will immediately purchase for or sell from its own inventory, or seek the other side of the trade until it is executed, often in a matter of seconds.

Market Maker Spread
The difference between the price at which a Market Maker is willing to buy a security and the price at which the firm is willing to sell it i.e., the difference between a Market Maker's bid and ask for a given security. Since each Market Maker positions itself to either buy or sell inventory at any given time, each individual Market Maker spread is not indicative of the market as a whole. (See also "Inside Market".)

Market Order
A Market Order is an order to buy or sell a stock at the market's current best displayed price.

Market Surveillance
The department responsible for investigating and preventing abusive, manipulative, or illegal trading practices on The Nasdaq Stock Market. Considerable resources are devoted to surveilling The Nasdaq Stock Market. A vast array of sophisticated automated systems reviews each trade and price quotation on an on-line, real-time basis. Off-line computer-based analyses are conducted to evaluate trading patterns on a monthly, weekly and daily basis.

Whenever any of these automated systems indicate unusual price or volume in a stock, Nasdaq Market Surveillance analysts determine if this was the result of legitimate market forces or perhaps a violation of rules. Among other things, analysts review press releases, review historical trading activity, interview brokers, Market Makers, and Nasdaq-listed company officials. Market Surveillance continues its inquiries until unusual movements are adequately explained.

If legitimate market forces were at work the case is closed without action. If it appears rule violations have occurred, a disciplinary action is initiated. Where corporate insiders or members of the investing public are involved in a potential violation, the case will be referred to the SEC.

Market Value
For NASDAQ-listed securities, the price per share of the specified security multiplied by the number of shares outstanding for the specified security. The shares outstanding number used in this market value calculation is the number used by NASDAQ for index calculation and may not include all shares globally issued and outstanding.

Maturity Date
The date on which the principal amount of a bond is to be paid in full.

Material News
News released by a Nasdaq company that might reasonably be expected to affect the value of a company's securities or influence investors decisions. Material news includes information regarding corporate events of an unusual and non-recurring nature, news of tender offers, unusually good or bad earnings reports, and a stock split or stock dividend. (See also "Trading Halt".)

Mean
The mathematical average of a range of numbers (calculated by dividing the sum total of all the items in the range by the total number of items in the range).

Mean Recommendation
This number relates to the average recommendation for the stock. The values are from 1 to 5. A five indicates a sell, and a one indicates a strong buy.

Median
The middle number in a defined distribution; when looking at estimates, median refers to the estimate above and below which lie an equal number of estimates for the period indicated.

Money Market Fund
Open-ended mutual fund that invests in commercial paper, banker's acceptances, repurchase agreements, government securities, certificates of deposit, and other highly liquid and safe securities, and pays money market rates of interest. The fund's net asset value remains a constant $1 a share, only the interest rate goes up or down.

Most Active
Most active Nasdaq National Market stocks.

Mutual Fund
Fund operated by an investment company that raises money from shareholders and invests it in stocks, bonds, options, commodities or money market securities.

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Nasdaq Composite Index
The Nasdaq Composite Index measures all Nasdaq domestic and non-U.S. based common stocks listed on The Nasdaq Stock Market. The Index is market-value weighted. This means that each company's security affects the Index in proportion to it's market value. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index.

Today the Nasdaq Composite includes over 5,000 companies, more than most other stock market indexes. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indexes.

Nasdaq International Ltd.
A subsidiary of the NASD headquartered in London, England. Its mission is to support NASD members in London, serve as a liaison to international companies seeking to list securities on Nasdaq, encourage foreign institutional participation in Nasdaq stocks, and to heighten the international image of the NASD and its markets.

Nasdaq International Service
An extension to The Nasdaq Stock Market's trading systems that allows early morning trading from 3:30 to 9:00 A.M. Eastern Standard Time on each U.S. trading day. This Nasdaq service enables participants to monitor trades during London market hours. NASD members are eligible to participate in this session through their U.S. trading facilities or through those of an approved U.K. affiliate.

Nasdaq National Market Securities
The Nasdaq National Market consists of over 3,000 companies that have a national or international shareholder base, have applied for listing, meet stringent financial requirements and agree to specific corporate governance standards. To list initially, companies are required to have significant net tangible assets or operating income, a minimum public float of 500,000 shares, at least 400 shareholders, and a bid price of at least $5. The Nasdaq National Market operates from 9:30 A.M. to 4:00 P.M. EST, with extended trading in SelectNet from 8:00 A.M. to 9:30 A.M. EST and from 4:00 P.M. and 5:15 P.M. EST.

NASDAQ Close (NOCP)
The NASDAQ® Official Closing Price (NOCP) is a process for identifying the NASDAQ market-specific closing price for NASDAQ-listed issues. The NOCP replaces the NASDAQ market-specific closing price that was based solely on the last reported NASDAQ trade. Subject to review by NASDAQ MarketWatch, the NOCP will equal the normalized price of the last trade reported to NASDAQ’s proprietary trade reporting system—Automated Confirmation Transaction ServiceSM (ACTSM—with a last sale eligible sale condition modifier as of 4:00:02 p.m., US Eastern Time. "Normalizing" the NOCP means it will be adjusted to the nearest prevailing inside quote whenever the last sale is reported away from the inside market. Market participants, data distributors and investors will be provided with the NOCP for all NASDAQ National Market® and Capital securities.
Date of NOCP
This field refers to the date the NOCP was disseminated for a given stock. It is possible that the date will not be from the prior day; this indicates that the stock didn't trade on NASDAQ on the prior day. The NOCP is updated only when the stock is traded on NASDAQ.

NASDAQ Official Open Price
NASDAQ Official Opening Price: This process identifies the NASDAQ-specific opening prices for

NASDAQ-listed issues.
Date of the NASDAQ Official Open Price
This field refers to the date the NASDAQ Official Open Price was disseminated for a given stock. It is possible that the date will not be from the current trading day; this indicates that the stock didn't trade on NASDAQ during the current trading day. The NASDAQ Official Open Price is updated only when the stock is traded on NASDAQ.

Nasdaq Capital Market Securities
The Nasdaq Capital Market comprises of over 1,400 companies that want the sponsorship of Market Makers, have applied for listing and meet specific and financial requirements. Once a company is approved and listed on this market, Market Makers are able to quote and trade the company's securities through a sophisticated electronic trading and surveillance system. The Nasdaq Capital Market operates from 9:30 A.M. to 4:00 P.M. EST., with extended trading in SelectNet from 8:00 A.M. to 9:30 A.M. EST and from between 4:00 P.M. and 5:15 P.M. EST.

Nasdaq-100 Index
The Nasdaq-100 Index includes 100 of the largest non-financial domestic companies listed on the Nasdaq National Market tier of The Nasdaq Stock Market. Launched in January 1985, each security in the Index is proportionately represented by its market capitalization in relation to the total market value of the Index.

The Index reflects Nasdaq's largest growth companies across major industry groups. All index components have a minimum market capitalization of $500 million, and an average daily trading volume of at least 100,000 shares.

The number of securities in the Nasdaq-100 index makes it an effective vehicle for arbitrageurs and securities traders. In October 1993, the Nasdaq-100 Index began trading on the Chicago Board Options Exchange. On April 10, 1996 the Chicago Mercantile Exchange began trading futures and futures options on the Nasdaq-100 Index.

National Association of Securities Dealers, Inc. (NASD)
The self-regulatory organization of the securities industry responsible for the regulation of The Nasdaq Stock Market and the over-the-counter markets. The NASD operates under the authority granted it by the 1938 Maloney Act Amendment to the Securities Exchange Act of 1934.

Net Asset Value (NAV)
The market value of a fund share, synonymous with a bid price. In the case of no-load funs, the NAV, market price, and offering price are all the same figure, which the public pays to buy shares; load fund market or offer prices are quoted after adding the sales charge to the net asset value. NAV is calculated by most funds after the close of the exchanges each day by taking the closing market value of all securities owned plus all other assets such as cash, subtracting all liabilities, then dividing the result (total net assets) by the total number of shares outstanding. The number of shares outstanding can vary each day depending on the number of purchases and redemptions.

Net Change
The difference between today's last trade and the previous day's last trade. The difference between today's closing Net Asset Value (NAV) and the previous day's closing Net Asset Value (NAV).

Net Income
Income after all expenses and taxes have been deducted, and used in calculating a variety of profitability and stock performance measures.

New York Stock Exchange (NYSE)
The oldest U.S. stock exchange, located on Wall Street in New York City. Tracing its origins to 1792, the NYSE is one of the few remaining financial markets to use a physical trading floor to conduct trading. Representatives of buyers and sellers, know a specialists, meet and shout out prices in an "open outcry system." Often referred to as the Big Board.

Number of Estimates (# of Est)
Number of analysts included in the Mean EPS forecast.

NYSE Composite Index - NYSE
The NYSE Composite Index - (NYSE) is a market value-weighted index which relates all NYSE stocks to an aggregate market value as of Dec. 31, 1965, adjusted for capitalization changes. The base value of the index is $50 and point changes are expressed in dollars and cents.

No Load Fund
Mutual Fund offered by an open end investment company that imposes no sales charge (load) on its shareholders. Investors buy shares in no-load funds directly from the fund companies, rather than through a broker as is done in load funds. Many no-load fund families allow switching of assets between stock, bond, and money market funds. The listing of the price of a no-load fund in the newspaper is accompanied by the designation NL. The net asset value, market price and offer prices of this type of fund are exactly the same, since there is no sales charge.

No Quote (NQ)
No Market Makers making an inside market at this time.

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Offer Price
The price at which the shares were originally offered to the public.

Open Order
An order to buy or sell a security that remains in effect until it is either canceled by the customer or executed.

OTC Bulletin Board (OTCBB)
The OTCBB is a regulated quotation service that displays real-time quotes, last-sale prices, and volume information in over-the-counter (OTC) equity securities. An OTC equity security generally is any equity that is not listed or traded on NASDAQ or a national securities exchange. Approved by the SEC in 1997, OTCBB securities include national, regional, and foreign equity issues, warrants, units, American Depositary Receipts (ADRs), and Direct Participation Programs (DPPs).

Other OTC
A security that is neither listed on Nasdaq or any stock exchange, nor quoted on the OTCBB; bids and offers are not centrally collected

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Pacific Exchange (PSE)
Located in San Francisco, and started in 1882. The exchange trades equities and options.

P/B Ratio (Price/Book Ratio)
A stock analysis statistic in which the price of a stock is divided by the reported book value (as of the date specified) of the issuing firm.

P/C Ratio (Price/Cash Flow Ratio)
A financial ratio that compares stock price with cash flow from operations per outstanding shares.

P/E Ratio (Price/Earnings Ratio)
A stock analysis statistic in which the current price of a stock (today's last sale price) is divided by the reported actual (or sometimes projected, which would be forecast) earnings per share of the issuing firm; it is also called the "multiple".

P/S Ratio (Price/Sales Ratio)
A financial ratio that compares stock price with sales per share (or market value with total revenue).

Payment Date
The date on which a dividend or split will be paid to stockholders by the issuers' paying agents. The payable date is the date on which one must own the shares (at the close of the session) in order to receive the split.

Penalty Bid
A Syndicate Penalty Bid can be displayed on the Nasdaq System during the period of a registered public offering of a security. Such a bid may be entered by the managing underwriter or a member of the underwriting group acting on its behalf, and is intended to facilitate the offering by stabilizing the price of the security during the distribution period. This activity is permissible under SEC Rule 10b-7.

Pre-Market High
The Pre-Market high represents the highest price a person purchased this security during the Pre-Market session. Investors may trade in the Pre-Market (8:00-9:30 a.m. ET). Participation by Market Makers and ECNs is strictly voluntary and as a result may offer less liquidity and inferior prices. Stock prices may also move more quickly in this environment. Investors who anticipate trading during these times are strongly advised to use limit orders.

Pre-Market Last Sale
An electronic entry by an NASD Member firm representing the price involved in a transaction of a Nasdaq security during the Pre-Market session. The trade report must be submitted to Nasdaq within 90 seconds after the execution of the trade. Investors may trade in the Pre-Market (8:00-9:30 a.m. ET). Participation by Market Makers and ECNs is strictly voluntary and as a result may offer less liquidity and inferior prices. Stock prices may also move more quickly in this environment. Investors who anticipate trading during these times are strongly advised to use limit orders.

Pre-Market Low
The Pre-Market low represents the lowest price a person purchased this security during the Pre-Market session. Investors may trade in the Pre-Market (8:00-9:30 a.m. ET). Participation by Market Makers and ECNs is strictly voluntary and as a result may offer less liquidity and inferior prices. Stock prices may also move more quickly in this environment. Investors who anticipate trading during these times are strongly advised to use limit orders.

Pre-Market % Change
Pre-Market Percent change represents the percent increase/decrease between the last sale and the Market Close. See Market Close.

Pre-Market Volume
An electronic entry by an NASD Member firm representing the number of shares involved in a transaction of a Nasdaq security during the Pre-Market. The trade report must be submitted to Nasdaq within 90 seconds after the execution of the trade. Investors may trade in Pre-Market (8:00-9:30 a.m. ET). Participation by Market Makers and ECNs is strictly voluntary and as a result may offer less liquidity and inferior prices. Stock prices may also move more quickly in this environment. Investors who anticipate trading during these times are strongly advised to use limit orders.

Pre-Syndicate Bid
A Pre-Syndicate Bid can be entered in the Nasdaq System to stabilize the price of a Nasdaq security prior to the effective date of a registered secondary offering. This activity is permissible under SEC Rule 10b-7.

Previous Day's Close
The previous trading day's last reported trade. The Previous Day's Close on the Nasdaq Web site is updated at 3:30 A.M.

Previous NAV
The Net Asset Value (NAV) from previous trading day. The Previous NAV on the Nasdaq Web site is updated at 4:30 P.M.

Principal Orders
Refers to activity by a broker/dealer when buying or selling for its own account and risk.

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Quarterly Report (10 Q)
A report, which public companies are required to file quarterly with the SEC, that provides unaudited financial information and other selected material.

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Real-time Trade Reporting
A requirement imposed on Market Makers (and in some instances, non-Market Makers) to report each trade immediately after completion of the transaction. Stocks traded on The Nasdaq Stock Market are subject to real-time trade reporting within 90 seconds of execution.

Retained Earnings
Net profits kept to accumulate in a business after dividends are paid.

Return of Capital
A distribution of cash resulting from depreciation tax savings, the sale of a capital asset or of securities in a portfolio, or any other transaction unrelated to retained earnings.

Return on Equity
(net income divided by shareholders' equity) a measure of the net income that a firm is able to earn as a percent of stockholders' investment.

Return on Total Assets
(net income divided by total net assets) a measure of the net income that a firm's management is able to earn with the firm's total assets.

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Sales Load
The sales fee that the buyer pays in order to acquire an asset. The fee varies according to the type of asset and the way it is sold. Many mutual funds impose a sales charge. As a result of the load, only a portion of the investor’s funds go into the investment itself.

Securities and Exchange Commission (SEC)
The federal agency created by the Securities Exchange Act of 1934 to administer that act and the Securities Act of 1933. The statutes administered by the SEC are designed to promote full public disclosure and protect the investing public against fraudulent and manipulative practices in the securities markets. Generally, most issues of securities offered in interstate commerce or through the mails must be registered with the SEC.

Settlement Date
The date specified for delivery of securities between securities firms, usually three business days after the execution of an order.

Seven-Day Yield
Yield for seven day period including the day reported.

Shares Outstanding
For NASDAQ-listed securities, the number of issued and outstanding shares for the specified security as used by NASDAQ in the calculation of NASDAQ index values. The number of total shares outstanding used by NASDAQ for index calculation reflects the value most recently reported for the security by the issuing corporation, via required SEC filings or other communication with NASDAQ, as adjusted for any corporate actions such as stock dividends. However, use and display of a newly reported value may be briefly delayed pending review for accuracy and/or the facilitation of the management of the indices. Also, values for certain non-U.S. securities may not include all shares globally issued and outstanding.

The TSO for OTCBB companies can be found on OTCBB.com, under the "Company Profile" section. Please see the following example.

The TSO for NYSE and Amex companies is provided by Reuters. Reuters uses the Quarterly Diluted Weighted Average Shares, as filed with the SEC.

Short Interest
The total number of shares of a security that have been sold short by customers and securities firms that have not been repurchased to settle short positions in the market.(See also Short Selling,Days to Cover, Settlement Date,and Average Daily Share Volume.)

Short Selling
Short selling is the selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short selling is a legitimate trading strategy. Short sellers assume the risk that they will be able to buy the stock at a more favorable price than the price at which they sold short.

The Nasdaq Short Sale Rule prohibits NASD members from selling a Nasdaq National Market stock at or below the inside best bid when that price is lower than the previous inside best bid in that stock.

Short Term Gain
The profit realized from the sale of securities or other capital assets held twelve months or less.

SIC Code
Standard Industrial Classification (SIC) code. A numbering system established by the Office of Management and Budget that identifies companies by industry. It is used to promote the comparability of economic statistics from various facets of the U.S. economy.

Spread
The spread for a company's stock is influenced by a number of factors, including:

* Supply or "float" - the total number of shares outstanding available to trade.
* Demand or interest in a stock.
* Total trading activity in the stock.

Standard and Poor’s 500 - $SPX
The S&P 500 index - ($SPX), more formally known as the S&P 500 Composite Stock Price Index, is a european-style, capitalization-weighted index (shares outstanding multiplied by stock price) of 500 stocks that are traded on the New York Stock Exchange, American Stock Exchange and Nasdaq National Market. The advantage of "cap-weighting" is that each company's influence on index performance is directly proportional to its relative market value. It is this characteristic that makes the S&P 500 such a valuable tool for measuring the performance of actual portfolios.

Stock Dividend
Payment of a corporate dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company, or it may be shares in a subsidiary being spun off to shareholders. Stock dividends are often used to conserve cash needed to operate the business. Unlike a cash dividend, stock dividend are not taxed until sold.

Stock Index
A securities price indicator such as the Nasdaq-100, Standard & Poor's or Dow Jones series created to measure the relative value of the market.

Stock Symbol
A unique four- or five-letter symbol assigned to a Nasdaq security. If a fifth letter appears, it identifies the issue as other than a single issue of common stock or capital stock. A list of fifth-letter identifiers and a description of what each represents follows:
A - Class A
B - Class B
C - Issuer qualifications exceptions*
D - New
E - Delinquent in required filings with the SEC
F - Foreign
G - First convertible bond
H - Second convertible bond, same company
I - Third convertible bond, same company
J - Voting
K - Nonvoting
L - Miscellaneous situations, such as depositary receipts, stubs, additional warrants, and units
M - Fourth preferred, same company
N - Third preferred, same company
O - Second preferred, same company
P - First preferred, same company
Q - Bankruptcy Proceedings
R - Rights
S - Shares of beneficial interest
T - With warrants or with rights
U - Units
V - When-issued and when distributed
W - Warrants
Y- ADR (American Depositary Receipt)
Z - Miscellaneous situations such as depositary receipts, stubs, additional warrants, and units.
* The letter "C" as a fifth character in a security symbol, indicates that the issuer has been granted a continuance in Nasdaq under an exception to the qualification standards for a limited period.

Syndicate Bid
A Syndicate Bid can be entered in the Nasdaq System to stabilize the price of a Nasdaq security prior to the effective date of a registered secondary offering. This activity is permissible under SEC Rule 10b-7.

SuperMontage
The NASDAQ Stock Market's trading system to aggregate quotes and orders, providing access to more possible trades. Launched in 2002, SuperMontage is a fully integrated order display and execution system, capable of handling an expanded universe of orders. Key features include pre-trade anonymity, the ability to aggregate interest five price levels deep on each side of the market, internalization of orders still available, time stamps of individual orders to preserve position and priority, elimination of locked and crossed markets and a high level of confidence of best execution for users.

Surprise (Earnings Surprise)
A company earnings report that differs(either positively or negatively) from what analysts were expecting (consensus forecast). This often causes movement in the stock's price.
See Consensus Rating. Special symbols are used for negative actual or expected earnings as follows:
N+ : Negative actual earnings with positive surprise
N- : Negative actual earnings with negative surprise
-+ : Negative consensus earnings with positive actual earnings
-0 : Negative consensus earnings with zero actual earnings
-VL: Very large negative percent surprise
+VL: Very large positive percent surprise
NA : Not available (data necessary for calculation are not available)

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TREASURY BOND 30 Year - TYX
The Treasury Bond index - (TYX) is based on 10 times the yield-to-maturity on the most recently auctioned 30-year Treasury bond.

Today's High
The intra-day high trading price.

Today's Intraday Portfolio Value (IPV)
Updated through-out the day, the IPV data is distributed by the exchange.

Today's Low
The intra-day low trading price.

Total Shares Outstanding (TSO)
For NASDAQ-listed securities, the number of issued and outstanding shares for the specified security as used by NASDAQ in the calculation of NASDAQ index values. The number of total shares outstanding used by NASDAQ for index calculation reflects the value most recently reported for the security by the issuing corporation, via required SEC filings or other communication with NASDAQ, as adjusted for any corporate actions such as stock dividends. However, use and display of a newly reported value may be briefly delayed pending review for accuracy and/or the facilitation of the management of the indices. Also, values for certain non-U.S. securities may not include all shares globally issued and outstanding.

The TSO for OTCBB companies can be found on OTCBB.com, under the "Company Profile" section. Please see the following example.

The TSO for NYSE and Amex companies is provided by Reuters. Reuters uses the Quarterly Diluted Weighted Average Shares, as filed with the SEC.

TSO (On the "NASDAQ International Companies" page)
The TSO for ADRs contains only the "ADR TSO", they do not include the Global TSO. The Global TSO can be found on the "InfoQuote" page.

Trading Halt
The temporary suspension of trading in a Nasdaq security, usually for 30 minutes, while material news from the issuer is being disseminated over the news wires. A trading halt gives all investors equal opportunity to evaluate news and make buy, sell, or hold decisions on that basis. A trading halt may also be imposed for purely regulatory reasons, either by The Nasdaq Stock Market or the SEC.

Two Sided Market
The obligation imposed by the NASD that Nasdaq Market Makers make both firm bids and firm asks in each security in which they make a market.

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Unallocated Gain
Fund distributions that are not categorized as short, medium or long term.

Underwriter
The investment banking firm that brought the company public.
Up on Unusual Volume
Refers to an increase in stock price for stocks exhibiting unusual volume. See our FAQs section for additional information regarding Unusual Volume.

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Volatility
The degree of price fluctuation for a given asset, rate, or index; usually expressed as a variance or standard deviation.

Volume
Total volume in each stock reported to The Nasdaq Stock Market from NASD members and exchanges trading Nasdaq securities between the hours of 8:00 A.M. and 5:15 P.M. EST.

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Warrant
A certificate issued by a company giving the holder the right to purchase securities at a stipulated price within specific time limits or perpetually. A warrant is sometimes offered by a company as an inducement to buy an offering of common stock or other securities.

WEBS
World Equity Benchmark Shares — WEBS Index Shares represent a new approach to international investing, offering passive index management and facilitating targeted portfolio exposure. There's a WEBS Index Series for each of 17 countries. Each WEBS Index Series seeks to track the performance of a specific MSCI Index. Many of these indices have been used by investment professionals for more than 25 years. WEBS are listed on the American Stock Exchange and trade like any other stock.

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Yield
In general, a return on an investor's capital investment. For bonds, the coupon rate of interest divided by the purchase price, called current yield. Also, the rate of return on a bond, taking into account the total of annual interest payments, the purchase price, the redemption value, and the amount of time remaining until maturity.

% of Index Weight
This is the market value weighted impact on the value of the Index attributable to a particular stock.

How's Stock Trade

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The purpose of a stock market is to facilitate the exchange of securities between buyers and sellers, thus reducing the risks of investing. Just imagine how difficult it would be to sell shares if you had to call around the neighborhood trying to find a buyer. Really, a stock market is nothing more than a super-sophisticated farmers market linking buyers and sellers.

Before we go on, we should distinguish between the "primary" market and the "secondary" market. The primary market is where securities are created (by means of an IPO) while, in the secondary market, investors trade previously-issued securities without the involvement of the i ssuing-companies. The secondary market is what people are referring to when they talk about "the stock market." It is important to understand that the trading of a company's stock does not directly involve that company.

[ The New York Stock Exchange ]

The most prestigious exchange in the world is the New York Stock Exchange (NYSE). The "Big Board" was founded over 200 years ago in 1792 with the signing of the Buttonwood Agreement by 24 New York City stockbrokers and merchants. Currently the NYSE, with stocks like General Electric, McDonald's, Citigroup, Coca-Cola, Gillette, and Wal-mart, is the market of choice for the largest companies in America.

The trading floor of the NYSE

The NYSE is the first type of exchange (as we referred to above), where much of the trading is done face-to-face on a trading floor. This is also referred to as a "listed" exchange. Orders come in through brokerage firms that are members of the exchange and flow down to floor brokers who go to a specific spot on the floor where the stock trades. At this location, known as the trading post, there is a specific person known as the "specialist" whose job is to match buyers and sellers. Prices are determined using an auction method: the current price is the highest amount any buyer is willing to pay and the lowest price at which someone is willing to sell. Once a trade has been made, the details are sent back to the brokerage firm, who then notifies the investor who placed the order. Although there is human contact in this process, don't think that the NYSE is still in the stone age; computers do play a huge role in the process.

[ The Nasdaq ]

The second type of exchange is the virtual sort called an over-the-counter (OTC) market, of which the Nasdaq is the most popular. These markets have no central location or floor brokers whatsoever. Trading is done through a computer and telecommunications network of dealers. It used to be that the largest companies were listed only on the NYSE while all other "second tier" stocks traded on the other exchanges. The tech boom of the late 90s changed all this; now the Nasdaq is home to several big technology companies such as Microsoft, Cisco, Intel, Dell, and Oracle. This has resulted in the Nasdaq becoming a serious competitor to the NYSE. The Nasdaq market site in Times Square

On the Nasdaq brokerages act as " market makers " for various stocks. A market maker provides continuous bid and ask prices within a prescribed percentage spread for shares for which they are designated to make a market. They may match up buyers and sellers directly but usually they will maintain an inventory of shares to meet demands of investors.

[ Other Exchanges ]

The third largest exchange in the U.S. is the American Stock Exchange (AMEX). The AMEX used to be an alternative to the NYSE, but that role has since been filled by the Nasdaq. In fact, the National Association of Securities Dealers (NASD) , which is the parent of Nasdaq, bought the AMEX in 1998. Almost all trading now on the AMEX is in small-cap stocks and derivatives.

There are many stock exchanges located in just about every country around the world. American markets are undoubtedly the largest and thus most important, but they still represent only a fraction of total investment around the globe. The two other main financial hubs are London, home of the London Stock Exchange, and Hong Kong, home of the Hong Kong Stock Exchange.

The last place worth mentioning is the over-the-counter bulletin board (OTCBB). The Nasdaq technically is an over-the-counter market, but the term commonly refers to small public companies that don’t meet the listing requirements of any of the regulated markets, including the Nasdaq. The OTCBB is home to penny stocks because there is little to no regulation. This makes investing in an OTCBB stock very risky. You really need to know what you're doing here or you'll get burnt!

Stock Exchange

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A stock exchange or bourse is a corporation or mutual organization which provides the facilities for stock brokers to trade company stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities, as well as other financial instruments and capital events including the payment of income and dividends.

The securities traded on a stock exchange include shares issued by companies, unit trusts and other pooled investment products as well as bonds. To be able to trade a security on a certain stock exchange, it has to be listed there.

Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only; a stock broker is said to have a seat on the exchange.

A stock exchange is often the most important component of a stock market. There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. This is the usual way that bonds are traded.

The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market.Increasingly all stock exchanges are part of a global market for securities.

Supply and demand in stock markets is driven by various factors which, as in all free markets, affect the price of stocks (see stock valuation).

[ History of the Stock Exchange ]

In 12th century France the courratiers de change were concerned with managing and regulating the debts of agricultural communities on behalf of the banks. As these men also traded in debts, they could be called the first brokers.

Some stories suggest that the origins of the term "bourse" come from the latin bursa meaning a bag because, in 13c. Bruges, the sign of a purse (or perhaps three purses), hung on the front of the house where merchants met.

However, it is more likely that in the late 13th century commodity traders in Bruges gathered inside the house of a man called Van der Burse, and in 1309 they institutionalized this until now informal meeting and became the "Bruges Bourse". The idea spread quickly around Flanders and neighbouring counties and "Bourses" soon opened in Ghent and Amsterdam.

In the middle of the 13th century Venetian bankers began to trade in government securities. In 1351 the Venetian Government outlawed spreading rumors intended to lower the price of government funds. There were people in Pisa, Verona, Genoa and Florence who also began trading in government securities during the 14th century. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens.

The Dutch later started joint stock companies, which let shareholders invest in business ventures and get a share of their profits - or losses. In 1602, the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. It was the first company to issue stocks and bonds.

[ Listing requirements ]

Companies have to meet the requirements of the exchange in order to have their stocks and shares listed and traded there. To be listed on the New York Stock Exchange (NYSE), for example, a company must have issued at least a million shares of stock worth $100 million and must have earned more than $10 million over the last three years.

[ Ownership ]

Stock exchanges originated as mutual organizations, owned by its member stock brokers. There has been a recent trend for stock exchanges to demutualize, where the members sell their shares in an Initial public offering. In this way the mutual organization becomes a corporation, with shares that are listed on a stock exchange. Examples are Australian Stock Exchange (1998), Euronext (2000), NASDAQ (2002) and the New York Stock Exchange (2005).

FX Solutions

2006-04-02T09:32:00.000+08:00

FX Solutions was founded in 2001 by foreign exchange veterans with over 40 years combined experience. The company operates as a market-maker and principal counterparty to retail and institutional clients trading in the foreign exchange (Forex) market. FX Solutions have become an industry leader by leveraging our advanced trading platform and superior customer service.

FX Solutions clients trade the foreign exchange market via the FX Solutions proprietary Global Trading System, one of the most advanced online retail Forex trading platforms. FX Solutions platform empowers foreign exchange traders with flexibility and such advantages as:

* Tight Spreads: 3-4 Pips in the Major Currencies
* Charting with Pattern Recognition: Helps Traders Better Recognize Potential Trading Opportunities
* FLEXI Contract: Choose a Contract Size that Suits Your Trading Style
* FLEXI Leverage: Select Your Leverage: 50:1, 100:1, 200:1, 250:1, 300:1, 400:1
Fastest, Most Accurate Price Feed

Company Name:
FX Solutions LLC

Website Address:
http://www.fxsolutions.com

Year of company's foundation:
2001

Year of company's forex division foundation:
2001

Regulated by:
NFA - CFTC (USA)

Client base:
Not release

Leverage:
100:1

Commissions:
None

Pip spread on majors:
3/5 pip

Mini Account:
yes

Minimum account size for Mini Accounts:
$250

Regular Account:
yes

Minimum account size for Regular Account:
$2,000

Services:
Self directed and managed accounts, money manager platform, charting, news, daily FX commentary, full reporting and back office, money manager performance and column 13 reporting, 24 hour trading and adminstration support, 24 hour chat, complete Introducing Broker services

Languages:
English, Spanish, Chinese

24 Hour trading:
Yes

Free demo account:
Yes

Live support chat:
Yes

Headquarters:
127 East Ridgewood Suite 201, Ridgewood, NJ 07450 USA

Phone:
1-201-345-2200

Fax:
1 201 345 2211

E-mail:
info@fxsol.com

Investing in Cyclical Stock

2006-03-31T11:32:00.000+08:00

Making money in Stock is a risky but interesting activities, more than just try to catch some profits, it's a fascinating advanture.. Think of being on a Ferris wheel: one minute you're on top of the world, the next you're at the bottom - and eager to head back up again. Investing in cyclical companies is much the same, except the the time it takes to go up and down, known as a business cycle, can last years.

[ What Are Cyclical Stocks? ]

Identifying these companies is fairly straightforward. They often exist along industry lines. Automobile manufacturers, airlines, furniture, steel, paper, heavy machinery, hotels and expensive restaurants are the best examples. Profits and share prices of cyclical companies tend to follow the up and downs of the economy; that's why they are called cyclicals. When the economy booms, as it did in the go-go '90s, sales of things like cars, plane tickets and fine wines tend to thrive. On the other hand, cyclicals are prone to suffer in economic downturns.

Given the up-and-down nature of the economy and, consequently, that of cyclical stocks, successful cyclical investing requires careful timing. It is possible to make a lot of money if you time your way into these stocks at the bottom of a down cycle just ahead of an upturn. But investors can also lose substantial amounts if they buy at the wrong point in the cycle.

[ Comparing Cyclicals to Growth Stocks ]

All companies do better when the economy is growing, but good growth companies, even in the worst trading conditions, still manage to turn in increased earnings per share year after year. In a downturn, growth for these companies may be slower than their long-term average, but it will still be an enduring feature.

Cyclicals, by contrast, respond more violently than growth stocks to economic changes. They can suffer mammoth losses during severe recessions and can have a hard time surviving until the next boom. But, when things do start to change for the better, dramatic swings from losses to profits can often far surpass expectations. Performance can even outpace growth stocks by a wide margin.

[ Investing in Cyclicals ]

So, when does it pay to buy them? Predicting an upswing can be awfully difficult, especially since many cyclical stocks start doing well many months before the economy comes out of a recession. Buying requires research and courage. On top of that, investors must get their timing perfect.

Investment guru Jim Slater offers investors some help. He studied how cyclical industries fared against key economic variables over a 15-year period. Data showed that falling interest rates are a key factor behind cyclicals' most successful years. Since falling rates normally stimulate the economy, cyclical stocks fare best when interest rates are falling. Conversely, in times of rising interest rates, cyclical stocks fare poorly. But Slater warns us to be careful: the first year of falling interest rates is also unlikely to be the right time to buy. He advises that it's best to buy in the last year of falling interest rates, just before they begin to rise again. This is when cyclicals tend to outperform growth stocks.

Before selecting a cyclical stock, it makes sense to pick an industry that is due for a bounce. In that industry, choose companies that look especially attractive. The biggest companies are often the safest. Smaller companies carry more risk, but they can also produce the most impressive returns.

Many investors look for companies with low P/E multiples, but for investing in cyclical stocks this strategy may not work well. Earnings of cyclical stocks fluctuate too much to make P/E a meaningful measure; moreover, cyclicals with low P/E multiples can frequently turn out to be a dangerous investment. A high P/E normally marks the bottom of the cycle, whereas a low multiple often signals the end of an upturn.

For investing in cyclicals, price-to-book multiples are better to use than the P/E. Prices at a discount to the book value offer an encouraging sign of future recovery. But when recovery is already well underway, these stocks typically fetch several times the book value. For instance, at the peak of a cycle, semiconductor manufacturers trade at three or four times book value.

Correct investment timing differs among cyclical sectors. Petrochemicals, cement, pulp and paper, and the like tend to move higher first. Once the recovery looks more certain, cyclical technology stocks, like semiconductors, normally follow. Tagging along near the end of the cycle are usually consumer companies, such as clothing stores, auto makers and airlines.

Insider buying, arguably, offers the strongest signal to buy. If a company is at the bottom of its cycle, directors and senior management will, by purchasing stock, demonstrate their confidence in the company fully recovering.

Finally, keep a close eye on the company's balance sheet. A strong cash position can be very important, especially for investors who buy recovery stocks at the very bottom, where economic conditions are still poor. The company having plenty of cash gives these investors more time to confirm whether their strategy wisdom was a wise one.

Stock Market Index

2006-03-30T15:16:00.000+08:00

A stock market index is a listing of stocks, and a statistic reflecting the composite value of its components. It is used as a tool to represent the characteristics of its component stocks, all of which bear some commonality such as trading on the same stock market exchange, belonging to the same industry, or having similar market capitalizations. Many indices compiled by news or financial services firms are used to benchmark the performance of portfolios such as mutual funds.

[ Types of Indices ]

Stock market indices may be classed in many ways. A broad-base index represents the performance of a whole stock market— and by proxy, reflects investor sentiment on the state of the economy. The most regularly quoted market indices are broad-base indices including the largest listed companies on a nation's largest stock exchange, such as the American Dow Jones Industrial Average and S&P 500 Index, the British FTSE 100, the French CAC 40, the German DAX and the Japanese Nikkei 225.

The concept may be extended well beyond an exchange. The Dow Jones Wilshire 5000 Total Stock Market Index, as its name implies, represents the stocks of nearly every publicly traded company in the United States, including all stocks traded on the New York Stock Exchange and most traded on the NASDAQ and American Stock Exchange. The Europe, Australia, and Far East Index (EAFE), published by Morgan Stanley Capital International, is a listing of large companies in developed economies in the Eastern Hemisphere.

More specialised indices exist tracking the performance of specific sectors of the market. The Morgan Stanley Biotech Index, for example, consists of 36 American firms in the biotechnology industry. Other indices may track companies of a certain size, a certain type of management, or even more specialized criteria— one index published by Linux Weekly News tracks stocks of companies that sell products and services based on the Linux operating environment.

[ Weighting ]

An index may also be classified according to the method used to determine its price. In a Price-weighted index such as the Dow Jones Industrial Average, the price of each component stock is the only consideration when determining the value of the index. Thus, price movement of even a single security will heavily influence the value of the index even though the dollar shift is less significant in a relatively highly valued issue, and moreover ignoring the relative size of the company as a whole. In contrast, a market-value weighted or capitalization-weighted index such as the Hang Seng Index factors in the size of the company. Thus, a relatively small shift in the price of a large company will heavily influence the value of the index. In a market-share weighted index, price is weighted relative to the number of shares, rather than their total value.

Traditionally, capitalization- or share-weighted indices all had a full weighting i.e. all outstanding shares where included. Recently, many of them have changed to a float-adjusted weighting which helps indexing.

[ Indices and Passive Investment Management ]

There has been an accelerating trend in recent decades to create passively managed mutual funds that are based on market indices, known as index funds. Advocates claim that index funds routinely beat a large majority of actively managed mutual funds; one study claimed that over time, the average actively managed fund has returned 1.8% less than the S&P 500 index. Since index funds attempt to replicate the holdings of an index, they obviate the need for— and thus many costs of— the research entailed in active management, and have a lower "churn" rate (the turnover of securities which lose favor and are sold, with the attendant cost of commissions and capital gains taxes).

Indices are also a common basis for a related type of investment, the exchange-traded fund or ETF. Unlike an index fund, which is priced daily, an ETF is priced continuously, is optionable, and can be sold short.

[ Ethical Stock Market Indices ]

A notable specialised index type is those for ethical investing indices that include only those companies satisfying ecological or social criteria, e.g. those of The Calvert Group, Domini, Dow Jones Sustainability Index and Wilderhill Clean Energy Index.

Another important trend is strict mechanical criteria for inclusion and exclusion to prevent market manipulation, e.g. as in Canada when Nortel was permitted to rise to over 50% of the TSE 300 index value. Ethical indices have a particular interest in mechanical criteria, seeking to avoid accusations of ideological bias in selection, and have pioneered techniques for inclusion and exclusion of stocks based on complex criteria. Another means of mechanical selection is mark-to-future methods that exploit scenarios produced by multiple analysts weighted according to probability, to determine which stocks have become too risky to hold in the index of concern.

Critics of such initiatives argue that many firms satisfy mechanical "ethical criteria", e.g. regarding board composition or hiring practices, but fail to perform ethically with respect to shareholders, e.g. Enron. Indeed, the seeming "seal of approval" of an ethical index may put investors more at ease, enabling scams. One response to these criticisms is that trust in the corporate management, index criteria, fund or index manager, and securities regulator, can never be replaced by mechanical means, so "market transparency" and "disclosure" are the only long-term-effective paths to fair markets.

Broker & Trader in Stock

2006-03-29T22:31:00.000+08:00

[ Stock Broker ]

A stockbroker is a person (or company) who buys and sells stocks on behalf of another person (or company).

For a deal between two people, no broker is needed. A broker is useful in trying to match up with other buyers or sellers. Especially, a transaction on a stock exchange must be made between two members of the exchange. For example, a typical person may not walk into the New York Stock Exchange and ask to buy or sell stock (unless of course such person is a member of the exchange). It must be done through a broker.

Stockbrokers also sometimes or exclusively trade on their own behalf, as a principal, speculating that a share or other financial instrument will increase or decline in price. In such cases the term broker makes little sense and the individuals or firms trading in a principal capacity sometimes call themselves dealers, stock traders -- traders.

History
Since the 1980s stockbroking firms have also been allowed to be market makers as long as the appropriate Chinese walls are put in place.

With the advent of automated stockbroking systems on the Internet the client often has no personal contact with his/her stockbroking firm. The stockbroker's system performs all the stockbroking functions: it obtains the best price from the market and executes and settles the trade.

Today, most of the once well-known corporate brand names including mid-sized firms such as Smith Barney have been swallowed up by global financial conglomerates. Discount brokers (such as E-Trade, Scottrade, and Ameritrade) have taken a large share of the business by offering highly discounted commissions, but the companies do not offer investment advice in return -- all they do is execute orders.

[ Stock Trader ]

A Stock Trader or Stock Investor is a securities professional or firm, who buys and sells securities, such as stocks and bonds. The individuals or firms trading in a principal capacity sometimes call themselves stock traders or simply traders. Many people across the world can call themselves stock traders or part-time stock traders, despite of having another profession in parallel with their regular trading activities in the financial markets. When a stock trader has clients, and acts as a money manager or adviser with the intention of adding value to his clients finances, he is also called a financial manager. In this case, the financial manager could be an independent professional or a large bank corporation employee. A very active stock trader who holds positions for a very short time and makes several trades each day is a day trader.

They usually need a stock broker, such as a bank or a brokerage firm, as intermediate. Since the spread of the Internet banking, they usually use an Internet connection to manage their own financial portfolios, including ordering the sell/buying orders, set stop losses prices and define buying/selling prices. Using the Internet, specialized software and a personal computer, stock traders make use of technical analysis and fundamental analysis to help them in the decision process. A stock trader utilize also several advising and information resorces based on the Internet and the media, such as financial/business news and data firms (Reuters, Bloomberg, Financial Times, Yahoo! Finance, MSN Money, AFX News, Newratings, Forbes, BusinessWeek, Hoover's). They exclusively trade on their own behalf, as a principal, investing money on a share or other financial instrument, which they believe will increase in price aiming to sell it later with earnings.

[ Things Should Know Before Consulting a Stock Broker ]

Using a stock broker for active management of a Stock/Mutual Fund Portfolio is totally unnecessary when a passive management alternative is available for long term investing within the confines of a Tax-Sheltered Retirement Accounts. However, many prefer to use and pay for the services of a broker because they feel more comfortable making decisions about their finances with the interactive guidance of a licensed advisor.

When using a stock broker for financial guidance, one must be made aware that they do get paid on a commission, based on the stock/mutual fund they sell be it from the following: Class Distinction/ Operating Expense Fees/ Services Fees/ Shareholder Fees. Thus a conflict of interest arises concerning a stock broker who offers his/her service as a financial planner, because their revenue is generated as a direct result of your investment in the stock/mutual fund that they broker to you. Thus your return on investment is not as great, and the advice they give you might not be in your best interest. However, some mutual funds and stocks can only be purchased through a broker: in such cases their services are required to purchase the financial instrument in question.

Synthesis Bank

2006-03-29T19:19:00.000+08:00

Synthesis Bank re-focuses on its core business, trading and market advisory. In the spring of 2004, Synthesis Bank launches Trading Floor, the on-line multi-product platform that can be downloaded from the bank’s website. After having reinforced its team of professionals, Synthesis Bank now offers a broad range of clients the possibility of handling the most important financial products in real time.

Synthesis Bank has progressively expanded to become the leading Swiss on-line trading and investment bank. The skills of market professionals, advisors, traders, analysts and product specialists have been added to complement the intuition and expertise of its founder, Charles-Henri Sabet. The July 2005 launch of an asset allocation software application will allow everyone to build their own portfolio according to their own goals - further proof that Synthesis Bank is the leader, as much as ever before, in cutting edge innovation and on-line service.

Company Name:
Synthesis Bank

Website Address:
http://www.synthesisbank.com

Year of company's foundation:
1991

Year of company's forex division foundation:
1991

Regulated by:
CFB (Switzerland)

Client base:
Private and institutional investors.

Leverage:
-

Commissions:
None

Pip spread on majors:
3 pip

Mini Account:
yes

Minimum account size for Mini Accounts:
CHF 2,000

Regular Account:
yes

Minimum account size for Regular Account:
CHF 15,000

Services:
Proposes, for its clients, an innovative approach to trading, based on the best of banking technology. Its multiple-product Internet platform, TradingFloor, active round the clock, is recognised as one of the most complete and efficient in the industry. It offers its clients the possibility of treating a vast choice of financial products on line and in real time and provides them free of charge with currency exchange rates, stock exchange prices and futures rates as well as vast search possibilities.

TradingFloor Advantages :
* Stock exchange rates in real time round the clock.
* Instantaneous execution of your orders.
* Competitive prices.
* Customisation of your trading space.
* Search, technical analysis modules, economical comments and recommendations through continuous and instantaneous messaging systems from the bank.

Languages:
English, Spanish, German, French, Italian

24 Hour trading:
Yes

Free demo account:
Yes

Live support chat:
No

Headquarters:
15, rue des Alpes , Case postale 2164, CH-1211 Genève 1, Switzerland

Phone:
+41 22 317 95 00

Fax:
+41 22 317 95 01

E-mail:
marketingfloor@tradingfloor.com

Importance of Stock Markets II

2006-03-29T08:51:00.000+08:00

[ The Stock Market, Individual Investors, and Financial Risk ]

This is clearly a positive social trend. However, such riskier long-term saving requires that an individual possess the ability to manage the associated increased risks. Stock prices fluctuate widely, in marked contrast to the stability of (government insured) bank deposits or bonds. This is something that could affect not only the individual investor or household, but also the economy on a large scale. The following deals with some of the risks of the financial sector in general and the stock market in particular. This is certainly more important now that so many newcomers have entered the stock market, or have acquired other 'risky' investments (such as 'investment' property, i.e., real estate and collectables).

With each passing year, the noise level in the stock market rises. Television commentators, financial writers, analysts, and market strategists are all overtalking each other to get investors' attention. At the same time, individual investors, immersed in chat rooms and message boards, are exchanging questionable and often misleading tips. Yet, despite all this available information, investors find it increasingly difficult to profit. Stock prices skyrocket with little reason, then plummet just as quickly, and people who have turned to investing for their children's education and their own retirement become frightened. Sometimes there appears to be no rhyme or reason to the market, only folly.

This is a quote from the preface to a published biography about the well-known and long term value oriented stock investor Warren Buffet. Buffet began his career with only 100 U.S. dollars and has over the years built himself a multibillion-dollar fortune. The quote illustrates something of what has been going on in the stock market during the end of the 20th century and the beginning of the 21st.

[ The Behavior of the Stock Market ]

From experience we know that investors may temporarily pull financial prices away from their long term trend level. Over-reactions may occur— so that excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive prices unduly low. New theoretical and empirical arguments have been put forward against the notion that financial markets are efficient.

According to the efficient market hypothesis (EMH), only changes in fundamental factors, such as profits or dividends, ought to affect share prices. (But this largely theoretic academic viewpoint also predicts that little or no trading should take place— contrary to fact— since prices are already at or near equilibrium, having priced in all public knowledge.) But the efficient-market hypothesis is sorely tested by such events as the stock market crash in 1987, when the Dow Jones index plummeted 22.6 per cent— the largest-ever one-day fall in the United States. (However, this was part of a world-wide crash of stock markets which did not originate in the US.) This event demonstrated that share prices can fall dramatically even though, to this day, it is impossible to fix a definite cause: a thorough search failed to detect any specific or unexpected development that might account for the crash. It also seems to be the case more generally that many price movements are not occasioned by new information; a study of the fifty largest one-day share price movements in the United States in the post-war period confirms this. Moreover, while the EMH predicts that all price movement (in the absence of change in fundamental information) is random (i.e., non-trending), many studies have shown a marked tendency for the stock market to trend over time periods of weeks or longer.

Various explanations for large price movements have been promulgated. For instance, some research has shown that changes in estimated risk, and the use of certain strategies, such as stop-loss limits and VaR limits, theoretically could cause financial markets to overreact.

Other research has shown that psychological factors may result in exaggerated stock price movements. Psychological research has demonstrated that people are predisposed to 'seeing' patterns, and often will perceive a pattern in what is, in fact, just noise. (Something like seeing familiar shapes in clouds or ink blots.) In the present context this means that a succession of good news items about a company may lead investors to overreact positively (unjustifiably driving the price up). A period of good returns also boosts the investor's self-confidence, reducing his (psychological) risk threshold.

Another phenomenon— also from psychology— that works against an objective assessment is group thinking. As social animanls, it is not easy to stick to an opinion that differs markedly from that of a majority of the group. An example with which you may be familiar is the reluctance to enter a restaurant that is empty; people generally prefer to have their opinion validated by those of others in the group.

In one paper the authors draw an analogy with gambling. In normal times the market behaves like a game of roulette; the probabilities are known and largely independent of the investment decisions of the different players. In times of market stress, however, the game becomes more like poker (herding behavior takes over). The players now must give heavy weight to the psychology of other investors and how they are likely to react psychologically.

We are also liable to succumb to biased thinking. An example is when supporters of a national football team (or a favorite stock), for instance, are overconfident about the chances of winning (or the stock moving up).

The stock market, as any other business, is quite unforgiving of amateurs. Inexperienced investors rarely get the assistance and support they need. In the period running up to the recent Nasdaq crash, less than 1 per cent of the analyst's recommendations had been to sell (and even during the 2000 - 2002 crash, the average did not rise above 5%). The media amplified the general euphoria, with reports of rapidly rising share prices and the notion that large sums of money could be quickly earned in the so-called new economy stock market.

Recomended book : Stock Market Behavior, by Harvey A. Krow

Importance of Stock Markets I

2006-03-28T17:57:00.000+08:00

[ Functions & Purpose ]

Just as it is important that networks for transport, electricity and telecommunications function properly, so is it essential that, for example, payments can be transacted, capital can be saved and channelled to the most profitable investment projects and that both households and firms get help in handling financial uncertainty and risk as well as possibilities of spreading consumption over time. Financial markets constitute an important part of the total infrastructure for every society that has passed the stage of largely domestic economies.

The financial system performs three main tasks: firstly, it handles transfer of payments; secondly, it channels savings to investments with a good return for future consumption; and thirdly, it spreads and reduces (local enterprise) economic risks in relation to the players' targeted returns (but note that systemic risk is not thereby reduced— it merely becomes less concentrated and uneven). Moreover, unforseen risks, or catastrophic risks (such as the complete collapse of the financial system or government institutions), may not be capable of being spread, or insured against.

The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as employment. In this way the financial system contributes to increased prosperity.

The stock market is one of the most important sources for companies to raise money. Experience has taught us that the price of shares and other assets is an important part of the dynamics of economic growth. Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption. Therefore, central banks tend to keep an Argus eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions. Financial stability is the raison d'être of central banks.

[ Relation of the Stock Market to the Modern Financial System ]

The financial system in most western countries has undergone a remarkable transformation. One feature of this development is disintermediation. A portion of the funds involved in saving and financing flows directly to the financial markets instead of being routed via banks' traditional lending and deposit operations. The general public's heightened interest in investing in the stock market, either directly or through mutual funds, has been an important component of this process. Statistics show that in recent decades shares have made up an increasingly large proportion of households' financial assets in many countries. In the 1970s, in Sweden, bank deposits and other very liquid assets with little risk made up almost 60 per cent of households' financial wealth, as against less than 20 per cent in the 2000s. The major part of this adjustment in financial portfolios has gone to shares but a good deal now takes the form of insurance saving. The trend towards forms of saving with a higher risk has been accentuated by new rules for insurance companies, permitting a high proportion of shares, although this is arranged more indirectly. Similar tendencies are to be found in other industrialised countries. In all developed economic systems, such as the European Union, the United States, Japan and other first world countries, the trend has been the same: saving has moved away from traditional (government insured) bank deposits to more risky securities of one sort or another.

Stock Market

2006-03-28T11:43:00.000+08:00

A stock market is a market for the trading of company stock, and derivatives of same -- both those securities listed on a stock exchange as well as those only traded privately.

Although common, the term 'the stock market' is a somewhat abstract concept for the mechanism that enables the trading of company stocks. It is also used to describe the totality of all stocks, especially within one country, for example in the phrase "the stock market was up today", or in the term "stock market bubble".

It is distinct from a stock exchange, which is an entity (a corporation or mutual organization) in the business of bringing buyers and sellers of stocks together. For example, 'the stock market' in the United States includes the trading of stocks listed on the NYSE, NASDAQ, and Amex, and also on the OTCBB and Pink Sheets.

[ Stock Market History ]

In 12th century France the courratier de change were concerned with managing and regulating the debts of agricultural communities on behalf of the banks. Because these men also traded with debts, they could be called the first brokers.

In late 13th century Bruges commodity traders gathered inside the house of a man called Van der Beurse, and in 1309 they institutionalized this until then informal meeting and became the "Brugse Beurse". The idea quickly spread around Flanders and neighbouring counties and "Beurzen" soon opened in Ghent and Amsterdam.

In the middle of the 13th century Venetian bankers began to trade in government securities. In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government funds. Bankers in Pisa, Verona, Genoa and Florence also began trading in government securities during the 14th century. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens.

The first stock exchange to trade continuously was Amsterdam's Beurs, in the early 17th century. The Dutch "pioneered short selling, option trading, debt-equity swaps, merchant banking, unit trusts and other speculative instruments, much as we know them" (Murray Sayle, "Jpan Goes Dutch", London Review of Books XXIII.7, April 5, 2001).

There are now stock markets in virtually every developed and most developing economies, with the world's biggest markets being in the United States, UK, Germany, France, and Japan.

[ Trading on Stock Market ]

Participants in the stock market range from small individual stock investors to large hedge fund traders, who can be based anywhere. Their orders usually ends up with a professional at a stock exchange, who executes the order.

Most stocks are traded on exchanges, which are places where buyers and sellers meet and decide on a price. Some exchanges are physical locations where transactions are carried out on a trading floor, by a method known as open outcry. (You've probably seen pictures of a trading floor, in which traders are wildly throwing their arms up, waving, yelling, and signaling to each other.) This type of auction is used in stock exchanges and commodity exchanges where traders may enter "verbal" bids and offers simultaneously. The other type of exchange is a virtual kind, composed of a network of computers where trades are made electronically via traders at computer terminals.

Actual trades are based on an auction market paradigm where a potential buyer bids a specific price for a stock and a potential seller asks a specific price for the stock. (Buying or selling at market means you will accept any bid or ask price for the stock.) When the bid and ask prices match, a sale takes place on a first come first serve basis if there are multiple bidders or askers at a given price.

The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a marketplace (virtual or real). Just imagine how difficult it would be to sell shares (and what a disadvantage you would be at with respect to the buyer) if you had to call around trying to locate a buyer, as when selling a house. Really, a stock exchange is nothing more than a super-sophisticated farmers' market providing a meeting place for buyers and sellers.

The New York Stock Exchange is a physical exchange, where much of the trading is done face-to-face on a trading floor. This is also referred to as a "listed" exchange (because only stocks listed with the exchange may be traded). Orders enter by way of brokerage firms that are members of the exchange and flow down to floor brokers who go to a specific spot on the floor where the stock trades. At this location, known as the trading post, there is a specific person known as the specialist whose job is to match buy orders and sell orders. Prices are determined using an auction method known as "open outcry": the current bid price is the highest amount any buyer is willing to pay and the current ask price is the lowest price at which someone is willing to sell; if there is a spread, no trade takes place. For a trade to take place, there must be a matching bid and ask price. (If a spread exists, the specialist is supposed to use his own resources of money or stock to close the difference, after some time.) Once a trade has been made, the details are sent back to the brokerage firm, who then notifies the investor who placed the order. Although there is human contact in this process, don't think that the NYSE is still in the Stone Age; computers do play a huge role in the process, especially for so-called "program trading".

The Nasdaq is a virtual (listed) exchange, where all of the trading is done by computers. The process is similar to the above, in that the seller provides an asking price and the buyer provides a bidding price. However, buyers and sellers are electronically matched. One or more Nasdaq market makers will always provide a bid and ask price at which they will always purchase or sell 'their' stock.

GFS Forex & Futures, Inc

2006-03-27T16:19:00.000+08:00

GFS FOREX & FUTURES, INC. is a Registered Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA ID: 0316995). GFS is a prime provider of trading services for the global foreign currency market.

GFS is subject to rigorous compliance Rules and Regulations adopted and enforced by the NFA and the CFTC. This is to ensure protection of customer’s interest in their investment, uphold the integrity of the industry at its highest levels, and maintain the efficient, legal and professional operation of GFS at all times. The Company is committed to maintain a high standard of service and trading facilities to enable individual investors and institutions to benefit from the opportunities of trading in the FOREX.

Company Name:
GFS Forex & Futures, Inc

Website Address:
http://www.gfsbroker.com

Year of company's foundation:
2001

Year of company's forex division foundation:
2001

Regulated by:
CFTC - NFA (USA)

Client base:
Indivividuals and Institutional accounts

Leverage:
100:1

Commissions:
None

Pip spread on majors:
3/5 pip

Mini Account:
yes

Minimum account size for Mini Accounts:
$500

Regular Account:
yes

Minimum account size for Regular Account:
$5,000

Services:
FX Online Trading, Introducing Brokers Program, API. GFS provides a flexible online trading system which delivers real-time quotes, continuously updated account information and a complete processing of foreign exchange trades from the front-end system through the GFS’ back office. Automation, flexibility and price transparency in the GFS’ trading system deliver a more efficient execution of a trader’s forex transactions. The system is compatible with third party trading platforms and fully supported by GFS in terms of set-up and development. GFS’s state-of-the-art, automated trading system will help facilitate your trading volume and streamline your operations.

Languages:
English, Spanish, French, Chinese, Japanese, Arabic, Russian, Tagalog, Armenian

24 Hour trading:
Yes

Free demo account:
Yes

Live support chat:
Yes

Headquarters:
One Post, Suite 2550 San Francisco, CA 94104 (USA)

Phone:
+1 415 321 7188

Fax:
+1 415 3217199

E-mail:
GFSinfo@gfsbroker.com

Trading Stocks

2006-03-27T08:11:00.000+08:00

Many people have a hard time sticking to their stop-loss on stocks priced above the $60 to $70 range. These stocks can suddenly move 25 cents or more in a few seconds, triggering and speeding beyond the stop-loss. Because the stock’s price can jump so quickly, the trader thinks that he will take his stop-loss when the price moves back a bit, which never happens. Suddenly, a couple of minutes later, the position has broken past his stop-loss by more than 50 cents, and the trader feels that he cannot take a loss that large. So he waits, and then he is down more than 1 point and he takes the stop-loss at the maximum level of pain. (Of course, after the trader takes the stop at maximum pain, it begins to trade in his desired direction!)

This same trader will stick to his rules more easily on a slower-moving $20 stock. Lower-priced stocks tend not to move so quickly that a trader decides he cannot take a loss that large. A heavy-volume $20 stock moves more slowly and allows the trader to get out of his position closer to the actual stop-loss price.

Stocks that have different average daily volumes also tend to act in their own way. Let’s say we have two stocks, both trading at $30 a share. The first stock has a tight spread and an average daily volume of over 8 million shares a day. The other stock trades an average of 500,000 shares a day with a much wider spread. The movement of these two stocks is completely different. Your ability to keep a tight stop-loss or to exit easily a winning trade greatly varies.

This does not mean that you should only trade liquid stocks that trade more than 8 million shares a day. It means that everyone has a unique personality, and some personalities can trade illiquid stocks better than liquid stocks. But traders without experience cannot exit losing or winning trades in an illiquid stock accurately. New traders should wait to trade illiquid stocks until they have experience with order routing and order fills.

[ Stop Loss ]

This is the point where you admit you were wrong. No one can pick winning stocks 100% of the time. Accept this fact. You can only play the odds.

Let’s say we buy a stock at $20 with the plan that it will go up to $24. Now we have to decide what to do if the stock does not go up, but suddenly starts to fall. Let’s decide that if the stock moves below $19, we will accept that we were wrong about the direction of the stock, sell the position immediately, and take a small loss. By taking small losses, we preserve our trading capital, which allows us to trade again tomorrow.

Before we even get into a position, we have to measure our risk-reward ratio. In the above example, if we were correct about our stock pick, we would have made 4 points. If we were wrong in our stock pick, we would take a loss of 1 point. That is a risk-reward of 4:1. Let’s say we were only correct about our stock picks 50% of the time and we make four trades. Two were winners (2 x 4 points) equaling 8 points. Two trades were losers (2 x 1) totaling 2 points. We now have a gain of 6 points by only selecting winning stocks 50% of the time. Assuming we were the worst stock pickers in the world and were only correct 25% of the time, we would still have a gain of 1 point.

It is important to keep your risk-reward ratio 4:1. If you can only find a risk-reward ratio of 2:1, leave it alone, sit on your hands, and do nothing. If the market is behaving in a way that you can only find risk-reward ratios of 2:1, you probably have no idea as to which way the market is going to move. The market spends most of its time moving sideways. I have seen many traders lose most of their capital by making themselves trade when they should have stayed on the sidelines.

You have to have the discipline to stay on the sidelines when you do not feel comfortable. Getting into low risk-reward positions because you want to be in the game is wrong. It shows a lack of discipline and the punishment is losing capital.

Automated Trading

2006-03-26T21:45:00.000+08:00

The first impression of most traders is that automated trading creates a system where a “robot” takes over and makes all of the trading decisions, then executes them. Another version has the trader crafting the strategy and leaving the actual execution – the part that requires the physical presence – to the automation platform.

Some trading systems are excellent candidates for complete automation. They have simple rules but may require off-hours trading, frequent trading, or some other element that is ideally suited for automation.

Beyond those systems are more advanced and discretion-driven systems. These kinds of systems require trader intervention at some point. An advanced automated systems allow for this kind of nuanced interaction, but some traders are simply more comfortable knowing their hands are on the wheel. These traders often believe that discretion, or the "art" of trading, is the key element, and since a machine cannot possibly employ the level of nuance a human can, they discount automated trading altogether. Yet there is something in automation for all traders, beginning with the basic trading techniques of automated platforms:

1. Auto Entry - Auto Exit

2. Auto Entry - Manual Exit

3. Manual Entry - Auto Exit

4. Manual Entry - Manual Exit

[ Not All Systems Are Made For Complete Automation ]

A skilled trader can make money using any toolkit, and in some cases systems will simply be outside the realm of complete automation. Some examples of these systems include:

Event Driven Systems. Since events are spontaneous, manual entry is required for these systems. Still, an automated system can assist event traders by providing complete control after entry has occurred, all the way to the exit of the trade.

Non-Quantitative Systems. Though technically driven systems have grown in prominence, many traders reply upon fundamental indicators that do not readily lend themselves to automation. In some cases these systems can employ automated entry or exit, and for some the advanced intra-trade tools allow for extremely fine, automated control of trades.

Highly Discretionary Systems. Some traders work off pure feel of the markets, or use little-known chart patterns to dictate their trading choices. In these cases some form of automation will give these traders an edge they did not have access to previously.

What’s the best way to know if a system is suitable for automation? Historical testing. Traders can create engines and test them historically, then let the results speak for themselves. Some engines will show dramatic results with no intervention. Other engines may show excellent results but be dominated by “giveback” – a hint that perhaps some manual tweaking is required. A quick look at the actual trades in the historical test report will allow the trader to determine what happened and how they could have possibly intervened to improve the results.

Once engines with a comfortable set of parameters are in place, live testing can begin. Remember, some test trades are identical to its live trades, so demo trading with complete automation or with some manual manipulation will replicate live trading conditions. Once tests have successfully met targets, real trading puts the trader in a position to have automated trading techniques like these positively affect the bottom line.

Forex Recomended Book II

2006-03-25T12:41:00.000+08:00

Intermarket Technical Analysis

by John J. Murphy

Product Description:

Trying to trade stock, bond, commodity and currency markets without intermarket awareness is like trying to drive a car without looking out the side and rear windows-very dangerous. In this guide to intermarket analysis, the author uses years of experience in technical analysis plus extensive charts to clearly demonstrate the interrelationshps that exist among the various market sectors and their importance. You'll learn how to use activity in surrounding markets in the same way that most people employ traditional technical indicators for directional clues. Shows the analyst how to focus outward, rather than inward, to provide a more rational understanding of technical forces at work in the marketplace.

Applying Elliott Wave Theory Profitably

by Steven W. Poser

Product Description:

"I have always found Elliott Wave difficult to understand and more difficult to apply, but finally Steve Poser has written a book that makes sense and is born from real experience. This is not Elliott made easy but Elliott that makes sense. Hats off to Poser for creating the book the marketplace has needed for so long."

Bruce M. Kamich, CMT Adjunct Professor of Finance at Baruch College and Rutgers University

The Foreign Exchange and Money Markets Guide

by Julian Walmsley

Product Description:

This updated, totally revised, and expanded edition of finance expert Julian Walmsley's popular classic is the one book you'll need. Practical and easy-to-understand, this unique reference provides guidance on every important market around the world, including closely related money markets such as the commercial paper and Eurocommercial paper markets, national money markets, interest rate options markets, and numerous related instruments.

Currency Strategy

by Callum Henderson

Product Description:

Currency Strategy develops new techniques and explains classic tools available for predicting, managing, and optimizing fluctuations in the currency markets. Author Callum Henderson shows readers how traditional macroeconomic theory has repeatedly failed in the face of practical experience in these markets and develops a new approach based on experience. He draws on the technical expertise of his bank to develop mathematical models to assist in the prediction of crises and gives practical advice on how to use these and other tools successfully.

The New Market Wizards : Conversations With America's Top Traders

by Jack D. Schwager

Product Description:

In one of the most popular finance books ever written, Jack Schwager introduces us to some of today's most successful and fascinating supertraders. Get the story behind Stan Drukenmiller--who runs Soros' Quantum Fund. Meet Bill Lipschutz , the former architect who became Salomon Brothers' most successful currency trader. Trace the fascinating roots of the now legendary circle of traders known as the Turtles.

In this sequel to the bestselling Market Wizards, Schwager taps into the minds of today's top financial wizards and reveals the secrets of their astonishing success. "Provides unique insight into the arcane world of currency trading as well as other fast-moving markets".--U.S. News & World Report

Currency Trading

by Philip Gotthelf

Product Description :

The first and last word on trading within currency markets. Expert trading veteran Philip Gotthelf provides the first comprehensive guide to currency speculation aimed toward the average investor. Combining fundamental and technical analysis, this book teaches traders how to take advantage of fluctuations within the currency markets and capture enormous gains. Currency Trading takes the latest developments in the FOREX market and provides readers with a complete trading plan.

GCI Trading

2006-03-24T15:25:00.000+08:00

GCI Financial Ltd ("GCI") is one of the world's largest online foreign exchange and Share CFD brokers, executing billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference ("CFDs") on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requireents for securities brokers and futures dealers.

Company Name:
GCI Financial Ltd

Website Address:
http://www.gcitrading.com

Year of company's foundation:
2002

Year of company's forex division foundation:
2002

Regulated by:
IFSC (British Virgin Islands)

Client base:
Global

Leverage:
200:1

Commissions:
None

Pip spread on majors:
3+ pip

Mini Account:
yes

Minimum account size for Mini Accounts:
$500

Regular Account:
yes

Minimum account size for Regular Account:
$2,000

Services:
24 hour online foreign exchange brokerage. Free eSignal charting and data, market commentary and analysis. Electronic "mini" forex trading with 200:1 leverage. Share and futures CFD trading

Languages:
English, Spanish, German, French, Portuguese, Chinese, Arabic, Russian

24 Hour trading:
Yes

Free demo account:
Yes

Live support chat:
Yes

Headquarters:
DataPro Park 13.5 Mile North Highway Ladyville, Belize

Phone:
+501 2231124

Fax:
+501 2231868

E-mail:
info@gcitrading.com

Trading Strategy

2006-03-24T01:23:00.000+08:00

There are countless ways to invest and trade. One question that immediately needs to be answered is "In what timeframe do you plan to focus your investing?" There are major differences between the active day trader and the long-term buy and hold investor. Let's break down the different stock trading strategies based upon timeframe and look at the advantages and disadvantages for each.

[ Day Trading ]

The stock or futures day trader is someone who is buying and selling intraday. They tend to do this with frequency throughout the day. A day trader may trade a few times per day or dozens of times per day.

Advantages: No overnight hold exposure. Can profit both long and short and take advantage of quick swings in both directions. Can focus on a higher winning percentage of trades by taking quicker profits and smaller risk.

Disadvantages: Work. Simply put, day trading requires the most effort. Your attention on the markets has to be consistent - not always constant but certainly quite active, at least during portions of the trading day. Trading costs are another consideration. You tend to run up a large commission bill when investing frequently.

[ Swing Trading ]

The swing trader could be a stock, option or futures investor. This person is looking to take larger bites out of the stock market that can stretch over a day or multiple days and weeks.

Advantages: Slower cycle of trades, meaning fewer trades to make, fewer commissions, less chance of error and the ability to catch the more significant multi-day profitable swing trades. Technical analysis is used primarily to identify these opportunities. Average profit target percentage is much higher typically than day trading.

Disadvantages: With those higher profit targets comes higher risk per trade. If you are looking to trade over a longer timeframe, you have to expect your average risk per trade will need to be higher simply to account for the retracements that are common in all stock and futures markets trading. There is also overnight exposure and you would be exposed to any major developments.

[ Long Term Swing Trading ]

The long term swing trader is someone who trades much like the swing trader discussed above, but he typically focuses on several weeks to months in average trading timeframe. Many times this type of investor is trading the indexes, timing mutual funds, or focusing on both technical and fundamental analysis.

Advantages: This trading strategy certainly filters out the 'noise' that is common in virtually all trading markets. What do we mean by this? It is easy to get faked out by small moves against the trend or your trade when day trading or even swing trading. The longer-term swing trader is less likely to get caught in these normal market wiggles. The profit objectives can be quite large. It is not uncommon to target 20%, 30%, 50% or more when trading out over a few weeks and months.

Disadvantages: Once again, the larger the timeframe usually the larger your initial risk, especially with stocks that are volatile. You must give those markets enough 'breathing room' to do their usual retracements but still stay with the trades. You'll also miss out on the numerous shorter-term swings that any market will make - even in a long sustained uptrend there tend to be quite a few solid shorting opportunities.

[ Buy and Hold Investing ]

Usually someone who has built a portfolio of stocks, bonds and mutual funds who looks to hold for the longest term.

Advantages: If you pick right using plenty of fundamental analysis and market sentiment analysis, the gains can be quite large with very few trading costs.

Disadvantages: Most buy and hold investors wouldn't know a protective stop if it slapped them in the face. What does that mean? It means that 98% of the buy and hold investors we've ever talked to have absolutely no plan for their investment. No idea of a profit objective and certainly no idea when to give up and move on. Why do you think so many lost 90% or more in the bear market? The buy and hold investors just couldn't bring themselves to sell. This is why we feel the buy and hold investor should re-classify himself as a long-term swing trader. You go from no strategy to a specific strategy where you always know when you enter a trade, what your objectives are, and how you'll exit should the markets go against you.

Forex Recomended Book I

2006-03-23T16:39:00.000+08:00

Trading in the Global Currency Markets

by Cornelius Luca

Product Description :

An in depth look at the tremendous potential of this vital market with expert advice from one of the foremost authorities. The foreign exchange market is the world's largest and fastest growing financial terrain. Despite its high trading volume, it is also a market little understood and little regulated. This definitive resource brings the universe of foreign exchange within reach of every investor. The revised edition includes complete comprehensive coverage of the euro and the latest historical and economic changes in the market.

Cornelius Luca, a renowned authority on international investing, draws on the insights of leading experts in diverse fields of specialty to explain every crucial aspect of foreign exchange. He provides investors with an arsenal of trading weapons, many on the cutting edge of technology. Demystifying the intricacies of these markets, the book includes:

Analysis of the mechanics of the market, the major players and markets, the pertinent risks, corporate trading, and methods of trading execution.

A thorough overview of foreign exchange instruments and major option strategies, with clear explanations of why currencies are traded and how to forecast currency behavior. An in-depth look at the three types of analysis:

fundamental, technical, and econometric. Featuring 200 charts and graphics, TRADING IN THE GLOBAL CURRENCY MARKETS is an indispensable guide to a daunting yet promising financial playing field.

An Introduction to Foreign Exchange & Money Markets

by UK London Reuters Limited

Product Description :

A new concept in financial education training - The Reuters Financial Training Series: An Introduction to Foreign Exchange & Money Markets, will guide novices through the intricacies of the world's wealthiest capital exchange markets. This book sets out to give a clear understanding of how and why these markets function, and explains the associated jargon. Readers will be able to take a more detailed look at Money Market and Foreign Exchange instruments and will be able to examine, in particular, the parameters which must be defined in order to place a value on these instruments, together with basic valuation techniques.

Technical Analysis Applications in the Global Currency Markets

by Cornelius Luca

Product Description:

Now updated and revised with all new charts and key information on the euro. The introduction of the euro and the recent explosion of electronic trading has changed the outlook of the foreign exchange market dramatically. Global currency trading offers staggering rewards for those with the knowledge to capitalize on it.

This updated guide provides an easy-to-follow roadmap for beginners and experienced traders alike on how to use technical analysis-with revised charts and graphs-to cash in on these enormous opportunities.

The only guide of its kind to focus solely on all aspects of technical analysis, Luca explains and illustrates:

» The fundamentals of technical analysis and how it applies to foreign exchange What one must learn about trends and trend patterns

» How the major players in foreign exchange analyze their charts

» The quantitative methods of analysis-including all types of moving averages, oscillators, and other indicators

This book provides a thorough, yet easy-to-grasp explanation and analysis of point and figure charting, candlestick charting, the Gann methods, and the Elliot Wave principle. Also included is an updated CD-ROM that lets readers test the methods presented and apply them to real trading-and quickly increase proficiency in charting and chart analysis.

Technical Analysis of the Financial Markets : A Comprehensive Guide to Trading Methods and Applications

by John Murphy

Product Description:

John J. Murphy has now updated his landmark bestseller Technical Analysis of the Futures Markets, to include all of the financial markets. "If one could read only one book on technical analysis, this should be the one." --Knight-Ridder Financial Products and News (on the first edition, Technical Analysis of the Futures Markets, 0-13-898008-X)

This outstanding reference has already taught thousands of traders the concepts of technical analysis and their application in the futures and stock markets. Covering the latest developments in computer technology, technical tools, and indicators, the second edition features new material on candlestick charting, intermarket relationships, stocks and stock rotation, plus state-of-the-art examples and figures. From how to read charts to understanding indicators and the crucial role technical analysis plays in investing, readers gain a thorough and accessible overview of the field of technical analysis, with a special emphasis on futures markets. Revised and expanded for the demands of today's financial world, this book is essential reading for anyone interested in tracking and analyzing market behavior.

"One way to get started in technical analysis is to read a good book on the subject. One of my favorites is Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy. It's an easy read." Ralph J. Acampora, CMT, Managing Director, Prudential Securities Inc.

The Encyclopedia Of Technical Market Indicators, Second Edition

by Robert W. Colby

Product Description:

Encyclopedic format provides an alphabetical and up to date listing of hundreds of today's most important indicators. This book explains the philosophy behind the indicator, and its greatest importance. As well, it will provide easy to understand guidelines for using it in day to day trading.

Trend in Forex

2006-03-23T06:01:00.000+08:00

What is trend? The simplest identifiers of trend direction are higher lows in an uptrend and lower highs in a downtrend. Some define trend as a deviation from a range as indicated by Bollinger Band "bands". For others, a trend occurs when prices are contained by an upward or downward sloping 20-period simple moving average (SMA).

Regardless of how one defines it, the goal of trend trading is the same - join the move early and hold the position until the trend reverses. The basic mindset of trend trader is "I am right or I am out?" The implied bet all trend traders make is that price will continue in its present direction. If it doesn't there is little reason to hold onto the trade. Therefore, trend traders typically trade with tight stops and often make many probative forays into the market in order to make the right entry.

By nature, trend trading generates far more losing trades than winning trades and requires rigorous risk control. The usual rule of thumb is that trend traders should never risk more than 1.5-2.5% of their capital on any given trade. On a 10,000-unit (10K) account trading 100K standard lots, that means stops as small as 15-25 pips behind the entry price. Clearly, in order to practice such a method, a trader must have confidence that the market traded will be highly liquid.

Of course the FX market is the most liquid market in the world. With US$1.6 trillion of average daily turnover, the currency market dwarfs the stock and bond markets in size. Furthermore, the FX market trades 24 hours a day five days a week, eliminating much of the gap risk found in exchange-based markets. Certainly gaps sometimes happen in FX, but not nearly as frequently as they occur in stock or bond markets, so slippage is far less of a problem.

[ High Leverage - Large Profits ]

When trend traders are correct about the trade, the profits can be enormous. This dynamic is especially true in FX where high leverage greatly magnifies the gains. Typical leverage in FX is 100:1, meaning that a trader needs to put down only $1 of margin to control $100 of the currency. Compare that with the stock market where leverage is usually set at 2:1, or even the futures market where even the most liberal leverage does not exceed 20:1.

It's not unusual to see FX trend traders double their money in a short period if they catch a strong move. Suppose a trader starts out with $10,000 in his or her account, and uses a strict stop-loss rule of 20 pips. The trader may get stopped out five or six times, but if he or she is properly positioned for a large move - like the one in EUR/USD between Sept and Dec 2004 when the pair rose more than 12 cents, or 1,200 pips - that one-lot purchase could generate something like a $12,000 profit, doubling the trader's account in a matter of months.

Of course few traders have the discipline to take stop losses continuously. Most traders, dejected by a series of bad trades tend to become stubborn and fight the market, often placing no stops at all. This is when FX leverage can be most dangerous. The same process that quickly produces profits can also generate massive losses. The end result is that many undisciplined traders suffer a margin call and lose most of their speculative capital.

Trading trend with discipline can be extremely difficult. If the trader uses high leverage he or she leaves very little room to be wrong. Trading with very tight stops can often result in 10 or even 20 consecutive stop outs before the trader can find a trade with strong momentum and directionality.

For this reason many traders prefer to trade range-bound strategies. Please note that when I speak of ‘range-bound trading' I am not referring to the classic definition of the word 'range'. Trading in such a price environment involves isolating currencies that are trading in channels, and then selling at the top of the channel and buying at the bottom of the channel. This can be a very worthwhile strategy, but, in essence, it is still a trend-based idea - albeit one that anticipates an imminent countertrend.

GFX SA

2006-03-22T17:38:00.000+08:00

GFX Group SA is a Forex broker based in Geneva, Switzerland. GFX powerful and easy-to-use software, secure trading environment, and superior trading conditions make GFX the fastest growing Forex dealer today. GFX is regarded as one of the top Forex brokers in the world and is recommended by many leading industry participants.

The proprietary GFX "GlobalTrader" software sets a new standard in online trading functionality, performance, and ease of use. GlobalTrader takes only seconds to download and install, and performs flawlessly on all Windows operating systems. Clients can trade 33 currency pairs, as well as gold, silver, stock market indices, and crude oil. Other advantages include instant online fills, free charts, real-time profit and equity tracking, fractional lot size capabilities, hedging capabilities, and 0.5% margin requirements.

Company Name:
GFX Group SA

Website Address:
www.gfxsa.com

Year of company's foundation:
2005

Year of company's forex division foundation:
2005

Regulated by:
SFDF/Polyreg (Switzerland)

Client base:
Individual clients, Institutional clients, Introducing Brokers and Trading Manager

Leverage:
200:1

Commissions:
None

Pip spread on majors:
2/3 pip

Mini Account:
yes

Minimum account size for Mini Accounts:
$2,000

Regular Account:
yes

Minimum account size for Regular Account:
$2,000

Services:
GFX Group SA is a Forex broker based in Geneva, Switzerland. Our powerful and easy-to-use software, secure trading environment, and superior trading conditions make GFX the fastest growing Forex dealer today. GFX is unique in offering narrow spreads, 0.5% margin requirements, guaranteed fills, and commission-free trading in 33 currencies, metals, stock market indices and crude oil. GFX Group SA is regulated as a Financial Intermediary under Swiss Federal Law and offers 24 hour customer support in multiple languages. Free demo accounts are available at www.gfxsa.com

Languages:
English, Spanish, German, French, Korean, Arabic, Farsi

24 Hour trading:
Yes

Free demo account:
Yes

Live support chat:
Yes

Headquarters:
World Trade Center 1, Route de l'Aéroport 10, 1215 Geneva 15 Switzerland

Phone:
+41-22-799-4100

Fax:
+41-1-355-3586

E-mail:
info@gfxsa.com

GFT Forex

2006-03-21T04:57:00.000+08:00

Global Forex Trading (GFT), Division of Global Futures & Forex, Ltd., was founded in 1997 by Gary L. Tilkin. GFT was created to address the increasing number of foreign currency trading demands Tilkin's clients had in the futures and spot forex markets. Tilkin also formed GFT to bring integrity in products and improved customer service to forex clients, an emerging market for individual speculation. Global Futures & Forex, Ltd. remains the parent company of GFT, with its business focused on providing clients access to futures contracts.

Company Name:
Global Forex Trading

Website Address:
http://www.gftforex.com

Year of company's foundation:
1997

Year of company's forex division foundation:
1997

Regulated by:
CFTC - SEC - NFA (USA); ASIC (Australia)

Client base:
GFT offers a wide range of innovative offering for trading forex, including self-directed trading, letter of direction and managed accounts. With GFT’s DealBook® FX 2, a completely customizable trading program, you can trade more than 60 currency pairs directly from the charting interface.

Leverage:
100:1

Commissions:
None

Pip spread on majors:
3/5 pip

Mini Account:
yes

Minimum account size for Mini Accounts:
$2,500

Regular Account:
yes

Minimum account size for Regular Account:
$2,500

Services:
GFT offers a wide range of innovation forex offering, including self-directed trading, facilitated (letter of direction) and managed forex accounts from professional money managers. Global Forex Trading offers its currency traders pricing for more than 60 currency pairs, analytical services from forex industry experts, up-to-the-minute foreign exchange and market-moving news bundled within a completely customizable software package.

Languages:
English, Spanish, German, French, Portuguese, Chinese, Japanese, Korean, Polish

24 Hour trading:
Yes

Free demo account:
Yes

Live support chat:
Yes

Headquarters:
4760 Fulton Rd. suite 201, Ada Michigan 49301

Phone:
+1 6169569273

Fax:
+1 6169743682

E-mail:
www.gftforex.com/contact

Stock an Introduction II

2006-03-20T08:38:00.000+08:00

[ Means of Financing ]

Financing a company through the sale of stock in a company is known as equity financing. Alternatively, debt financing (for example issuing bonds) can be done to avoid giving up shares of ownership of the company. Unofficial financing known as trade financing usually provides the major part of a company's working capital (day-to-day operational needs). Trade financing is provided by vendors and suppliers who sell their products to the company at short-term, unsecured credit terms, usually 30-days. Equity and debt financing are usually used for longer-term investment projects such as investments in a new factory or a new foreign market.

[ Trading ]

A stock exchange is an organization which provides a marketplace (either physical or virtual) for trading shares, where investors (represented by stock brokers) may buy and sell shares in a wide range of companies. A given company will usually list its shares in only one exchange by meeting and maintaining the listing requirements of that particular stock exchange. In the United States, through the inter-market quotation system, a stocks listed on one exchange can also be bought or sold on several other exchanges, including relatively new internet-only exchanges. Stocks are broadly grouped into NYSE-listed and NASDAQ-listed stocks and exchanges where NYSE-listed stocks may be bought are generally not the same group as the exchanges where NASDAQ-listed stocks may be bought. Many large foreign companies choose to list on a U.S. exchange as well as an exchange in their home country in order to broaden their investor base. These shares are called American Depository Receipts (ADRs). Large U.S. companies also list in foreign exchanges for the same reason.

[ Buying ]

There are various methods of buying and financing stocks. The most common means is through a stock broker. Whether they are a full service or discount broker, they are all doing one thing – arranging the transfer of stock from a seller to a buyer. Most of the trades are actually done through brokers listed with a stock exchange such as the New York Stock Exchange.

There are many different stock brokers to choose from such as full service brokers or discount brokers. The full service brokers usually charge more per trade, but give investment advice or more personal service; the discount brokers offer little or no investment advice but charge less for trades. Another type of broker would be a bank or credit union that may have a deal set up with either a full service or discount broker.

There are other ways of buying stock besides through a broker. One way is directly from the company itself. If at least one share is owned, most companies will allow the purchase of shares directly from the company through their investor's relations departments. However, the initial share of stock in the company will have to be obtained through a regular stock broker. Another way to buy stock in companies is through Direct Public Offerings which are usually sold by the company itself. A direct public offering is an initial public offering a company in which the stock is purchased directly from the company, usually without the aid of brokers.

When it comes to financing a purchase of stocks there are two ways: purchasing stock with money that is currently in the buyers ownership or by buying stock on margin. Buying stock on margin means buying stock with money borrowed against the stocks in the same account. These stocks, or collateral, guarantee that the buyer can repay the loan; otherwise, the stockbroker has the right to sell the stocks (collateral) to repay the borrowed money. He can sell if the share price drops below the margin requirement, at least 50 percent of the value of the stocks in the account. Buying on margin works the same way as borrowing money to buy a car or a house using the car or house as collateral. Moreover, borrowing is not free; the broker usually charges 8-10 percent interest.

[ Selling ]

Selling stock is procedurally similar to buying stock. Generally, the investor wants to buy low and sell high, if not in that order (short selling); although a number of reasons may induce an investor to sell at a loss.

As with buying a stock, there is a transaction fee for the broker's efforts in arranging the transfer of stock from a seller to a buyer. This fee can be high or low depending on which type of brokerage, discount or full service, handles the transaction.

After the transaction has been made, the seller is then entitled to all of the money. An important part of selling is keeping track of the earnings. Importantly, on selling the stock, in jurisdictions that have them, capital gains taxes will have to be paid on the additional proceeds, if any, that are in excess of the cost basis.

[ Technology's Influence on Trading ]

Stock trading has evolved tremendously. Since the very first Initial Public Offering (IPO) in the 13th century, owning shares of a company has been a very attractive incentive. Even though the origins of stock trading go back to the 13th century, the market as we know it today did not catch on strongly until the late 1800s.

Co-production between technology and society has led the push for effective and efficient ways of trading. Technology has allowed the stock market to grow tremendously, and all the while society has encouraged the growth. Within seconds of an order for a stock, the transaction can now take place. Most of the recent advancements with the trading have been due to the Internet. The Internet has allowed online trading. In contrast to the past where only those who could afford the expensive stock brokers, anyone who wishes to be active in the stock market can now do so at a very low cost per transaction. Trading can even be done through Computer-Mediated Communication (CMC) use of mobile devices such as handheld computers and cellular phones. These advances in technology have made day trading possible.

The stock market has grown so that some argue that it represents a country's economy. This growth has been enjoyed largely to the credibility and reputation that the stock market has earned.

[ Types of Shares ]

There are several types of shares, including common stock, preferred stock, treasury stock, and dual class shares. Preferred stock, sometimes called preference shares, have priority over common stock in the distribution of dividends and assets, and sometime have enhanced voting rights such as the ability to veto mergers or acquisitions or the right of first refusal when new shares are issued (i.e. the holder of the preferred stock can buy as much as they want before the stock is offered to others). A dual class equity structure has several classes of shares (for example Class A, Class B, and Class C) each with its own advantages and disadvantages. Treasury stock are shares that have been bought back from the public. Treasury Stock is considered issued but not outstanding.

[ Derivatives ]

A stock option is a class of option. Specifically, a call option is the right (not obligation) to buy stock in the future at a fixed price and a put option is the right (not obligation) to sell stock in the future at a fixed price. Thus, the value of a stock option changes in reaction to the underlying stock of which it is a derivative. The most popular method of valuing stock options is the Black Scholes Option[2]

Stock an Introduction I

2006-03-19T21:16:00.000+08:00

In financial terminology, stock is the capital raised by a corporation, through the issuance and sale of shares. A shareholder is any person or organization which owns one or more shares of a corporation's stock. The aggregate value of a corporation's issued shares is its market capitalization.

In British English, the word stock has another completely different meaning in finance, referring to a bond. It can also be used more widely to refer to all kinds of marketable securities. Where a share of ownership is meant the word share is usually used in British English.

[ History ]

The first company that issued shares was the VOC or Dutch East India Company in the early 17th century (1602).

The innovation of joint ownership made a great deal of Europe's economic growth possible following the middle ages. The technique of pooling capital to finance the building of ships, for example, made the Netherlands a maritime superpower. Before the widespread adoption of the joint-stock corporation, an expensive venture such as building a merchant ship could only be undertaken by governments or by very wealthy individuals or families.

[ Ownership ]

The owners of a company may want additional capital to invest in new projects within the company. They may also simply wish to reduce their holding, freeing up capital for their own private use.

By selling shares they can sell part or all of the company to many part-owners. The purchase of one share entitles the owner of that share to literally share in the ownership of the company a fraction of the decision-making power, and potentially a fraction of the profits, which the company may issue as dividends.

In the common case, where there are thousands of shareholders, it is impractical to have all of them making the daily decisions required in the running of a company. Thus, the shareholders will use their shares as votes in the election of members of the board of directors of the company.

Each share constitutes one vote (except in a co-operative society where every member gets one vote regardless of the number of shares they hold). Owning the majority of the shares allows other shareholders to be out-voted - effective control rests with the majority shareholder (or shareholders acting in concert). In this way the original owners of the company often still have control of the company.

[ Shareholder Rights ]

Although owning 51% of shares does mean that you own 51% of the company, it does not give you the right to use a company's building, equipment, materials, or other property. This is because the company is considered a legal person, thus it owns all its assets itself. This is important in areas such as insurance, which must be in the name of the company and not the main shareholder.

In most countries, including the United States, boards of directors and company managers have a fiduciary responsibility to run the company in the interests of its stockholders. Nonetheless, as Martin Whitman writes:

"...it can safely be stated that there does not exist any publicly traded company where management works exclusively in the best interests of OPMI [Outside Passive Minority Investor] stockholders. Instead, there are both "communities of interest" and "conflicts of interest" between stockholders (principal) and management (agent). This conflict is referred to as the principal/agent problem. It would be naive to think that any management would forego management compensation, and management entrenchment, just because some of these management privileges might be perceived as giving rise to a conflict of interest with OPMIs." [Whitman, 2004]

Even though the board of directors runs the company, the shareholder has some impact on the company's policy, as the shareholders elect the board of directors. Each shareholder typically has a percentage of votes equal to the percentage of shares he or she owns. So as long as the shareholders agree that the management (agent) are performing poorly they can elect a new board of directors which can then hire a new management team. In practice, however, genuinely contested board elections are rare. Board candidates are usually nominated by insiders or by the board of the directors themselves, and a considerable amount of stock is held and voted by insiders.

Owning shares does not mean responsibility for liabilities. If a company goes broke and has to default on loans, the shareholders are not liable in any way. However, all money obtained by converting assets into cash will be used to repay loans and other debts first, so that shareholders cannot receive any money unless and until creditors have been paid (most often the shareholders end up with nothing).[1]

Elliott Wave Theory

2006-03-19T06:38:00.000+08:00

Ralph Nelson Elliott developed the Elliott Wave Theory in the late 1920s by discovering that stock markets, thought to behave in a somewhat chaotic manner, in fact, did not. They traded in repetitive cycles, which he discovered were the emotions of investors as a cause of outside influences, or predominant psychology of the masses at the time. Elliott stated that the upward and downward swings of the mass psychology always showed up in the same repetitive patterns, which were then divided into patterns he termed "waves".

The theory is somewhat based upon the Dow Theory inasmuch as the price movements move in waves. It was understood by the technicians at the time that because of the fractal nature of the markets, Elliott was able to break down and analyze the markets in much greater detail.

Elliott was able to spot unique characteristics of wave patterns and make detailed market predictions based on the patterns he identified. Fractals are mathematical structures, which on an ever-smaller scale infinitely repeat themselves. The patterns that Elliott discovered are built in the same way. An impulsive wave, which goes with the main trend, always shows five waves in its pattern. On a smaller scale, within each of the impulsive waves of the before-mentioned impulse, five waves can again be found. In this smaller pattern, the same pattern repeats itself ad infinitum. These ever-smaller patterns are labeled as different wave degrees in the Elliott Wave Principle. Only much later were fractals recognized by scientists.

In the financial markets we know that "every action creates an equal and opposite reaction" as a price movement up or down must be followed by a contrary movement. Price action is divided into trends and corrections or sideways movements. Trends show the main direction of prices while corrections move against the trend. Elliot labeled these "impulsive waves" and "corrective waves".

The interpretation of the Elliot Wave Theory is as follows:

» Every action is followed by a reaction.
» There are five waves in the direction of the main trend followed by three corrective waves (a "5-3" move).
» A 5-3 move completes a cycle.
» This 5-3 move then becomes two subdivisions of the next higher 5-3 wave.
» The underlying 5-3 pattern remains constant, though the time span of each may vary.

Let's have a look at the following chart made up of eight waves (five up and three down) which are labeled 1, 2, 3, 4, 5, a, b and c.

You can see that the three waves in the direction of the trend are impulses, so these waves also have five waves. The waves against the trend are corrections and are composed of three waves.

In the 70s, this wave principle gained popularity through the work of Frost and Prechter. They published a legendary book on the Elliott Wave, entitled "The Elliott Wave Principle – The Key to Stock Market Profits". In this book, the authors predicted the bull market of the 1970s, and Robert Prechter called the crash of 1987.

The corrective wave formation normally has three, in some cases five or more, distinct price movements, two in the direction of the main correction (A and C) and one against it (B). Waves 2 and 4 in the above picture are corrections. These waves have the following structure:

Note that the waves A and C go in the direction of the shorter-term trend, and therefore are impulsive and composed of five waves, which is shown in the picture above.

An impulse-wave formation followed by a corrective wave, form an Elliott wave degree, consisting of trends and countertrends. Although the patterns pictured above are bullish, the same applies for bear markets, where the main trend is down.

The Elliott Wave Theory has assigned a series of categories to the waves in order of the largest to the smallest. They are:

» Grand Supercycle
» Supercycle
» Cycle
» Primary
» Intermediate
» Minor
» Minute
» Minuette
» Sub-Minuette

To use the theory in everyday trading, the trader determines the main wave, or supercycle, goes long and then sells or shorts the position as the pattern runs out of steam and a reversal is eminent.

Forex System and Strategy Book II

2006-03-18T19:27:00.000+08:00

The Global Trader: Strategies for Profiting in Foreign Exchange, Futures and Stocks

by Barbara Rockefeller

Product Description:

Barbara Rockefeller brings the authority and perspective of a knowing insider to this well-written account of the risks and opportunities in trading highly leveraged markets like interbank currencies and futures. Face it, the U.S. stock market has been analyzed to death. Long- and short-term investors are looking outside domestic markets to enhance portfolio performance and diversify the way they trade. This is why the concept of a global trader has become so prevalent. Whether you are looking to balance your portfolio, generate profits, or hedge risk, The Global Trader can help you make informed decisions about your global investments. Let Barbara Rockefeller unlock the opportunities and help you find the tools, guidance, and resources to make the most of trading in the less efficient yet potentially more profitable global markets of Europe, Asia, and beyond.

Winning Market Systems

by Gerald Appel

Product Description:

This brand New Editiom of the classic book by Jerry Appel is a one-stop source of winning strategies and technical indicators. The New Edition includes a special updated section for trading in after the '87 Crash markets. The system strategies and indicators of many well-known market analysts are detailed in this book: Larry William's accumulation-distribution formula; Worden's tick system; Zweig's Option Activity ratio; Martel's short-term supply-demand charting system; Arm;s short-term trading index (TRIN), Granville's On-Balance Volume system; Edson Gould's speed resistance lines, and many more. In addition, you are shown the inner workings of the Haurian Index, the Haller Theory, the interpretation of the A/D line, the McClellan Oscillator as a short-term indicator, and many other tools. Other helpful strategies include the most bullish trendline formation, how to predict trendline violations, an early warning system, how to interpret the most actives list, the best hours, days and months to buy, and much, much more.

The Ultimate Trading Guide

by John R. Hil

Product Description:

Provides traders with the tools needed to develop systems based on sound logic, including explanations of: the principles behind trading systems, how various systems operate, the tools and background for developing computerized trading systems, and short-term market timing techniques for any market

Four Steps to Trading Success: Using Everyday Indicators to Achieve Extraordinary Profits

by John F. Clayburg

Product Description:

Offers techniques for identifying major trends and using indicators to find the optimal period in which to buy and sell as stock in order to make a good profit. Discusses how to develop an effective system based on these techniques, how to interpret multiple indicators for optimum returns, and how to use current software to automate this system.

Trading with a Strategy

2006-03-18T10:58:00.000+08:00

Trading successfully is by no means a simple matter. It requires time, market knowledge and market understanding and a large amount of self restraint. Forex Brokers does not manage accounts, nor does it give market advice, that is the job of money managers and introducing brokers. As market professionals, they can however point the novice in the right direction and indicate what are correct trading tactics and considerations and what is total nonsense.

Anyone who says you can consistently make money in foreign exchange markets is being untruthful. Foreign exchange by nature, is a volatile market. The practice of trading it by way of margin increases that volatility exponentially. Brokers are therefore talking about a very 'fast market' which is naturally inconsistent. Following that precept, it is logical to say that in order to make a successful trade, a trader has to take into account technical and fundamental data and make an informed decision based on his perception of market sentiment and market expectation. Timing a trade correctly is probably the most important variable in trading successfully but invariably there will be times where a traders' timing will be off. Don't expect to generate returns on every trade.

Let's enumerate what a trader needs to do in order to put the best chances for profitable trades on his side:

[ Trade with money you can afford to lose ]

Trading fx markets is speculative and can result in loss, it is also exciting, exhilarating and can be addictive. The more you are 'involved with your money' the harder it is to make a clear-headed decision. Money you have earned is precious, but money you need to survive should never be traded.

[ Identify the state of the market ]

What is the market doing? Is it trending upwards, downwards, is it in a trading range. Is the trend strong or weak, did it begin long ago or does it look like a new trend that's forming. Getting a clear picture of the market situation is laying the groundwork for a successful trade.

[ Determine what time frame you're trading on ]

Many traders get in the market without thinking when they would like to get out, after all the goal is to make money. This is true but when trading, one must extrapolate in his mind's eye the movement that one expects to happen. Within this extrapolation, resides a price evolution during a certain period of time. Attached to this is the idea of exit price. The importance of this is to mentally put your trade in perspective and although it is clearly impossible to know exactly when you will exit the market, it is important to define from the outset if you'll be 'scalping' (trying to get a few points off the market) trading intra-day, or going longer term. This will also determine what chart period you're looking at. If you trade many times a day, there's no point basing your technical analysis on a daily graph, you'll probably want to analyse 30 minute or hour graphs. Additionally it is important to know the different time periods when various financial centers enter and exit the market as this creates more or less volatility and liquidity and can influence market movements.

[ Time your trade ]

You can be right about a potential market movement but be too early or too late when you enter the trade. Timing considerations are twofold, an expected market figure like CPI, retail sales or a federal reserve decision can consolidate a movement that's already underway. Timing your move means knowing what's expected and taking into account all considerations before trading. Technical analysis can help you identify when and at what price a move may occur. We will look at technical analysis in more detail later.

[ If in doubt, stay out ]

If you're unsure about a trade and find you're hesitating, stay on the sidelines.

[ Trade logical transaction sizes ]

Margin trading allows the fx trader a very large amount of leverage, trading at full margin capacity (in ACM's case 1% or 0.5%) can make for some very large profits or losses on an account. Scaling your trades so that you may re-enter the market or make transactions on other currencies is generally wiser. In short, don't trade amounts that can potentially wipe you out and don't put all your eggs in one basket. ACM offers the same rates regardless of transaction sizes so a customer has nothing to lose by starting small.

[ Gauge market sentiment ]

Market sentiment is what most of the market is perceived to be feeling about the market and therefore what it is doing or will do. This is basically about trend. You may have heard the term 'the trend is your friend', this basically means that if you're in the right direction with a strong trend you will make successful trades. This of course is very simplistic, a trend is capable of reversal at any time. Technical and fundamental data can indicate however if the trend has begun long ago and if it is strong or weak.

[ Market expectation ]

Market expection relates to what most people are expecting as far as upcoming news is concerned. If people are expecting an interest rate to rise and it does, then there usually will not be much of a movement because the information will already have been 'discounted' by the market, alternatively if the adverse happens, markets will usually react violently.

[ Use what other traders use ]

In a perfect world, every trader would be looking at a 14 day RSI and making trading decisions based on that. If that was the case, when RSI would go under the 30 level, everyone would buy and by consequence the price would rise. Needless to say, the world is not perfect and not all market participants follow the same technical indicators, draw the same trendlines and identify the same support & resistance levels. The great diversity of opinions and techniques used translates directly into price diversity. Traders however have a tendency to use a limited variety of technical tools. The most common are 9 and 14 day RSI, obvious trendlines and support levels, fibonnacci retracement, MACD and 9, 20 & 40 day exponential moving averages. The closer you get to what most traders are looking at, the more precise your estimations will be. The reason for this is simple arithmetic, larger numbers of buyers than sellers at a certain price will move the market up from that price and vice-versa.

Interbank FX

2006-03-17T18:47:00.000+08:00

Interbank FX offers a revolutionary approach to foreign currency Trading. Interbank FX platform offers several significant features including:

Expert Advisor: Provides customers with technology to program their trading strategies into the platform that allows them to trade automatically. They also have the option of having the platform prompt them to execute the trade based upon their strategies.

Back-test your trading strategies to check their profit potential.

Multiple charting capability. Interbank FX offers the best charting available to the forex trader. Customers can simultaneously view the USD/JPY 1 minute, 5 minute, 15 minute, 30 minute, 1 hour, 4 hour, daily, and weekly charts. Viewing multiple charts simultaneously is a great help making trading decisions.

Interbank FX offers a revolutionary approach to foreign exchange trading by providing their customers access to direct execution off a streaming quote feed. Their customers have access to real interbank liquidity from 100,000 to 10,000,000 of the base currency with a simple click of the mouse or automatically with an "Expert Advisor". Larger transactions are handled directly with one of Interbank FX professional traders.

[ Information ]

Company Name:
Interbank FX, LLC

Website Address:
www.interbankfx.com

Year of company's foundation:
2001

Year of company's forex division foundation:
2001

Regulated by:
NFA - CFTC (USA)

Client base:
Money Managers, Individuals, Corporations and Introducing Brokers

Leverage:
100:1

Commissions:
None

Pip spread on majors:
2/3 pip

Mini Account:
yes

Minimum account size for Mini Accounts:
$500

Regular Account:
yes

Minimum account size for Regular Account:
$5,000

Services:
24 hour trading in all majors and crosses. Automated trailing stops, full hedging, wireless trading and professional charts. Automate trading strategies and back test their results. 200 – 1 leverage on Mini accounts. Sophisticated Money Manager software: trade 2-100 accounts with 1 click. White Label and Introducing Broker program.

Languages:
English, German, French, Chinese, Japanese, Russian, Polish, Bulgarian

24 Hour trading:
Yes

Free demo account:
Yes

Live support chat:
Yes

Headquarters:
6550 S Millrock Drive Suite 325 Salt Lake City, UT 84121 USA

Phone:
8017336910 - 8664683739 (toll free)

Fax:
801-365-6948

E-mail:
info@interbankfx.com

Leverage in Forex

2006-03-17T05:17:00.000+08:00

Leverage financed with credit, such as that purchased on a margin account is very common in Forex. A margined account is a leverageable account in which Forex can be purchased for a combination of cash or collateral depending what your brokers will accept.

The loan (leverage) in the margined account is collateralized by your initial margin (deposit), if the value of the trade (position) drops sufficiently, the broker will ask you to either put in more cash, or sell a portion of your position or even close your position.

Margin rules may be regulated in some countries, but margin requirements and interest vary among broker/dealers so always check with the company you are dealing with to ensure you understand their policy.

Trading on margin means that a trader can utilize more capital than they have in their account. The volatility of currency pairs is usually less than other markets, such as futures and equities. Since there is less movement, traders leverage their capital to make money on smaller moves. The amount of margin available in Forex is as high as 1% (100:1 leverage), and generally up to 2% (50:1 leverage). With $5,000 of risk capital, you can trade up to $250,000 at 50:1 and $500,000 at 100:1. Your broker determines the amount of margin available to you. The equity and futures markets allow significantly less leverage, up to 4:1 and 15:1, respectively.

Up until this point you are probably wondering how a small investor can trade such large amounts of money (positions). The amount of leverage you use will depend on your broker and what you feel comfortable with. There was a time when it was difficult to find companies prepared to offer margined accounts but nowadays you can get leverage from a high as 1% with some brokers. This means you could control $100,000 with only $1,000.

Typically the broker will have a minimum account size also known as account margin or initial margin e.g. $10,000. Once you have deposited your money you will then be able to trade. The broker will also stipulate how much they require per position (lot) traded.

In the example above for every $1,000 you have you can take a lot of $100,000 so if you have $5,000 they may allow you to trade up to $500,00 of forex.

The minimum security (Margin) for each lot will very from broker to broker. In the example above the broker required a one percent margin. This means that for every $100,000 traded the broker wanted $1,000 as security on the position.

Margin call is also something that you will have to be aware of. If for any reason the broker thinks that your position is in danger e.g. you have a position of $100,000 with a margin of one percent ($1,000) and your losses are approaching your margin ($1,000). He will call you and either ask you to deposit more money, or close your position to limit your risk and his risk.

If you are going to trade on a margin account it is imperative that you talk with your broker first to find out what their polices are on this type of accounts.

Variation Margin is also very important. Variation margin is the amount of profit or loss your account is showing on open positions.

Let's say you have just deposited $10,000 with your broker. You take 5 lots of USD/JPY, which is $500,000. To secure this the broker needs $5,000 (1%).

The trade goes bad and your losses equal $5001, your broker may do a margin call. The reason he may do a margin call is that even though you still have $4,999 in your account the broker needs that as security and allowing you to use it could endanger yourself and him.

Another way to look at it is this, if you have an account of $10,000 and you have a 1 lot ($100,000) position. That's $1,000 assuming a (1% margin) is no longer available for you to trade. The money still belongs to you but for the time you are margined the broker needs that as security.

Another point of note is that some brokers may require a higher margin during the weekends. This may take the form of 1% margin during the week and if you intend to hold the position over the weekend it may rise to 2% or higher. Also in the example we have used a 1% margin. This is by no means standard. I have seen as high as 0.5% and many between 3%-5% margin. It all depends on your broker.

There have been many discussions on the topic of margin and some argue that too much margin is dangerous. This is a point for the individual concerned. The important thing to remember as with all trading is that you thoroughly understand your broker's policies on the subject and you are comfortable with and understand your risk.

Forex System and Strategy Book I

2006-03-16T17:27:00.000+08:00

Currency Strategy

by Callum Henderson

Product Description:

Trading Currency Cross Rates : Proven Trading Strategies from a Leading International Currency Trader and a Noted Expert on Futures and Options

by Gary Klopfenstein, Jon Stein

Product Description:

The definitive guide on the topic of hedging currency cross rates and the complex strategies involved in trading them successfully. Cites analysis relevant to diverse markets and market situations in the ever-changing foreign exchange arena. Includes numerous examples, charts and tables.

The Encyclopedia of Trading Strategies

by Jeffrey Owen Katz, Donna L. McCormick

Product Description:

The Encyclopedia of Trading Strategies is for traders who want to take the next step to consistently profitable trading. Authors Jeffrey Katz and Donna McCormick-themselves seasoned veterans of the commodities trading arena-pinpoint the trading methods and strategies that have been shown to produce market-beating returns.

Trading Systems: Secrets of the Masters

by Joe Krutsinger

Product Description:

A true trading system pro gets 15 of the most successful traders ever to reveal every aspect of the unique systems that made them famous. Also provides TradeStation ready code for each system, insights into personal trading style and techniques of 15 legends.

Trading Systems and Methods

by Perry J. Kaufman

Product Description:

For more than two decades, futures traders have turned to the classic Trading Systems and Methods for complete information about the latest, most successful indicators, programs, algorithms, and systems. Now, this newly revised and expanded Third Edition continues that tradition, including many new approaches and covering the latest developments in the continuously evolving equipment and techniques for trading futures markets.