Latest Investment Articles

Why Is It Important To Get The Best Rates Interest Available?

Wed, 25 Aug 2010 10:39:18 +0200

Whatever we do in life we want to make sure that we get the best value for our money. This can be on anything ranging from a brand new car to our weekly supermarket shop. As consumers we don’t like to feel that we are paying more than we should for something or getting less for our money than anyone else.

However when it comes to finances we often forget to put these same rules in place. This means we probably end up putting our money into an account that doesn’t do as much for us as we should. Banking is relatively simple however when it comes to saving and investing it is something that you should spend a little more time on.

If you have a lump sum of money that you want to invest then you need to look for the account that gives you the best rates interest available. This means that the percentage of money that you get back is as high as possible. There is very little point in placing your money into an account that doesn’t give you money back. However if you choose an account with a decent amount of interest paid then you can make sure you have far better value for your money.

These days we all need to do what we can in order to keep our cash flow healthy. The credit crunch has affected us all in different ways. By making sure that you have a decent amount of money saved away that is actually earning money for you, you can help protect your finances in the future.

By making sure that you choose the best account for you, you ensure that you get the best value for your money. This is no different to hunting out a bargain whilst out shopping or haggling on the price of an expensive item. It is something that we should all do in order to protect our finances as much as possible. That way we can make sure that the money in the savings account is doing some good and not just sitting there waiting until we spend it.

5 Essential Investor Apps for iPad

Mon, 23 Aug 2010 18:54:37 +0200

If you've bought Apple's most recent piece of design technology, aka the iPad, you're more than likely a bit of a geek, but also a wily investor - which means you'll be wanting to know how you can make your shiny new appliance work it's magic and return the investment. With over 200,000 apps on offer there's a definite need to sort the wheat from the chaff, so here's our guide to the best iPad Apps that are guaranteed to help you invest wisely.

Financial Times
Free to download, but subscription required to actually read content, the FT has developed a special edition app, which has been optimised specifically for the iPad. Perfect for downloading at home and reading on the move, content includes video, news, comment and analysis, whilst users can also view portfolios, view stock and compare market trends.

Mint
The very popular Mint App is free and appeals to the average man on the street with its intelligent ability to help users keep track of accounts and budgets on the move. Tied into an account via the standard website the Mint App allows users to draw together up-to-the-minute information on all of their accounts, credit cards and investments.

Bloomberg Mobile
Lauded by those in the know, the Bloomberg App allows real-time market analysis, including all the latest news, stock quotes and company information, chart and trend analysis, and interactive graphs and charts.

E*Trade
Extending its online trading arm into the mobile environment, the E*Trade App allows users to view, analyse and actually move stock. Key functionality includes market news, account management, live watch lists and portfolios - all synchronized with an online account in real time.

Daily Finance
Bringing together information from a variety of market sources, the free Daily Finance App provides a pool of information including news, advice and tools for people who actively manage their own portfolios - meaning you can be in touch with everything from market trends, top rate offshore savings and investment quotes 24/7.

An Approach to Forex Analysis

Thu, 05 Aug 2010 04:33:13 +0200

Forex analysis is the systematic and sometimes scientific method of speculating price direction. Speculating, an informed guess, data is gathered, markets are watched and trades are made. For the highly-advanced trader, algorithms are available - computer programs that analyze and decide before the blink of an eye.
Sounds pretty intense, but what is forex analysis really? It's a personalized system practiced and improved upon daily. Most traders use a combination of trend detection tools, news and market volatility.

Forex Analysis Tools

A wide array of tools is available. Among the most popular are MACD and Stochastic. The former uses a converging and diverging set of moving averages, the second is based on an ancient Greek philosophy of randomness.

I find that since so many others use these tools they can be really tricky, giving lots of false signals. It helps to have access to other analysis tools. For this I have chosen a set of tools I found at ForexEgg.com. The set includes two tools and is free to use. There is also a Virtual Trader set up so you can observe how they intend the tools to be used. They also provide news links, quotes and charts.

Trend Detection

Trend detection is perhaps the most important aspect of trading. Trading with the trend is the first cardinal rule of trading, isn't it? Trend lines, support and resistance and moving averages are among some of the more simple ways of detecting trend.

There are some more advanced methods, based on complex mathematical theories. Fibonacci's and linear regression are two. The P.A.T. (Price Analysis Tool) is based on linear regression. It plots a slope, measures buy and hold times and then projects that into the future with stop-loss guidance.

So, if market conditions are right, and the trend continues, the PAT can be used to target entry and exit points in the markets.

Market Volatility

The word volatility has so many uses in the financial world, it's almost useless. Here, I will use volatility to express market agitation - how worked up the market is.

We all know, from experiences learned and seen, that when a crowd is full of energy and worked up, irrational and sometimes unbelievable, this can happen. The same is true in financial markets, only worse because sometimes the financial health of the world swings in the balance.

Volatility can mean the amount of expected movement at a given time. So if I say that volatility is average, and the average movement per time slot is known, we can infer that the market should move within a certain range, around the midpoint, for the projected period. Sounds easier than it is? I know.

Muhammad Hafeez, founder of ForexEgg.com, has an innovative approach to measuring market volatility. He and his team have a designed a way to measure market volatility and express it in terms of temperature. The system is based on Brownian Motion and seeks to filter out the day-to-day random movements. Larger, trending movements are then highlighted and expressed in terms of Fahrenheit, Celsius and Kelvin. So, if the markets are hot they are volatile and vice/versa.

An investor may want to wait for a "cool" market before entering, while a trader will look for "hot" markets and the wild swings that come with it.

Forex Opportunities

In every market, bull or bear, there are always trading opportunities. Having a close eye on your tools, keeping abreast of current events and patience will pay off. Currently, with the European Union on the verge of collapse, many opportunities are out there.

For more information visit: http://forexegg.com

Algorithmic Trading in Forex Markets

Sat, 24 Jul 2010 19:33:57 +0200

With advances in computer technology and the financial market digitization, a new form of trading has emerged - trading by algorithm or program. Highly specialized computer systems monitor financial data, analyze and act faster than humanly possible. Decisions are made based on the programming. Timing, trade sizes, price and volatility are all possible triggers and, in most cases, initiate without trader intervention. A 2006 survey showed 25 percent of forex volume to be algorithmic with increases predicted into the future. Automated trading is becoming so big that even news sources such as Reuters, Dow Jones and Bloomberg are trying to format news for algorithmic use.

Who's Using Algorithmic Trading?

Algorithmic trading is widely used by institutional investors such as pension, mutual funds and large investment banks. It's also used by market makers and hedge funds to provide liquidity to the market. Algorithmic trading can be used in any electronic financial market and with any strategy. The speed at which trades execute makes it possible to profit from minute movements and spreads.

Some History

Algorithmic trading began in the early 70s. As the NYSE began to computerize, trading opportunities emerged. When the stock and futures' markets developed their computer systems, derivative markets emerged and also began using algorithmic trading. Over time, computers and systems became more developed and algorithms followed lock step.

Strategies of Algorithmic Traders

Most algorithms are based on modern computer languages, but a few still exist that are based on spreadsheets. There are two basic strategies: cost reducing and gaming. Cost reducing strategies strive to lower trading cost. The simplest strategy, "iceberging," involves multiple orders. Instead of buying all at once, an algorithm can break an order down into numerous smaller orders once the trigger is met. By doing this, price doesn't run up and the trader is left with a lower average cost than otherwise. Almost all other strategies are "gaming" strategies. These are intended to sniff out traders who are "iceberging" to profit. These strategies are mainly used by market sharks, seeking to take unfair advantages.

Pros and Cons

Major advantages include speed and liquidity. Algorithmic trades execute at the speed of light because the most advanced computer networks are built on fiber optic cables. Any drag on the signal (latency) comes from routing and signal enhancers along the fiber optic cables. It's possible for an algorithmic trade to open and close before the information is relayed through more conventional sources. The use of automatic trading also adds liquidity to financial markets. When buyers reach a threshold, if sellers are waiting, selling begins automatically.

The major con is a fear of market crashes. Crashes such as Black Monday are blamed on automated trading. Critics say that a volatile market can bring prices to points where massive computerized trading kicks in, further weakening an already fragile system.

How can the average trader utilize Algorithmic Trading?

The cost of developing and maintaining an algorithmic trading system can be quite large. You need access to bandwidth and high speeds, the kind you can only get from a fiber optic cable with nearly direct access to trading centers and prime brokers. You also need a highly advanced computer programmer. With these limitations, it's easy to see why algorithmic trading is mainly used by big money investors.

To help the average forex trader fully understand the scope of algorithmic trading in the forex markets, ForexEgg.com has started a "forex algorithmic trader." This trader is using a strategy based on ForexEgg.com's proprietary trading tools, the Price Analysis Tool (PAT) and Temperature Charting.

PAT uses linear regression to predict general price direction and gives upper and lower limits. The Temperature Chart uses theories based on Random Walk Theory and Brownian Motion to measure market volatility. The trader uses the information to determine when the market is too hot or too cold.

For more information visit: http://forexegg.com

Forex Analysis Hampered by European Union

Sat, 10 Jul 2010 08:46:22 +0200

What's going on?

Fallout from the PIG countries is starting to infect the stronger Euro zone countries. Two of France's banking giants are facing huge write downs due to Greece and Spain's losses. Credit-Agricole said it will take a 400 million Euro ($536.7 million) write down on one of its Greek subsidiaries. Also, credit giant BNP Paribas received a downgrade on its stock. Standard and Poors cited loan losses in Spain's banking sector as the reason.

Forex analysts and Algorithmic traders are both calling for more losses in the Euro zone banking sector. Forex opportunities are abundant within this volatile sector. Forexegg.com has a great pair of trading tools to help in this time. The Price Analysis Tool gives a good projection of possible high and low ranges while the temperature chart helps to measure market volatility so you can pinpoint entry and exits.

Euro's Future in Question Amongst Forex Traders

There are whispers in the market of a possible "two tier" system for the Euro zone. France and Germany are considering a split in the Euro, with one "super" euro for the strong countries and the old Euro for the weaker. The strong countries include France, Germany, Holland, Austria and Finland. The weak are Greece, Spain, Portugal, Italy and Ireland. One source called it an "act of desperation." While still seen as a plan b, some governments feel they need to cut loose the dead weight, leaving the survival of the Eurozone and European Union in question.

Advantages of a "Two Tier" system

There are some advantages to splitting the Euro. The old Euro would remain with the weaker countries, and would decline against the new, "super" euro. This would aid the finances of the weak countries in terms of inflation and interest rates. The super Euro would then reflect the actual value of the stronger countries. The downside is that the weak countries would still have debts owed in "super euros" which could prove difficult to overcome. Also, if the plan were seriously considered, foreign investors of the weak Euro zone countries would start pulling out their money, further depressing already fragile economies.

European Central Bank

The European Central Bank is ramping up its efforts to control fiscal policies among its member countries. They are putting more pressure on countries in an effort to increase fiscal responsibility. European Central Bank President Jean-Claude Trichet says, "There are no easy answers to the solvency and competitiveness problems of southern Europe". . . "Governments must bolster the confidence of consumers and investors by sticking to tough fiscal goals."

In another move by the ECB to increase fiscal responsibility they want the member nations to open their books for review. The ECB wants tighter rein over its members. So far there has been little support for this plan. EU leaders have already agreed to some stiffer measures, due to start in the second half of this year. England has refused to open its budget to review before parliament ratifies it and the European Commission maintains that "there is no need for new institutions to monitor the old rules."

News will continue to drive the forex and other markets, staying abreast of the most current events is a must for active traders. Websites such as Forexegg.com are great sources of prime news, in addition to providing helpful analytical tools. To view the Forex Analysis Tool, visit: http://www.forexegg.com/Forex_Trend_Analysis.aspx.

For more information visit: http://forexegg.com

Once Silver is Used in Industry its Gone Forever. It's Consumed and is Not Reusable.

Sun, 27 Jun 2010 09:18:22 +0200

Neither silver nor gold are being used as a circulating medium of exchange or as common currency. Neither will silver or gold lose value or be nationalized. Ironic that the first silver currency of the modern Greek state was called the Phoenix, considering Greece's financial woes of today.
The gold and silver buying mania is everywhere as investors see the success of precious metal owners' portfolios. To rebuild, guard and prosper after the fiscal politics that devalued the dollar, investors are capitalizing on the profits created by the real intrinsic worth of gold and silver.
People around the world recognize silver's value and it is a popular affordable investment. The US has now allows IRA's (Individual Retirement Accounts) to invest a portion of that portfolio in silver bullion and silver coins. [Call Today] 888-98-Buy-Gold or visit:SilverForMyIRA.com...
However, banks do not want the populous to protect their wealth by saving or hoarding gold or silver. They need movement in the circulation of money to keep bank profits growing.
This worldwide awareness of self-protection of assets through precious metals has reached the common man who is also attempting to repair recent losses and prepare for future profits, if only one silver coin at a time. Since silver is so under priced, and in a lower price bracket then gold, is it easier to accumulate.
Yet, demand for silver is skyrocketing. Just look at the population of China and its needs for silver in the manufacture of electronic, electrical and medical goods to supply its citizens. Its population is as big as Europe and the US put together and its economy, in just the last 10 years grew 300%.
The demand, the limited availability and the small supply of silver are driving its value to unheard of heights as the dollar continues to weaken. When industrial supply and investment demand converge, a global surge will take place. Depletion by industrial usage and shortages caused by lack of new mining will enhance and propel this silver surge.
In 2009, silver posted an average price of $14.67, the second highest average since the high reached in 1980. Much of that strength is attributed to the high demand for silver exchange traded funds (ETFs) as well as physical retail investment. Also, a 21% increase in coins and medals fabrication created this new record.
In an article in Barron's Magazine it was concluded that using the Silver Institute's figures, that the total world silver stock is 650 million ounces, the world would run out of silver completely in 4 years.
Reflect on the fact that Central Banks dumped silver and the fact that these same Central Banks will never get it back. The reason? The silver is being consumed and can't be replaced.
The low price of silver is actually encouraging more consumption and less production! Yet, investors continue to turn to silver as a safe haven against sovereign debt risks

A Crisis Looms - Silver Supplies Have Fallen Short of World Demand for 20 Years

Sun, 27 Jun 2010 08:57:30 +0200

A crisis looms. Supplies of silver are quickly disappearing as the worldwide market demand continues to grow. New high-tech uses for silver and the demand outpacing the annual production every year since 1990 is causing the depletion of silver's above-ground stockpiles.

Once the largest stockpile of silver in the world, the US government dumped multiple billions of ounces of silver over the years into the world market thereby depressing silver prices. With no stockpile, the US is now purchasing silver at current rates. [Call Today] 888-98-Buy-Gold or visit:SilverForMyIRA.com

Seventy percent of silver production comes as a by-product of other kinds of mining (copper, gold, lead, zinc) which is incapable of keeping up with the current demand for silver.

The supply and demand gap of silver grows wider every day. Silver deposits and reserves have been identified, but until silver prices drive enough pressure to make extraction viable, the profit risk to mines that only produce silver are entirely reliant on the price and demand of the silver.

Silver is the world's most versatile metal. It is most commonly used today as an industrial commodity. Silver has many unique properties. Silver's basic scientific properties continue to be in high demand from high-tech products to computer chips to solar power generators.

Yet silver production is not expected to grow in 2010. CPM, a consultancy firm, states that 12 billion ounces of silver existed in 1900. In 2008 only 680.9 million ounces existed. That's a 94% drop in the above-ground supply. In 2010, it's about 300 million ounces.

Once the world's refined silver has been consumed by industry, it's gone, it's gone forever. More than 95% of all the silver ever mined has already been consumed by industrial use.

Since becoming an essential raw material in the 21st century's global economy, the looming silver crisis will strike at the heart of the major industries that rely on it for its component elements. Many of silver's industrial uses include being used in trace amounts which cannot be recycled, yet the demand is ever increasing as discoveries of its uses grow.

Just to name a few: jewelry, use in the production of solar energy, mirrors, solar cells, silver based batteries that are environmentally friendly, potential applications (because of its anti-bacterial properties) include uses in medical applications for clothing, socks, sportswear, fabrics, hospital and dental furnishings, upholstery, tools, surfaces, clothing, gowns, washes, etc.

Silver is an industrial commodity which manufacturers worldwide do not stockpile. Even a back order of one month could cripple their production of products.

Think what will happen when industrial manufacturers begin to feel the effects of delays in their silver orders. Will they panic? Will they quickly try to build inventories with on-hand supplies?

A wholesale shortage is looming just beyond the current widespread retail silver shortage.

One thing that sets silver apart from gold. The demand for gold is from investors. The demand for silver is from industrial users.

The Politics of Gold - The Golden Future

Sun, 27 Jun 2010 08:18:04 +0200

Greece received a $143-billion bailout package from two sources, the Euro Zone and the International Monetary Fund.
The Euro Zone is made up of 16 European member states which have adopted the Euro currency as their sole legal tender. The International Monetary Fund (IMF) is an international organization formed to stabilize international exchange rates, etc. and offers highly leveraged loans. Its headquarters is in Washington, D.C.
Since Greece borrowed too much money for too long and now can't pay it back, British economists told the Greek government to "abandon the Euro" and to default on their sovereign debt to save the Greek economy.
When that happens, look for Spain and Portugal to follow. Together Greece, Spain and Portugal have a combined public and private debt totaling $2.6 Trillion according to the economists at The Royal Bank of Scotland. There is no feasible way these countries can pay that debt back.
So, the assumption that the Euro was stable and would last forever is found to be wrong. The life of the Euro may be only months, at the longest a couple of years. Even the citizens of Greece see the looming catastrophe as vendors sell gold coins as fast as their paper assets can be converted.
German citizens, remembering the currency crisis of the 1930's, are rushing to buy gold coins. In the very near future, individual European countries will dump the Euro.
Last year Russia, China and India, along with other emerging countries, with their need to balance vast U.S. dollar reserves, found that the easiest way to do that is to buy gold. [Call Today] 888-98-Buy-Gold BuyMetalsNow.com
Governments around the world promised citizens economic security in the form of pensions and health benefits which they cannot possibly afford.
The US debt problem looms over all of Europe's debt issues. Our financial crisis is just starting. The IMF has said that the gross public debt of the US will reach 97% of GDP next year and 110% by 2015. That kind of debt is unsustainable.
If debt continues to slow our economy's growth, we will never be able to grow our way out of debt. Yet, the Treasury continues to print money, continuing our monetary instability.
Expect the same in Europe, despite the European Central Bank's anti-inflation mandate. In 2009, Central Banks, which used to be net sellers of gold, are now buyers of gold.
Bernard Shaw once said: "You have to choose between trusting the natural stability of gold or the natural stability and intelligence of members of the government. And with due respect to these gentlemen, I advise you, as long as the capitalist system lasts, to vote for gold."
Look at the final phase of the global financial crisis, the destruction of money's value and the shrinking US dollar. The disaster has already begun.
The US is now the single most indebted nation in the history of the world.
But…gold is still the ultimate safe haven, holding its value better than any other asset class.

This Perfect Storm - Could send gold to $5,000 an ounce

Sun, 27 Jun 2010 08:06:34 +0200

When money supply and deficit spending grow and when real interest rates fall below zero, the perfect storm for gold begins.

With no growth in money supply in the US or in Europe, with sustained long-term deficit spending and with governments trying to fight deflation, gold stands its ground. With the debasement of the Euro and interest rates in Europe flat, gold's attraction to the savvy investor is elevated.
Call Today 888-98-Buy-Gold or visit: BuyMetalsNow.com

Buying gold is one of the best ways to preserve wealth and purchasing power. Gold has the power to change lives today as it did in centuries past. Gold protects wealth against inflationary and deflationary times. Gold is consistent, it gives the holder power.

The price of gold is driven globally while the dollar is largely dependent on the monetary policies of the US. As the dollar depreciates, the price of gold increases.

The dollar is falling. Central banks in emerging nations are buying gold. Monetary policies are leading to higher inflation. Who is chasing this momentum? Individuals and institutional investors who refuse to be on the sidelines, that's who. Those who realize that even financial advisers are now including gold as part of asset allocation.

If even a small share of all the investors of the world started allocating gold into their portfolios, that gold movement would cause the continual rise of the price of gold worldwide.

Actual storage space for physical gold has become so scarce, that some retail investors were recently told to move their hoard out of HSBC's Manhattan vaults so that the bank could better service institutions, according to The Wall Street Journal.

Unlike buying stocks or bonds, you have the option of purchasing and possessing physical gold in either gold bullion or gold coins. Gold purists insist that the only way to take full advantage of gold's special benefits is to buy physical gold.

The price of gold is a result of the physical supply versus the physical demand. The controlling players are those buyers and sellers, at any particular time, who are the biggest. The largest differ substantially in their actions.

The traditional gold market no longer exists. It is morphing into an investment market.

The importance of understanding the new gold market factors is vital. With the steady flow of investors who are turning to gold, the upward trend of gold is here. The US Treasury, on June 9, 2010, reported "The US has a worse budget deficit than the Eurozone… By 2015 the net public debt will rise to an estimated $14 trillion, with a ratio to GDP of 73%."

So,"…when almost everything went wrong for investors, the gold market went very right" says Chris Mayer for The Daily Reckoning.

Is it too late to buy gold? No. It is the ultimate form of money. Gold has a track record, it's, well, golden.

Gold is Real Money. - Surviving the global financial collapse.

Sun, 27 Jun 2010 07:39:51 +0200

Savvy investors, who have come to the realization that they need to strengthen their investment portfolios, are once again buying gold. Even stocks and bonds, when inflation is on the rise, can't beat the performance of gold.

In a global context, money supply impacts the performance of gold. There is a positive relationship between money supply and gold, only if accompanied by economic growth.

But when the economy becomes stagnant, when excess money enters the system along with the pressure of inflation, the savvy investor increases hard assets, including gold.

Worried about the devaluation of the dollar? People in history, as with savvy investors today, make gold the asset of choice when faith in paper currency is lost.
Call Today 888-98-Buy-Gold or visit:BuyMetalsNow.com

Every other asset in one's portfolio could have bed debt behind it and when defaulted or inflated, will mean a loss. That's why you need gold.

When the economy is down, investors turn to gold as a haven. Staying in gold makes sense because it retains its value much better than currency-backed assets. Gold, like any asset, is subject to supply and demand pressures which cause fluctuation in price.

The price of gold in 2008 moved between $720 - $980 an ounce as a result of shattered investor confidence. Further into the recession, gold prices soared as investors sought a safe place to put the cash they pulled out of the market.

In the last 10 years, gold has been on a meteoric rise. On May 21, 2010, gold was $1,193 per troy ounce. That's over 300% since the start of 2000. Compare that with the S&P 500 which was down 24% during that same 10 year period. Analysts, money managers and investors are nervous about the global economy resulting in gold being at a near all-time high.

The US was the last to default on the gold standard in the 1930's, destroying the value of savings which drove panicked people to buy gold. Europeans are following suit today. India, China and other developing nations are purchasing huge quantities of gold. The reason? To diversify against the US dollar.

Economists worldwide believe we are headed towards higher inflation. David Levenstein, a precious-metals analyst at Lakeshore Trading in Johannesburg, South Africa, predicts that "when we see inflation kick in as a consequence of the huge stimulus programs and massive escalating deficits, gold will soar even higher."

Mistakes have to be corrected, one way or another. Bad investments, bad loans, bail-outs, defaults and inflation are all going to take time to reverse or dispel. Currently, global efforts aren't working. Add bad private debt with the bad public sector debt and something has to stop. Look at Greece as it warns the rest of Europe. When lending stops, the economy and the markets fall.

When three factors coincide, negative interest rates, deficit spending and an increase in money supply, that's when the performance of gold shines exceptionally bright.