Buying And Selling In The Forex Market

Today I would like to talk with you about a few very important rules of investing in the Forex market. If you follow these rules, you will most surely come out on the winning side in the long run.

Rule number 1 is never risk more money than you can afford to lose. No trader is perfect, you are going to have losing trades. There is no system you can learn that wins all the time. So expect to lose some money.

Rule number 2 is to cut your loses short and let your winners compound to greater gains. The secret to not losing your shirt is to use stop loss orders consistently and not let your emotions rule your trading. It’s better to lose a little and get out of a trade than to hope that things will turn around and suffer a devastating loss. If you are using the proper techniques and strategies on how to trade, you can usually tell right away if your trade is going in the right direction. If it’s not, get out of the trade. There are always more opportunities to get into the market and try again. So be a smart trader, not an emotional one.

Rule number 3 and probably the most important rule in trading Forex is to always use stop loss orders. Before you even consider starting any trade, you should have a good idea in your mind of the point at which you think a trade might be going in the wrong direction and set your stop loss order there, along with your entry order. This way you automatically prevent a potential loss from going too far. Stop loss orders are free. They don’t cost you anything and they may save more than your piece of mind.

Rule number 4 is to know what your exit point will be before you get into a trade. There are many good reasons for this. It’s easy to get sidetracked when you are doing live trading and get caught up in all the excitement. Chances of making bad decisions go up dramatically if you do not have a predetermined exit point.

Rule number 5 is to know when to quit. Don’t become a gambler with your money. If you start having a streak of bad luck, get out of live trading and go practice with a demo account until you gain back your confidence.

September 2, 2010 · Admin · No Comments
Posted in: Investment News

Are There Any Great, New Mining Stocks Left?

Where are the hot and cold spots around the world for resource investors? The stampeding bull market in commodities has investors reaching for new ideas. Highly respected newsletter writer Lawrence Roulston of Resource Opportunities favors Canada, Alaska and China for investing in mining and energy companies.

StockInterview: Lets get the cold spots out of the way so investors are forewarned about which countries to avoid.

Lawrence Roulston:
A lot of the (mining) companies that went overseas in decades back are recognizing the political difficulties with dealing in some jurisdictions. These include places like Indonesia, Columbia, and several of the African countries, such as Congo, Sudan and Eritrea. All of those places where there are great geological prospects, but are more and more risky to deal in. I think some of that mining is coming back closer to home, which is right here in Canada.

StockInterview: So Canada is on your favorite countries list?

Lawrence Roulston:
At the very top of the list would be Canada. As of right now, taking into account the geological potential, political situation, infrastructure and all the other issues, I would (highly) rate Canada and British Columbia. They have had decades of work. But for the last decade, there hasnt been very much going on. The companies are just coming back and picking up with whats been going on. Similarly, Ontario, Quebec tremendous geological potential and its been kind of ignored for a long time. Canada is now the most important place in the world for diamonds, representing 50 percent on exploration spending for diamonds.

StockInterview: Is there a specific mineral or metal that makes Canada especially appealing?

Lawrence Roulston:
Its the whole gambit. Canada has always been one of the top metal producers, and its coming back to life. Of course, gold is at the top of the list, but also base metals and uranium. The Athabasca Basin in northern Saskatchewan is far and away the most important area to be looking at, geologically. Its currently the biggest source of uranium and contains the highest grade deposit. There are other uranium prospective areas in Canada that are just emerging. The Thelon Basin in the Northwest Territories, north of the Athabasca Basin, is very similar, geologically, to the Athabasca Basin. It had some work done in the 1970s, and its been pretty much ignored until very recently. Going a little further north to Hornby Basin, it is a similar kind of situation. In Labrador, the central mineral belt is just emerging as a very important place to be looking for uranium.

StockInterview: Do you have any favorite companies, which you are following and which have good prospects?

Lawrence Roulston:
NovaGold Resources (TSX: NG; Amex: NG), for example, with the Galore Creek. Its a billion ton deposit with enormous metal content. (Editors Note: Galore Creek has been called one of the largest and highest grade undeveloped porphyry-related gold-silver-copper deposits in North America.)

StockInterview: What is another of your favorite areas, which has gone largely undetected during this bull market?

Lawrence Roulston:
Nevada would be at the top of the list of anywhere in the world to be working and Alaska right behind it. There is huge potential in Alaska. Mining companies have only scratched the surface of exploration up there. Two of the largest metal deposits in the world are in Alaska. These are both discoveries going back decades, but work over the last couple of years has brought them to the point where theyre now recognized as among the largest metal deposits in the world: Donlin Creek, a 25-plus million ounce gold deposit, and the Pebble deposit, held by Northern Dynasty (TSX: NDM). The Pebble deposit is significantly larger than, and of comparable grade to, Ivanhoes (NYSE: IVN) Oyu Tolgoi (copper-gold) deposit in Mongolia. (Editors Note: The Donlin Creek project is a joint venture between NovaGold and Barrick Gold.)

StockInterview: Anywhere else in the world where you can find a great, but still new resource investment opportunity, in light of how hard the commodities bull has been stampeding the past few years?

Lawrence Roulston:
Often the better value to be had, or the better opportunity, is in being a little bit out of step with the crowd. One of the areas offering some outstanding opportunities is China.
China has done a tremendous amount of geological work, over the last few decades, but all from the perspective of finding, and then quickly developing, small deposits. There has been very little effort devoted to taking a bigger picture type look at China. The companies that have been able to take a kind of bigger picture look at China have begun to develop what I think are going to be some pretty spectacular results over time.

StockInterview: Isnt it tough, though, doing business in China?

Lawrence Roulston:
There is still a perception out there that China is a difficult place to do business. Most people from the west walk into China cold and try to do a deal. It would be impossible for them. But, for western companies that are able to team up with groups that are well established within China so that theyre able to find their way through the system over there then there are outstanding opportunities. There are mountains of geological information all in Chinese, of course. Youve got to be able to work within that system and get the information, know how to put the deals together.

StockInterview: What do you mean by knowing how to put the deals together?

Lawrence Roulston:
If I was to go over to China and try to do a deal to get access to a coalbed methane property, I wouldnt have a clue about how to begin. On the other hand, I could walk into the Petroleum Club in Calgary, and meet a half dozen guys and talk to them. I could build on my leads, and probably in a day be talking about a deal. When you go into China, unless you have somebody on your team that can get into the system and deal with the people, because of language issues, cultural issues and just having access to the information and knowing what sort of terms that they might be looking for Its a different culture from every perspective, and not the least of which is a different way of doing business.

StockInterview: In your April issue, you recommended one company, which overcame those hurdles, meets your criteria and already has a coalbed methane deal in China.

Lawrence Roulston:
Pacific Asia China Energy (TSX: PCE) established connections in China. They can draw on their contacts and their network. They can get into see the right people, where they can actually talk seriously about doing deals, and have an enormous leg up over somebody that walked in cold and tried to establish and build contacts and put a deal together. I think it is an absolutely outstanding opportunity that theyve seized on.

StockInterview: There are many coalbed methane opportunities in Alberta. Why look to China?

Lawrence Roulston:
One of the things that makes China interesting is the entry cost to get into a coalbed methane (CBM) play in China is fairly modest. For example, to go to Alberta, or anywhere in the United States, and get access to the exploration rights, or exploitation rights, is enormously expensive. In China, they walked in and, for a fairly modest up-front commitment, obtained a control position in a CBM prospect.

StockInterview: How does Pacific Asia China Energys coalbed methane property in Guizhou, China rate against other coalbed methane plays?

Lawrence Roulston:
I think its an outstanding opportunity. Chinese government agencies have done an enormous amount of work at delineating the coal. To be able to step into that amount of data as a starting point to build up their CBM resource? The bottom line is that theyre not out there looking for coal. They know exactly where the material is, and theyre able to quickly start defining the issues like recoverability. Theyre drilling in order to establish the basic physical parameters of the flow rates and the content within the coal. I think the companies which are able to effectively exploit the CBM technology in China are going to be the pioneers in that area.

StockInterview: To Americans, any business in China might appear to be pioneering, since most of still think of China as a third world country.

Lawrence Roulston:
Ive been to China many times and Ive been to parts of China where most people, as tourists, would never get anywhere near, because I go there to look at mineral exploration projects and mining projects. Ive been to every corner of the country as well as the major cities. What I see happening everywhere I go is a pace of development that Ive never seen anywhere else in my life, anywhere in the world. That is, 1.3 billion people are going from a basically rural farm-based economy to a modern industrial economy at a pace that has just never before been conceived.

StockInterview: How do you quantify that?

Lawrence Roulston:
This is a number that most people wont get, and you wont get until youve been over there and have seen it. There are 300 million people in China that are already well into the middle class. By middle class, I am comparing (the Chinese middle class) to the same absolute standards as we would apply in Canada or the United States in terms of pounds in your bank account, value of your house and your car, and everything else. There are 300 million people that have already achieved that status, which is more than the people at that status in North America. There are another 1 billion people who are busting their butts to get to that level.

StockInterview: But isnt the rest of the worlds rural population just as industrious and ambitious?

Lawrence Roulston:
Ive been in Africa, the Middle East, Asia and Latin America. If you go into any of those areas and you walk into the small towns, a lot of people are sitting around drinking coffee, crying the blues and complaining about how terrible life is. Go into a similar area in China, and the people are out working in the fields. In the middle of winter, theyre fixing up their fences, the dams and terraces, and clearing rocks, removing trees and stuff like that. Its a high level of industry Ive never seen in any other part of the world. So it goes from that ground level right up to the entrepreneurs, and the guys who are building the high rise condominium complexes in Shanghai.

StockInterview: How long will it take before American investors realize the impact China has on the global economy?

Lawrence Roulston:
Its going to happen in a gradual way. I think those that keep their heads buried in the sand are going to get left behind as the world pulls ahead. I would suggest any investor in any company ask the question of the company: Is that company involved in some way in China? There are a lot of North American companies that have a very significant presence in China in terms of doing business over there, of getting established, of selling products or manufacturing products in China.

StockInterview: Why is China so important with regards to this commodities bull market, and are there still opportunities for investors?

Lawrence Roulston:
There is a lot of geological potential, and there is the perception that its difficult. Therefore, there isnt yet a big crowd of people over there chasing after deals. The flip side of it is that China and its neighbors in southeast Asia, representing 3 billion people, are going through the modern industrialization process. That is going to continue to create a massive demand for metals for, I believe, a decade or probably even a couple of decades into the future.

StockInterview: And most likely, the U.S. investor is going to be left behind or the last one into the pond?

Lawrence Roulston:
The bottom line is that Americans tend to be more inward focused. The other evening I was having dinner with an oil man from Texas who had spent a lot of time in China. He had seen China first hand and was very bullish. I asked him, How many of your countrymen do you think really get it about China? And he responded, Oh, about five. Then he said, Congress doesnt get it, investors dont get it and the man in the street doesnt get it. Americans just dont understand whats happening over there yet.

August 26, 2010 · Admin · No Comments
Posted in: Investment News

A New Type of Investment: Forex Trading

Every new investor thinks of the stock market as the first place to invest. The reasons are undeniable, as the stock market is one of the most successful investments. However, few investors know of a new, emerging type of investment that carries much less risk then the physical stock market. This new investment area is known as the Forex Trading Market.

The Forex trading market cannot actually be found physically. Instead, the market is a large network of central banks and individual investors all caught up in the process of currency exchange. Because the Forex market deals with countries all over the world, the market must remain open 24 hours a day. The market follows the three markets, the United States of America, Europe, and Asia.

This presents a problem to even the more successful investors. It is simply not possible for any human being to stay up 24 hours a day so that they have up to date information of the market. Often the market changes will the investor sleeps or goes about their daily routines. If statistics are not checked often, opportunities to gain profits may be lost. The alternative may be to hire a professional broker, or use a trading program.

Making Money Using Forex

Money is made in the Forex two ways. The first way is by buying low and selling high. For example, The Euro and Swiss value is going up, so your portfolio manager it will automatically buy shares of the USD/Swiss at the predetermined price, which you setup when you create your account. At the same time the program will sell the USD/Euro while it is up, locking in profit.

The other way of making money using the Forex trading system is by collecting on the interest each central banks pay on their currency. The United States federal reserve determines that the current interest is 5%, while the Swiss government determines that their interest rate is 1.5%. When you trade you are earning 5% on the US currency, and spending 1.5% on the Swiss currency.

The reason that the Forex market is much less risky is the fact that you work on a percent, rather then actual money. For example: If you are dealing with a $100,000 dollar contract, then you are only required to place 1 percent, or $1,000 up. The other investors use this money as a type of insurance policy in case the deal goes bad.

Being Successful in the Forex Marketplace

Gaining the amount of knowledge needed to be successful in the Forex marketplace is actually not difficult. Someone with an education of an Associates Degree, or even a high school diploma would be able to gain the knowledge with just a few years of studying the market.

However, no matter the amount of education or training you have, the number one problem new investors have is making good decisions. While some investors have no problem making decisions and sticking to them, the majority of the human race simply have trouble doing this. Whether it is emotion, lack of knowledge, or uncertainty that makes decision making hard, it must be overcome to be successful in the Forex market.

Your main tool again potential risk is knowledge. Learning as much as you can before your first trade will help you make informed decisions later. Simple knowledge can be obtained by studying articles and books, talking to a trained or experienced investor, or using a simulation program which allows you to trade within the market, without spending any actual money.

If you are waiting to success in the Forex market, you must learn to use technical indicators. These technical indicators will allow the trader to recognize long-term, short-term, and intermediate treads, which will allow the investor to construct his trades and portfolio to reflect the highest possible profits. It may take years for a new investor to fully understand the ups and downs of the market, and how to more accurately predict future trends.

August 19, 2010 · Admin · No Comments
Posted in: Investment News

All About Forex What You Need To Know

In order to succeed successfully in forex trading you need to know what the purpose of trading forex is. Forex trading as you know is the trading of online currency and the key to success is to buy low and sell high just as with any other market. You task as a forex trader is to try to determine the trend of the particular currency you are looking to either buy or sell and to utilise the forex trading strategies to ensure that a profit is made.

Now that you know the purpose of forex trading the next step in knowing all about forex is to understand the codes, definitions and numbers used when trading. All currencies used in forex trading are assigned a three letter code. An example of this is the US pound which is USD or the Euro EUR. Online currency trading is done in combinations that are known as a cross and these are represented by 6 letter words with the more expensive currency coming first. An example of this is GBPUSD which will show you how many US pound you will need to pay for one British pound. These rates are shown as five digit numbers for example GPBUSD = 1.6262 which means that 1 British pound is worth 1.6262 US pounds. When the rate changes the change will be displayed in bold, eg GPBUSD = 1.6264 which will mean that the rate has moved by 2 points. Knowing this is the key to successful forex trading and your key to profit.

When you enter the forex trading market you will enter as a buyer or a seller of a particular currency. If you are a seller you price is known as the ASK price and the buyers price is known as the BID. You can only buy currency from a seller with an asking price the same as the BID price.

These are the main beginners points to note when it comes to forex trading and knowing what the purpose of trading forex is and knowing all about forex before you enter into the market can make a big difference when it comes to your profits.

August 12, 2010 · Admin · No Comments
Posted in: Investment News

About Forex trading systems

Forex trading systems are all about getting investments into the foreign markets. Foreign exchange markets are abbreviated to be called Forex. The worldwide trading of stocks in companies and in products happen over the Forex trading system. There are over a trillion pounds traded on the Forex market everyday. You can learn to chart and follow markets in the Forex trade world on your own, or you can rely on a broker as you would in the New York stock exchange. The Forex trading systems are similar in method, but each is a proven method of how to make money, how to learn about companies and how to follow what is going on with the money you are investing in the Forex trading markets.

You can live anywhere in the world and trade stocks and investments in the companies that are involved in the Forex markets. There are no limitations to the money you can make, or the money you can lose. The Forex markets can be tapped into online, over the phone or by contacting a broker in person. If you are interested in making money, you can do it on the Forex market, without having to have employees, or a broker to do this. You can get involved in learning about the investments in the Forex markets, and take on the responsibility for your own money, and making your own money. Many are starting their own businesses using their education and experience on the Forex market to make money.

The Forex market is one that is world wide, so there is sure to be something of interest to just about anyone that wants to expand their investments and expand their learning about money in the world wide markets. There are many experts in the Forex markets, and using the Forex trading system that you feel most comfortable with, you can be a Forex market expert as well.

There are no go betweens, such as large banks or such when you are involved in the Forex market. There are no need for fees and transaction fees when you do your own trading on the Forex markets. You can learn the Forex trading system that best suits your learning needs, and follow it to chart companies, chart growths, and to invest in companies that have a solid future. There are companies and markets through out the world that you can invest with, to increase your wealth and your investment portfolio.

A few different regions of trading exist in the Forex markets, with sessions in Tokyo, Asia Pacific, and in the Americas. Trading is always non-stop, and moving from London to New York, to Tokyo and so on again and again. You can invest in the US pound, the Euro, the Japanese Yen, or in Swiss Franc among others.
You can find more information on http:www.broker-trading-system.com about Forex trading systems.

August 5, 2010 · Admin · No Comments
Posted in: Investment News

A Trading Strategy That Consistently Beats All Major Indexes

Are you looking to outperform the market and optimize your profits but are not sure how to pick the right stocks? Has investing become a chore? Do you find yourself investing in hot stocks after they have made their big move? Would you like to learn how I increased my portfolio by over 400% in under 7 years? Do you want to discover how I have outperformed the market over the past 3 years by a margin of 5 to 1?

Do You Hate Research? . . . I do!

I have always wanted to find an investment strategy that made sense. An investment strategy in which I do not need to know the intricacies of the market, predict market trends or follow specific stocks. How can I get the inside information of what is hot before the rest of the market knows? I can’t. Nor do I need to.

Plus, I don’t have that kind of time to commit to in-depth research. Like you, I have a regular job that I need to devote my time to. I am not a day trader; nor do I want to spend all of my free time on the computer doing research. Always following the stock market and getting stock quotes is not how I want to spend my free time.

I Avoid Individual Stocks . . . they are too unreliable!

Everybody wants to buy low and sell high. While millions of people do make money this way (and many millions loose money), I have found an easier and more effective way to use the market to my advantage. I do not trade in stocks. I do what I can to avoid individual stocks. And I consistently beat the market . . . month after month after month.

If not stocks, what’s the alternative?

Like many people, I got heavily involved in the stock market in the mid to late Nineties. Tech stocks were going through the roof and I, like everybody else, wanted a part of the action. It seemed an easy way to make money. Everybody was getting rich. You did not need a special investment strategy to beat the market.

During this time, I engrossed myself in the financial markets. I wanted to learn as much as I could without giving up my day job. I was trying to find the next best tech stock, IPOs and the occasional pre-IPO offering. But it was not until I discovered options trading that I discovered an investment strategy (The Yager Trading Strategy) that can work in any kind of market . . . Bull, Bear or stagnant.

That’s right…OPTION trading!

And I am not talking about stock options or writing covered calls. Options trading…I started selling options on S&P futures, using different methods and trading strategies. And I did well. VERY well.

Between July 1998 and January 2000 (a span of 18 months), from my option trading system, I turned an initial 25,000 investment into 167,615. That’s over 670% increase. And this was not paper money where you buy a stock and it has a certain listed value. This was real, taxed income. Profits collected on a monthly basis.

Market fluctuations and volatility have diminished greatly since then…reducing the premiums. Those types of returns are no longer available, but the option trading strategy is still very sound. I still consistently beat the market. Even the years the DJIA, Nasdaq and S&P were all down, I posted more than a 22% gain.

Learn the option trading strategy or see how to make money with this strategy. I describe the strategy and show actual recent trades on YagerInvesting. The information is FREE. No subscription required. This is a method for risk capital only.

For the preceding 12 months (May ‘06 through April ‘07) this is how my strategy, The Yager Trading Strategy, performed:

DJIA—–20.3%
NASDAQ—–14.7%
S & P 500—–17.3%
Yager Trading Strategy—–32.2%

July 29, 2010 · Admin · No Comments
Posted in: Investment News

A Short Explanation Of Buying and Selling In Forex

A Short Explanation Of Buying and Selling In Forex Trading.

These days everyone is talking about a new profitable activity called Forex trading and the great opportunity this activity represents for people willing to brake free from the corporate world and start working from home or any where else without losing their current lifestyle and even improving it.

Most experienced traders consider that the best and most profitable of the capital markets is the Forex market. For many years Forex trading was the sole domain of major banks, large financial institutions and countries central banks; for example the U.S. Federal Reserve Bank. But these days, thanks to the internet the market has been opened to everyone willing to learn the best techniques in forex trading and with the intention of making substantial profits as the institutions mentioned above that annually and consistently make pretty high profits from trading in the Foreign Exchange market.

You have many advantages when trading the forex markets, for example; you don’t have to worry about fees you may have to pay to your broker; there are also none of the usual fees to which futures and equity traders are accustomed to pay always; no exchange or clearing fees, no NFA or SEC fees.

The forex market has five major currencies: US pound, Japanese Yen, British Pound, Euro and the Swiss Franc. It is due to their great popularity in world’s commerce transactions and its high activity that these five currencies account for over 70% of North American trading. Of course there are other tradable currencies; they include the Canadian, Australian and New Zealand pounds. These minor currencies account for 4% – 7% of the total market volume. Together, all this five majors and minors currencies constitute the backbone of the Forex market.

The concept of Buying in Forex refers to the acquisition of a particular currency pair to open a trade and Selling short refers to the selling of a particular currency to open a trade, i.e, just the opposite. When you Buy, you are expecting the price of the currency pair to increase with time, i.e., you buy cheap to sell high; which is easy to understand. In the case of Selling short, it looks a bit more complicated. Here the way to make money is to initially sell a currency pair that you think will lose value in a given period of time and then, once it happened, you will buy it back at the new price but now you can sell it at the previous greater price the currency had when you opened the trade, so you earn the difference in prices. It may seem kind of tricky when you are starting, but once you are in front of your trading station it will look much simpler.

July 22, 2010 · Admin · No Comments
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9 Survival Tips for the Market Shakeout Blues

Investors who bought during the top of the frothy commodities rally are now panicking or kicking themselves. Neither activity helps an investor or trader think straight. Below are a few tips in dealing with the current market shakeout.

1.If you believe you invested in the right stock(s), then turn off your computer and do something enjoyable. Exercise is a great stress reliever. The market has already begun its shakeout. If you didnt get stopped out, or failed to place earlier stops, your best opportunity lays ahead in picking up additional shares at a much lower price. Most of the experts weve interviewed tell us the next rally should start sometime between late July and Labor Day. In an attempt to interview the uranium guru James Dines in late May, we were told, Call back in a couple of months. That was a helpful clue that the markets were less than exciting. Mr. Dines is often eager to be interviewed, but recently he was not.

2.Do you believe the fundamentals which engendered the commodities boom have changed? If they havent, then the bullishness is only taking a breather. We dont see any fundamental change in the markets. Russia still wants nuclear power, and its oil production may be peaking. China hasnt announced the end of its nuclear expansion program. India wants to spend 40 billion on new nuclear reactors. If you are invested in uranium stocks, spot uranium jumped another pound to 45pound this past week. Hardly the end of the bull market.

3.If you worry about your investment in one stock or another, then stop watching the ticker and focus on the company fundamentals. Is the story still true or has it changed? See #7 A, B and C below.

4.Theres an old clich that the time to buy is when you feel like dumping everything you own in the category. At the exact moment you want to sell your entire portfolio of uranium stocks, it may be wiser to add to your holdings. This applies mainly to the retail investor. Most of the professionals did dump at the top and are now slowly accumulating the shares of the nave who waited until the washout to start selling off.

5.Has a major, earth-shattering event occurred? The last bull cycle in uranium ended with Three Mile Island (TMI). The last decent rally in the precious metals markets fell off a cliff after it was discovered Bre-X Minerals had perpetrated a fraud about its gold discovery in Indonesia. Something significant and newsworthy always transpires, and it is also far-reaching. That is the trigger. As with TMI and Bre-X, those were the first shots which launched a later chain reaction to end those bull markets.

6.Before pulling the sell trigger, ask yourself: Do I really want to give up these shares to a bargain basement hunter, who will make a killing on my losses?

7.

A)How much cash does the company have in the bank? During shakeouts, cash is king. Prescient companies, which completed their financings during the recent and robust rally, are sitting pretty. They can weather the short-term storm and are well-oiled to move forward when this correction bottoms and reverses. Those companies are the strongest ones to check out when this correction looks gloomiest.

B)Has the management remained the same? Unless the top financial andor technical people blew out the door, in recent weeks, the story probably hasnt changed much. Companies which built a strong technical team are resilient and powerful. They will move forward.

C)Have the properties come up dry? One of the reasons you invested in a uranium company was because it announced it had pounds in the ground. Some companies have more than others. Some went to the expense and trouble of completing a National Instrument 43-101, which independently confirmed the quantity and quality of the uranium resource. If that changed and the company announced, Sorry, nothing there after all, or announced, Hey, we were kidding, thats one thing. If you havent heard that, or read a news release announcing that, then the uranium didnt walk away or move onto a competitors property. Its still there.

Next time, when the markets are racing higher, and you feel like you won the lottery, consider this bit of biblical advice. The old joke goes, When did Noah build his ark? The answer of course is: Before it began to rain.

July 15, 2010 · Admin · No Comments
Posted in: Investment News

What Is Your Investment Style?

Knowing what your risk tolerance and investment style are will help you choose investments more wisely. While there are many different types of investments that one can make, there are really only three specific investment styles and those three styles tie in with your risk tolerance. The three investment styles are conservative, moderate, and aggressive.

Naturally, if you find that you have a low tolerance for risk, your investment style will most likely be conservative or moderate at best. If you have a high tolerance for risk, you will most likely be a moderate or aggressive investor. At the same time, your financial goals will also determine what style of investing you use.

If you are saving for retirement in your early twenties, you should use a conservative or moderate style of investing but if you are trying to get together the funds to buy a home in the next year or two, you would want to use an aggressive style.

Conservative investors want to maintain their initial investment. In other words, if they invest $5000 they want to be sure that they will get their initial $5000 back. This type of investor usually invests in common stocks and bonds and short term money market accounts.

An interest earning savings account is very common for conservative investors.
A moderate investor usually invests much like a conservative investor, but will use a portion of their investment funds for higher risk investments. Many moderate investors invest 50% of their investment funds in safe or conservative investments, and invest the remainder in riskier investments.

An aggressive investor is willing to take risks that other investors wont take. They invest higher amounts of money in riskier ventures in the hopes of achieving larger returns either over time or in a short amount of time. Aggressive investors often have all or most of their investment funds tied up in the stock market.

Again, determining what style of investing you will use will be determined by your financial goals and your risk tolerance. No matter what type of investing you do, however, you should carefully research that investment. Never invest without having all of the facts!

July 8, 2010 · Admin · No Comments
Posted in: Investment News

Long Term Investments for the Future

If you are ready to invest money for a future event, such as retirement or a childs college education, you have several options. You do not have to invest in risky stocks or ventures. You can easily invest your money in ways that are very safe, which will show a decent return over a long period of time.

First consider bonds. There are various types of bonds that you can purchase. Bonds are similar to Certificates of Deposit. Instead of being issued by banks, however, bonds are issued by the Government. Depending on the type of bonds that you buy, your initial investment may double over a specific period of time.

Mutual funds are also relatively safe. Mutual funds exist when a group of investors put their money together to buy stocks, bonds, or other investments. A fund manager typically decides how the money will be invested. All you need to do is find a reputable, qualified broker who handles mutual funds, and he or she will invest your money, along with other clients money. Mutual funds are a bit riskier than bonds.

Stocks are another vehicle for long term investments. Shares of stocks are essentially shares of ownership in the company you are investing in. When the company does well financially, the value of your stock rises. However, if a company is doing poorly, your stock value drops. Stocks, of course, are even riskier than Mutual funds. Even though there is a greater amount of risk, you can still purchase stock in sound companies, such as G & E Electric, and sleep at night knowing that your money is relatively safe.

The important thing is to do your research before investing your money for long term gain. When purchasing stocks you should choose stocks that are well established. When you look for a mutual fund to invest in, choose a broker that is well established and has a proven track record. If you arent quite ready to take the risks involved with mutual funds or stocks, at the very least invest in bonds that are guaranteed by the Government.

July 1, 2010 · Admin · No Comments
Posted in: Investment News