Comparing The Two Types Of Investments


There are two major types of investments done in the stock-trading arena these days ?short-term investments and long-term investments. If you find yourself overwhelmed and confused in choosing which type would be best, simply take note of the differences between these two varieties and consider the advantages and disadvantages of each to be guided in making the right decisions.

Basically, the major difference between the two investments is the fact that short-term plans are actually designed to show a substantial yield in a short time period. While long-term investments, on the other hand, are designed to last for quite a few years and present a slow yet progressive increase in its yield.

Let us discover the differences when it comes to the disadvantages and advantages of each type of investment.

Short-Term Investments

The major advantages of investing for a short-term plan are the potentials for growth at a very fast period of time, ranging from a few weeks to a few months. Although there may be fluctuating trends that could affect the market,it is more likely that you can keep a more watchful eye on your investment.

However, this type of investment may be a bit riskier due to the fluctuations present in such a volatile stock market, as mentioned above. As compared to its long-term counterpart, this type of investment may much easily be affected by unpredictable circumstances because it is in a shorter period of time. And so, even if there is a very huge chance that you can make a lot of money in this type of investment, there are also great chances that you can lose a lot.

Long-Term Investments

For long-term investment plans on the other hand, there is a greater ability for this type of investment to gain small and distributed profits over a longer time frame. And because it has a slow-but-steady pace, it becomes more stable and involves fewer risks.

But of course, a disadvantage for the slow growth of your investments may indicate that you cannot expect to earn profit right away especially when you are badly in need of money. In addition, you may also have less control over your money because your investment would not mature right away.

Also take note that because investments may require a lot of fees to be paid as it progresses and due to occurring fluctuations in the market, most long-term investments may experience down time before they can actually climb up and become productive.

In choosing between these two major types of investments, the most important thing you have to consider in order to gauge which plan would become more beneficial to you is to contemplate on your reasons for investing.

If you invested in stocks with the ultimate goal to earn money fast then surely a short-term plan would suit you. But on the other hand, if you want to invest for future and insurance purposes like in cases wherein you want to have money when you grow old, then a long-term plan for investing is best.

Whatever your decision may be, always remember that there are advantages and disadvantage in all kinds of investments. And ultimately, to become successful in your endeavor, you must be willing to take on minimal risks and make smart decisions in order to manage your trades.

Flush With Cash Gold Shares Are The New Internet Stocks


So, the price of gold is going up, and so are gold stocks. There really isn't much money to be made in this market except for speculating in gold shares. It's the industry with the best near- and medium-term fundamentals as far as I'm concerned. The big move in gold has already taken place and equity investors should already have some exposure to this important commodity. The thing about the global economy is that we're in a long period of slow growth with inflationary pressures. It's the best of both worlds for gold. Add in sovereign debt worries (politicians would rather print money and create inflation than cut programs) and the emerging strength of BRIC economies, and it's quite arguable that the spot price of gold could hit $2,000 an ounce.

There are actually very few investment-grade, large-cap gold companies. Only a few pay a dividend and, of those, yields aren't really more than one percent. Most of the gold miners out there would compare to medium- or small-cap companies and, because of the volatility inherent in commodities, should be considered speculative equity securities. Regardless, I wouldn't have an equity portfolio that didn't have some exposure to gold, especially giving current economic fundamentals. Like most things now, investors can consider a gold mutual fund or exchange-traded fund (ETF). There's even publicly traded companies the sole purchase of which is to own and secure large numbers of gold bars. For the most part, all stocks related to gold trade commensurately with the spot price of the commodity-and there lies the greatest investment risk for a gold investor. There was a bandwagon effect taking place in precious metals earlier in the year. Institutional investors piled into gold, silver and copper and then jumped into agricultural commodities.

Right now, large money managers are desperately hoping that second-quarter earnings and visibility will be strong enough to provide a catalyst to buy stocks. Investing in gold isn't on their minds to any great degree. But, the price of gold is creeping higher. If it ticks past $1,650, then I think we'll have a new rush on our hands. Percentage-wise, this price isn't far away at all. It certainly is a great time to be in the gold mining business. It's an industry that's flush with cash. Retire on This One Hot Stock! This stock is up 232% since we first picked it. Our expert analysts say it will go up another 100% in the next 12 months! Our top 19 stock picks were up an average of 173.57% in 2010 (not a misprint). See where we are making money in 2011 and get our combined 100 years of investing experience working for you starting today. Get your FREE report on our top stock pick immediately here.

UK Stock Screener Enabling You to Analyze Multiple Criteria


UK Stock Screeners provide or enable investor to analyze various criteria related to various outperforming stocks in London Stock Exchange. London stock exchange is said to be the largest stock market in UK, as well as in the whole Europe region. It is said to be the fourth largest stock exchange in the world with a market capitalization of around $3.7495 trillion. Companies that are listed in LSE have to meet LSE's own criteria. It runs several markets for listing. It is also providing an open door opportunity to all types of companies to get listed in the giant stock exchange. LSE is also operating a sub-office in Hong Kong, where more than two hundred companies from Asia-pacific regions have been listed.

There are many international companies who have listed their products, shares, and depository receipts etc with LSE. For an investment point of view, it is also a professional securities market. It facilitates investors to raise capital by issuing special debt securities receipts. So far, the screener has played a vital role in overall market capitalization in LSE. The tool may be very effective in various means. Investor can take various advantages by using this exclusive tool to evaluate different stocks. It also enables an investor to quote a price on behalf of a particular security. This tool provides help to remain focus on your investing objective. It is an important fact to be considered before making any final decision on behalf of your investment.

So, most of the investors who want to invest their money in LSE can take competitive market advantage by using this tool. What has to be followed is your investment objective along with correct strategy to gain maximum yield or output in the market. It should be considered as a blessing in terms of investment in securities. You can analyze certain criteria by using this tool. As LSE also known as a dedicated market, it is designed to take or accept more complicated or sophisticated funds and securities. Therefore, an investor can take competitive advantage by using this tool in terms of his investment in London Stocks.

Commodity Tips Bangalore Future Trading Bangalore NCDEX Tips MCX Bangalore


We, at COMODITY FUTURES are committed to help you grow your money. We intend to guide you make money either as a short-term trader or as a long-term investor or both. We are dedicated to give you informed advice regarding your investments. Our goal is to provide you more and more opportunities to earn your best by our tips. We provide you services on Intraday Comodity and finally the one in which all are interested. Our team is highly skilled with experienced analysis. Our efforts are to provide you more & more profit in every trade. The best way to invest in stocks is by buying them before they are heavily promoted and hyped up in price. If u gets into the stock at the early phase you could make a fortune. Once u knows which stocks are being heavily promoted you can buy them ahead of the big profit and wait to cash in. You buy the stock at low price and wait for the price to rise so u can cash out big.

We provide our services through SMS & YAHOO MESSENGER, according to your convenience… This site is purely created to provide technical & financial information to the people to earn from Indian stock market. Services Low Brokerage Trading Account for Equities / Commodities / Currencies Brokerage details: Brokerage charges are chargeable for buying and selling Buying 1paisa, selling 1 paisa, Options buying Rs.30, Selling Rs.30 Disclaimer: Our calls are based on instant market movement. If the money and risk is not managed correctly, then traders and short term investors can land up in losses. We are not responsible for any losses that can occur due to volatility and stop loss violation. I do not have any personal positions any time on the recommendation made for the intra-day calls. However, it is possible that our Live Market Calls subscriber's could have positions and trading positions without our knowledge and consent. We also don't have any control on our client reverse positions if they have created against our recommendation. Individual traders, implementers of the trading call are doing it at their own risk.

We also don't have any control on our subscriber's positions. Traders are advised to check their cost in long and short trades and keep taking profits irrespective of our targets. What matter is trading profits therefore check cost and keep taking profits. TRADING STRATEGY: FOR TRADERS WHO TRADES IN MINIMUM 3 LOTS:- WHEN TGT1 REACHED BOOK PROFIT IN ONE LOT AND MODIFY SL TO COST IN OTHERS 2 LOTS, WHEN TGT2 REACHES, BOOK 2ND LOT AND MODIFY SL TO TGT1 IN 3RD LOT.. WHEN TGT3 REACHES EXIT 3RD LOT OR MODIFY SL TO TGT2 AND CONTINUE FURTHER……….. WHEN SL HITS EXIT ALL LOTS. FOR TRADERS WHO TRADES IN ONLY ONE LOT:- BOOK PROFIT AT TGT 1 OR MODIFY SL TO COST AND CONTINUE FOR FURTHER TGTS…… WHEN SL HIT EXITS. For more details visit --

Commodity Futures Trading – What Is Your Trading Edge?


Finding your very own unique commodity trading edge is a worthwhile goal. Without one you are lost in the masses, struggling to push your head above the sea of expenses. Trading edges do exist, though for short periods of time. Psychological edges are more permanent. You need many. Read on to find how to go about finding yours.

When talking about trading, I cringe when I hear the word, "system." It reeks of computer optimization - optimized mush, no flexibility. A better term is trading "method." A commodity trading method is something that is less rigid and has general rules that can be bent. We need to know when to bend the rules. This brings a method out of the mediocre class into one that has an edge - a human edge.

The best commodity futures and option traders in the world are usually discretionary types verses strict rule based optimization systems people. There are exceptions. To be a 100% intuitive, method trader is a tough row to hoe, agreed, but allows dynamic change to market conditions in a heartbeat.

So, where do we find our trading edge? Is it in the latest software, book, mentor, webinar, or maybe right here? It can be found everywhere, pieces here, pieces there, but mostly, the edge is within you. Sounds mystical, but it?s the truth. You have to spend the time to develop your OWN unique edge that the majority do not have. And yours will change over time.

For example, at one point back in the late 60?s and early 70?s, few commodity futures traders had use of computers. It was found that even a simple exponential moving average worked well for the smooth trending markets of the era. Moving average commodity traders did well since the markets were trending nicely. As more traders caught on, the successful trending systems began to get diced. You will notice that many of the new and emerging foreign markets start out with smooth trends until they mature and then start the chop cycle as change moves in. It?s all part of the never-ending evolutionary commodity trading game and marketplace.

There are some effective, but simple, long-term trending methods out there. Almost any method will work at one time or another. The broadest, loosest trading methods will last the longest, while the most optimized last the shortest time. The famous ?Turtles? used a break-out of the 40-day moving average for many years.

They added a filter called ?n.? Two losers in a row = -2n. Two winners = +2n.? A winner and loser = 0n. The more losing trades in a row, the more frustrated the masses and the more likely the next trade will be a winner. That is, if the break-out came three times in a row with a resulting false move and a stop out, (-3n) then the fourth signal will be more probable for success. Sometimes.

The commodity futures markets follow this general rule: They will bless some methods for a while, then turn in a heartbeat and take it all away. A good trader is always watching several methods at one time and will switch to the one currently a heartbeat!

Part Three of Three Parts - Next!

There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.

The 10 Worst Networking and Electronics Stocks of 2010


It's been a pretty kind year to stock investors, with the S&P showing a 12.8% gain in 2010. Of course, kindness might still feel relative after a lost decade of negative returns that included the nauseating depths and panic of the financial crisis. Still, not every stock sees gains when a rising tide lifts all boats. Here's a list of this year's 10 worst performers in the networking and electronics industries, ignoring companies that have gone bankrupt or sunk below $200 million in market capitalization. When I compiled a list of the 10 best performing stocks from these two industries in 2010, smaller networking companies dominated. That came largely at the expense of industry kingpin Cisco, which has struggled to compete in several key niches of networking technology. Cisco itself not only was unable to expand in several of these growth markets, but also saw its share price lag the market by 28%. Given Cisco's inability to perform better in key markets and competitors pushing into networking that could use toeholds in key technologies, I proposed that 2011 could see a buyout swell in the industry. One company whose name is constantly swirling in buyout talks, but has yet to be scooped up, is Brocade Communications. The company has large product portfolios not only in switches, but also in storage area network products. However, despite shopping itself, the company has been unable to find a buyer. During the year, it also experienced numerous setbacks, including weak guidance last quarter, which led to a 31% falloff in its share price during 2010. The electronics side saw a veritable grab bag of companies underperforming. The biggest loser in the industry, China Security and Surveillance, suffered along with fellow Chinesesmall-cap peers. Itron posted record profits in 2010, but like EnerNOC and other companies making smart electricity products, it saw investors lose faith in the industry. Finally, SMART Modular Technologies recently collapsed after reporting poor guidance of its own last quarter. So what's in store for networking next year? I suspect we'll see a string of buyouts. While companies like F5 Networks and Riverbed might be a little too richly priced to attract a bidding war, there's plenty of other small fish in the sea to be stalked by networking aspirant HP, as well as Cisco and Juniper. If you're looking for some other ideas for strong outperformers in the year ahead, The Motley Fool has created a brand new free report called "The Motley Fool's Top Stock for 2011." In it, we reveal the little company set to profit from the broadband Internet expansion. Get instant access by clicking here it's free.

Profitable Trading System


After you have found a profitable trading system that you already back-tested, how can you be sure that this system will produce the same gains in future?
Nobody can predict the future, your system can easily make losses in next years or can be no tradable.
There are some tests you must do before accepting a trading system, these tests swill show the robustness of your system and when passing these tests, it will be more likely to show gain in future.

Test 1 : Make sure that you put liquidity rule, that your entry and exit prices are realizable.

Test 2: Examine again your trading systems and your rules (This is very important).
I made dozen of trading systems that showed great results but after more examination, it showed that i cannot follow them in real life.
Check if there is one stock that made very big gain, the system will maybe become no profitable without this stock.

Test 3: Change twice or 3 times the date of begin for the simulation, if it still show good results then it has passed the test 3.

Test 4: Change values of some parameters or variables you have in your trading system rules, you must change one value and then back-test, change another and then back-test…
If the results are not affected very badly then it passed the test 4.

Test 5: Try to restrict the system from buying 20% or more of stocks you previously bought when doing the back-test. Then re-run the back-test. To pass this test, system must show pretty the same results as before.

Test 6: Equity chart must have a good look, check some statistic values like sharpe ratio, sortino ratio, standard deviation, maximum drawdown, average day for gains recovery…
It depends on the risk you are willing to take but choose only systems that have : higher sharpe ratio, higher sortino ratio, lower standard deviation, lower maximum drawdown…
Exclude systems that have very big max drawdown, standard deviation and average day for gains recovery.
The must important factor i think is average day for gains recovery.
Its the average number of day that you must wait until your equity value will goes back to the same level before the drawdown happen.
Big values will let you wait for long times before recovering gains and for sure many traders will abandon their trading system, and that's the worse thing that can happen to a trader because just after that, the system will show excellent results. (That's always happen)

Theses tests are very restrictive and you will reject maybe all your trading systems, but when trading you will put your money, real money, so i think you must be very selective to make all chance in your side.

Fair Value of A Standard Stock


A number of conversations have been committed at looking for reasonable amount of a great investment. The objective of all investors is to find underrated investment then sell it if it reaches right value. Of course, it's the most difficult part of investing. Now, what is fair price? Right price is a factor that the cost of a smart investment reflect its making power. Fair amount is actually relative also it depends upon other factors beyond the investors' elimination. On here, we are going to discuss for determining right price throughout our own boundary of charge. In other words, figuring out good value of a great investment depends upon the cost of profit predicted and the risk taken to make that profit. And the higher chances needs greater prize. It is quite basic. So, precisely what asset comprise minimal risk investments? We could only compare. Very first thing that comes out of my thoughts is Certificate of Deposit (CD). You may be guaranteed sure return (interest rates), if you're able to store for the bound pre-determined schedule. You would rarely reduce your principal right at the end of your period of time.

Another low risk investment is Treasury Bond. It is the bond issued by the United States government, that is considered to get most dependable on the globe. There are actually certain risks associated with the small fluctuation with the bond rate. However, if you obtained the bond before maturity, you could be secured certain rate of profit. The rate of gain hinges to specific point on the cost that you simply bought the bond at. The following the upper chances investment is getting general stock. This is just what we are going to concentrate much more here. It truly is taken into account the upper chances than the two types of investments stated earlier as you possess a significant chance of losing money on the investments. Earlier, we established that greater risk takes more prize. So, stock investing needs a greater prize. Now, precisely what does this get almost anything to undertake with reasonable value? To put it simply, the cost of a typical stock we purchase must gives us a higher every year gain than bonds or CD. To illustrate in case a CD provides a 3% yield, treasury bonds supply you with a 4 percent profit, then you would want your stock gives you a higher yield of most likely 6 percent. Just what does it signifies for the stock to present investor a gain of 6%? This in no way really claim it, doesn't it? You will be partly ideal. Though it may be not explicitly shown, you can use a little looking and find out how much the return of your stock investment would be. To illustrate, should your Certificate of Deposit (CD) provides you with a 2 percent annual profit, for $ 100 of investment, you should bring in $ 2 yearly.

Why don't we assume that you need your stock to offer a gain of 6%, which can be greater than CD or treasury bond. This suggests for each $ 100 invested in common stock, it has to provide us with a return of $ 6 annually. Wherever could we get this information? You can aquire it on Yahoo! Finance and other financial publications. All we must do is obtain the share price of a basic stock and also the profit per share (generally known as earning per share) of this explicit stock. Let's work with an instance to demonstrate my issue. Magna International Inc. (MGA) is expected to publish an income of $ 6.95 each share for fiscal year 2005. Just lately, the share is trading at $ 73.00. The yearly yield of buying Magna stock thus remains $6.95 split by its share price $ 73.00. This gives all of us a gain of 9.5%. May Magna always allow investors a 9.5 percent gain every single year? It all depends. When the stock cost rises, Magna might return lower than 9.5 % yearly. What more? Very well, Magna might not continuously develop a similar amount of earnings every year. It might even develop a loss! And so, the thing is that, stock investing is naturally high-risk because there are two moving part for the equation. Tariff of the typical stock and the revenue that is generated by the business itself. That's the reason why investor need to target higher gain when scouting for their stock investment.

Fine. Therefore, let's proceed to the crucial thing in investing in basic stock. What is the good price of Magna stock presuming an endless benefit of $ 6.95 every share? Personally, I assign good cost of a standard stock to generally be no less than 2% over the rate of Treasury bond. Please note that we're making use of the 10 year bond here. Just lately, treasury bond may give us a 4 % gain. Therefore, the fair amount of Magna standard stock happens when it might produce a return of 6% So, what is the good value of Magna typical stock in this instance? For a profit of $ 6.95 every share, the right value of Magna common stock is $115.80 each share. You heard right. At $ 115.80 each share, Magna typical stock will profit investors 6 percent each year. With that said, we should never purchase a typical stock at good value. Why? Simply because our investing goal is to always make money. If we buy stocks at reasonable value, when do we make money from it? Can we be ready to sell it if it is overpriced? Without a doubt, it could be nice when we are able to do that all the time. But for being old-fashioned, we will not bank on our stocks attaining overpriced level. There you go. We have described how to compute reasonable cost in a common stock. After all, the $ 6.95 each share profit figure is the expectation of benefit collected by Yahoo! Finance. It isn't in any way an recommendation to get Magna basic stock. You need to do your own calculation to validate that number.

Best Buy Co. (BBY) and Gamestop Corporation (GME) could top expectations

Earnings Preview For Mar 23 - 27
Best Buy Co. (BBY) and Gamestop Corporation (GME) could top expectations. Sonic Corporation (SONC) could disappoint.

This will be a quiet week for earnings, with just 58 companies confirmed to report. There are 10 S&P 500 members in this group, including Best Buy Co. (BBY), Gamestop Corporation (GME), Lennar Corporation (LEN), Tiffany & Co. (TIF) and Walgreen Company (WAG).

Housing data will headline the first half of the week with existing home sales published on Monday and new home sales published on Wednesday.

  • Monday: February existing home sales * Wednesday: February new home sales, February durable goods orders, weekly crude inventories * Thursday: Final fourth-quarter GDP, weekly initial jobless claims * Friday: March University of Michigan consumer confidence (revised), February personal spending and income

Fed Chairman Ben Bernanke will testify about American International Group, Inc. (AIG) in front of a House committee on Tuesday.

The markets are coming off of overbought conditions, so a continued pullback seems likely. Just remember that wildcard events (e.g. initiatives from the Obama administration, credit rating downgrades, bank announcements, etc.) still remain the primary drivers of market sentiment. It is also possible that we could get some first-quarter warnings as well.

Companies That Could Issue Positive Earnings Surprises
Fiscal fourth-quarter profit forecasts for Best Buy Co. (BBY) were revised higher by 5 of the 20 covering brokerage analysts during the past 7 days. The revisions pushed the consensus earnings estimate up 2 cents to $1.39 per share. The most accurate estimate is slightly more bullish at $1.40 per share. It is possible that the revisions reflect the market share gained from the demise of Circuit City. BBY has topped expectations during 3 out of the last 4 quarters. Best Buy is scheduled to report on Thursday, Mar 26, before the start of trading.

Last month, Gamestop Corporation (GME) narrowed its fiscal fourth-quarter guidance to between $1.33 and $1.34, the high-end of its previous forecast. In response, 5 brokerage analysts raised their quarterly projections. These changes moved the consensus earnings estimate 1 cent higher to $1.34 per share. The video game retailer has topped expectations for 8 consecutive quarters. GME is scheduled to report on Thursday, Mar 26, before the start of trading.

Companies That Could Issue Negative Earnings Surprises
Sonic Corporation (SONC) has missed expectations for 3 consecutive quarters. Ahead of the fast food chain's fiscal second-quarter report, the majority of the 17 covering brokerage analysts have cut their forecasts. The consensus earnings estimate of 9 cents per share is 2 cents below the average forecast of a month ago. Sonic is scheduled to report on Monday, Mar 23, after the close of trading.

Small Stock Trading Tips And Profit is Big


If you cannot stop mechanism, a sudden change in your day that will ultimately fail you can lose money, you can pick up after hours of debate. Thus, the trick is, you import your valuable strategic input in the market occurred as soon as the broker to make a small profit can be maximized blending is to say, to use the benefits of this trend. You can choose to invest in better and different stock Nifty Option Tips for making money on the internet; we help to improve the chances is that. Basically, as a shareholder by buying shares in a company, you buy part of the business; we can generate revenue and help options. Number of people, but a lot of money, it does not lose money in the stock market. There are several ways to break. Unfortunately, this game should be fun and exciting. Also, you can easily use the money can be determined by the broker, you acquire a basic knowledge of stock trading may take some time to learn. Also, how to get into the stock market to teach his friend to teach, to learn to find colleagues or family members can decide.

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