Wednesday, June 17, 2009

Uncertainty still prevails whether the profits will continue even after the rise in Asian shares


With the preceding week’s profits on Monday the Asian shares witnessed a high once more along with the rise in the financial stocks through the turn down of the service stocks in Australia. The Nikkei of Japan rose to 2.3 percent, NZX-50 of New Zealand had an addition of 0.5 percent, and Kospi of South Korea gained a high by 1.1 percent. But some of the market analysts were not confident about the continual of the market mood due to the economic slump in America.

One of the experts at RBC Capital Markets was the of the view that with some good days in American market previous week the risk seekers will be able to have their first victory after so many months. Last week The Dow Jones Industrial Average increased to 9.01 percent. No main feedback is observed to the remarks made by Mr. Ben who is the Chairman of Federal Reserve. He was the first Federal chairman to be televised on sixty minutes in over two decades. He said that he believes that the economy will soon get normal and this will only happen after the stabilizing of the various banks and financial markets.

Most of the Asian shares end higher


Majority of the Asian markets closed higher along with the miners and financial stocks growing with the steadiness signs in the worldwide economy. Mr. Jeffrey who is an analyst was of the view that over the last eight weeks they have made a decent amount of money and theye are making their best efforts to keep that amount. He also added that for the longer term they are positive and for the near term theye are quite watchful.

Hang Seng Index of Hong Kong added 0.2 percent ending at 16,430.07; it rose for a fourth straight session and expanding a 5.4 percent. Australia’s S&P/ASX 200 increased 0.1 percent; New Zealand NZX increased 1.8 percent. As for the afternoon trading India’s Sensex also increased 0.3 percent following a soaring 6.2 percent in the prior session while Straits Times Index of Singapore added 2.2 percent.

Taipei and Shanghai registered advancement with the China’s cabinet passed a plan for making developments in the country’s coastal economic zone close to Taiwan. HSBC Holdings shares increased 1.8 percent in Hong Kong following a report in South China Morning Post that it anticipates to be amongst the first ones to register shares in Shanghai.

The airlines in Shanghai continuously concentrated on making advancements on easing the distress of swine flu along with Air China increasing 4.4 percent and China Southern Airlines added 2 percent. Some of the analysts are anticipating the profit-taking to soon take place in Taiwan, Hong Kong, and China. Mr. Johnson who is the consultant president of Marbo Securities was of the view that foreign institutional shareholders will probably carry on buying. Dow Jones Industrial Average futures were lately down 33 points in screen trade.

According to the available data from China and America, it has projected a development lately, though some of the experts have advised to take care seeing the pace of the stock markets. On Thursday, the shareholders were still waiting the outcome of American bank stress test. The officials at Wall Street Journal were likely to direct about ten out of nineteen banks tested for boosting up their capital. One of the experts at UBS was of the view that the rally in risk assets is not showing any signs of stopping.

Handling Forex with Risk management strategies

Handling Forex with Risk management strategies

The enormous size of the Forex market gives it the speed and liquidity like no other financial world market. Losses exist, but Profits are even higher! But just like any other speculative trade, amplified risks are involved along with the probability for a higher profit/loss.

Exit the market at profit targets
Limit orders let the Forex investors stop further trading and leave the market at preset profit objectives. Creating a disciplined trading methodology, Limit orders allow the traders to fix a limit of the profits which they want to make, and then exit the market. Also, they are free from the work of continuous monitoring the market sitting in front of their computers all day.

Limit your losses
Stop/loss commands also follow the same motive as that of the limit orders, by allowing the investors to set an exit point for a loss. By limiting your losses to a pre set position, Stop/loss orders help investors control their risk conditions. By placing them well in advance, you have an almost accurate idea of how much in loss will you be, in case the stop/loss order is hit!

Accurate placing of stop and limit orders
Where does the investor place his stop and limit orders respectively, determines the amount of risk he is taking up. It is advisable not to place your stop/loss orders too close to the normal market price, as a little fluctuation in the market, can then trigger the order. Likewise, limit orders should also reflect a rational hope of profits you are expecting, based on the market's trading activity. They should be set at the rate which is not overexposed to the trade, and also not too close to the market.
'Stop-loss' and 'limit' orders can lower an investor's exposure to risk by a large proportion.

Why opt for Forex trading?

Why opt for Forex trading?

With more than $1.5 trillion USD being traded daily, the foreign exchange market has managed to become the world's largest financial market, over the last three decades. With the large minimum deal sizes and rigid financial requirements, the Forex market, till recently, was not explored by the common trader or individual investor. But now the average investors can also engage in Forex trading. Some of the advantages of Forex trading are as follows:

24 hours trading
Forex gives its traders a 24 hour trading opportunity. Being a Forex trader, you can trade 24 hours a day from Sunday 5:00 pm (ET) to Friday 4:30 pm. This gives traders an opportunity to trade according to their convenience, going by their own schedule and also a chance to react instantly to any breaking news of the markets.

High levels of liquidity
Also, acting as a huge attraction is the high liquidity. With almost 90% of all the currency transactions consisting of 7 major currency pairs, helps these currencies display price stability, smooth trends, narrow spreads and high levels of liquidity. This liquidity mainly comes from the banks which offer cash flow to companies, investors and market players.

No commission
With “free of commission” trading, Forex trade lets you keep 100% of your trading profits. This makes Forex trading even more attractive as a business opportunity, especially for those who want to deal on a regular basis.

Forex Investment Fund (FIF)

Forex Investment Fund (FIF) is a high yield, private loan program, backed up by Bonds, Forex, Gold, Stocks trading, and investing in various funds and activities all over the world. Our mission is to provide our investors with a great opportunity for their funds by investing as prudently as possible in various arenas to gain a high rates in return. We are a successful group of private individuals who have made our money through prudent investments in the finance industry on a worldwide basis for over 8 years. Honestly, please do not compare us to something like "HYIP" programs or "games" that are always coming and going. Besides, we do have a reliable and profitable source of real net income, based on the real investment from the real market.

Sunday, June 14, 2009

Forex Market

Now, the FX market is one of the largest and most liquid financial markets in the world,

and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global foreign exchange and related markets is continuously growing.

Traditional daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements.[2] Since then

Thursday, June 11, 2009

Financial leverage


Financial leverage

Financial leverage (FL) takes the form of a loan or other borrowings (debt), the proceeds of which are (re)invested with the intent to earn a greater rate of return than the cost of interest. If the firm's rate of return on assets (ROA) is higher than the rate of interest on the loan, then its return on equity (ROE) will be higher than if it did not borrow because assets = equity + debt (see accounting equation). On the other hand, if the firm's ROA is lower than the interest rate, then its ROE will be lower than if it did not borrow. Leverage allows greater potential returns to the investor that otherwise would have been unavailable but the potential for loss is also greater because if the investment becomes worthless, the loan principal and all accrued interest on the loan still need to be repaid.