1anyoption

Archive for December, 2009

Easy Way To Make Money with Binary Options

Monday, December 28th, 2009

Someone wanting to make money fast and easy really has few alternatives in a harsh economy like this but if you do have a few dollars to work with, it is possible to earn a considerable amount of cash in a short amount of time. What might work best for you depends on your background, whether you have good market sense, or perhaps you are a little bit tech savvy, or you just plain old have a little bit of moxie in you.

Whatever your skill set, you have to really pick one strategy and go for it if you intend to make your fortune. Let’s talk about one of the possible alternatives for a moment, forex trading. I choose to talk about this one because it is the least complicated, requires the fewest skills, and takes only a modest amount of capital to start up. It is also not a great way to make money fast and easy but it also is the most consistent of the fast money making schemes. Another great plus to this choice is anyone who can scrounge up a hundred bucks can start trading in the forex market. True, it is better if you’re starting with a thousand dollars or ten thousand, but even a hundred or five hundred is enough to begin if you have the right tools.

In order to make money fast and easy trading forex you need three things: a forex trading account, a forex trading software program, and the aforementioned few hundred dollars. Once you have these in place if is only a matter of setting up your account, getting your software to interact with your account, and putting your money in your forex account. At that point you turn on the trading program and stand out of the way.

I talk about using forex software to make money fast and easy in my blog and if I were starting out today with no money, I would certainly go for the easy money in the forex market. My second choice would be to trade binary options and digital options trading, because there is no faster way to make money than the hourly turnover in the binary option market. The returns are less certain than in the forex market, but man the money can turnover really fast. If speed is your concern – go with the binary options and digital options trading, because nothing is faster. If you have time and want consistent returns, go with the forex. If you’re not certain… go with the forex – those trading software programs are hot. Either way, neither of these money makers require much start up capital – even as little as $100 will get you started.

You can make a high return of up to 75% on your investment in one hour using binary option, or digital option, platforms. These trading platforms are easy to use and have fixed returns and losses, making them a safe way to earn a high return from trading on the stock market, currencies and commodities trading. While option trading is a well known practice in the forex market, binary option platforms have streamlined the process and opened it up to the public to trade on and make high, fast returns.

edit Steps

1.
1
Find a high return binary option platform. Since binary option platforms have only been available for the past year, it’s easy to review the platforms in the industry and find the best ones. All platforms should be free and provide traders with the option to withdraw their money at any time.
2.

Register with the binary option platform of your choice.
3.

Pick an option to bid on. You can choose from stocks, commodities and currencies.
4.

Predict which direction the option will move by the time of expiration. The time of expiration can range from one hour to one month, depending on the platform.
5.

Determine which direction the option will move. If you think that the option price will rise above it’s current price by the time of expiration you will need to select “CALL”. If you think that the option will fall below it’s current price by the time of expiration you will need to select “PUT”.
6.

Determine how much money you want to bet on your trade. Since binary option platforms have fixed returns and fixed losses, you will always know how much money you can gain and how much you can loose. The amount that you trade is up to you, but the industry average ranges from $500 – 1000.
7.

Wait for the expiration. When your option has expired, you will be able to see if you are “in the money” or “out of the money”. Traders who are “in the money” can earn up to 75% return on their investment. Traders who are out of the money can loose 85 – 95%.
Tips

* The best way to make a high return is to trade on options that expire within one hour. This way you minimize your risk and have a better chance of forecasting correctly. If you want to make a high return on your investment within one hour, pick an option that will expire within one hour and bid close to the expiration time.
* In order to hone your forecasting skills, read the news daily and keep track of current events. Follow finance news sites like Google News, Yahoo Finance and other notable news sources. Also pick a few niche blogs about binary option trading.

The Best Way To Trade The Forex Market Using binary options and digital options trading
PostDateIcon November 20th, 2009

It is no secret that the forex market could be a terribly profitable place to be if you would like to make money by trading currencies.

However , it’s also no secret that achieving consistency in the foreign exchange market needs plenty of preparation ( you want education and trustworthy trading tools ) because not only you have to have a great idea of where the price is getting ready to move, but also how far it is going to go.

as an example if you’re trading the EUR / dollars pair and you decide it’s a sensible idea to go long, you would place a “buy” order, as you predict the cost of the Euro Buck against the buck to go up.

If you placed your trade using 1 mini lot ( this equals $1 profit for every pip ), and your target for that trade is 30 pips, you would need to have at least $1,000 in your account to meet margin requirements and permit some room for drawdown, and if the trade is successful you will make $30 in profits.

However, in order for this to happen the cost of the EU Dollar has to move 30 pips against the buck, otherwise you won’t reach the planned target and realize the profits. As you can see, if you trade the currency market using the standard approach you’ll have not only to forecast where the price is going, but also how far it is going, which simply makes it twice as difficult.

Now, if you have $1,000 in a binary options and digital options trading trading account, what would you want in order to place a successful trade, and likewise, what sort of profits a successful trade would deliver for you?

In order to answer this question, let us say that the cost of the EUR / $ is at 1.47849 and based a given analysis of the market ( e.g. Swing trading pattern recognition ) you think the Euro Buck is trending up against the Dollar. You can see an example of a real case study of financial software for forex trading hitting a rolling stop-loss here.

In this case you would go long also but instead of placing a “buy” order for currency, you would simply buy a $100 call option for the EUR / greenbacks pair with an one hour expiration. If you are right and the price goes up, even if it’s only 0.001 pip above the price you bought your call option ( which is the strike price ), and it is still there or above till expiration, you would get as much as 75% return on your $100 investment.

In other words, a single $100 trade could deliver $75 in profits and you might repeat this process numerous times during the day.

But the remarkable thing here is that you did not need the price to go up thirty pips in 1 hour to get a 75% return on your investment, you only required 0.001 points of change to reach this.

In this eventuality you certainly had to figure out in what direction the price was going to move ( this is generally an ingredient of the trading process ) BUT your forecast did not have to take you all the way to a 30 pips increase in the price in order for you to make get the anticipated return, because you got it with just 0.001 points of adaptation, and you made $75 rather than $30.

Also, you can open a binary options and digital options trading account with only $100 and you can trade with as little as $30 with no commissions charges.

So as you can see, the potential of foreign exchange trading through binary options and digital options trading is giant and the method is far faster so increasing your possibilities for moneymaking trades {, however ,} you do need to have a sense of where the market is going. Provided that you have this, you are probably going to make take much more winning trades than losing ones and a ton more money also.

If you’re new to binary options and digital options trading you can read more currency trading tutorials here that will teach you the easy way to meticulously find the direction in the cost of any asset, currency or index, so enabling you to be profitable in your trading.

Post to Twitter

Share

Early Christmas Gifts For Google (GOOG) Employees

Monday, December 28th, 2009

Early Christmas Gifts For Google (GOOG) Employees

Google (NASDAQ: GOOG) which has a tradition of giving holiday presents to its employees gave an early gift this time. Google allowed all its employees to swap their stock options for new ones in March this year.

Google shares had fallen from a high of $740 in late 2007 to around $300 early this year, which meant that 85% of its employees held options that were under water. In order to retain employees, Google had decided to swap the old stock options with new ones with a strike price of $308.57.

Since then, Google shares have been on an upswing. On Thursday, Google shares were trading at $617 which is more than twice the value of early March. The potential gain for Google employees are huge if the stock prices stay at this level and the options are exercised with an average gain of $117,000 for each of Google’s roughly 20,000 employees.

Post to Twitter

Share

Holiday Sales Push Stocks Higher

Monday, December 28th, 2009

Holiday Sales Push Stocks Higher
News at a Glance

* Lift at open: Stocks slightly higher on light volume
* Retailer cheer: Data show boost in holiday spending
* Kindle on the rise: The electronic reader boosts Amazon
* Bank update: RBS preps for asset sales

The Lowdown

Retailers helped to lift stocks early Monday on optimism for holiday sales.
Click here to find out more!

By 12:30 p.m., the Dow Jones Industrial Average had risen 14 points to 10,534. The S&P 500 had added 1 point, to 1127, the Nasdaq tacked on 5 points, to 2291.

Stocks showed modest upside on light trading as investors eyed the end of the year with retailers helping to support broader gains. Macys (M: 17.95*, +0.38, +2.16%), JC Penny (JCP: 27.42*, +0.40, +1.48%), Nordstrom (JWN: 37.97*, +0.60, +1.60%) and WalMart (WMT: 53.73*, +0.13, +0.24%) were all trading higher early Monday.

Those advances come as MasterCard Advisors’ SpendingPulse showed retail sales rose 3.6% from Nov. 1 through Christmas Eve, vs. a 2.3% decline a year prior.

Amazon (AMZN: 140.89*, +2.42, +1.74%) was also more than 2% higher in early trading after reporting that the Kindle has become the most-gifted item in the online retailer’s history. On Christmas day customers purchased more Kindle books than physical books for the first time ever, the retailer said.

While retailers were higher, airlines were feeling pressure, with Delta (DAL: 11.22*, -0.55, -4.67%) shares falling more than 4% after a man on a watch list boarded a Delta-owned Northwest flight from Amsterdam to Detroit with an explosive hidden on his body and attempted to set off the device before being stopped by other passengers on Christmas Day.

Also weighing on the airlines, winter storms battered the Midwest over the holiday weekend, a week after the Northeast experienced a string of winter-weather related delays.

The economic calendar is light for Monday, but will pick up on Tuesday with consumer confidence and housing data.

Commodities were mixed with crude oil adding 74 cents to $78.79 a barrel and gold edging down a penny, to $1,104 an ounce.

Post to Twitter

Share

Crude Oil Future Rise to $79

Monday, December 28th, 2009

Crude Oil Future Rise to $79

Oil rises near $79 mark on economic optimism, dollar
Natural gas stands out as futures rally 5%

Crude-oil futures rose Monday for a fourth straight session, their winning streak now the longest since October, as an upbeat report on U.S. holiday sales lifted views of the economy and energy demand.

Crude for February delivery rose 89 cents, or 1.1%, to $78.94 a barrel on the New York Mercantile Exchange. Futures ended last week’s trading up nearly 5%.

Retail sales for the holiday season rose 3.6% from the year earlier period through Christmas Eve, according to a report from MasterCard Inc.’s SpendingPulse unit. Other reports this week are expected to show an improvement in U.S. consumer confidence. Read more on holiday sales.

Also helping crude, the dollar stayed lower against most major currencies, boosting dollar-denominated commodities prices as the dollar index /quotes/comstock/11j!i:dxy0 (DXY 77.61, -0.08, -0.10%) fell 0.4% to 77.556. U.S. stocks tallied mild gains, extending their recent run to higher ground.

“A stronger equity market and a positive carryover effect from last week’s economic data are helping energy prices,” said Brian Niemiec, analyst at Susquehanna Financial Group.

“Continued violence across Iran may also be aiding crude as protesters clashed with security forces across the nation.”

By most measures, U.S. consumers’ confidence is slowly improving, although it remains far below normal levels.

Economists surveyed by MarketWatch are forecasting an increase to 54 in December from November’s 49.5 when the Conference Board releases its index of consumer confidence on Tuesday. See Economic Review.

The Labor Department reported last Thursday that initial U.S. jobless claims dropped more than expected, helping push crude up to the highest level in three weeks before financial markets closed for the long Christmas weekend.

In Iran, hundreds of thousands of people opposed to the current Iranian regime took to the streets Sunday in a reprise of the protests that followed the country’s elections in June. Iranian state television on Monday said that at least 15 people were killed.

In other energy trading, January gasoline rose 1.6% to $2.0215 a gallon and January heating oil gained 1.8% to $2.0725 a gallon. The big winer was January natural gas, which rallied 5% to $5.924 per million British thermal units.

The United States Oil Fund /quotes/comstock/13*!uso/quotes/nls/uso (USO 38.94, +0.74, +1.94%) advanced 1.9%, and the United States Natural Gas Fund /quotes/comstock/13*!ung/quotes/nls/ung (UNG 10.77, +0.45, +4.36%) gained 4.6%

Source: Market Watch

Post to Twitter

Share

Apple(AAPL) Keep rising to $260

Monday, December 28th, 2009

Apple(AAPL) Keep rising to $260
Select calls: AAPL, NANO, ASEI
I´m going to give you a quick overview of today´s calls:

- Apple (NASDAQ:AAPL) is likely on the move today again as Thomas Weisel is raising their price target to $250 (from $245) on checks that are pointing to above-expectations iPhone & iMac sales. Broadpoint.Amtech is raising their price target to $260 noting their iPhone sales estimates are 30% above consensus for Dec 09.

Notablecalls: The stock is just begging for a reason to move higher. Wants new highs. Wants $212+ today.

- Nanometrics (NASDAQ:NANO) price target is raised to $17 (from $13) at Piper Jaffray this morning as they believe that there is upside to their estimates as more chip makers increase spending and NANO introduces a new overlay tool. Moreover, the firm believes that it is in leading chip makers’ best interests to broaden their supplier bases and NANO is a prime beneficiary of this effort.

Notablecalls: NANO seems to be one the sexiest Semi Equipment names out there. I suspect the bump from PJCO will create enough buy intrest to propel the shares to $12+ today. I would not rule out $12.50 level today if the market plays ball.

- American Science & Engineering (NASDAQ:ASEI) will be on the move today for sure as Stifel noted that on December 24, the U.S. Army posted a notice indicating that it intends to negotiate solely (as prescribed in FAR 6.302-1, which states policies and procedures, and identifies the statutory authorities, for contracting without providing for full and open competition) with AS&E to provide thirty-seven Z-Backscatter Military Trailers (ZBMTs) to meet’ requirements in Afghanistan. The notice was not a request for competitive proposals as AS&E is considered to be the only source for the equipment. Stifel thinks the order is worth more than $1 million per unit.

Unfortunately, recent events have shown that acts of terror are still being attempted and that, globally, current passenger screening procedures are inadequate to stop such threats. On Christmas day, a passenger on an international flight inbound to a destination in the United States attempted to detonate an explosive device. The components of the device made it past the typical walk-through metal detector and x-ray parcel screener. Stifel thinks (along with many air travel security experts quoted over the weekend) that whole-body imagers and reduced size CT x-ray automated explosive detection systems could provide the solution. AS&E’s SmartCheck and Analogic’s eXaminer SX are among a handful of products that are capable of detecting the materials that were carried aboard and assembled during the flight. Orders for competitors’ equipment are currently being filled, but the firm thinks the recent attempt could accelerate purchases of the equipment. AS&E (ASEI – $71.70) is rated Buy and Analogic (ALOG – $36.20) is rated Hold. They think both stocks are likely to rise today.

Notablecalls: A $40-50mln contract and a juicy terrorist scare in just one weekend. All of a sudden homeland security is hot hot hot again. I think ASEI can trade up 3+ pts on this.

No clue on ALOG. Too thin.

Trade on Apple Stock Option with Binary Options Trading

Apple(AAPL Quote) shares continued to rise in early trading Monday after reaching a record high Thursday. The stock’s surge is due to speculation that in January, Apple will launch a major product, presumably its highly anticipated tablet computer.

By mid-morning, Apple’s stock hit $212.92, up nearly 2% over Thursday’s closing price of $209.04.

On Wednesday, the Financial Times reported that Apple rented space for several days next month at an arts center in San Francisco, possibly signaling that the Cupertino, Calif., electronics company is preparing for a big announcement. While Apple hasn’t officially confirmed plans for a tablet, the anticipation of an iPad has captivated the imagination of enthusiasts and sparked debates among fans and investors for more than a year, as they eagerly await a new blockbuster Apple device.

With the Amazon (AMZN Quote) Kindle in its sights, Apple is believed to be preparing to start production of a 10-inch touchscreen e-book with the first model expected to arrive as early as March, Oppenheimer analyst Yair Reiner said earlier this month, citing information from suppliers. The report confirmed earlier rumors that suppliers were gearing up for a February kickoff of the Apple tablet.

Apple, known for its grandiose product launches, is also well-known for closely guarding plans and announcements of its new tech tools. Rumors continue to swirl around the tablet’s official name; last week, Apple watchdog MacRumors.com reported that Apple had acquired domain name iSlate.com, while BusinessWeek noted that Apple controls the trademark name TabletMac, which it took over from company Axiotron in November 2008.

Post to Twitter

Share

European, Asian Stocks Advance on Economy, Stocks Price Rising

Monday, December 28th, 2009

European stocks climbed

European stocks climbed to the highest level since October 2008 and Asian shares advanced after China raised its economic growth forecast and Japan’s industrial production increased. U.S. index futures also gained.

Infineon Technologies AG, which gets more than 40 percent of annual sales from the Asia-Pacific region, added 1.1 percent. ArcelorMittal led basic-resources companies higher as metals prices rose. Seadrill Ltd., the drilling company founded by billionaire John Fredriksen, and Aker Solutions ASA gained at least 1 percent as crude oil traded above $78 a barrel.

Europe’s Dow Jones Stoxx 600 Index added 0.4 percent to 252.89 as of 12:46 p.m. in Paris. The gauge is heading for its biggest annual increase in a decade, having climbed 27 percent this year, on mounting evidence that the global economy is recovering from its worst recession since World War II. Markets in Europe were closed on Dec. 25 for the Christmas holiday. The U.K. is also closed today.

China on Dec. 25 raised its 2008 growth estimate to 9.6 percent from 9 percent and said this year’s quarterly figures will also increase, narrowing the gap with Japan, the world’s second-biggest economy.

Emerging markets’ economies “will support global growth,” said Arnaud Scarpaci, a fund manager at Agilis Gestion in Paris, which oversees about $150 million. “That’s good for stocks. We expect another year of gains in 2010.”

Rally Since March

Japan’s Cabinet Office said on Dec. 25 that the economy will expand for the first time in three years and today said industrial production improved for a ninth month in November.

A 60 percent rally in the Stoxx 600 since March has been spurred by record-low interest rates in the U.S. and Europe and as governments committed about $12 trillion worldwide to revive credit markets and stimulate economic growth.

U.S. stocks rose last week, pushing the Standard & Poor’s 500 Index to a 15-month high. Futures on the benchmark for U.S. equities increased 0.1 percent today, and the MSCI Asia Pacific Index advanced 0.7 percent.

Infineon, Europe’s second-biggest semiconductor maker, climbed 1.1 percent to 3.83 euros.

ArcelorMittal, the world’s biggest steelmaker, rose 1.5 percent to 31.77 euros. Boliden AB, Europe’s second-largest zinc producer, gained 1.3 percent to 91.05 kronor.

Basic-resources shares were the best performers among 19 industry groups in the Stoxx 600. Copper in Shanghai climbed to the highest price in more than 15 months on optimism demand is improving in the world’s largest user after domestic stockpiles dropped. Zinc jumped to the highest since April 2008.

Crude Oil

Seadrill rose 1.1 percent to 149.1 kroner. Aker Solutions, Norway’s biggest maker of oil platforms and equipment, advanced 1 percent to 76.15 kroner. Tenaris SA, the world’s largest maker of seamless pipes used to extract oil and gas, added 1.8 percent to 15.04 euros. Crude oil climbed for a fourth day as forecasts of colder-than-normal weather in the U.S. increased demand for heating fuels.

PSA Peugeot Citroen, Europe’s second-biggest carmaker, added 0.9 percent to 23.67 euros. French new car sales increased by about 40 percent between Dec. 1 and Dec. 23, helped by scrapping incentives, French daily Les Echos reported, without citing anyone. By Christmas, December car sales in France reached 180,000, meaning that 2009 as a whole will show an increase of about 9 percent, according to the newspaper.

Seat Pagine Gialle SpA lost 2.2 percent to 16 cents after Italy’s largest telephone directories publisher said on Dec. 23 that it may cut financial targets for 2010 and 2011.

U.S. Economy

The U.S. economy next year will turn in its best performance since 2004 as spending perks up and companies increase investment and hiring, says Dean Maki, the most- accurate forecaster in a Bloomberg News survey.

The world’s largest economy will expand 3.5 percent in 2010, according to Maki, the chief U.S. economist at Barclays Capital Inc. in New York. The rebound in stocks and rising incomes will prompt Americans to do what they do best –consume, said Maki, a former economist at the Federal Reserve.

Brown-Forman Corp.’s Paul Varga and Johnson & Johnson’s William Weldon are among chief executive officers left behind in the 2009 stock-market rebound even after they created the most value for their companies. Brown-Forman, the maker of Jack Daniel’s whiskey and Southern Comfort liqueur; J&J, the world’s largest health products company; and 30 other S&P 500 companies rallied less than 10 percent this year as their managers posted better-than-average sales and efficiently invested capital, data compiled by Bloomberg show.

Trade on European and Asian Stocks with Binary Option Trading Software

Post to Twitter

Share

GBP-USD: Headed Toward 1.5706

Monday, December 28th, 2009

GBP-USD: Headed Toward 1.5706

GBP-USD: As the pair continues to extend its declines initiated from its Nov. 16 low at 1.6875, we expect further downside toward the 1.5706 level, the Oct. 13 low.

Click here to view a chart of the currency pair.

A breach will see a 100% price retracement (from 1.5706-1.6875 levels) and open the door for additional downside toward its .50 Ret (1.3501-1.7041 rally) at 1.5273.

The pair’s daily relative strength index is bearish and pointing lower, suggesting further downside.

Conversely, immediate resistance lies at the 1.6000 level, but the pair must trade above its Nov. 25 high at 1.6744 and its Nov. 16 high at 1.6875 to reverse its current downside threats and bring further gains toward the year-to-date high at 1.7041. There, a decisive invalidation will resume its medium-term uptrend toward its .50 Ret (2.1160-1.3501 decline) at 1.7314.

Overall, GBP-USD remains vulnerable to the downside, with the next key support level at 1.5706.

Start to trade on Currency with Binary Forex Trading Software

Post to Twitter

Share

Stock market Prices 2010

Monday, December 28th, 2009

Stock market will tread water in 2010

Trading On Stock Market at 2010

If your faith in the stock market remained unshakable in 2009, toast your own good sense. It was a great comeback year, with the leading indexes up 20 percent to 45 percent. Most stocks are up about 50 percent from the year’s lows in March.

But don’t expect anything like a repeat in 2010.

A bull statue near the New York Stock Exchange may not symbolize how the market will fare in 2010.

Look for stocks to show little upside oomph over the next 12 months. A decline is possible, but a tight trading range is more likely. When stocks don’t show any direction, it’s usually because of confusion, something we’ll see plenty of in 2010. Investors will be preoccupied with measuring the conviction of any recovery, but the signals won’t be clear.

We will, indeed, see an improving economy in 2010. Production will ramp up. Hiring will grow. But it won’t look like the kind of recovery people are accustomed to.

For one thing, bank lending will remain tight. All of the incentives for banks are still on the side of retracting from risk and strengthening their balance sheets. Also, many are saddled with bad commercial real estate loans that will become bigger problems over the next couple of years. Commercial property values — now at a seven-year low — will drop more and could hit a total decline of about 50 percent from the decade’s highs, according to Foresight Analytics.

The other disappointment for people will be housing prices. Many equate an increase in home values with true prosperity, and government support for home-buying shows the industry’s populist importance. But tax credits have to end as the government turns its attention to deficits, and mortgage rates can’t fall any further.

The housing market is a ball of bad debts that will take years to unravel. It depended since the 1990s on people cashing in equity to trade up. But now there is no equity, and the pressure will be felt on higher-end homes. The Cook County assessor’s office is reporting that foreclosures in well-to-do neighborhoods are rising faster than in lower-income neighborhoods, where subprime mortgages were the culprits. Research from Barclays Capital and others say that over the next three years, the market will face a surge of adjustable-rate loans scheduled to reset at higher rates, increasing many people’s payments 50 percent or more.

STEP ON IT: Robert W. Baird & Co. analyst David Leiker suggests keeping an eye on Navistar International (NAV), which last traded at $40.62. Leiker wrote that if the stock slips, and especially if it gets back to recent values of around $35, it will pose a compelling opportunity. Leiker says several trends work in Navistar’s favor, starting with a cyclical recovery in commercial vehicle sales.

He also sees the company reporting higher profit margins on cost-cutting and on its decision to take engine manufacturing in-house.

Note that one of NAV’s businesses is manufacturing chassis for motor homes. And motor-home production is starting to pick up, though for the life of me I can’t understand why.

UNDER IT ALL: Which brands are causing a buzz these days? For people under 25, Under Armour (UA) has to be on that list. The maker of moisture-wicking sports apparel has identified itself with the youth market and appears ready for worldwide growth, reports Sharon Zackfia, analyst at William Blair & Co.

Zackfia wrote that Under Armour has the potential to quadruple its U.S. market share, currently at around 2 percent. The company relies less on international sales than Nike (NKE), but even there the sales growth will be in the billions of dollars if it merely maintains its current rate of increases, she said.

PERFECT PERFIDY? The New York Times reports that the Securities and Exchange Commission and the security industry’s in-house cop, the Financial Industry Regulatory Authority, are looking at whether Goldman Sachs Group (GS) and other big banks deliberately steered customers into bad investments on collateralized mortgages. While the banks were selling these securities, they also were taking positions that helped them profit from a decline in housing values. This may have been going on in 2007, when the housing markets first showed cracks.

The allegation sounds damnable, but it’s really just an extension of what Wall Street does. They trade and hedge regardless of customer interests. These are nonpartisan profit-mongers. They can even say taking the opposite side of the trade was prudent business.

The old saying in Washington is that if you want a friend, buy a dog. If you want a friend on Wall Street or LaSalle Street, feed a pigeon.

DATA MINING: A company that operates from Lake View, Ycharts, has a free online service for stock analysis. A founder, Shawn Carpenter, said investors have little choice if they want free or low-cost data services that measure a stock’s long-term financial performance and enable comparisons with other companies. Ycharts takes financial reports and puts them into easy-to-read graphics. The service relies on advertising for revenue. It’s just starting, and it links to other sites for some data analysis. But Ycharts is looking for feedback. It’s worth checking out if you can’t afford a Bloomberg terminal.

CLOSING QUOTE: “Apple [AAPL] may be on the verge of kneecapping the cable industry.” — a headline at seekingalpha.com on a piece about Apple negotiating with TV networks to offer subscription access over the Web.

If you’ve ever waited all day for the cable guy or been stuck in cable’s on-hold limbo, you’re probably rooting for Apple to the core.

Resource: http://www.suntimes.com

Post to Twitter

Share

The Easiest Money You’ll Ever Make

Monday, December 28th, 2009

The Easiest Money You’ll Ever Make

The Easiest Money You’ll Ever Make

How to make a quick $78,000 without lifting a finger.

Chose these four stocks, but any number of former highfliers could have done the trick:

1. Amgen (Nasdaq: AMGN)
2. Genentech
3. Charles Schwab (Nasdaq: SCHW)
4. Ericsson (Nasdaq: ERIC)

The idea was to show how a modest $10,000 investment could have ballooned to nearly $300,000 in 10 short years. But that wasn’t the amazing part. For more details, check out this column: “Don’t Invest Another Penny.” But come back, because this is where it gets good.

You see, there was a catch. In those 10 short years, you’d have paid your mutual fund manager nearly $20,000 in fees and surrendered nearly $50,000 in lost profits (money not earned on those fees). So instead of $300,000, you’d be sitting on a lot less.

So, you hate me, right?
Of course you do, but I thought you’d take the fund company’s side. I thought you’d point out that nobody could pick just those stocks, much less time the market so perfectly.

In other words, I thought you’d say that the $70,000 blood money in my example was a gross exaggeration. Just wait until you hear what you really said.

You’ve got it all wrong!
Or so you told me. Apparently, you’re fine with me comparing the fund industry to an IRS on steroids. You took me to task for understating the case — for underestimating the real cost to you as an investor.

And you’re right. John Bogle — the founder of Vanguard Funds — makes the case bluntly in his book The Battle for the Soul of Capitalism. Bogle shows that you don’t need blowout returns (like in my superstock ’90s example) to make the case against mutual funds … you need time. Here’s why.

Beware the “tyranny of compounding”
As it turns out, financial “intermediation” costs would have eaten up just 23% of your total returns ($70,000 out of $300,000) in my hypothetical example. That sounded like a lot to me, but apparently not to Bogle — and to some of you, either. In fact, for most of us, it will be worse.

For one thing, you won’t be making 2,900% every 10 years. That’s because for every 10-bagger like Symantec (Nasdaq: SYMC) your fund manager digs up, he’ll bite on a Krispy Kreme (NYSE: KKD) or Sprint Nextel (NYSE: S), or some other over-hyped story stock. But mostly, he’ll keep you bouncing between JPMorgan Chase (NYSE: JPM) and the other financials, and the rest of the most widely held stocks.

And even when your manager does catch lightning, he’ll probably buy and sell too often, and at the wrong times. That’s one reason Bogle thinks you’ll earn less than “average” — 8.5% per year by his estimate. Plus, you won’t invest for 10 years, but more likely 25, 30, or even 45 years or more. Well, brace yourself, because this thing really gets ugly.

That’ll be 80% off the top, sir
According to Bogle, if you invest for 45 years at his expected market return of 8.5% per year, these dastardly “intermediation” costs can steal up to 80% of your rightful profits. You read that right. Not a mere 23% like in my hypothetical fund, but up to 80%.

For one thing, Bogle uses a more aggressive 2.5% for intermediation costs. That’s because he goes beyond reported “management fees” and includes taxes, transactions, and timing costs. And given that Bogle founded Vanguard, the most trusted mutual fund company in the world, I’m inclined to believe him.

More importantly, Bogle realizes that the more realistic your returns, the more deadly that 2.5% becomes, especially when compounded over the years. In other words, costs kill when your portfolio keeps doubling every six months, but when it’s doubling every 10 years or so — costs kill you dead!

What you can do about it
Frankly, I don’t share Bogle’s lukewarm outlook for stocks. I think we’ll do better from here, even after the recent bounce off the bottom. But if we make three times as much as Bogle expects, we’ll fork over well more than $100,000 in intermediation costs every 20 years.

If you resent that, there’s a solution a lot of folks are considering: Start managing some of your own investments. You don’t have to jump in all at once, and you don’t have to dump your funds right away. But you can see how important it is that you give it some thought, right?

Of course, you will need a few great stocks to get started — and maybe a little support. Here’s something else to consider: Sign up for a free trial of Motley Fool Stock Advisor. Every month, you get useful investment advice plus the two top recommendations straight from Motley Fool co-founders David and Tom Gardner. It’s free for 30 days, there’s no pressure to buy anything, and if you do decide to join after your trial, it sure as heck won’t cost you $100,000.

Post to Twitter

Share

Short Term Options Trading and Investment

Sunday, December 27th, 2009

Short Term Options Trading and Investment

Any traders consider options and warrants to be long term trading markets (i.e. swing and position trading), but options and warrants can also be traded short term options trading and investment (i.e. day trading). Trading options short term options trading and investment is not dramatically different from trading any other market (e.g. futures, individual stocks, etc.), but there are a couple of options specifics that need to be taken into account.

My short term options trading and investment options trading article provides a discussion of short term options trading and investment options trading, and explains how various options and warrants trades can be used to make various underlying trades. Trading options and warrants short term options trading and investment is most suitable for stock index and individual stock traders, so even if you are not usually an options trader, trading options short term options trading and investment could be a useful addition to your trading.

Short-term trading can be very lucrative, but also risky. It can last for as little as a few minutes to as long as several days. To succeed at this strategy, traders must understand the risks and the rewards of each trade. They must not only know how to spot good short-term opportunities, but also must be able to protect themselves from unforeseen events. In this article, we’ll examine the basics of spotting good short-term trades and show you how to profit from them.

Click Here To Access Warren Buffett’s Portfolio!
The Fundamentals of Short-Term Trading
Several basic concepts must be understood and mastered for successful short-term trading. These fundamentals can mean the difference between a loss and a profitable trade. Let’s take a look at these vital principles.

Recognizing Potential Candidates
Recognizing the right possible trade will mean that you know the difference between a good potential situation and the ones to avoid. Too often, investors get caught up in the moment and believe that if they watch the evening news and read the financial pages they will be on top of what’s happening in the markets. The truth is, by the time we hear about it, the markets are already reacting. So, some basic steps must be followed to find the right trades at the right times.

Step 1: Watch the Moving Averages
A moving average is the average price of a stock over a specific period of time. The most common time frames are 15, 20, 30, 50, 100 and 200 days. The overall idea is to show whether a stock is trending upward or downward. Generally, a good candidate will have an increasing moving average that is sloping upward. If you are looking for a good short, you want to find an area where the moving average is flattening out or declining. (To learn more, read Moving Averages.)

Step 2: Understand Overall Cycles or Patterns
Generally, the markets trade in cycles, which makes it important to watch the calendar at particular times. Since 1950, most of the stock markets gains have occurred in the November to April time frame, while during the May to October period, the averages have been relatively static. Cycles can be used to traders’ advantage to determine good times to enter into long or short positions. (For more insight, see Understanding Cycles – The Key To Market Timing.)

Step 3: Get a Sense of Market Trends
If the trend is negative, you might consider shorting and do very little buying. If the trend is positive, you may want to consider buying with very little shorting. The reason for this is that when the overall market trend is against you, the odds of having a successful trade drop even more. (For related reading, check out Short- Intermediate- and Long-Term Trends.)

Following some of these basic steps will give you an understanding of how and when to spot some of the right potential trades.

Controlling Risk
Controlling risk is one of the most important aspects of trading successfully. Short-term trading involves risk, so it is essential to minimize risk and maximize return. This requires the use of sell stops or buy stops as protection from market reversals. (For background reading, see The Stop-Loss Order – Make Sure You Use It.)

A sell stop is a sell order to sell a stock once it reaches a predetermined price. Once this price is reached, it becomes an order to sell at the market price. A buy stop is the opposite. It is used in a short when the stock rises to a particular price and it becomes a buy order.

Both of these are designed to limit your downside. As a general rule in short term options trading and investment trading, you want to set your sell stop or buy stop within 10-15% of where you bought the stock or initiated the short. The basic idea here is to keep the losses manageable so that the gains can always be considerably more than any losses you may incur.

Technical Analysis
There is an old saying on Wall Street: “never fight the tape”. Whether most admit it or not, the markets are always looking forward and pricing in what is happening. This means that everything we know about earnings, the management and other factors is already priced into the stock. Staying ahead of everyone else requires that you use technical analysis to understand what is going on.

Technical analysis is a process of evaluating and studying the stock or markets using previous prices and patterns to predict what will happen in the future. In short-term trading, this is an important tool to help you understand how to make profits while others are unsure. Below we will uncover some of the various tools and techniques of technical analysis. (For more insight, see Basics Of Technical Analysis.)

Buy and Sell Indicators
Several indicators are used to determine the right time to buy and sell. Two of the more popular ones include the relative strength index (RSI) and the stochastic oscillator.

The RSI compares the inside strength or weakness of a stock. Generally, a reading of 70 indicates a topping pattern, while a reading below 30 shows that the stock has been oversold. (Learn more about this indicator in Getting To Know Oscillators: Relative Strength Index.)

The stochastic oscillator is used to decide whether a stock is expensive or cheap based on the stock’s closing price range over a period of time. You will see a reading of 80 if the stock is overbought (expensive); when the stock is oversold (inexpensive), you will see a reading of 20.

RSI and stochastics can be used as stock-picking tools, but you must use them in conjunction with other tools to spot the best opportunities.

Patterns
Another tool that can help you find good short-term trading opportunities are patterns. A pattern is a change in direction up or down in the price of stock and reflects changing expectations. Patterns can develop over several days, months or years. While no two patterns are the same, they are very close and can be used to predict price movements.

Several important patterns to watch for include:

* Head-and-Shoulders Patterns: The head and shoulders is considered one of the most reliable patterns. This is considered to be a reversal pattern when a stock is topping out. (For additional insight, see Analyzing Chart Patterns: Head and Shoulders.)
* Triangles: A triangle is when the range between the highs and lows narrows. These occur when prices are bottoming or topping out. As the prices narrow, this will signify that the stock could break out to the up- or downside in a violent fashion. (For more, read Triangles: A Short Study In Continuation Patterns.)
* Double Tops: A double top occurs when prices rise to a certain point on heavy volume and then retreat. You will then see a retest of that point on decreased volume. At this point, a decline will take place and the stock will head lower.
* Double Bottoms: A double bottom is when prices will fall to a certain point on heavy volume. They will then rise and fall back to the original level on lower volume. Unable to break the low point, prices will then start to rise. (To learn about tops and bottoms in FX trading, see The Memory Of Price.)

Conclusion
Short-term trading uses many methods and tools to make money, however, you must know how to apply the tools to achieve success using this type of strategy. If you can do this, you will be able to make money in both bull and bear markets while keeping your losses at a minimum and your profits at a maximum. This is the key to mastering short-term trading.

Stock Option Fundamentals

An option is a contract giving the investor the right to buy or sell an underlying security at a specific price on or before a specified date. The investor enjoys the right to exercise the option contract to obtain or liquidate the underlying asset but is not obligated to do so. As a matter of fact, most options are not exercised, but instead do expire worthless. The option is a binding contract with strictly predetermined terms of agreement and properties. Options are also known as derivatives, which means an option derives its value from something else. As an example, if you buy 1 contract of an IBM July 100 call, the value of the contract is partly based on its derived value from the underlying stock (i.e. in this case, it is IBM)

Options are very versatile securities that can be used in a number of different ways. Options can be used by traders as a speculative vehicle in betting on the direction of a stock, or traders can use options to hedge against loss of a stock price. In terms of speculation, the trader either buys or sells options depending on his/her believe of whether a stock will go up or down, respectively. So speculation is nothing more than betting on the direction of a stock. Using options as speculative vehicle is the reason why options have the reputation of being risky. This is because when an option is bought, the trader has already bet that the price of the stock is either going to go up ( in terms of buying a call option ), or the price will move lower ( in terms of buying a put option ). Also, the magnitude and the timing of the stock’s price movement are also critical components of options trading. To succeed, the option trader must correctly predict whether a stock will move higher or lower and the trader must also be correct in terms of how much the price will change, as well as the time frame it will take for all of this to occur.

Options can also be used as a hedge to protect the investor from losing all of the value in the underlying stock. Hedging can be interpreted as an insurance policy against catastrophic events.

There are two main types of options: the American options and the European options. The American options can be exercised at any time between the date of purchase and the expiration date. Most exchange traded options belong to this type. The European version of options only allows the trader to exercise the options on the date of expiration. Options can also be characterized as short-term options or long term options. The long term options are also called LEAPS, which stands for “Long-Term Equity Anticipation Securities”. While short-term options have expiration within one to 9-months, LEAPS are defined as those options that have hold dates for as long as one year to several years. Whether a trader participates in trading LEAPS or short-term options, or makes transactions using the American or European versions of options, the basic building blocks of options are the call and the put options. A call option allows the holder of the call to buy the underlying security at the predefined price within a specific period of time. For instance, an IBM July 100 call indicates that the holder can buy the IBM shares at $100 per share on or before the July expiration date ( which is typically, the third Friday in the specified month ). A put option allows the holder to sell the underlying security at the predetermined price within a specific period of time.

index option trading software
future index options trading software
currency option trading
option trading system
stock option trading
commodity option trading
futures option trading
future option trading
option trading systems
stock options trading
online option trading
option trading software
put option trading
call option trading
forex option trading
options trading systems
options trading software
options trading system
stock market option trading
futures options trading
commodity options trading
currency options trading
option trading investing
short term investment fund
best short term investment
short term stock investment
short term investment funds
best short term investments
short term investment stocks
short term returns
short term investments
short term money investment
short term high yield investment
short term investment options
short term investment strategy
low risk short term investment
short term investing
short term cash investment
short term investment management
short term investment advice
the best short term investment
nasdaq options trading
dow jones options trading
SP 500 options trading
dax options trading
cac options trading
ibex35 options trading
ise100 options trading
mdax options trading
tecdax options trading
coca cola options trading
nike options trading
apple options trading
morgan stanley option trading
binary forex
forex binaries
binary equation forex
binary forex trading
binary forex trading system
binary forex trading software
binary forex trading platform
forex currency trading system
forex trading system
forex trading systems
best forex trading system
automated forex trading system
forex day trading system
automated forex system trading
forex trading system course
forex system trading
trade forex system
forex signal system trading
forex software system trading
auto forex system trading
automatic forex system trading
forex automated trading system
automated forex trading systems
trading system forex
profitable forex trading system
online forex trading system
forex day trading systems
forex trading system software
day forex online system trading
best forex system trading
forex professional system trading
forex mechanical system trading
forex online system trading
easy forex trading system
fast cash investment platform
high return investments
index option trading system
buy and sell shares
buy option
buy options
buy share
buy shares
buy shares online
buy stock
buy stocks
buy stocks online
buying and selling shares
buying option
buying options
buying share
buying shares
buying stock
buying stocks
call option
call options
can i make cash
currency option
currency options
day trader
day traders
day trading
daytrader
daytraders
daytrading
earn cash fast
earn cash online
earn extra money

earn money fast
earn money from home
earn money internet
earn money on internet
earn money on the side
earn money online
earn money through
earn quick money
earning money
index option trading
easy on-line trade
easy trader
easy traders
easy trading
easy way to earn money
easy way to make money
easy ways to make money
exotic option
exotic options
extra cash
extra income
fast cash
forex broker
forex brokers
forex trader
forex traders
forex trading
how can i earn money
how can i make money
how can i make money fast
how do i earn money
how do i make money
how make cash
how make money
how to earn fast money
how to earn money
how to earn money online
how to earn quick money
how to make cash
how to make easy money
how to make fast money
how to make money
how to make money at home
how to make money from home
how to make money on the internet
how to make money online
how to make quick money
internet money
make cash
make cash at home
make cash from
make cash now
make cash on line
make cash online
make cash quick
make cash with
make easy cash
make extra cash
make fast cash
make good money
make internet cash
make lots of cash
make money
make money at home
make money easy
make money fast
make money fast and easy
make money from home
make money internet
make money now
make money on internet
make money on line
make money on the internet
make money online
make money online fast
make money today
make money websites
make mony
make more money
make quick money
make quick money online
make real cash
make some cash
make some money
make spare cash
make+money+quick
making cash
making money
making money at home
making money cash
making money easy
making money fast
making money from home
making money on line
making money on the internet
making money online
money earn
money making ideas
money making opportunities
money making opportunity
need cash
online income
online money making
online options trading
online work
option broker
option brokers
option quote
option quotes
option strategies
option strategy
option trading
options strategies
options strategy
options trading
put option
put options
sell stock
sell stocks
selling option
selling options
share trading
shares to buy
shares trading
stock broker
stock brokers
stock day trader
stock day trading
stock daytrader
stock daytrading
stock market software
stock trader
stock traders
stock trading
to earn money
to make cash
to make money
trade easy
trade shares
trading stocks online
way to earn money online
way to make money
way to make money online
ways earn money
ways make money
ways of making money
ways to earn money
ways to earn money fast
ways to make cash
ways to make extra money
ways to make money
ways to make money fast
ways to make quick money
trading crude oil system
trading crude oil platform
trading crude oil software
crude oil future trading system
trade oil futures platform
gold commodity trading platform
commodities market trading platform
commodities market trading system
commodities market trading software
nymex crude oil trading software
nymex crude oil future trading software
gold and stock market trading system
gold and the stock market trading software
stock market gold trading software
gold on stock market trading software
gold stock trading software
gold in stock market trading software
stock gold trading software
gold stocks trading software
stock in gold trading software
gold stock investments trading software
gold stock investment trading software
gold & silver stock market trading software
gold silver stocks trading platform
gold stock market trading software
buy gold stock market
buying gold stock market
gold symbol on stock market trading
stock market symbol for gold
symbol for gold in stock market
symbol for gold on the stock market
silver stock market trading software
silver in stock market trading software
silver on stock market
silver stock market symbol
stock market symbol for silver
how to invest in silver in the stock market
high yield investing platform
high yield investment system
high yield investment account
high yield investing software
one hour cash trading
one hour Currency trading
one hour day trading
one hour forex trading
one hour gold trading
one hour money trading
one hour money making
one hour nasdaq trading
one hour oil trading
one hour option
one hour option trading
one hour trading
one hour trading system
one hour trading software
one hour trading platform

Post to Twitter

Share
 
©2009 Binary Option Trading Platform. All rights reserved.

Twitter links powered by Tweet This v1.8.1, a WordPress plugin for Twitter.