Posted on 18 May 2010.
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Posted on 10 May 2010.

Product Description
The Wall Street Journal Guide to Understanding Money & Investing initiates you into the mysteries of the financial pages — buying stocks, bonds, mutual funds, futures and options, spotting trends and evaluating companies. For those who are curious but intimidated by everyday financial jargon, this guide offers a literate, forthright and lively alternative.Amazon.com Review
This handy fact-filled book initiates you into the mysteries of the financial pag… More >>
The Wall Street Journal Guide to Understanding Money and Investing
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Posted on 11 April 2010.
Money trading is a trade of currencies from various countries. Currency trading may seem very complex and risky. But, we must know that the medium of exchange is a very simple system and can be performed by anyone.
First, you should know that bargaining chip (also known as Forex) is having most money in the world’s market. This currency trading generates an exchange of more than one billion dollars in one day.
Forex is not centralized but it is spread world wide. It deals with various currencies from different parts of the world. Unlike the stock market, forex currency trading is mostly contained on one trading platform.
Forex currency trading works around the clock, seven days a week, And does not stop and people can any time trade currencies. That’s one reason for Forex trading to have more liquid and thus the largest financial market in the whole world.
The cost of a currency depends on how stable the government is. you must have noticed, that any country that does not have stable government , they will have a low value currency. Therefore, if you want to trade currency of a particular country then that country should have a stable government.
You can make more profits only when you buy currencies at low cost and then sell them when the value is high in the market. In another word to clarify this is to buy the currency cheap and sell when it becomes expensive.
In trading of currencies one should know when to buy the currency and when they can sell it in the market.
This trading for currency can provide the opportunity to make more and larger and become rich. the traders in the forex currency trade can utilize the leverage of 100:1. That means that every dollar leveraged in the trading market, you get to borrow one hundred dollars .That means you can have more purchasing power in the currency trading Forex market.
Forex is quick and highly volatile. In a small period, with only a small investment, you can get larger returns in a small time.
One more fantastic advantage of currency trading is that it is not based upon the commission. So you get to keep the whole benefit for your investments.
The small investors in the forex currency trading market makes a significant amount of revenue and live a comfortable livelihood.
The only drawback is that the Forex because of the larger leverage , it can become very risky and you may lose in a trade. To minimize this risk, you have to plot an effective financial management..
Remember that while you invest in a currency, you are indirectly investing in the government of that country. That is why it is very vital , that the government is stable so that the currency you have bought will go for the best price.
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Posted on 09 April 2010.
There are lots of similarities between mutual funds investments and investment clubs, and it is very nice that we know them, as investors. The first similarity is that both are contributory funds/systems of investments. That is to say that the money being invested is not owned by an individual, rather, it belongs to different people. These are funds that are raised from the contributions by the members in of the investment clubs or contributed by different people and handed to a fund manager for investment, in the case of mutual funds. This therefore makes every contributor to the club are partaker of the gains or loses that accrues from the invested funds. Here, there is no separation of funds whereby you may say that Mr A is not eligible for the gains or loses of the investments because his investments were not there. As long as he remains a member of the club, he remains a partaker of the proceeds of the investments. Like wise, Mr B cannot wake up tomorrow and say that he wants the refund of his invested capital because he is not satisfied with the small fraction that was given to him or that he don’t know why they should invest in company A or B. Every member of the club is a partaker of the gains and loss that comes out from the investments, except one person voluntarily decides to withdraw his or her membership. There are some exceptions but, if as in the case of investment clubs, the club’s protocol is violated, or in the case of a mutual fund, the trust deed or the document agreement is contravened, there is always a contention here of people calling for justice, because a law has been broken.
Another similarity between the two is that both of them are for long term investment purposes. Mutual funds usually takes one year for the investments to mature, at the end of which, the profits will be declared and each individual investor will choose on what to do with his own share, whether to re-invest it back, withdraw only the profit or to withdraw really from the investments. In the case of investment clubs, they have a longer life span before their investment could mature. Usually, it is between three to five years. This is because, they are few in number thereby leaving them with less financial muscle, which now means allowing their investments to stay longer and increase their profit margin. These two investment windows are not get rich quick program, rather they are solid investment programs that needs time to mature.
The third similarity between the two is that the funds are not under the total control of one man, as regards to investing. It involves a lot of brainstorming by the analysts of the company. One man cannot just wake up and say that this is where I want to invest this funds, it must be in agreement with the members of the executive, and because a lot of brain storming is involved, the nitty gritty of every company they want to invest will be trashed out and in the end, they will settle for the best which they have agreed. It is a well loved saying that two heads are better than one, and this is one of the reasons for their brilliant performances. What would have been omitted by one person will be noted by the second and everything will be critically evaluated.
There are many other similarities between these two investment vehicles, but I want to stop here. Let me hear your own views on this issue.
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Posted on 08 April 2010.
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