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Why Are Forex Forums Important By Rahul Shariff

Forex forum is the best place to get all the information that is needed for successfully trading in the forex market. You will be able to keep yourself updated on the latest happenings in the fast changing currencies market by becoming a member of a forum of your choice.

Apart from gaining information from forex forum regarding the various aspects of trading, you will also be able to connect with other traders through the online medium. It is also one of the best places to interact with other members. You will also be able to get tips from other traders about the pair of currencies that they trade in.

It is important to remember that any interaction done through the forex forum must be relevant to the topic that is been discussed. You should not post anything that looks like spam. There are some forums where members try to promote products and services that are not relevant to forex and this need to be avoided.

There are some rules and guidelines that need to be followed in these forex forums and this will differ based on the forum you join. If you consistently post spam, you might be banned from these forums. There are a number of forums that are available online and some of them are set up by brokerage firms that trade in forex. There are various reasons due to which people join these forex forums. Individuals who are new to forex trading will gain a lot by joining them.

You can use the Internet to search for the best forex forums that are available. The preferred pair of currencies can also be used in the search terms to get information about the forums of your choice. There are various factors that influence the movement of currencies and you will be able to gain knowledge about them easily from these forums.

The strategies that can be learned from these can be applied to live trading. You can also use these forums to ask questions to other traders and gain information from them. It is important to remember that while asking questions or while answering queries you should always stick to the point that is been discussed.

Members should not abuse the forums and any rude remarks that are made will lead you to get banned from them permanently. Most beginners find forex trading to be very complex and end up accumulating losses and eventually give up trading.

There are various pitfalls that need to be avoided and you will be able to learn about them from forex forum. Most of the traders who participate in these are willing to share information and tips about how to trade and the various winning strategies that they use to become successful.

There are also paid forex forums where the members need to pay a small amount to gain membership. You will be able to gain access to a number of features that are not available on free forums.

How to Invest in Commodities With a Commodity ETF By Kimberley Wright

If you investigate the returns of unique assets such as equities, bonds, and real estate, you'll discover that they generally are not highly correlated to commodities. Therefore, by adding commodities to your portfolio, you're diversifying it, and decreasing the probability that the value of all your holdings will decrease simultaneously. This is great news when stocks are volatile and declining. It also makes perfect sense: commodities represent another "basket" and you diversify by not putting "all your eggs in the same basket." If you're an investment guru, like Warren Buffett, then you don't need to worry about this. For everyone else, diversification is simply a requirement. Because of the fact that not all assets zig and zag in unison, it guards your portfolio from inevitable market declines.

It used to be challenging to participate in the commodities market. You either needed to be a high net worth individual (due to the large minimum investment amount necessary to establish an account), or you had to be familiar and comfortable with trading commodity futures. This is no longer required. Any retail investor may now allocate part of his portfolio to commodities by buying a commodity ETF. These exchange traded securities can be traded on a stock exchange and are available through regular brokerage accounts. They trade intra-day, and are bought and sold in the same way that stocks are.

There are now more than one hundred different commodity ETFs, so how do you decide which one to buy? For most investors it makes most sense to buy a broad commodity index fund. One widely followed commodity index is the S&P Goldman Sachs Commodity Index (GSCI), which tracks 24 different commodity futures contracts. With this single investment, you can track the price of all the most common physical commodities in the world.

When owned as a diversified basket, commodities often have lower volatility than other risky asset classes such as stocks. For example, during the global financial crisis just a few years ago, equities were more than twice as volatile as the S&P GSCI commodity index. A commodity ETF is an un-leveraged way to benefit from rising prices of commodities. This is very different from trading commodity futures contracts, which involves a lot of leverage: a moderate change in price of the underlying commodity can wipe out your account. This makes commodity ETFs much more suitable for a typical investor.

Other than individual investors, who else invests in commodities? Hedge funds are very active in this market, as are pensions and insurers. Even university endowments participate. For example, did you know that Yale university's endowment calls for over twenty percent of its investments to be allocated to commodities? And Yale is not an exception, many other university endowments invest in commodities or similar real assets such as timber forests.

There is something to be said for "following the smart money." There is no reason why a normal investor should not have an allocation to commodities. They nicely complement the stocks and bonds that form the cornerstones of the majority of investment portfolios. I would not be surprised if in another decade or two, commodity investments are just as normal as those in bonds and stocks.

Even though commodity ETFs have become popular in recent years, some investing experts still advise against investing in this market. The common criticism is that commodities don't provide ownership in something that has inherent value, unlike say a stock, which represents real ownership in a potentially growing enterprise. Well-known investment author and portfolio manager William Bernstein has compared commodity investing to "picking up nickels in front of a steamroller." In his words, "the risk of getting crushed is enormous." Another well-known writer and advisor, Rick Ferri also pooh-poohs them, saying you should stick instead to tried and true stocks and bonds.

In summary, it may be worthwhile adding a commodity ETF to your investments, if you haven't already done so. But don't just take my word for it. Do your own homework before making any investments!

The Two Market Trends That Stock Traders Should Watch By Timothy R Fletcher

Professional stock traders are closely watching two market trends. Amateur stock traders would do well to follow their lead. One trend is established, but many believe it will now accelerate. The other is just developing. As a result of new banking requirements being relaxed, banks all over the world have more time to increase their new reserve requirements.

This means that banks can provide more loans.

For most businesses, the last four years have been tough. Many successful people live by the motto; "When the going gets tough, the tough get going." That's not necessarily true for businesses. In fact, when the going gets tough for a business enterprise, the "tough" cut their expenses and build up their cash reserves. For a consumer-spending-based economy such as ours, that leads to trouble. When people cut back on spending, businesses cut back on products and services. This is what is referred to as a "recession."

This could be changing.

All of the "economic stimulus measures" that have increased our money supply and devalued our currency may soon result in massive spending and rising stock prices. When companies resume their spending, banks will resume lending. If we have in fact reached the bottom of this recession, we can expect to see further progress in these two trend changes. Economic recession has consequences. Likewise, economic recovery has consequences.

Commodities

The term "commodities" applies to many raw materials that are used to manufacture goods for consumers to purchase. Some commodities are grown or raised by farmers. Some are dug from the earth by miners. These raw materials are important and valuable in every nation and community. Most commodity prices trend downward during economic recessions. If and when we come out of the existing economic recession, we can expect commodity prices to reverse their market trend and begin to move higher. This is, potentially, a developing market trend reversal.

Emerging Markets

An existing trend that is still in its infancy is the economic growth that is exploding in the emerging nations that were formerly known as the "Third World Nations." Brazil, Russia, India, China, and South Africa (the BRICS nations,) have been leading the "emerging markets" in economic growth and development. It's hard to pinpoint when this market trend reversal actually occurred. At some point in the last 10 or 20 years, however, the emerging market economies began to prosper and the Western economies of Europe and North America began to stagnate. Don't jump to the conclusion that the Western economies are in trouble. Rather, their rate of growth (long-term) has slowed while the rate of growth in the emerging markets is accelerating. What this means is that companies operating in the emerging markets should see greater profits.

Gather your cash.

You are poised for success when you are watching for the trend changes AND you are prepared to execute stock trades. It does you little good to see an opportunity if you have no cash available to take advantage of the situation. It helps a lot if you think of your cash as a tool. You trade your dollars for stocks that you anticipate to go higher and you later trade those stocks back into dollars. It's as simple as shopping for bargains at a flea market or an antique shop.

 

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