Category: Investment Strategy


Using Technical Analysis To Boost Your Forex Or Stock Trading

Filed Under: Technical Analysis by Bill — Comments Off
April 19, 2012

When you are trading forex or stocks, you usually have to make sure that you use some sort of analysis if you are to get the most out of the trade. Simply trading on a whim or based on your emotions most often leads to massive losses, as you may not be in a very good position to determine where the market is going to head. This is why many people spend lots of time and money trying to come up with ways of analyzing past performance in order to predict the future trends in the market. This then makes it much easier for them to place trades that are going to be profitable early on.

One of the best forms of analysis you can use for this sort of thing is technical analysis this is a means of analysis that depends on the observation of previous patterns and trends when trying to determine where the trade is going to head. This is a very good way of analyzing the market, since it has been shown that for the most part, the market can be described in a mathematical manner.

You can find a lot of information about how to do this kind of analysis online. You can also try to take advantage of systems such as the nifty system trading facility to help you along. Such systems usually take into consideration a number of factors such as the pattern of trading over the previous few days or hours, and then come up with predictions on what is most likely to happen. The beauty of such systems is that they usually make use of very complex calculations. You only need to apply them to the chart you are using, and you can then get all the information within seconds. Doing this manually would be much more difficult as you can imagine!

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How do Dividends Affect Your Rate of Return?

Filed Under: Fundamental by Bill — Comments Off
March 11, 2012

As a stock investor, you have two ways to profit from your investments: capital gains and dividends. Some investors invest primarily for capital gains or vise versa. If you want to start investing in stocks but you are unsure how dividends will play into your profit, you’ll need to know how it affects your rate of return.

What is a Rate of Return?

The rate of return, or ROR, is the gain or loss of an investment. It is expressed as a percentage determined by calculating the profit or loss against the initial price paid. The ROR is usually done in a one year period, but it can be calculated for any period of time. For any type of investment, the ROR should include all gains or losses it incurs.

Calculating a Rate of Return for Capital Gains

Let’s figure out the ROR for a stock that only earns capital gains. As an example, we will look at Apple (AAPL) for a one year ROR from March 11, 2011 to March 9, 2012. The price on March 11th, 2011 was $351.99. That is the approximate price you would have paid if you bought it on that date.

On March 9th, 2012, the price ends at $545.17. If you were able to sell it at that price, the difference would be $193.18, which is the capital gain. To calculate the ROR on this stock, divide the capital gain by the initial price paid:

  • 193.18/351.99 = 54.88%

The simple rate of return is approximately 54.88%. Understand that this is an extremely high rate of return for a stock. Usually, an average rate of return in a good economy is about 8 to 12%.

Factoring in Dividends

Factoring in the dividends is very simple. All you have to do is add the amount you were paid in dividends to the capital gains. Apple doesn’t issue dividends, but let’s say in the past year it issued $20 per share worth of dividends. In this case, you’d add $20 to the $193.18 for a total return of $213.18. Now, you divide that amount by the initial price to get the adjusted rate of return.

  • 213.18/351.99 = 60.56%

If you invested in a stock with this rate of return, good for you! You did well. Now that you know how dividends affect your rate of return, you can factor in the expected dividends of corporations while you analyze them to find good investments.

Ash is a writer for Ready to Buy Stocks. She specializes in buying stocks and other investment knowledge.

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Why it is Necessary to Find the Best Forex Brokers in the City

Filed Under: Forex by Bill — Comments Off
March 9, 2012

There are many fields in the financial services industry. While some have been around for decades, others such as forex brokerage are newer domains. The need for forex brokers has been brought about by the rising interest in the financial market field. Many enterprising traders are looking to the field, to find solutions for their financial problems. Using the right forex strategies and analysis is necessary in order to achieve great returns in the end.

While most traders know what the field entails in general, they do not have the skills required to make the best trading decisions. This is why it is important to find the best forex brokers. Finding the right broker is a personal decision that can have wide reaching implications. There are many brokers dealing with forex and finding the right one will give the trader peace of mind. A trader needs to find the firm that will offer competent and honest services.

The fact that most traders are largely ignorant about the forex market, has led to a lot of exploitation by brokers. These unscrupulous brokers have lost their clients earnings through bad trading choices they have made. They are incompetent and do not have the best skills to operate in the market. In many situations, the trader may not be aware that they are getting sub-standard service. Many of them assume that the reason they are not seeing any returns is because of the market forces. This ignorance by traders has given many incompetent brokers an opportunity to continue offering their services.

When looking for a broker, it is important to note that not all brokers are competent. Carrying out research and studying the market for a period is necessary. The choice of broker will determine how well a trader does in the market!

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When Will Solar Stocks Explode?

Filed Under: Commodities by Bill — Comments Off
March 7, 2012

Solar power is getting very famous these days and companies are advertising their products heavily.

Governments are paying high incentives for home owners and companies that use renewable energies, and we hope to break free from the chains of non-renewable resources like oil, gas and coal. Solar power is definitely one of the biggest and most promising sustainable energy technologies.

It is versatile, eco-friendly and the resources are endless. The only problem that solar power faces these days, is a high cost for solar cells and a low efficiency which leads to high kwh-prices for photovoltaic electricity.

Production Costs

Solar Cells are made of silicon, which is very abundant on our planet. The problem is, that silicon needs to be prepared very sophisticated to be used in photovoltaic cells.

Wafers are electric components that get build into every solar cell, and you need highly purified silicon to produce these elements. Solar companies and hence solar stocks suffered from these production costs in the past, but experts agree that a breakthrough in the development of wafers will happen.

The problem being though that it’s very hard to predict when these new technologies will arrive.

Efficiency of Solar Cells

Today, the efficiency of solar cells is pretty low and ranges somewhere between 10 and 15% depending on the manufacturer and the model. This means that only 10 to 15% of the solar energy is converted into usable electricity.

Obviously, these values are pretty low and a huge proportion of the solar potential isn’t used at all. Just as the high production costs, this low efficiency holds down the price of solar stocks. The difference is, that the production costs may fall very rapid while the efficiency is improving quite steadily.

Basically, the development of solar stocks depends on these two points. Surely, there are political factors like incentives and state fundings, but solar companies can only boom when they can improve on one of these details. If one or both conditions are met, nobody can predict how high solar stocks will rise.

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