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The Secrets Of A Successful Stock Or Forex Investment Club

The Secrets Of A Successful Stock Or Forex Investment Club

If the investment club strikes you as an ideal answer to your needs and requirements, there here are some points to consider.

Do not attempt to form a club until you have investigated its status under Federal, state, and local laws. The Association of Stock Exchange Firms is attempting to win passage for a model statute that will simplify and clarify the status of investment clubs and in some states is has already been enacted.

In most states, however, a variety of laws govern the formation and operation of a club and its status as a partnership, corporation, joint venture, or whatever. The difficulties are rarely insurmountable, but complications can be avoided if your club will check with an attorney before becoming involved financially.

Along the same lines, your club can avoid awkward misunderstandings if the ground rules are clearly established from the start. Provisions should be made for the death or departure of a member. Each investor should be able to withdraw his share of the club’s assets at any time.

The position of newcomers or replacements for members who have dropped out or moved away should be defined. Does the new member participate on an equal basis in the accumulated assets of the club upon payment of his first ? Or should he be expected to match the total investment of his predecessor?

Run your meetings briskly. Expect to give the business at hand your full and earnest attention for two hours; investment is too serious to be brushed over in less. On the other hand, be organized. Don’t let meetings drag on or founder in confusion. Members will start resigning out of boredom.

Insist that your investigation committees do their homework. And that they stay on the point. These are elements of good reporting in any field, and are not hard to learn. Clarity and precision will not only make reports more interesting, but help you to make your decisions confidently.

Absenteeism plagues almost every organization, and you will have to find your own way to lick it. As noted, the proxy at least assures a vote by the whole membership, but it has its disadvantages. The Williston club has instituted an automatic fine for missing a meeting, regardless of the excuse. Some clubs interpret a certain number of absences as evidence of disinterest and as grounds for dismissal.

As for the club’s performance as an investment group, it will, at first, leave something to be desired. There is something heady about the manipulation of money and the challenge of out-guessing the market. You will find, as you start out, that it is easy to be overly enthusiastic about one stock or another, or, because your fund is relatively small, to concentrate on low-priced issues. The enthusiasm may be warranted, and your low-priced issue may be solid, but try not to let judgment be colored by passion, and never choose price over quality.

Make your committee reports as realistic as possible. In the first flush of enthusiasm, it is possible to be swayed by the mass of beautifully printed material available about this company or that. Set up your standards in advance: know what you are looking for in terms of price and dividend trend, in terms of products, in terms of capital structure and management.

Note: Changes in corporate management are not automatically good. Very often a new slate of officers, or some retirements, will bring in fresh blood, but there is no way of knowing immediately whether the new men are as capable as the ones they replaced.

There is nothing wrong with over-the-counter stocks as such. But many clubs have found that the fluidity of the market on the big exchanges, and the certainty of daily reporting of stock prices, makes investment in Big Board issues considerably more satisfactory.

It is easy to decide that you’ve got a natural bent for investment if your first purchase begins behaving nicely. Don’t be fooled. A great many stocks have been behaving nicely for some years now. In many ways it’s difficult to pick one that doesn’t. Enjoy your success, but keep studying and keep learning.

Fight the tendency to make too many switches in your portfolio, particularly in the early stages. Remember that the commissions on getting in and out are going to eat into your gains. Furthermore, impatience is likely to boost you out of a stock before it has a chance to show its worth. Remember, too, that from the tax angle, you’ll be paying on gains as straight income unless you’ve held the stocks for six months or more.

Finally, stay friendly. Money can get people quite excited. Money can come between friends. You’ll have a better chance of success if your members are friendly on grounds other than investment, if everyone understands clearly that there are hazards as well as profits, and if everyone does his best to become knowledgeable in the field as soon as is reasonably possible.

It is the mistakes of ignorance that cause trouble. Many clubs have had some hot times because a member couldn’t understand why the group sold short of the top or why, with the good old Northern & Southern Railway running right through town, everyone insisted on buying Gulf Oil.

Stay in close touch with your broker. He can help spell out some of the fundamental ABC’s until you can paddle on your own. He also should have, or be able to get, information bearing on the problems and experience of other investment clubs, which can aid you in steering around pitfalls..

Otherwise, every piece of information and advice in this article applies as rigorously to investment clubs as to investing individuals.

Use good investment and Forex software to help you research how particular shares and currencies have performed.

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Crush the Stock Market Without Trading Stocks

Crush the Stock Market Without Trading Stocks

Do you look at the stock market and wish you’d bought some Google stock back when it was first offered for 4? You’d have gained nearly 300% on that investment in the first year – that’s roughly 9.2% each month! That’s a Wall Street level of success!

Imagine if I could show you an investment opportunity that could easily give you over 14% monthly? What if 21.5% per month was within reach? These yearly returns of anywhere from 500% to 1000% are possible for anyone who has the initiative to go out and get them. That’s 2-4X MORE than GOOGLE, one of the fastest growing stocks IN HISTORY! We’re talking about an investment opportunity where your returns will crush even the top gainers of the stock market. Are you starting to get curious about how these numbers are attainable?

You can beat the stock game by playing a different game, the Foreign Exchange trading game. Also referred to as Forex, the Foreign Exchange market is where one country’s currency is traded for another’s. You can buy €1100 Euros for 00 US Dollars while the exchange rate is at 1.1 Euros/Dollar. Then you can sell the Euros back to dollars for 00 (and a nice 0 profit) if the exchange rate moves to 1 Euro/Dollar.

0 may be nice, but that 1% return on the 00 doesn’t sound like the path to your 500% returns, does it? Here’s how that 1% gets its power: Leverage. With Forex, if you have 0 in your account, you can control a ,000 trade. That makes your money a lot more powerful than the – control you get in the stock market! If you’re thinking that you can lose more money this way too, just read on, you’ll learn why that won’t happen.

Consider this: The Foreign Exchange market has a DAILY trading volume of around .5 trillion dollars. That’s 30 times larger than the combined volume of all U.S. equity markets (that includes the NASDAQ and NYSE). This is an untapped resource, and you’re about to learn five simple steps towards taking your share out of that market and into your pocket.

1. Get Educated!
As with all things, the more you know about trading, the more likely you are to success. A little effort spent learning up front can save you hundreds and thousands of dollars of mistakes later.

2. Have a Strategy!
A simple repeatable system can turn trading into a low-risk mechanical system. Know when you should trade, how often you should trade, how much money to spend per trade, when to cut your losses, and when to take your profits. Push the right buttons at the right times, and you’ll make money.

3. Practice Makes Perfect!
Most Forex brokers will allow you to sign up for a practice account, where you can trade imaginary money until you’ve solidified your winning strategy. Don’t risk your hard-earned cash until you’ve proven that you’ll succeed

4. Scrape Together 0
That’s 2 months of brown-bagging lunch instead of buying it; or a few months of cutting down on the daily coffee-shop visits. If you start now, by the time you’ve learned a strategy and perfected it on your practice account, you’ll be ready with your 0 to start earning real money. More money is always better, but 0 is the minimum you’ll need to get started.

5. Go Out and Succeed!
By the time you get to Step 5, you KNOW you will succeed, and you’ll spring out of bed every day ready to make your profit. Some days you’ll lose a little money, but you won’t worry. Your strategy allows you to lose a little money from time to time; you proved that losing money periodically wasn’t the end of the world when you practiced; you’ll get up tomorrow and make it back by following your proven strategy.

Starting with your 0, if you made “Google Gains”, you’d have 2 in a year. That’s not bad. With Forex gains, though, you could easily turn your 0 into 00-00 in a year! Who need the stock market?!?

Saving the best for last, here’s the shocking truth: The 500-1000% yearly returns are possible, but with a smarter strategy you could turn your 0 into over ,000 in less than a year without increasing your risks! Best of all, you can do all of this over the Internet without leaving home. That’s 3000% while wearing pajamas. With these kinds of returns, you could realistically quit your job and trade full-time!

If you could use more money if your life (and lets face it, we all can), you owe it to yourself to learn more about Foreign Exchange trading.

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Stock Market Window Dressing: The Art of Looking Smart!

Stock Market Window Dressing: The Art of Looking Smart!

As investors, and we all are investors these days, it is important that we understand the idiosyncrasies of the Stock Market pricing data we use to help us in our decision making efforts. On Wall Street, investing can be a minefield for those who don’t take the time to appreciate why securities prices are at the levels that appear on quarterly account statements. At least four times per year, security prices are more a function of institutional marketing practices than they are a reflection of the economic forces that we would like to think are their primary determining factors. Not even close… Around the end of every calendar quarter, we hear the financial media matter-of-factly report that Institutional Window Dressing Activities” are in full swing. But that is as far, and as deep, as it ever goes. What are they talking about, and just what does it mean to you as an investor?

There are at least three forms of Window Dressing, none of which should make you particularly happy and all of which should make you question the integrity of organizations that either authorize, implement, or condone their use. The better-known variety involves the culling from portfolios of stocks with significant losses and replacing them with shares of companies whose shares have been the most popular during recent months. Not only does this practice make the managers look smarter on reports sent to major clients, it also makes Mutual Fund performance numbers appear significantly more attractive to prospective “fund switchers”. On the sell side of the ledger, prices of the weakest performing stocks are pushed down even further. Obviously, all fund managements will take part in the ritual if they choose to survive. This form of window dressing is, by most definitions, neither investing nor speculating. But no one seems to care about the ethics, the legality, or the fact that this “Buy High, Sell Low” pictu

A more subtle form of Window Dressing takes place throughout the calendar quarter, but is “unwound” before the portfolio’s Quarterly Reports reach the glossies. In this less prevalent (but even more fraudulent) variety, the managers invest in securities that are clearly out of sync with the fund’s published investment policy during a period when their particular specialty has fallen from grace with the gurus. For example, adding commodity ETFs, or popular emerging country issues to a Large Cap Value Fund, etc. Profits are taken before the Quarter Ends so that the fund’s holdings report remains uncompromised, but with enhanced quarterly results. A third form of Window Dressing is referred to as “survivorship”, but it impacts Mutual Fund investors alone while the others undermine the information used by (and the market performance of) individual security investors. You may want to research it.

I cannot understand why the media reports so superficially on these “business as usual” practices. Perhaps ninety percent of the price movement in the equity markets is the result of institutional trading, and institutional money managers seem to be more concerned with politics and marketing than they are with investing. They are trying to impress their major clients with their brilliance by reporting ownership of all the hot tickets and none of the major losers. At the same time, they are manipulating the performance statistics contained in their promotional materials. They have made “Buy High, Sell Low” the accepted investment strategy of the Mutual Fund industry. Meanwhile, individual security investors receive inaccurate signals and incur collateral losses by moving in the wrong direction.

From an analytical point of view, this quarterly market value reality (artificially created demand for some stocks and unwarranted weakness in others) throws almost any individual security or market sector statistic totally out of wack with the underlying company fundamentals. But it gets even more fuzzy, and not in the lovable sense. Just for the fun of it, think about the “demand pull” impact of an ever-growing list of ETFs. I don’t think that I’m alone in thinking that the real meaning of security prices has less and less to do with corporate economics than it does with the morning betting line on ETF ponies… the dot-coms of the new millennium. [Do you remember the "Circle of Gold" from the seventies? Isn't GLD, or IAU, about the same thing?]

As if all of these institutional forces weren’t enough, you need also consider the impact of tax code motivated transactions during the always-entertaining final quarter of the year. One would never suspect (after watching millions of CPA directed taxpayers gleefully lose billions of dollars) that the purpose of investing is to make money! The net impact of these (euphemistically labeled) “year end tax saving strategies” is pretty much the same as that of the Type One Window Dressing described above. But here’s an off-quarter buying opportunity that you really shouldn’t pass up. Simply put, get out there and buy the November 52-week lows, wait for the periodic and mysterious “January Effect” to be reported by the media with eyes wide shut amazement, and pocket some easy profits.

There just may not be a method to actually decipher the true value of a share of common stock. Is market price a function of company fundamentals, artificial demand for “derivative” securities, or various forms of Institutional Window Dressing? But this is a condition that can be used to great financial advantage. With security prices less closely related to those old fashioned fundamental issues such as dividends, projected profits, and unfunded pension liabilities and perhaps more closely related to artificial demand factors, the only operational alternative appears to be trading! Buy the downtrodden (but still fundamentally investment grade) issues and take your profits on those that have risen to inappropriately high levels based on basic measures of quality… and try to get it done before the big players do. To over simplify, a recipe for success would involve shopping for investment grade stocks at bargain prices, allowing them to simmer until a reasonable, pre-defined, profit target is reached, and se

Yeah, I do miss the days when there were just stocks and bonds, but maybe I’m just a bit too old fashioned. Interesting place Wall Street…

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The Case for Value Stock Investing… What If?

The Case for Value Stock Investing… What If?

Wall Street Institutions pay billions of dollars annually to convince the investing public that their Economists, Investment Managers, and Analysts can predict future price movements in specific company shares and trends in the overall Stock Market. Such predictions (often presented as “Wethinkisms” or Model Asset Allocation adjustments) make self-deprecating investors everywhere scurry about transacting with each new revelation. “Thou must heed the oracle of Wall Street”… not to be confused with the one from Omaha, who really does know something about investing. “These guys know this stuff so much better than we do” is the rationale of the fools in the street, and on the hill (sic).

What if it’s true, and these pinstriped super humans can actually predict the future, why do you transact the way you do in response? Why would financial professionals of every shape and size holler “sell” when prices move lower, and vice versa? Would this pitch work at the mall? Of course not. Now lets bring this phenomenon into focus. Hmmm, not one of these Institutional Gurus ever doubts the basic truth that both the Market Indices and individual issue prices will continue to move up and down, forever. So, if we were to slowly construct a diversified portfolio of value stocks (My short definition: profitable, dividend paying, NYSE companies.) as they fall in price, we would be able to take profits during the following upward cycle… also forever. Hmmm.

Let’s pretend for a (foolish) moment that broad market movements are somewhat predictable. Regardless of the direction, professional advice will always fuel the perceived operative emotion: greed or fear! Wall Street’s retail representatives (stock brokers), and the new, internet expert, self-directors, rarely go against the grain of the consensus opinion…particularly the one projected to them by their immediate superior/spouse. You cannot obtain independent thinking from a Wall Street salesperson; it just doesn’t fill up the Beemer. Sorry, but you have to be able to think for yourself to stay in balance while pedaling on the Market Cycle. Here’s some global advice that you will not hear on the street of dreams (and don’t get all huffy until you understand what to buy or to sell as well as when to do so): Sell into rallies. Buy on bad news. Buy slowly; sell quickly. Always sell too soon. Always buy too soon, incrementally. Always have a plan. A plan without buying guidelines and selling targets is not a plan.

Predicting the performance of individual issues is a totally different ball game that requires an even more powerful crystal ball and a whole array of semi-legal and completely illegal relationships that are mostly self serving and useless to average investors. But, again, let’s pretend that a mega million-dollar salary and industry recognition as a superstar creates Master of the Universe quality prediction capabilities…I’m sorry. I just can’t even pretend that it’s true! The evidence against it is just too great, and the dangers of relying on analytical opinions too real. No one can predict individual issue price movements legally, consistently, or in a timely manner. Face up to this: the risk of loss is real; it can be minimized but not eliminated.

Investing in individual issues has to be done differently, with rules, guidelines, and judgment. It has to be done unemotionally and rationally, monitored regularly, and analyzed with performance evaluation tools that are portfolio specific and without calendar time restrictions. This is not nearly as difficult as it sounds, and if you are a “shopper” looking for bargains elsewhere in your life, you should have no trouble understanding how it works. Not a rocket scientist? Good, and if you are at all familiar with the retailing business, even better. You don’t need any special education evidentiary acronyms or software programs for stock market success… just common sense and emotion control.

Wall Street sells products, and spins reality in whatever manner they feel will produce the best results for those products. The direction of the market doesn’t matter to them and it wouldn’t to you either if you had a properly constructed portfolio. If you learn how to deal unemotionally with Wall Street events, and shun the herd mentality, you will find yourself in the proper cyclical mode much more often: buying at lower prices and, as a result, taking profits instead of losses. Just what if…

Coming next: Developing a Value Stock Watch List and Profit Taking Targets.

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The Importance Of Timing In Forex And The Stock Market

The Importance Of Timing In Forex And The Stock Market

When we make money from the Forex we are looking for economic data which will influence the price of currencies. But when we are looking for good companies to invest in on the stock market we have been told to “Buy the blue chips.” “Blue chips” are the big,reliable companies, and obviously these are listed for the most part on the New York Stock Exchange.

The Dow Jones Average is composed of blue chips, and since there are only 30 listed, at the same time that the average has been going up, it might seem a simple matter to toss a coin to see which ones should be bought out of this list of 30.

But let us get down to specific cases: Standard Oil Company of New Jersey is one of the largest, best managed and generally soundest corporations in the United States. Its earnings per share in 1958 were .72, in 1959 .91 and in 1960 .18. From 1957 through 1960 its dividends have been .25 per share each year. From the middle of 1957 to the end of 1960 the price trend of this stock was down. It declined from almost 70 to a point below 40.

Another giant on the list of 30 Dow Jones stocks is the highly successful General Electric. From a high in early 1960 of nearly 100, GE plummeted to a level of close to 60 in the spring of 1961 because of the actions of the United States government in connection with price fixing by the corporation.

There is some merit to the classical approach to the valuation of a stock by analyzing the underlying strength and prospects of the company, but this is only * An example of a high yield tax free bond is the Chesapeake Bay Bridge and Tunnel Authority 5¾% bond. In 1961 this bond could be bought under 100 to yield almost 6% and this 6% is equal to 12% for a man whose top income is taxed at a rate of 50%.

one of the elements to look at. It, of course, should not be overlooked because in the long run, earnings per share will determine the price of a stock. The only question is, “How long?” While you are holding a sound company’s stock others may be moving up and you want to move up with them.

Determine the earnings trend of the company over the recent four or five years. It should be up in general, but stocks have moved up in price while earnings were declining.

Determine the position of the industry through reading the Wall Street Journal, the financial and business section of The New York Times, the Value Line Investment Survey, and the journals published by every industry and available in any library. The reason Standard Oil of New Jersey was not moving up more rapidly is due to the fact that the outlook for the petroleum industry was not as healthy as some of the other industries.

The most important piece of advice that can be given the investor in stock is that the price of a stock is the direct result of the forces which make the price of anything (stock, commodity or service) demand and supply. For a long time in the spring of 19611 thought GE was a good buy; that it might go up. I questioned a number of brokers and investment bankers about GE. There was a distinct lack of enthusiasm. Since these are the buyers and these are the people who recommend that customers buy the stock, it was evident to me that the demand was not there. It might change very quickly, but until it did I determined to buy other stocks.

It is important to emphasize this point once again: that the price of a stock is the direct result of how much of a stock is offered for sale and what the demand is. We will return later to this point with a striking example.

The next most important piece of advice is that you should buy a stock which is moving up, not one which might move up or one which is moving down and looks as though it might be a bargain. You cannot hope to buy at the bottom and sell at the top. If you try to buy at the bottom you have no assurance that the decline has stopped; and if you try to sell at the top you cannot be certain the rise will not continue. Buy just after a stock has demonstrated its willingness to rise for a few weeks, and sell after about two weeks of decline.

The most foolish piece of philosophizing that an investor can engage in is to say to himself, “I don’t need to worry about the declining trend in the price of my stock. It will come back.” Yes, it may, but when? And if you sold and simply held cash, you might for your cash get far more shares with which to ride the market up again. At the beginning of 1960 Shell Oil was well over 40. By the summer it was down close to 30, and by the spring of 1961 it was close to 45. The downtrend was clear and the uptrend was just as clear. A person could have sold early in the decline and bought early in the rise. My wife, being as good an analyst as I, if not a little better through”intuition,” hit the low point and advised buying at that point. A profit of 50% could have been realized in one year!

Next, follow the market and follow it every few days to determine trend. The closer you are to the market the better you are informed as to what to do. Do not worry about a decline of a few days or a sudden break in the market, no matter how sharp. Worry only about the trend of your stock and the trend of the market.

Use the stop loss order to protect yourself against losses and to provide you with peace of mind. When you purchase stock after careful study and consideration, you may not want to put in an immediate stop loss order which is an order to sell if the stock reaches a particular price below the present market. In the past I have placed stop loss orders, when I bought stock, at about two points under my purchase price. If I bought a stock at 501 put in a stop loss order at 48. Very often the stock went down to 48 and I was sold out. I lost both in the price of the stock and in the commission and tax I had to pay when I bought and when I sold.

Then I had the unhappy experience of seeing my stock rise above 50 and keep on rising. If an investor followed the rule of placing a stop loss order a few points under the purchase price, he could hardly ever purchase a stock that jumps around like O’okiep Copper.

This stock jumps up and down two points during one trading session.

If a stock goes up say 10 points, you may place a stop loss order three or four points under the market. This still prevents a loss and you have already made a good profit in the stock. The strict trailing stop loss order may hurt you not only by getting you out of a rising stock on a minor decline, but the use of trailing stop loss orders by the general investing public damages the market. A slight drop in price of a stock can touch off a series of stop loss orders which lower the price of the stock needlessly.

The major value of having a stock market is the provision of a place in which to buy and a place in which to sell with little delay and at a price which can to a great extent be known in advance. For this reason stocks listed on the New York Stock Exchange and on the American Stock Exchange offer a great advantage to the investor. He knows where he stands by looking at the daily paper, and he has liquidity. He can get his money out of the stock in a matter of minutes.

With the Forex our money is just as liquid and we stand to make more money in a shorter space of time, and we can put a stop loss to protect our position.

Good software will help us predict future price movements in currencies and help us time our purchases and sales of currencies for maximum profit.

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A Review Of The Stock Market Crash Of 1929

A Review Of The Stock Market Crash Of 1929

The great Wall Street Crash just previous to the Great Depression of the 1930s has become a part of North American legend. People speak of the crash, its causes and its consequences, with great authority, although few people actually understand the fundamentals that led to the crash, and fewer still the intricacies involved in it. This article will detail a short review of the crash, analyze some of the myths evolving out of this period in American history, and also answer some questions such as why the crash happened, and if something like it could happen again.

The crash began on October 24, 1929 and the slide continued for three business days, ending on October 29 1929 (as we can see, the crash did not occur in the ‘30s, as many people believe). The first day of the crash is known as Black Thursday, and the last day is called Black Tuesday. The crash began when a rush of nervous spenders panicked and rushed to sell their shares- over 13 million stocks were sold on that first Thursday. In an attempt to halt the slide, several bankers and businessmen gathered and tried to rally the numbers by buying up blue-chip stocks, a tactic that had worked in 1909. This was to prove only a temporary fix, however. Over the weekend, while the stock markets were closed, the media added to the fear of investors as the published the wrap ups to the week. By Monday, a fearful populace, nerves on edge due to the reports, were waiting to liquidate. Again, industrial giants and other businesses tried to halt the panic by demonstrating their faith in the system by buying more stock, but t

As with any legend, the Wall Street Crash of 1929 carries with it several mythical misconceptions. To start with, the Crash did not lead to the Great Depression. In fact, many financial analysts and historians are still not sure to what degree the Crash even contributed. The economic forecasts were poor before Wall Street fell, and it was poor people who could not even afford to think about stocks that were the most affected by the Depression. For these people, poverty was mostly caused by very poor farming conditions. There was also not the onslaught of suicides that is commonly referred to- a few investors did succumb to depression, but their numbers are generally agreed to have been very small indeed- enough to count on one hand.

What was it that caused this Crash? Because the market had been doing so well, many Americans were investing- many more, in fact, than could afford it. These people were investing on speculation. This means that they were buying stocks with an eye to selling them in the future for a higher profit, and to achieve the capital to invest they borrowed from banks. When prices began to drop, people realized they would not be able to pay their debt, let alone make any money,. They rushed to get out as soon as possible. To prevent panics such as this in the future, buying on speculation is now illegal.

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Possible future of stock exchanges

Possible future of stock exchanges

With the electronic age firmly entrenched and the Internet and basic computer usage a fact of life, many people are taking a look at how computers are changing the workplace. Where most elementary schools may have had one or two computers in an entire school, some schools now have a laptop for every student. And while the average workplace use to have slow and clunky terminals, they have now been replaced with lightning fast machines capable of running a dozen complex programs at once.

One workplace that has been somewhat shielded by this evolution is the floor of the New York Stock Exchange. Some consider this to be highly ironic, since the floor of the exchange is where the shares in the very computer companies that seem like they are taking over the world are traded.

The recent expulsion of Richard Grasso as head of the NYSE was seen as an ominous move by many specialists who work at the exchange. Grasso, while far from an ideal leader, was famous for trying to keep the individual traders employed when they could most likely be replaced by a newly designed computer system.

With the appointment of new exchange boss John Thain, a possible revamping of the entire trading system is expected, but how many jobs will it cost and what will it look like?

A major sign of impending change happened in April of 2005 when a company called Archipelago Holding merged with the New York Stock Exchange and the two became a publicly traded company. Archipelago is an electronic trading network, and it’s thought by many who work on the floor of the NYSE that this merger is the final nail in the coffin for the hundreds of people who carry on the tradition of floor selling that has been going on for over 200 years.

The possible evolution of the NYSE may not even be up to those that run it. As other markets across the world in places like Hong Kong, Frankfurt and London upgrade their trading methods and begin to phase out trading by people in favour of computers, an upgrade may become necessary to just keep up. Since the computer can process trades significantly faster than a human, the NYSE may have to do away with the traditional floor trader just so that the exchange remains competitive and relevant.

While the constant sea of change is inevitable, the future of the floor trader at the NYSE looks bleak. It is not known if there will still need to be traders to input the trades into the computers or if that phase of the trade will somehow be automated, as well. The only thing that is known for sure is that change will continue to happen and unless we learn to anticipate it, those that don’t will be left behind.

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The Advantages Of Online Stock Trading

The Advantages Of Online Stock Trading

The Internet is an advanced and handy tool in modern society. Gone are the days that its use limited to learning and socializing. But now, a growing trend for doing business, banking and investing has emerged through online networks. In fact, one of the fastest growing markets online is stock trading.

However, if you have grown accustomed to the traditional methods of the stock exchange, then having quite a few hesitations with buying and selling stocks online is understandable and quite normal

But what you should know is that online trading can be very efficient and beneficial to you as an investor. With much perks on factors such as time, control, and cost, you can surely get used to how easy the hi-tech process can be. Here are the most evident advantages of online stock trading:

Faster Transactions

As what every investor and broker should know, time is a very essential element in trading stocks. The effect of whether or not you would be able to make profit or experience loss in your transaction will greatly depend on the time it takes to execute the trade.

In the traditional set-up, you have to call your broker and ask him to buy or sell the stock. Then this would then be followed by a process wherein your broker will negotiate with the trader for the price of the stock. Then, you would have to wait for your broker to call you for the price before you can make a decision on whether you should buy or sell. And then if you do decide to buy or sell the stock, your broker would have to make another call to order through the trader.

However, when you do transactions online, all it takes to be able to buy or sell stocks would be a single click of the mouse. Through this, a quicker exchange can be made, which may also ensure faster earnings.

Closer Control

Since trading is done through the Internet, you can watch over your stocks more closely. After all, you can always log in on your account anytime and view how your shares are fairing in the market anytime you want. This empowers you to be aware of the performance of your investment instead of having to wait for reports in the mail that may not come as often as you would like.

Through online exchange, you can also be free to make your own decisions to buy or sell stocks instead of relying on whether or not your broker will agree to execute a certain trade you might be interested in. In a way, you are empowered to trust your own intuition and take your own risks with your investments.

Lower Fees & Commissions

Another very good benefit of online stock trading is the lower stockbroker commissions and that you will have to pay as compared to the traditional method. If you trade in a sufficiently large volume of stocks, it can even be possible for you to be able to negotiate your broker’s fees. Thus, you can save a lot of money and even earn more.

Although keeping up with the times and going hi-tech may seem quite intimidating at first, especially if you are used to more traditional methods, moving forward can always become a much more practical and reliable step for you to take in the long run.

With the many benefits that online stock trading can give you, buying or selling your stocks through the Internet can certainly be a great way to participate in the stock market. Not only are things made easier and more convenient for you, you can even save so much time and money, as well as gain more control on your investments.

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The Stock Market And Its Profits Potentials Compared To Other Investments

The Stock Market And Its Profits Potentials Compared To Other Investments

The stock market investments has proving to yield more profits better than other financial investments in the financial market investments. With the stock investment, you are sure of an incessant opportunities of better profits, and above all…you are guarranteed of low risk of losing your money. Your portfolio manager will be on alert 24/5 to harness on your stock investments which fix you on full set of sleeping all day, and partying all night while your stock investment is growing more active by the day, and still making your money… even when you are out on your holidays.

The stock market has been accertained of its risk free and its profits potentials with the following other investments below, and the stock has been proven to be more yielding better than others below.

{1} Real Estate: ————- {Land & Building}
{2} Securities: ————– {Shares/Stocks and bonds}
{3} Trading: —————– {Buying/Selling/import & Export}
{4} Manufacturing: ———– {Goods & Services}
{5} Fixed Deposits: ———- {Banks/Building Societies}

Although, some investments are more lucrative than the other, but above all, ”The stock market” has still remained the most active, yielding, profitting and very lucrative among all others. A good example of one year investment trial has been conducted between the listed investments above, And yet ”The stock market” still emerge the leading profitting investment to yield potential profits among all others.

This statistic figures below has been monitored on 2 years on approximation investment prices as at between January 2006 to January 2008:-

Cost Of Price As At January 2006 Cost Of Price As At January 2008
{1} Land Cost:- 10,000 And 15,000 —— Current Price:- 13,000 And 18,000
{2} Buildings Cost:- 10,000 And 15,000 —— Building Cost:- 13,000 And 18,000
{3} Business Cost:- 10,000 And 15,000 —– Trading Cost:- 14,000 And 19,000
{4} Manufacturing Cost:- 100,000 And 15,000 — Manufacturing Cost:- 15,000 And 20,000
{5} Securities Cost, 10,000 And 15,000 —— Securities Cost:- 18,000 And 26,000

The statistics here show the result of changes in profit and in more yielding, lucrative and more profitable in each of the investments.

Statistics Of Changes In The Investment Profits As At January 2008.

Land Profits:- 13,000 And 18,000 ———– Profits Of:- 3,000 Each.
Building Profits:- 13,000 And 18,000 ——- Profits Of:- 3,000 Each.
Business Profits:- 14,000 And 19,000 ——– Profits Of:- 4,000 Each.
Manufacturing Profits:- 15,000 And 20,000 — Profits Of:- 5,000 Each.
Securities Profits:- 18,000 And 26,000 —— Profits Of: 8,000 And 11,000.

This statistic fagure above showed that the investment started at thesame time, and with thesame amount of capital investment, but with the changes and the transactions within the 2 years period of time, the securities stand solely as the highest yielding profitable investment with a huge difference of between 8,000 and 11,000 profits. The manufacturing is also another yielding investment within the same period of 2 years investment… thats to show you how profitting the stock markets and other securities markets stands to profit you money, you can even earn 3 times of your capital investment. You still earn money in stock market, even when you are sleeping or even when you are in a long distance holidays trip.

The stock market is the only assured investment that can prompt you enough chance to spend time with you family and your love one’s give, travel to the moon, engage other businesses and at the end of the day… you will still have so much to spend around with joy and happiness. Try investing into stock market today and you will see some changes in your financial capacity almost instantly, and to tell you the fact ” is INCESSANT”. You have absolutely nothing to lose order than profits, profits, profits and more profits. Read more from the authors links below.

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Stock Market Timeline How Much Do You Know

Stock Market Timeline How Much Do You Know

How much do you know about the history of the stock market? This stock market timeline can help you understand a bit about where the stock market comes from, where it is, and where it might be going, which is always a good idea to know whenever you are considering investing your hard-earned dollars in anything.

In 1685, planners laid out the area now known as Wall Street; it was erected along a wooden stockade or Barrier that was built to protect people (Dutch) from warring enemies. A hundred or so years later, the Revolutionary War happens and ends, which leads to the next major milestone in the NYSE.

In 1790, all the debt incurred because of the Revolution gets refinanced by the government.

In 1792, two bank stocks and three government bonds are traded in New York City. Yes, you read that right. Five securities. A group of pioneering and important men gather on Wall Street and make plans to start selling securities for commission. They sign the Buttonwood Agreement.

IN 1817, the New York Stock & Exchange Board (NYS&EB) is created.

Around 1830, it becomes evident that the major trading in the Exchange is railroad stocks. They are traded heavily throughout the 1800s. Soon after, the NYS&EB) burns down in a huge fire and the company is housed elsewhere.

Just a year after the fire in 1836, new rules are passed and now members are denied the right to trade in the streets.

In 1844, the “pre-computer,” a.k.a. the telegraph is born; this may seem unrelated, but just imagine. UP until that point, if you wanted to trade securities, you had to be right there in NewYork. But the telegraph allows investors to buy and sell from far away.

In 1861, the Civil War begins, and the NYS & EB stops allowing securities trading in any of the states that are attempting to secede from the Union.

In 1863, the NYS &EB changes its name to the New York Stock Exchange – what we currently know as the NYSE.

In 1867, the first stock ticker is created, and now people from all over the place can see the activity and performance of stocks, as well as the current prices.

In 1869, a lot of changes take place. Selling shares of stock secretly gets banned; the Exchange demands that all companies should be registered at a bank or other reliable institution. The first “Black Friday” occurs when the NYSE bottoms out due to the interest in gold.

In 1878, the NYSE gets its first telephone on the floor. Can you imagine what those folks would think of today’s trading floor?

In 1903, the NYSE moves to its current location – which is not actually Wall Street. They are at 18 Broad Street.

In 1913, the Federal Reserve is created in an attempt to bring stability and structure to the economy, securities trading, and banking.

In 1929, the market experiences “Black Thursday” and totally crashes within a week. The US enters the period known as The Great Depression.

IN 1934, the Securities and Exchange Commission (SEC) is established.

And of course the stock market timeline continues on through today, with it’s ups and downs, with fortunes being made and lost.

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