It is a risky proposition to trade in futures. It is only the decision of exploration and conventional trading patterns that determine the futures contract. The time when a person greedy to make more profits or gets thrilled to take all the risk with the trade will try to put up their saving in the instruments they have taken in the market. Those who are conservatives are known as hedgers or the people who discover ways to defend their assets as well as future outflows of financial resources from unstable nature of costs.
The Concept of Contracts
The actuality that futures are known as contracts, they are based on mutual consent or agreements where one of parties assure to buy a certain quantity of goods or monetary instruments on a particular date at a settled price that is founded on rates on the day that contracts are entered in and other party entrusts to sell the promised amount of the object on predetermined prices.
Futures Contract: High Liquidity
They are desired of speculators due to their high liquidity that might be attributed to following:
The fundamental assets of contracts by nature are extremely possible to be sold since they are in steady high demand. The examples of these kinds of trade are rice, coffee, cotton, oil, gemstones and minerals and even the money market instruments such as treasury bonds and bills that can be traded in the stock exchange in the short term.
Their costs are highly vulnerable to the consequences of shifts in demand and supply, therefore the larger the danger is the bigger is the possibility of profits yet the bigger the possibility of losses is-nevertheless, that is a point of game of futures trading.
The Futures Contract as well as Its High reliability
Stock exchanges as well as their governments see that the players in futures trading system are monitored and well regulated, therefore, it is guaranteed that the people who take part in the market own high credibility particularly in terms of settlement or delivery. Most of the persons taking hedge positions in either commodities or foreign currency try to trade on in futures due to price risk. You can find similarity of this behavior even with those indulged in import and export to expect a certain amount of foreign currency at the lapse of the pre arranged date and amount.
Author Description :
- About the Author:
Author is a financial expert with experience in Futures trading academy
Chủ Nhật, 23 tháng 5, 2010
Is it Worth Investing in American Eagle Coins?
American Eagle Silver Dollars are legal tender coins made at the U.S. Mint at West Point, NY. The have been produced since 1986 and have the face value of one U.S. dollar. As this article is being written, they are worth much more than the face value since the price of an ounce of silver has been more than one dollar for over 40 years. These.99% pure silver coins are backed by the U.S. Government in regards to their weight and silver purity. American Eagle Silver Dollars are the most popular silver coins in the world right now. Also, due to its current value, they are easily cashed at any time.
There are many coin dealers that consider the silver dollar one of the most beautiful coins ever made. The beautiful Walking Liberty design was created by Adolph A Weinman, who was highly praised and recognized worldwide and was first used on the U.S. Silver Half Dollars from 1916 until 1947. The design on the back of the coin was The image of a powerful eagle by John Mercanti, which includes a shield, and 13 stars above the eagles head. The 13 stars represent the 13 original American colonies.
The American Eagle Silver Dollar is the largest silver dollars ever made by the U.S. Mint. By law, when the coins are cut, they must contain 1 troy ounce of 99.9% pure silver and is 40.6mm or 1.598 inches in diameter. These coins are quite large and make a great impression to boot! Every Silver Eagle is struck with extreme care and precision and must meet high standards at the U.S. Mint. These great coins are an affordable way to own pure silver and create and build wealth for you and your family starting today.
Many times these coins are used as investments, gifts, collected. or even as protection in a case of a national disaster or bank failure. If there is a run on the banks, you better make sure you have some precious metals stashed at home for food and shelter, my friend!
Silver coins have always been known to be accepted in times of emergency and disasters. This is the best time to start creating or expanding your silver collection. The price is right now, I say!
Author Description :
Did you know the value of the dollar is dropping daily? Visit my website to find out how you can protect your family from a potential financial collapse and keep the ones you love safe by purchasing 99.9% pure silver.
Visit this website right now - http://www.SilverSnowBalls.us
There are many coin dealers that consider the silver dollar one of the most beautiful coins ever made. The beautiful Walking Liberty design was created by Adolph A Weinman, who was highly praised and recognized worldwide and was first used on the U.S. Silver Half Dollars from 1916 until 1947. The design on the back of the coin was The image of a powerful eagle by John Mercanti, which includes a shield, and 13 stars above the eagles head. The 13 stars represent the 13 original American colonies.
The American Eagle Silver Dollar is the largest silver dollars ever made by the U.S. Mint. By law, when the coins are cut, they must contain 1 troy ounce of 99.9% pure silver and is 40.6mm or 1.598 inches in diameter. These coins are quite large and make a great impression to boot! Every Silver Eagle is struck with extreme care and precision and must meet high standards at the U.S. Mint. These great coins are an affordable way to own pure silver and create and build wealth for you and your family starting today.
Many times these coins are used as investments, gifts, collected. or even as protection in a case of a national disaster or bank failure. If there is a run on the banks, you better make sure you have some precious metals stashed at home for food and shelter, my friend!
Silver coins have always been known to be accepted in times of emergency and disasters. This is the best time to start creating or expanding your silver collection. The price is right now, I say!
Author Description :
Did you know the value of the dollar is dropping daily? Visit my website to find out how you can protect your family from a potential financial collapse and keep the ones you love safe by purchasing 99.9% pure silver.
Visit this website right now - http://www.SilverSnowBalls.us
A Very Brief History of Silver
Many people don't realize that for thousands of years, silver was the world's money, not gold. Economist Milton Freidman said, "The major monetary metal in history is silver, not gold." Archeologists have found evidence of examples of it being used as money dating back over 5000 years!
The first mention of silver in the Bible dates back to the Old Testament at about 1800 BC. In fact, back in those days, it was the only metal accepted as money. Early colonial America preferred it to gold too. It was the general legal tender until 1873 when it was demonetized and gold became the metal of choice.
Since then, gold has been considered money whereas silver was thought as something used to make stuff. Many people ignore silver especially at the current price, when compared to gold. Since silver is considered more for industrial uses than money, it always seems to get short changed in the eyes of the public.
The great discovery of the Comstock Lode in 1859 was a direct cause of the change in perception of silver as a monetary alternative. All that silver coming out of Nevada caused a giant decline in value for all silver throughout the world. Then during the industrial revolution and the onset of photography, the demand for silver began to grow and it caused a conflict in silver's monetary value. That, in turn, caused volatility in the worldwide silver market.
While silver may not be seen as a currency alternative now, the history of silver as money is solid and will never really change. As problems with the U.S. Dollar worsen, some of the wealth from paper money will go into silver, strengthening its value.
Right now, the ration in price from gold to silver is almost 60 to 1. Experts believe that there will be a correction soon to bring that ration back down to half of that. For reasons such as these, I recommend you seriously consider investing in silver for the long haul now.
Author Description :
Did you know the value of the dollar is dropping daily? Visit my website to find out how you can protect your family from a potential financial collapse and keep the ones you love safe by purchasing 99.9% pure silver.
Visit this website right now - http://www.SilverSnowBalls.us.
The first mention of silver in the Bible dates back to the Old Testament at about 1800 BC. In fact, back in those days, it was the only metal accepted as money. Early colonial America preferred it to gold too. It was the general legal tender until 1873 when it was demonetized and gold became the metal of choice.
Since then, gold has been considered money whereas silver was thought as something used to make stuff. Many people ignore silver especially at the current price, when compared to gold. Since silver is considered more for industrial uses than money, it always seems to get short changed in the eyes of the public.
The great discovery of the Comstock Lode in 1859 was a direct cause of the change in perception of silver as a monetary alternative. All that silver coming out of Nevada caused a giant decline in value for all silver throughout the world. Then during the industrial revolution and the onset of photography, the demand for silver began to grow and it caused a conflict in silver's monetary value. That, in turn, caused volatility in the worldwide silver market.
While silver may not be seen as a currency alternative now, the history of silver as money is solid and will never really change. As problems with the U.S. Dollar worsen, some of the wealth from paper money will go into silver, strengthening its value.
Right now, the ration in price from gold to silver is almost 60 to 1. Experts believe that there will be a correction soon to bring that ration back down to half of that. For reasons such as these, I recommend you seriously consider investing in silver for the long haul now.
Author Description :
Did you know the value of the dollar is dropping daily? Visit my website to find out how you can protect your family from a potential financial collapse and keep the ones you love safe by purchasing 99.9% pure silver.
Visit this website right now - http://www.SilverSnowBalls.us.
Increase Your Finances and Keep Your Future Growing
Smarten up, sit up and pay attention! Are you under threat of redundancy? Are your work hours under review? Or are you simply in need of a financial boost? Don't get bogged down in the latest round of doom and gloom on the financial fronts. You can get a head start. Learn to Increase Your Finances and Keep Your Future Growing.
Is there something that you can do that will enable you to break free from dependency on your local employment options? Can you learn to do things differently and even go against the money trends in your part of the world and come out on top? How is it possible? It won't be simple and hard work is required, but thousands across the world are already discovering that they can be their own boss, dictate their own work patterns, recreate a better family life and still prosper! Would you like to know how they do it?
Perhaps you are already looking for extra income. Have you compared opportunities within the franchises or multi-level marketing company opportunities and wondering if this is for you? It might well be, but have you really considered the idea of having multiple streams of income? An example of that would be paid employment, running your own MLM business as well as being an affiliate marketer. (You can read a short guide entitled "Affiliate Marketing - a Guide for Newbies, which gives the bare bones if you are unfamiliar with this).
Affiliates are internet business marketers who have been given the potential to earn unlimited income by understanding how the internet is used and tapping into the global markets. There are currently over 2 billion users worldwide and that number is set to rise as more and more people come online. Many people have discovered a way to harness the amazing variety of technology available on the internet and make it work for them.
The good news is that you don't have to be left behind. You don't have to have all your eggs in one work basket - just in case yours gets dropped! If the worst thing happens to you and you get made redundant or have your working hours reduced, you will already have businesses up and running that have been steadily growing to cushion the impact. Now really would be a good time to prepare and plan ahead in terms of work and finances. Don't just sit around and wait for the inevitable to happen to you. You won't get rich overnight, but with learning a new set of skills and good mentoring, you can be taught how to use the internet efficiently and outsmart trends and prosper even in the most difficult of financial climates.
Author Description :
If you go now to http://www.earnyourwealth.co.uk I will show you a proven marketing opportunity that gives excellent coaching in some 50+ marketing strategies, methods and techniques that you can use to start your own profitable online business today. You can Increase Your Finances and Keep Your Future Growing! Olive Bush is an online marketer teaching people from around the world to make money online and how to build their home based business. To learn more about Olive and her business please visit http://www.earnyourwealth.co.uk.
Is there something that you can do that will enable you to break free from dependency on your local employment options? Can you learn to do things differently and even go against the money trends in your part of the world and come out on top? How is it possible? It won't be simple and hard work is required, but thousands across the world are already discovering that they can be their own boss, dictate their own work patterns, recreate a better family life and still prosper! Would you like to know how they do it?
Perhaps you are already looking for extra income. Have you compared opportunities within the franchises or multi-level marketing company opportunities and wondering if this is for you? It might well be, but have you really considered the idea of having multiple streams of income? An example of that would be paid employment, running your own MLM business as well as being an affiliate marketer. (You can read a short guide entitled "Affiliate Marketing - a Guide for Newbies, which gives the bare bones if you are unfamiliar with this).
Affiliates are internet business marketers who have been given the potential to earn unlimited income by understanding how the internet is used and tapping into the global markets. There are currently over 2 billion users worldwide and that number is set to rise as more and more people come online. Many people have discovered a way to harness the amazing variety of technology available on the internet and make it work for them.
The good news is that you don't have to be left behind. You don't have to have all your eggs in one work basket - just in case yours gets dropped! If the worst thing happens to you and you get made redundant or have your working hours reduced, you will already have businesses up and running that have been steadily growing to cushion the impact. Now really would be a good time to prepare and plan ahead in terms of work and finances. Don't just sit around and wait for the inevitable to happen to you. You won't get rich overnight, but with learning a new set of skills and good mentoring, you can be taught how to use the internet efficiently and outsmart trends and prosper even in the most difficult of financial climates.
Author Description :
If you go now to http://www.earnyourwealth.co.uk I will show you a proven marketing opportunity that gives excellent coaching in some 50+ marketing strategies, methods and techniques that you can use to start your own profitable online business today. You can Increase Your Finances and Keep Your Future Growing! Olive Bush is an online marketer teaching people from around the world to make money online and how to build their home based business. To learn more about Olive and her business please visit http://www.earnyourwealth.co.uk.
The Gurus All Made Their Fortunes In Market Crises
There's a small secret behind how many of the world's investing gurus made their billions. A lot of their profits came from buying stocks of fundamentally sound companies during past market crashes. A big bargain when prices were artificially driven down by extreme sentiment.
Sir John Templeton (one of the world's greatest stock pickers) made billions of dollars by buying up shares of great companies selling at less than US$1 during the Great Depression (when no one else dared to buy!).
He later saw his wealth multiply a hundredfold in just four years as the market turned around. His famous quote - "invest at the point of maximum pessimism".
Warren Buffet, currently the world's richest man and revered for being the world's greatest investor, made over US$60 billion purely from just investing in the stock market. Buffett made his greatest buys during the oil shock of 1973-1974 and the dot com crash of 2001-2003.
Amid the 1973 crisis, he saw many valuable companies selling at a fraction of their worth and remarked, "I feel like an over-sexed man in a harem".
He happily embarked on a shopping spree and bought millions of dollars worth of undervalued stocks, later turning them into billions of dollars in profits. His famous quote - "be fearful when others are greedy; be greedy when others are fearful".
As you may have realized, all of the most successful (and richest) stock market investors adopt a contrarian approach. Instead of following the crowd, they do the opposite!
They stand by the sidelines watching the rest busy themselves with buying during optimistic times, and step in for the bargains when the market sentiment reverses.
We all agree that the best time to go shopping would be when everything is on sale. But ironically, what we are seeing in the real world is instead quite the opposite. If we likened the stock market to a supermarket, we would be seeing customers rushing out the door when prices drop, and back in again when prices are high!
It is this herd mentality that causes most investors to buy high and sell low, eventually leading them to lose money in the long run.
To be among the minority who make consistent profits from the stock market, it would be logical to go against the herd mentality. It makes sense to start buying when everyone is selling (when prices are low) and vice versa (when prices are high).
Author Description :
- About the Author:
Adam Khoo is an entrepreneur, master investor, best-selling author and a self-made millionaire by the age of 26. Over the last 15 years, he has trained over 350,000 professionals, executives and business owners tap their personal power and achieve excellence in their various fields of endeavor. Visit his blog at http://www.Adam-Khoo.com or download your FREE chapter of his latest book "Profit From The Panic" at http://www.ProfitFromThePanic.com.
Sir John Templeton (one of the world's greatest stock pickers) made billions of dollars by buying up shares of great companies selling at less than US$1 during the Great Depression (when no one else dared to buy!).
He later saw his wealth multiply a hundredfold in just four years as the market turned around. His famous quote - "invest at the point of maximum pessimism".
Warren Buffet, currently the world's richest man and revered for being the world's greatest investor, made over US$60 billion purely from just investing in the stock market. Buffett made his greatest buys during the oil shock of 1973-1974 and the dot com crash of 2001-2003.
Amid the 1973 crisis, he saw many valuable companies selling at a fraction of their worth and remarked, "I feel like an over-sexed man in a harem".
He happily embarked on a shopping spree and bought millions of dollars worth of undervalued stocks, later turning them into billions of dollars in profits. His famous quote - "be fearful when others are greedy; be greedy when others are fearful".
As you may have realized, all of the most successful (and richest) stock market investors adopt a contrarian approach. Instead of following the crowd, they do the opposite!
They stand by the sidelines watching the rest busy themselves with buying during optimistic times, and step in for the bargains when the market sentiment reverses.
We all agree that the best time to go shopping would be when everything is on sale. But ironically, what we are seeing in the real world is instead quite the opposite. If we likened the stock market to a supermarket, we would be seeing customers rushing out the door when prices drop, and back in again when prices are high!
It is this herd mentality that causes most investors to buy high and sell low, eventually leading them to lose money in the long run.
To be among the minority who make consistent profits from the stock market, it would be logical to go against the herd mentality. It makes sense to start buying when everyone is selling (when prices are low) and vice versa (when prices are high).
Author Description :
- About the Author:
Adam Khoo is an entrepreneur, master investor, best-selling author and a self-made millionaire by the age of 26. Over the last 15 years, he has trained over 350,000 professionals, executives and business owners tap their personal power and achieve excellence in their various fields of endeavor. Visit his blog at http://www.Adam-Khoo.com or download your FREE chapter of his latest book "Profit From The Panic" at http://www.ProfitFromThePanic.com.
Why Most People Lose Money In The Stock Markets?
If the stock market always recovers and goes higher over time, why is it that the majority of people (80%) lose money?
The main reasons are because most people make investment decisions based on the short term and not the long term (most people are impatient and greedy).
At the same time, they make decisions based on EMOTIONS and not logic. The two emotions FEAR and GREED cloud rationality. This leads people to make loss-making investment calls.
For example, many people often get caught up in the euphoria of good times amid a bull run, buying even when the market is overpriced (i.e. during the dot com bubble of 2001).
At the same time, emotions cause people to sell when theirs stocks dip over a long stretch of time. As they see the value of their stocks getting lower and lower, their FEAR of losing more will cause them to sell at low prices.
The best way to protect yourself from such emotions, is to understand how the market works. A lack of knowledge gives fertile grounds for such emotions to manifest. It opens your eyes to realize where the windows of opportunity and traps are.
Many people tend to invest when they have seen that stock prices have been going up after some time. The first thing salespeople selling bank products will show you is how well their fund has performed over the last 3-5 years.
This past performance creates an impression and the confidence that prices will keep going up. The temptation to make money from this uptrend is what draws most people to invest.
However, we now know from studying the cycles of the stock market that what goes up after some time (especially 3-5 years), will come down. This is called a correction! This is why most people have the common experience of seeing their stocks fall after investing.
With knowledge of how the cycle works, market downturns are logically the best time to be buying. This is because EVERY MAJOR DOWNTURN or crash is followed by the next bull run.
Author Description :
- About the Author:
Adam Khoo is an entrepreneur, master investor, best-selling author and a self-made millionaire by the age of 26. Over the last 15 years, he has trained over 350,000 professionals, executives and business owners tap their personal power and achieve excellence in their various fields of endeavor. Visit his blog at http://www.Adam-Khoo.com or download your FREE chapter of his latest book "Profit From The Panic" at http://www.ProfitFromThePanic.com.
The main reasons are because most people make investment decisions based on the short term and not the long term (most people are impatient and greedy).
At the same time, they make decisions based on EMOTIONS and not logic. The two emotions FEAR and GREED cloud rationality. This leads people to make loss-making investment calls.
For example, many people often get caught up in the euphoria of good times amid a bull run, buying even when the market is overpriced (i.e. during the dot com bubble of 2001).
At the same time, emotions cause people to sell when theirs stocks dip over a long stretch of time. As they see the value of their stocks getting lower and lower, their FEAR of losing more will cause them to sell at low prices.
The best way to protect yourself from such emotions, is to understand how the market works. A lack of knowledge gives fertile grounds for such emotions to manifest. It opens your eyes to realize where the windows of opportunity and traps are.
Many people tend to invest when they have seen that stock prices have been going up after some time. The first thing salespeople selling bank products will show you is how well their fund has performed over the last 3-5 years.
This past performance creates an impression and the confidence that prices will keep going up. The temptation to make money from this uptrend is what draws most people to invest.
However, we now know from studying the cycles of the stock market that what goes up after some time (especially 3-5 years), will come down. This is called a correction! This is why most people have the common experience of seeing their stocks fall after investing.
With knowledge of how the cycle works, market downturns are logically the best time to be buying. This is because EVERY MAJOR DOWNTURN or crash is followed by the next bull run.
Author Description :
- About the Author:
Adam Khoo is an entrepreneur, master investor, best-selling author and a self-made millionaire by the age of 26. Over the last 15 years, he has trained over 350,000 professionals, executives and business owners tap their personal power and achieve excellence in their various fields of endeavor. Visit his blog at http://www.Adam-Khoo.com or download your FREE chapter of his latest book "Profit From The Panic" at http://www.ProfitFromThePanic.com.
What Every Portfolio Should Have?
One of the first and most basic rules about investing is to diversify and not to put all your eggs in one basket.
No matter how good a company is, never ever put more than 20% of your money in that one stock. History has showed that no matter how strong a company has been or how long it has been around, anything can happen.
No one would have ever thought that Lehman brothers, Bear Stearns, AIG, Enron or WorldCom could have suffered the fates they did. They were once the largest and strongest companies in the world.
At the same time, never put all your money into one sector/industry or even one country. For example, if you had put all your money in US financial stocks only, you might probably be trying to hang yourself right now.
If you had put some of your money into oil stocks, commodity stocks and defensive stocks (i.e. McDonald's, PepsiCo), the profits you would have made on these other companies would have reduced or offset the losses on your financial stocks.
I also suggest that you include inflationary driven stocks and defensive stocks. Whether we like it or not, inflation will always cause prices of good and services to go higher in the future.
At the same time, as world oil reserves deplete and demand for oil will only increase over time, it means its prices will definitely keep going up.
So instead of bitching and complaining, why don't we take advantage of this fact? Buy stocks that will benefit from inflation and higher oil prices!
It is also always good to include defensive stocks into your portfolio. Defensive stocks are stocks that people buy up during recession and downturns and hence their prices tend hold steady or move up while the overall market is bearish.
Author Description :
- About the Author:
Adam Khoo is an entrepreneur, master investor, best-selling author and a self-made millionaire by the age of 26. Over the last 15 years, he has trained over 350,000 professionals, executives and business owners tap their personal power and achieve excellence in their various fields of endeavor. Visit his blog at http://www.Adam-Khoo.com or download your FREE chapter of his latest book "Profit From The Panic" at http://www.ProfitFromThePanic.com.
No matter how good a company is, never ever put more than 20% of your money in that one stock. History has showed that no matter how strong a company has been or how long it has been around, anything can happen.
No one would have ever thought that Lehman brothers, Bear Stearns, AIG, Enron or WorldCom could have suffered the fates they did. They were once the largest and strongest companies in the world.
At the same time, never put all your money into one sector/industry or even one country. For example, if you had put all your money in US financial stocks only, you might probably be trying to hang yourself right now.
If you had put some of your money into oil stocks, commodity stocks and defensive stocks (i.e. McDonald's, PepsiCo), the profits you would have made on these other companies would have reduced or offset the losses on your financial stocks.
I also suggest that you include inflationary driven stocks and defensive stocks. Whether we like it or not, inflation will always cause prices of good and services to go higher in the future.
At the same time, as world oil reserves deplete and demand for oil will only increase over time, it means its prices will definitely keep going up.
So instead of bitching and complaining, why don't we take advantage of this fact? Buy stocks that will benefit from inflation and higher oil prices!
It is also always good to include defensive stocks into your portfolio. Defensive stocks are stocks that people buy up during recession and downturns and hence their prices tend hold steady or move up while the overall market is bearish.
Author Description :
- About the Author:
Adam Khoo is an entrepreneur, master investor, best-selling author and a self-made millionaire by the age of 26. Over the last 15 years, he has trained over 350,000 professionals, executives and business owners tap their personal power and achieve excellence in their various fields of endeavor. Visit his blog at http://www.Adam-Khoo.com or download your FREE chapter of his latest book "Profit From The Panic" at http://www.ProfitFromThePanic.com.
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