Everyone is talking about China. Do not miss the opportunities in other CHI ..
Yes. Chile with an "LE" not "NA"
While the region is back in the favor of investors, it seems appropriate that Chile's mark. Economic star of Latin America
Chile is about twice the size of Montana and has an incredible coastline of 2650 miles. While only 3% of the land is arable, it has an amazing variety of climates and rich agricultural production. It gained its independence from Spain in 1810 and has 16 million inhabitants, of which 90% is Catholic.
Chile The story is somewhat similar to Ireland for its economic takeoff. From 1978 to 1988, the per capita income was only $ 100 to $ 1,510 to reach.
Then, both a military government followed by democratically elected governments initiated reforms of the labor market and opened the economy. Exports and foreign investment declined and debt came down. Foreign investors in Chile are treated in the same way as Chilean investors.
Chile's Take Off and steady growth
From 1991-1998 economic growth rose by an average of 8% and income per capita based on purchasing power has grown to $ 10,700. Since then, growth has slowed to a 4-5% range, but a total Chilean public and external debt at 50% of GDP is very low compared to other Latin countries.
Trade is very important for Chile with exports accounting for 25% of GDP. It is rich in natural resources (copper, wood, fruit and fish) and has been busy signing free trade agreements. A free trade agreement (FTA) with the U.S. came into force in January 2004 and now 90% of Chilean exports to the U.S. enter duty free. After a similar trade pact with South Korea last year, exports increased by 50%.
Current President Ricardo Lagos Escobar is under pressure to improve economic growth and bringing the stubbornly high unemployment 8% down. On the positive side, inflation and interest rates low at 2-3%. Chile has demonstrated fiscal discipline and has both a trade surplus and a budget surplus.
How to take advantage
There are no country-specific ETFs for Chile, but there is the Chile Fund (CH), which is a closed-end fund managed by Credit Suisse Asset Management. It is an increase of 53% in the last year, traded at a 7.7% discount to intrinsic value and sports a yield of 4.6%. Keep in mind that 19% of the fund invested in only one copper company Empresas Copec SA and the annual fee is high at 1.80%.
Another alternative would be the iShares Latin America 40 (ILF) that invests in Mexico, Brazil, Chile and Argentina. It is an eye opening of 67% over the past twelve months with an annual fee of only 0.55%. Currently, 49% of these exchange-traded fund invested in Brazil, 38% in Mexico, 10% in Chile and 3% in Argentina.
Interested investors can also consider the ADR for Banco Santander (SAN) that is an excellent sofa and a good measure of the total economy. It is an increase of 42% over the past year and an increase of 11% so far this year. Banco Santander is one of the 30 companies in the Chartwell Global 30 Index, which is an alternative to the Dow Jones Industrial Average.
About: Carl Delfeld is head of global consulting firm Chartwell Partners and is editor of the "Chartwell Advisor" and "Asia Investor Intelligence" newsletters. He served on the Board of Directors of the Asian Development Bank in Manila and is the author of The New Global Investor (iUniverse: 2005). For more information go to or call
Friday, 30 May 2014
Thursday, 15 May 2014
How to Choose the Right Share Class
You want to choose the no-load or institutional share class. If you are a no-load investor who is determined to buy a fund that primarily broker-sold, go through a supermarket and opt for the D shares.
If you use a broker or planner, the decision about whether to opt for the A, B, or C share class comes down to your own time horizon and to a lesser extent, how much you invest. If you are planning to invest for the long term - say, 10 years or more - the shares will always make more sense for you than the B or C shares. That's because the shares' lower running costs, the higher fee you pay to get in. When Morningstar compensate, we believe investing in the long term and that is why we tend to recommend shares than B or C shares , if you 're a Premium Member, you will find that our analysts Reports of broker-sold funds usually applies to the A shares, too.
So if you ever use B or C shares? Perhaps, if you expect to hold. Fund a particular kind for a short period of time If you plan to create a fund for only a year or two have, for example, you can opt for C Shares, and if your time horizon is around five years or less, the B shares of the way to go . Morningstar Cost Analyzer tool can help you find the right share class given your expected time horizon and the amount of money you have to invest to be determined. (Cost Analyzer is available for Premium Members of , for a free trial membership, click here.)
Protect yourself: Know your rights and Ask Questions
Many brokers and planners work hard to select the appropriate share class for their clients but you should also be aware of unscrupulous practices in this area. B and C shares have higher costs, and a portion of these fees, called 12b-1 fees, go directly to the agency by year. For example, some brokers tend to B or C shares recommended, even if not the best deal for their clients. Some fund shops - including Franklin - have stopped the sale of B shares at all.
To ensure that you are in the right class shares for your needs and time horizon, it never hurts to ask your broker why he or she is recommending a particular share class of a fund. What assumptions are they making about your business period? He or she has a financial incentive to recommend one share class over another?
Also be sure to ask if your total investment in a particular fund family qualifies you for a reduced sales charge. These breakpoints often kicks in when your total investment in the Fund as a whole family reaches $ 25,000 or more, and they can save you money. And even if you do not meet the minimum level active, you may still be able to qualify for the discount if you are a "letter of intent stating that you intend to make enough money to qualify for the investing in sign of time (usually one year). a certain period discount Some brokers have recently gotten in trouble for failing to provide the bulk discounts, so your broker should be well aware of the problem and can tell you if you are eligible.
If you use a broker or planner, the decision about whether to opt for the A, B, or C share class comes down to your own time horizon and to a lesser extent, how much you invest. If you are planning to invest for the long term - say, 10 years or more - the shares will always make more sense for you than the B or C shares. That's because the shares' lower running costs, the higher fee you pay to get in. When Morningstar compensate, we believe investing in the long term and that is why we tend to recommend shares than B or C shares , if you 're a Premium Member, you will find that our analysts Reports of broker-sold funds usually applies to the A shares, too.
So if you ever use B or C shares? Perhaps, if you expect to hold. Fund a particular kind for a short period of time If you plan to create a fund for only a year or two have, for example, you can opt for C Shares, and if your time horizon is around five years or less, the B shares of the way to go . Morningstar Cost Analyzer tool can help you find the right share class given your expected time horizon and the amount of money you have to invest to be determined. (Cost Analyzer is available for Premium Members of , for a free trial membership, click here.)
Protect yourself: Know your rights and Ask Questions
Many brokers and planners work hard to select the appropriate share class for their clients but you should also be aware of unscrupulous practices in this area. B and C shares have higher costs, and a portion of these fees, called 12b-1 fees, go directly to the agency by year. For example, some brokers tend to B or C shares recommended, even if not the best deal for their clients. Some fund shops - including Franklin - have stopped the sale of B shares at all.
To ensure that you are in the right class shares for your needs and time horizon, it never hurts to ask your broker why he or she is recommending a particular share class of a fund. What assumptions are they making about your business period? He or she has a financial incentive to recommend one share class over another?
Also be sure to ask if your total investment in a particular fund family qualifies you for a reduced sales charge. These breakpoints often kicks in when your total investment in the Fund as a whole family reaches $ 25,000 or more, and they can save you money. And even if you do not meet the minimum level active, you may still be able to qualify for the discount if you are a "letter of intent stating that you intend to make enough money to qualify for the investing in sign of time (usually one year). a certain period discount Some brokers have recently gotten in trouble for failing to provide the bulk discounts, so your broker should be well aware of the problem and can tell you if you are eligible.
Wednesday, 30 April 2014
The Convertible Craze Brightens The Future Of Equities
Convertibles steal the show their image safe investment in today's "protective" market. They seem to overshadow the shares and bonds, and this applies to the mediocre issuers.
A convertible bond, as the name suggests, can be converted into ordinary shares of a company. The bonds are a source of extra profit for the investors. Although investors are particular about the short-term performance of stocks, they are optimistic about the long-term, fixed-income instrument that gives them the gain on the conversion into ordinary shares if the share price rises within a range of 20 to 40 percent.
Why the sudden craze for convertible? The main reason is the strong desire of investors for "safe" instruments to close their precious savings into. And issuers have been smart enough to grab it. Lucrative opportunity A few years back, liquid issuers - considered the stalwarts of the market - are ruling the roost in the convertible bond market, with the average size of a convertible issue hit $ 300 million to $ 350 million. But today, nearly nine convertibles have a size of $ 1000000000 and it has even crossed the $ 3000000000 mark. The decline in stock prices and the frequent vibrates in the credit markets have a strong wave of demand for convertibles made.
A convertible bond is issued at an exercise price of 25 to 40 percent higher than the market price of the common stock issued by the company. The convertible bond has a term of seven years and may be called after three years. The issuer can call the bond if the market price exceeds the exercise price. But if the exercise price manages to remain high until maturity, investors have two options: they can either refund the face value of the bond, or convert to ordinary shares. However, in the case of a mandatory convertible, there is no choice - the band has to be converted into ordinary shares.
Convertible bonds are debt securities law, above all the shares in a standard situation. As with other bonds, their value is also affected by the current interest rates and the creditworthiness of the issuers. However, convertibles have two ways for investors to earn dollars opened. One way is through the sale of the convertible bond when the price rises in the market, and the other way is by converting the bond with the ordinary shares and the sale of the shares.
The best way for an individual investor to enjoy the convertible bonds company is buying a mutual fund. This is because convertibles are complex securities and, unlike ordinary shares, it is not easy for beginners to get. All information about them Therefore, the investors check certain things before buying a convertible bond. These are: the rate and yield of the bond, the number of years prior to maturity, the common course during the conversion of the bond, the characteristics of the band that's different than a regular bond, to the negative aspects of the band and benefits while converting to common stock.
In addition, investors should also inquire about the company, which is issuing convertibles. Each bond, either convertible or general one, is a loan. Therefore, investors should ensure that their issuer has the option to pay what they owe. Therefore, going for a convertible bond, an extensive homework on the part of the investor.
When we compare convertible bonds convertible preference shares, the former are safer. There are two reasons for this: the interest on convertible bonds is paid before the stock dividend, and, if the company suffers a loss, the investors of convertible bonds have an upper hand over the investors of stocks while claiming the money.
However, it is not wise to get carried away by the benefits of convertibles. First, convertible funds happen to be more expensive than domestic stock funds, such as the former come packaged to sell. Secondly, a majority of the convertibles are issued by companies involved in technology and telecommunications, which are characterized by unpredictable markets. And finally, convertible bonds not guarantee a risk-free investment just because they are convertible.
James Marriott is a financial writer with over 15 years experience in writing financial content, including those related to credit cards, mortgages, stocks, investments and funds. He has been with RNCOS, write a leading financial services company, prescribe two years as head of the financial. He is also a regular financial columnist with renowned business journals. For your comments on the article and further financial help, please contact our staff writer
A convertible bond, as the name suggests, can be converted into ordinary shares of a company. The bonds are a source of extra profit for the investors. Although investors are particular about the short-term performance of stocks, they are optimistic about the long-term, fixed-income instrument that gives them the gain on the conversion into ordinary shares if the share price rises within a range of 20 to 40 percent.
Why the sudden craze for convertible? The main reason is the strong desire of investors for "safe" instruments to close their precious savings into. And issuers have been smart enough to grab it. Lucrative opportunity A few years back, liquid issuers - considered the stalwarts of the market - are ruling the roost in the convertible bond market, with the average size of a convertible issue hit $ 300 million to $ 350 million. But today, nearly nine convertibles have a size of $ 1000000000 and it has even crossed the $ 3000000000 mark. The decline in stock prices and the frequent vibrates in the credit markets have a strong wave of demand for convertibles made.
A convertible bond is issued at an exercise price of 25 to 40 percent higher than the market price of the common stock issued by the company. The convertible bond has a term of seven years and may be called after three years. The issuer can call the bond if the market price exceeds the exercise price. But if the exercise price manages to remain high until maturity, investors have two options: they can either refund the face value of the bond, or convert to ordinary shares. However, in the case of a mandatory convertible, there is no choice - the band has to be converted into ordinary shares.
Convertible bonds are debt securities law, above all the shares in a standard situation. As with other bonds, their value is also affected by the current interest rates and the creditworthiness of the issuers. However, convertibles have two ways for investors to earn dollars opened. One way is through the sale of the convertible bond when the price rises in the market, and the other way is by converting the bond with the ordinary shares and the sale of the shares.
The best way for an individual investor to enjoy the convertible bonds company is buying a mutual fund. This is because convertibles are complex securities and, unlike ordinary shares, it is not easy for beginners to get. All information about them Therefore, the investors check certain things before buying a convertible bond. These are: the rate and yield of the bond, the number of years prior to maturity, the common course during the conversion of the bond, the characteristics of the band that's different than a regular bond, to the negative aspects of the band and benefits while converting to common stock.
In addition, investors should also inquire about the company, which is issuing convertibles. Each bond, either convertible or general one, is a loan. Therefore, investors should ensure that their issuer has the option to pay what they owe. Therefore, going for a convertible bond, an extensive homework on the part of the investor.
When we compare convertible bonds convertible preference shares, the former are safer. There are two reasons for this: the interest on convertible bonds is paid before the stock dividend, and, if the company suffers a loss, the investors of convertible bonds have an upper hand over the investors of stocks while claiming the money.
However, it is not wise to get carried away by the benefits of convertibles. First, convertible funds happen to be more expensive than domestic stock funds, such as the former come packaged to sell. Secondly, a majority of the convertibles are issued by companies involved in technology and telecommunications, which are characterized by unpredictable markets. And finally, convertible bonds not guarantee a risk-free investment just because they are convertible.
James Marriott is a financial writer with over 15 years experience in writing financial content, including those related to credit cards, mortgages, stocks, investments and funds. He has been with RNCOS, write a leading financial services company, prescribe two years as head of the financial. He is also a regular financial columnist with renowned business journals. For your comments on the article and further financial help, please contact our staff writer
Tuesday, 15 April 2014
Is Your Mutual Fund the Right One for You?
Mutual funds are considered as one of the best investments one can get hands. They are very flexible and cost-effective. An excellent investment for those with limited knowledge, time or money.
For beginners, it would have a perplexed expression on their face at the mention of mutual funds; allow me to do with what the funds are all about first introduced.
A mutual fund is a financial instrument that allows a group of investors to pool their money together. There is a fund manager who takes care of the pooled money and invests in certain securities (stocks or bonds). Investing in mutual funds basically means buying shares of the investment fund and becoming a shareholder.
After reading this, you've now decided to buy. An investment fund But you have more than 10,000 mutual funds to choose from. So how do you make sure that the one you have picked the right one?
For those who are new to this investment thing, let me set with 'load' and 'load' mutual funds. Informed 'Load' is in fact a commission to be paid to the broker when you buy the fund, while 'no load' mutual funds are free from such hassles committee because they are sold by the investment company has directly.
It is best to consult counsel before making any investment in this company. These financial mentors will a certain fee from you. They receive no commission from the company. Get paid by their customers, these supervisors ensure that you get the best out of every deal you make. Hence, you are assured of a reliable advice from your supervisor. And of course, they would always advise to go for 'no load' mutual funds. Why?
Well, it goes like this. 'Load' mutual funds are sold by brokers who are paid by the companies. Right? So, I see no reason why they would be worried if you make or lose money. They are only interested in convincing you often buy money so they can enjoy the company of their reward. Moreover, 'load' funds consist of front-end costs, back-end fees, or transfer fees. Very loaded!
Any smart investor would certainly ensure that all its worth / her investment. The investors get to choose their own funds the way it happens with the "load" funds, because they are free of cost.
However, it has got nothing to do with the success of your investment. At the end of the day, the presence or absence of a real estate agent It is actually the advice you receive from your counselor that really matters. A well-planned decision and a loyal advice on when to buy or sell are vital to securing a bright financial future. So, keep your mind wide open and invest! Good luck!
James Marriott is a financial writer with over 15 years experience in writing financial content, including those related to credit cards, mortgages, stocks, investments and funds. He has been with RNCOS, write a leading financial services company, prescribe two years as head of the financial. He is also a regular financial columnist with renowned business journals. For your comments on the article and further financial help, please contact our staff writer
For beginners, it would have a perplexed expression on their face at the mention of mutual funds; allow me to do with what the funds are all about first introduced.
A mutual fund is a financial instrument that allows a group of investors to pool their money together. There is a fund manager who takes care of the pooled money and invests in certain securities (stocks or bonds). Investing in mutual funds basically means buying shares of the investment fund and becoming a shareholder.
After reading this, you've now decided to buy. An investment fund But you have more than 10,000 mutual funds to choose from. So how do you make sure that the one you have picked the right one?
For those who are new to this investment thing, let me set with 'load' and 'load' mutual funds. Informed 'Load' is in fact a commission to be paid to the broker when you buy the fund, while 'no load' mutual funds are free from such hassles committee because they are sold by the investment company has directly.
It is best to consult counsel before making any investment in this company. These financial mentors will a certain fee from you. They receive no commission from the company. Get paid by their customers, these supervisors ensure that you get the best out of every deal you make. Hence, you are assured of a reliable advice from your supervisor. And of course, they would always advise to go for 'no load' mutual funds. Why?
Well, it goes like this. 'Load' mutual funds are sold by brokers who are paid by the companies. Right? So, I see no reason why they would be worried if you make or lose money. They are only interested in convincing you often buy money so they can enjoy the company of their reward. Moreover, 'load' funds consist of front-end costs, back-end fees, or transfer fees. Very loaded!
Any smart investor would certainly ensure that all its worth / her investment. The investors get to choose their own funds the way it happens with the "load" funds, because they are free of cost.
However, it has got nothing to do with the success of your investment. At the end of the day, the presence or absence of a real estate agent It is actually the advice you receive from your counselor that really matters. A well-planned decision and a loyal advice on when to buy or sell are vital to securing a bright financial future. So, keep your mind wide open and invest! Good luck!
James Marriott is a financial writer with over 15 years experience in writing financial content, including those related to credit cards, mortgages, stocks, investments and funds. He has been with RNCOS, write a leading financial services company, prescribe two years as head of the financial. He is also a regular financial columnist with renowned business journals. For your comments on the article and further financial help, please contact our staff writer
Sunday, 30 March 2014
Dumb Money
Many people have, at one time or another, taken some of their hard-earned money, and decided to put them in the stock market. These well-meaning individuals either acted on a tip they saw on CNBC, or actually believed one of those crazy faxes / emails that said XBXB @ $ 0.17/share was the next Microsoft. These people thought they are smart, but they probably just ended up lining the pockets of brokers and investment funds if they lost money on their 'investment'. I know, because I've done it, too.
Part of the problem we face is that we are big underdogs in the investment channel. We, as individuals, have access to hordes of information. Yet we do not even scratch the surface of our knowledge potential. We invest without carefully read financial statements and annual reports of companies, seeking instead to message boards and TV stock "experts" for guidance. If you own mutual funds, you know what companies are funds business? Most people have no idea.
Investors may be merged into two categories: smart money and dumb money. Most people are "dumb money". Smart money beats the market regularly and contains many investment funds. Domme lose money overall. Stupid money often over-reacts to market pressure.
There are a few ways to avoid "dumb money" ...
First, forget the short term basis. If you plan to buy and sell stocks quickly, statistics show that, on average, you lose, and possibly large losses. Longer-term investors are not easily put off by the market fluctuations, 10% price swings, or a bad earnings report. Plus, they do not have to pay on the transaction and as the day traders do. The best way to ensure that you will make money investing is to find your initial investment vehicle and leave your money alone.
Second, do not go along with the crowd. Example: Walmart's stock is a great investment in the past 5 years, right? Wrong! It's actually lost about 5% of the time. Still, if you watched CNBC, you would swear that Walmart was the best thing since sliced bread. Find a strategy that makes fundamental good-feeling, and not to throw in a stock or fund, your money because it is a big name.
Finally, diversify! If you go for the long haul, you should make sure that some really bad news not the children to go to college. In the
That's it for now. Check out
for investing news and tips!
Scott is the inventory manager for a big winery, and maintains and publishes stockmarketplus.net , his own financial blog.
Part of the problem we face is that we are big underdogs in the investment channel. We, as individuals, have access to hordes of information. Yet we do not even scratch the surface of our knowledge potential. We invest without carefully read financial statements and annual reports of companies, seeking instead to message boards and TV stock "experts" for guidance. If you own mutual funds, you know what companies are funds business? Most people have no idea.
Investors may be merged into two categories: smart money and dumb money. Most people are "dumb money". Smart money beats the market regularly and contains many investment funds. Domme lose money overall. Stupid money often over-reacts to market pressure.
There are a few ways to avoid "dumb money" ...
First, forget the short term basis. If you plan to buy and sell stocks quickly, statistics show that, on average, you lose, and possibly large losses. Longer-term investors are not easily put off by the market fluctuations, 10% price swings, or a bad earnings report. Plus, they do not have to pay on the transaction and as the day traders do. The best way to ensure that you will make money investing is to find your initial investment vehicle and leave your money alone.
Second, do not go along with the crowd. Example: Walmart's stock is a great investment in the past 5 years, right? Wrong! It's actually lost about 5% of the time. Still, if you watched CNBC, you would swear that Walmart was the best thing since sliced bread. Find a strategy that makes fundamental good-feeling, and not to throw in a stock or fund, your money because it is a big name.
Finally, diversify! If you go for the long haul, you should make sure that some really bad news not the children to go to college. In the
That's it for now. Check out
for investing news and tips!
Scott is the inventory manager for a big winery, and maintains and publishes stockmarketplus.net , his own financial blog.
Saturday, 15 March 2014
Trading Expert Discovers Ways To Beat Stock Market With Money Management
The first point to mastering money management is that you must understand if you trade on the stock market is that you play the odds - but unlike many forms of gambling, you can make money. The key to making this money is to respect the risk that is part of the market and manage. Money management is a set of rules and guidelines that allows you to make a profit. By triumphant with your money management skills, you can keep at a level you feel comfortable with, keep making poor trading decisions, your risk and make sure you do not lose your trading capital. This is why it is so important to follow. Money management rules
Why this money management rules work? You know, it's funny. I once thought I had a fool-proof way of making money on roulette. You see, I would bet on red and black. I would sit at the table. After the ball had landed, five times in a row on black or red I would start betting on the opposite color.
Let's say I had five reds in a row. I would then start to bet on black. If I was wrong, I would if I started my bet on a dollar, I would be able to two dollars, four dollars, then eight, then 16 bet are. Ahead and double, so the next time With this system, eventually I would win and I would come out a dollar ahead.
So, here I am 23 and I have set up my computer to test my theory. I made a ridiculous amount of money in the program. I really thought I was the Holy Grail here. But, if it's so easy for a 23 year old to figure it out, why are not all casinos of business and why we are all millionaires? Unfortunately roulette does not work this way.
You see, if we toss a coin, heads has a 50 percent chance of turning on each flip of the coin and so does tails. However, each valve independently of the latter. The last coin toss has nothing to do with the one before it, each flip is a random event. This means that it is possible to get when you long enough, and believe it or not, that's what happened to me. Hundred heads in a row When I first played roulette in a casino, I saw a series of 23 blacks in a row. I went home defeated.
Trading is the same. A percentage of your trades will not work. A certain percentage will not go in your favorite direction, and the next trade has nothing to do with the latter. Even if the most accurate method in the world, over time you will be destroyed if you exercise. Not good money management
Money management rules include defining your trading float, setting your maximum loss, calculating your stop loss, and most importantly learn how to choose your position. Size Once these rules are in place, it is important to stay with them. They keep you from making hasty decisions, and playing the odds longer than you should. This is why money management rules are a critical part of an effective trading system.
- = - = - == - = - = - = - == - = - = - = - = - = - = - = - = - = - = - = -
David Jenyns is recognized as the leading expert when it
comes to designing profitable stock trading systems.
Discover the "secret formula" of trading that anyone can use
to consistently generate large profits from the market
Download your FREE copy of David's new Ultimate
Stock Trading Systems course.
Why this money management rules work? You know, it's funny. I once thought I had a fool-proof way of making money on roulette. You see, I would bet on red and black. I would sit at the table. After the ball had landed, five times in a row on black or red I would start betting on the opposite color.
Let's say I had five reds in a row. I would then start to bet on black. If I was wrong, I would if I started my bet on a dollar, I would be able to two dollars, four dollars, then eight, then 16 bet are. Ahead and double, so the next time With this system, eventually I would win and I would come out a dollar ahead.
So, here I am 23 and I have set up my computer to test my theory. I made a ridiculous amount of money in the program. I really thought I was the Holy Grail here. But, if it's so easy for a 23 year old to figure it out, why are not all casinos of business and why we are all millionaires? Unfortunately roulette does not work this way.
You see, if we toss a coin, heads has a 50 percent chance of turning on each flip of the coin and so does tails. However, each valve independently of the latter. The last coin toss has nothing to do with the one before it, each flip is a random event. This means that it is possible to get when you long enough, and believe it or not, that's what happened to me. Hundred heads in a row When I first played roulette in a casino, I saw a series of 23 blacks in a row. I went home defeated.
Trading is the same. A percentage of your trades will not work. A certain percentage will not go in your favorite direction, and the next trade has nothing to do with the latter. Even if the most accurate method in the world, over time you will be destroyed if you exercise. Not good money management
Money management rules include defining your trading float, setting your maximum loss, calculating your stop loss, and most importantly learn how to choose your position. Size Once these rules are in place, it is important to stay with them. They keep you from making hasty decisions, and playing the odds longer than you should. This is why money management rules are a critical part of an effective trading system.
- = - = - == - = - = - = - == - = - = - = - = - = - = - = - = - = - = - = -
David Jenyns is recognized as the leading expert when it
comes to designing profitable stock trading systems.
Discover the "secret formula" of trading that anyone can use
to consistently generate large profits from the market
Download your FREE copy of David's new Ultimate
Stock Trading Systems course.
Friday, 28 February 2014
Volatile Oil
The Light Crude Continuous Contract fell from $ 67.70 a barrel on Monday to $ 62.75 on Thursday, closing at $ 65.79 on Friday. Consequently, stocks followed the sharp move in oil prices last week.
The first graph is a OIH (basket of stocks) daily chart, which suggests a consolidation or correction in the coming weeks. The price-per-Volume bar (on the left side of the graph) shows may sell between 111 and 114 in the short term. OIH to There is also resistance around 115, that is to say, the 10 and 20 day MAs. There is further resistance at 117.88, which is the current Parabolic SAR sell signal (red dots). However, if the oil tests $ 70 per barrel, then it is high at 119.30 is another barrier. Oil is less than $ 5 per barrel below $ 70. So, OIH rise and fall quickly.
OIH important support to the (rising) 50 day MA, currently just over 108. However, if less than 50 days, it closes OIH MA, then the next important aid is about 105, that is to say, the longer Value-by-volume bar. Around 105, the bottom of the consolidation zone, while a correction somewhere in the 90s and 80s. The short-term price of oil is largely dependent on the pace of global economic growth, according to the monthly economic data, and supply disruptions, including geopolitical events and hurricanes in the Gulf.
The second graph is a SPX (S & P 500) over the same period daily chart. SPX lead OIH higher and lower than recently. If OIH remains SPX was, then OIH will rise next week, perhaps to the Parabolic SAR sell signal, trading around the 10 & 20 day MA, and then fall to a new recent low, eg 105. SPX created a bullish doji on the 50 day MA. However, a volatile trading to continue, probably between 1200 and 1235. Range next week
Next week is a light economic data week: Ma: No, di: Existing Home Sales, Wed: Durable Goods Orders and New Home Sales, Thu: Unemployment Claims, and Fri: Revised Michigan Consumer Sentiment. The weekly oil inventory report at 10:30 ET Wed. There are several other excellent opportunities for trading next week, where large profits can be made quickly. "Chance favors the prepared mind"-Louis Pasteur.
Tickets available at forum index.
Arthur Albert Eckart is the founder and owner of Peak Trader. Arthur has worked for commercial banks, eg Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds 1999-00. Arthur Eckart has a BA and MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.
Mr Eckart has to maximize a comprehensive trading methodology using economics, portfolio optimization, and technical analysis and minimizing risks developed at the same time. This methodology has resulted in excellent returns with low risk over the past four years.
The first graph is a OIH (basket of stocks) daily chart, which suggests a consolidation or correction in the coming weeks. The price-per-Volume bar (on the left side of the graph) shows may sell between 111 and 114 in the short term. OIH to There is also resistance around 115, that is to say, the 10 and 20 day MAs. There is further resistance at 117.88, which is the current Parabolic SAR sell signal (red dots). However, if the oil tests $ 70 per barrel, then it is high at 119.30 is another barrier. Oil is less than $ 5 per barrel below $ 70. So, OIH rise and fall quickly.
OIH important support to the (rising) 50 day MA, currently just over 108. However, if less than 50 days, it closes OIH MA, then the next important aid is about 105, that is to say, the longer Value-by-volume bar. Around 105, the bottom of the consolidation zone, while a correction somewhere in the 90s and 80s. The short-term price of oil is largely dependent on the pace of global economic growth, according to the monthly economic data, and supply disruptions, including geopolitical events and hurricanes in the Gulf.
The second graph is a SPX (S & P 500) over the same period daily chart. SPX lead OIH higher and lower than recently. If OIH remains SPX was, then OIH will rise next week, perhaps to the Parabolic SAR sell signal, trading around the 10 & 20 day MA, and then fall to a new recent low, eg 105. SPX created a bullish doji on the 50 day MA. However, a volatile trading to continue, probably between 1200 and 1235. Range next week
Next week is a light economic data week: Ma: No, di: Existing Home Sales, Wed: Durable Goods Orders and New Home Sales, Thu: Unemployment Claims, and Fri: Revised Michigan Consumer Sentiment. The weekly oil inventory report at 10:30 ET Wed. There are several other excellent opportunities for trading next week, where large profits can be made quickly. "Chance favors the prepared mind"-Louis Pasteur.
Tickets available at forum index.
Arthur Albert Eckart is the founder and owner of Peak Trader. Arthur has worked for commercial banks, eg Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds 1999-00. Arthur Eckart has a BA and MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.
Mr Eckart has to maximize a comprehensive trading methodology using economics, portfolio optimization, and technical analysis and minimizing risks developed at the same time. This methodology has resulted in excellent returns with low risk over the past four years.
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