Learn Forex Trading

Learn Forex Trading

FOREX is an international market which allows participants to exchange various currencies at the current rates of exchange and in the future. Forex trading can be profitable but it can also be risky. The daily volume of FOREX is about 3 trillion dollars, which dwarfs equity trading internationally in terms of daily volume, being somewhere around $30 billion. With so much movement and liquidity, it can also dwarf equity markets in terms of volatility. This can present a large amount of risk if investors are not knowledgeable and prepared to hedge or exit their positions. Nothing should be invested In Forex positions that an investor cannot stand to lose. Continue reading...

What are REITs?

What are REITs?

REITs are pooled investments similar to mutual funds, but, like mutual funds, they can take many shapes. They invest in different kinds of real estate and real estate-oriented assets, depending on the REIT, and sell ownership shares to investors. REIT is an acronym for Real Estate Investment Trust. REITs are similar to mutual funds, except that they only invest in real estate properties and related companies and assets such as mortgages. REITs will define the scope of their investments and strategies in their prospectus, which may read something like “We invest only in commercial Real Estate” or “Only in residential houses in Las Vegas” while other REITs are very general. Continue reading...

What are My 401(k) Investment Options?

What are My 401(k) Investment Options?

401(k)s can offer many options for investment, but they generally only offer 15 or fewer in each plan. Investment options in your 401(k) are completely determined by the agreement between your employer and the custodian. Therefore, you’re limited to the investment instruments selected for you. The majority of 401(k) plans will offer fewer than 15 investment options, which are generally part of prepackaged 401(k) products from major broker-dealers or mutual fund companies. Large companies will frequently also offer stock of their company within the 401(k) plan architecture. Continue reading...

What Role Does Inflation Play in my Retirement Planning?

What Role Does Inflation Play in my Retirement Planning?

Inflation plays a crucial role in your retirement planning. Investors should anticipate 2% - 3% inflation each year, meaning that the costs of goods and services rise substantially over time. Retirees should also consider that inflation is different for different items. For instance, health care has a higher rate of inflation each year than retail goods, and the cost of home improvements generally rises faster than the cost of food. Continue reading...

How to use the Broadening Bottom (Bullish) Pattern

How to use the Broadening Bottom (Bullish) Pattern

A broadening bottom can be characterized as a bullish reversal pattern. It consists of two divergent lines that form a triangle. The movements between the two triangle sides increase as the pattern continues. Each side must be touched at least twice to be validated. The Broadening Bottom pattern is formed when the price of a security progressively makes higher highs (2, 4) and lower lows (1, 3, 5) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. What distinguishes a Broadening Bottom from a Broadening Top is that the price of the security is declining prior to entering the pattern formation. Continue reading...

What is the Difference Between Public and Permissioned Blockchains?

What is the Difference Between Public and Permissioned Blockchains?

Blockchain technology does not always have to be implemented in a public peer-to-peer system. Blockchains rely on a network of computers, representing nodes, that collaborate and distribute the information required for the blockchain to function. The nodes in some blockchains can be established by any computer willing to run the client software for the network. Bitcoin and most cryptocurrencies are intended to function this way: as a public, open-source, permission-less, and trust less network. The nodes are used indiscriminately by the rest of the network as long as the node is performing the functions required of nodes, and this is called a proof-of-work system.  When Satoshi Nakamoto coded the first blockchain, his intention was to keep the network functioning with only one tier: “one CPU, one vote.”  That vision has encountered obstacles in the form of ASIC mining and other unforeseen circumstances that have empowered some nodes and groups of users over others. Continue reading...

A/A2 — credit rating

A/A2 — credit rating

A — S&P / Fitch A2 — Moody’s Such ratings are given to bond issues and insurance companies, primarily, and this particular one is in the Upper Medium band of the Investment Grade ratings. Investment grade bonds are considered to have a very low possibility of default. The ratings go up to AAA/Aaa and all the way down to DDD/D, with Investment Grade bonds being in the range of AAA/Aaa to BBB-/Baa3. Continue reading...

What are 'non-marginable' securities?

What are 'non-marginable' securities?

Some securities, such as penny stocks and IPOs, are prohibited from being purchased on margin or for serving as margin for other purchases. Stocks and other securities that are too volatile to serve as margin collateral - or to be purchased on margin - are called Non-marginable Securities. The Federal Reserve Board has defined certain criteria for determining which securities are non-marginable, and brokers often have their own house rules for traders. Continue reading...

What is SIBOR?

What is SIBOR?

SIBOR is the primary interbank loan rate quoted in the Asian markets. SIBOR stands for the Singapore Interbank Offered Rate, and is a regional equivalent of the LIBOR, or London Interbank Offered Rate. It serves as a reference rate and is a composite of the reported rates offered by member banks of the Association of Banks in Singapore (ABS) for the lending of unsecured funds over several time frames. Continue reading...

What is the VIX?

What is the VIX?

VIX is the ticker of the volatility index of the S&P 500. The Chicago Board Options Exchange (CBOE) Volatility Index projects the volatility of the S&P 500 going forward by creating a composite of the volatility priced-in (implied) on various S&P 500 options. Since it is created using the prices of options, it serves as a gauge of market sentiment, and is often called the "fear gauge" since it will spike when the market plunges. Continue reading...