Should I buy other currencies?
The U.S. dollar is the world’s reserve currency, so generally speaking, if you are not planning to travel to foreign countries or do not have the need for foreign currencies in your business, you might as well stay with U.S. dollars. If you are using foreign currencies in your investment portfolio, you must be prepared for volatility and continue to educate yourself on the Forex market as well as international trade. The famous example of George Soros, who almost destroyed the Bank of England, and made a couple of billion dollars along the way, might not necessarily be applicable to you. Continue reading...
What Amount of Life Insurance Should I Have?
You may hear different things about the amount of life insurance that you need. An easy way some suggest is to take your annual income and multiply it by 10. But that doesn’t take everything into account, such as debts, specific things you want the money to do, or a safe withdrawal rate to give your beneficiaries an income that you want them to have if something happens to you. The right number could be more like 20 times your annual income, but it all depends on the purpose of the money and your financial situation. Continue reading...
How to use the Accumulative Swing Index in trading
The Accumulative Swing Index (ASI) is a trendline representing the running total of an oscillator called the Swing Index, first described by Webb Wilder in his book, “New Concepts in Technical Trading Systems.” The Swing Index itself compares the price data from the current period and the preceding period to quantify the positive or negative “swing,” which can be understood as a measure of directional velocity in a price. Continue reading...
What is the Broadening Wedge Descending (Bearish) Pattern?
The Broadening Wedge Descending pattern forms when a pair price makes lower lows (1, 3, 5) and lower highs (2, 4), forming two downward sloping lines that expand over time (kind of like a pointed down megaphone shape). This pattern may form when large investors spread out their selling over a period of time, and the Breakout can occur in either direction. When the initial selling occurs, other market participants react to falling price and jump on the bandwagon to participate. Then the value investors begin to sell, believing the price has not fallen enough, which spurs the original large investor to resume selling again. Continue reading...
What is the Federal Funds Rate?
The federal funds rate is the overnight rate at which commercial lenders lend excess reserves to other institutions, on an un-collateralized basis. This term is unique to the United States, though other central banks around the world also have an overnight rate. The federal funds rate is a closely watched and crucial rate for determining how easy capital is to access. The lower the fed funds rate, the more accessible the Federal Reserve is trying to make cash - to inspire banks to borrow and lend. The opposite is also true, where the Fed may raise the fed funds rate if an economy is overheating or lending needs to be curbed. Continue reading...
What is a commodities futures contract?
Commodities Futures are one of the most highly traded securities in the world, and it is partially because nothing has to be delivered by the participants as in a spot-trading market. Futures can be purchased on margin, opening up large positions, long or short, and if a trader finds a place to exit before the settlement date of the contract, the trader will buy/sell to close his or her position, and the exchange will regard the trader’s position as flat, and nonexistent for all intents and purposes. Continue reading...
What is Dividend Enhanced Convertible Stock (DECS)?
This is a type of automatically convertible security that comes in the form of preferred stock shares, which function basically like bonds, that experience a mandatory conversion to common stock at some point. The dividend enhancement is a higher yield payout than other share classes are offered, to compensate the investor for the lack of control he or she has, since the shares will be converted at a predetermined time by the company. Mandatory convertible shares will offer a higher yield than their counterparts, but it will only last as long as the issuing company has determined. Continue reading...
What is Ex-Date?
The Ex-Date is for a stock indicates the last date of the month where a dividend is payable. It is two days before the record date. If an investor buys a stock before the ex-date, they are entitled to the dividend that the stock is scheduled to pay that month. If the investor buys on or after the ex-date, then they will not receive the dividend payment for that month - the seller does. When checking Google Finance or a newspaper for a stock quote, the ex-date is typically marked with a lowercase “x.” Continue reading...
What are Telecom Stocks?
Telecom is short for telecommunication, and it includes companies involved in the ever-important business of communication. These companies created the infrastructure that allows data to be sent anywhere in the world, which now includes wireless operators, satellite companies, cable companies and Internet service providers. Companies in the wireless business are perhaps the most relevant and competitive today. Continue reading...
Paper Trade Exchange
Tickeron's Paper Trades are the best way to start trading on paper without losing money. Paper Trades can be used to test ideas generated using other products. You can review your gains or losses and adjust your trading style risk-free. To access from the menu bar, simply click on the marketplace and then select Paper trade exchange marketplace. The Paper trade module is one of the first things people should use on our website. This allows our users to trade with simulation and test with our... Continue reading...