How to Buy Shares - 3 Tips to Reduce Your Risk

There is a lot of information out there on how to buy shares. Here I have tried to give you three simple tips which you should live by when investing in shares.

1 Research Your Market

This may sound obvious, but you need to have as much information as possible to help you to make the best decision.

2 Decide Your Strategy

Decide your strategy before you buy your shares. The main strategies can be generalized into: value investing - where you purchase shares which you think are currently undervalued; growth investing - where you rely on long term growth, and finally, there is contrarian investing - this does not mean that you go against the trend, it means that you don't necessarily go with the market trend. Always know your strategy before you part with your money.

3 Don't Risk What You Can't Afford To Lose

This is advice which you will hear all the time, but it is very important advice. If you cannot afford to loose the money it will affect your decisions. To buy and sell shares successfully you need to be able to follow your strategy without worrying about the bottom line figures all the time.

Too much pressure on bottom line figures may cause you to deviate from your strategy and to miss out on successful share buying.

Basically, if you ignore any of the above there is a good chance that you will fail. A clear mind and confidence are essential to success and if you cannot abide by the three simple guidelines above then it is probably not the right time or place for you to start investing in shares.

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Making Extra Money on the Stock Market

In this day and age, times can be pretty tough. Money is getting harder and harder to come by and we seem to need more and more of it. Many people are getting desperate to make money and are actually risking way to much. Yes, the stock market is a great place to make some extra cash, but you need to know how to do it right before you just jump in. I am going to tell you how you can make extra money on the stock market and not lose it all!

On thing that you can do to make some extra cash with very little risk is trading based on trends. What this allows you to do is make investments that are very low risk. They will not make you a millionaire over night, but they will net you some extra cash!

A trend is a pattern in the stock price that you can see happening repeatedly over time in a stock prices history. They are easy to spot though you might have to go threw many stocks to find a good one. Make sure you look at the news history and try to identify any major events. A trend is no good if it is to shaped by major events. You want your trends to be just from the practices of the company.

As you can see, trends are easy and safe. Of course they are not big money makers, but with some practice, you can make some great extra cash with them!

Another thing that you can use to make extra money on the stock market is extremely conservative day trading. You see, stock prices tend to jump at the start of the day and fall towards the end. It happens pretty consistently and you cab use it to your advantage. Simple invest in a good stock at the end of a day, then sell it off in the morning. Do not go for the big bucks with this method. If it will net you a profit, go for it. That is why it is called extremely conservative!

Those are just a few way to make extra money on the stock market. You can find many more ways as well some great free info here: PennyStocksMadeEasy.com I have used there advice many times to my advantage!

You can do a lot with the stock market. You can go from making a little extra cash to making a full time living off of it. You have to start somewhere so get out there and get your feet wet. I hope the info you found here was helpful. Thanks for reading and great luck!!!

Article Source: http://EzineArticles.com/?expert=Michael_Pergrem

How to Avoid a Forex Robot Scam and Choose the Best Forex Robot

Also known as Expert Advisors (EA), Forex Robot is a piece of software embedded with proven Forex trading strategy. After installing this software on your computer and get connected to your Forex broker, you can perform Forex trading activities from anywhere in the world.

There are 4 criteria most experts used to judge a Forex robot:

1. Successful Back Testing
What happened in the past doesn't mean it will happen again in the future. While back testing is important, it does not guarantee a successful forward trading. Nonetheless, check this out before proceeding to step two.

2. Forward Live Trading
This is more important than the first criteria. Live trading is the absolute proof that your robot will make money for you. 100% of robot vendors guarantee successful back testing, but VERY FEW use live trading to back up the claim that their robot is the real deal. Do it with a demo account and get your money back if it doesn't pass this test.

3. Money Management
The key to successful long term investment in Forex is not how well your robot is performing but how well you manage your money. It is useless to make $2,000 in five minutes and lose it all back (plus $5,000 more) an hour later because you become greedy and decide to take a plunge. A good robot must provide a mechanism that safeguards your money, stopping you from throwing away your hard-earned profits. Sound money management and adequate safeguards is vital to successful long term wealth creation via Forex trading.

4. Low Drawdown
No robot can bring in the money 100% of the time. Such robot doesn't exist in the real world. All of us who use robots to invest in Forex will experience temporary setbacks.This temporary losing period is called a DRAWDOWN. Good robots will have a brief losing period before driving the investment balance back up. Bad robots will keep your balance at the bottom for a long period of time.

You can judge how risky these automated systems are by looking at their drawdown percentage. Some robots have a 40% or higher drawdown on their reports. With those kinds of odds, you have a better chance of winning at a racetrack.

A good robot should stay below 15% drawdown. With this kind of robot to back you up, it would be extremely difficult to bankrupt your account under any circumstances.

http://ezinearticles.com/?How-to-Avoid-a-Forex-Robot-Scam-and-Choose-the-Best-Forex-Robot&id=2249449

Using MetaStock's Alert Function

The first function we will look at is the Alert function. It's used in conjunction with other functions to extend a signal for a specified number of periods. In other words, it holds an expression as true for as long as we wish.

Now think about the alert function with gates and triggers in mind. Using this function we can hold a gate open for a specific period while waiting for a confirming trigger. This provides a vital ingredient to creating a fully automated system. However, before we get ahead of ourselves, let's have a closer look at the Alert function's syntax. That is, the way in which it's coded into MetaStock.

MetaStock Syntax: Alert(Expression, Periods)

Expression _ The technical condition that you are wishing to hold true. This is usually your gate.

Periods _ The length of time that you wish to hold the expression as true.

In the MetaStock formula above:

Let's see this function in action. The formula below identifies stocks that have had their volume 50% greater than the 21 period moving average of volume. This indicates that the interest within the stock has increased. Moreover, by using the Alert function we have extended the period that this condition exists from one period to five. That is to say, we have told MetaStock that for all intents and purposes the increase in volume on the initial period would provide the same signal for the following five periods.

Alert(V > Mov(V,21,S)*1.5,5)

The above formula can be broken down as follows:

Expression = V > mov(v,21,S)*1.5

Periods = 5

Here's how you would use the formula in a more useful application of this example:

Mov(C,5,S)> Mov(C,22,S) AND

Alert(V > Mov(V,21,S)*1.5,5)

This formula identifies securities that are in an uptrend (denoted by the 5 period simple moving average being greater than the 22 period simple moving average). Additionally, securities must exhibit a 50% increase in their average volume at least once within the previous five periods. If we were to remove the alert function, both conditions (i.e., `V > Mov(V,21,S)*1.5' and the `Mov(C,5,S)> Mov(C,22,S)' would have to be true simultaneously. This may not appear useful, however when combined with other functions (e.g. the cross function on page 41) you realise its power.

If you are new to MetaStock formula then this might seem complex or confusing but once you 'get it' you'll understand why it's used by so many professional traders.

http://ezinearticles.com/?Using-MetaStocks-Alert-Function&id=2191777

Alternative Energy Investing Tips

Investing in alternative energies, or "green energy" may seem like the only bright spot on the investment horizon. As stories circulate about peak oil and the prospect of running out of fossil fuel, alternative energy investing seems to make good sense. But here are a few things you need to consider before converting your entire portfolio into alternative fuels.

The wind and solar energy industry is still relatively young and capital-intensive. A lot of research and development is still necessary create products and delivery systems that will be affordable to consumers. When researching new companies to invest in, it's important to determine whether or not they are sufficiently capitalized for the long term. Many new alternative energy companies were started within the past few years in response to the high cost of oil But as oil prices decline to more affordable levels, the demand for alternative energy softens, and some of these newer alternative energy companies are finding themselves with cash flow problems.

This means that due diligence before investing is just as important in the alternative fuel sector as it is in any other sector. Recently there seems to have been a misconception that any stock that was "alternative" or "green" was a sure winner. That's simply not true. A strong balance sheet and healthy cash flow is as important as ever. Maybe more so, due to the volatility in the energy markets right now and for the next few decades.

It also makes good business sense to remember that most alternative energy companies are start-ups without long tracks records of success. That simply means that they are inherently higher-risk than established companies, no matter how attractive the thought of "green" energy may be. So treat them as you would any higher-risk growth stocks in terms of our overall portfolio strategy.

A good way to invest in alternative fuels if you are philosophically motivated in that direction, yet sill mitigate some of the risk is to invest in established energy companies that are expanding into the alternative fuels sector. Although the thought of investing in one of the major oil companies may not appear to be very "green" on the surface, the fact is that they are actively participating in the research and development of alternative fuels as well. So finding the existing energy companies that are putting the most effort and resources into providing viable alternatives in the near future may be the smartest way to safely invest in alternative fuels right now.

http://ezinearticles.com/?Alternative-Energy-Investing-Tips&id=2173181

The Rule of 72 Will Double Your Income Guaranteed

You want to double your income. Even more so, you want to know how long it will take you to double your income. The, you will be really glad to find out that an unbreakable rule of mathematics dictates exactly how long it will take.

Here is the rule ...

Divide the annual rate of interest into the number 72 and that exactly equals how many years it will take you to double your income.

It's that simple and it is exactly accurate.

For example, let's say you earn 2% interest in a bank savings account and you have $1000 invested there. Divide 2 into 72 and you get 36. That means that your $1000 will automatically, mathematically become $2000 in exactly 36 years. Well, that may not be too exciting to you, but either is 2% interest.

So, let's say you buy a stock that offers a dividend of 4%. That same $1000 will become $2000 in 72 / 4 = 18 years. Well, 18 years is twice as good as 36 years -- because 4% is twice as good as 2%.

The chart below shows some sample annual interest rates and the number of years required to double.

1% 72 years

2% 36 years

3% 24 years

4% 18 years

5% 14.4 years

6% 12 years

7% 10.3 years

8% 9 years

9% 8 years

10% 7.2 years

11% 6.5 years

12% 6 years

18% 4 years

24% 3 years

36% 2 years

You can easily see the great advantage of getting a higher interest rate return on your money. It makes getting to double much much faster. There is another fascinating aspect to the Rule of 72 -- it does not have to be years. It can be any period of time.

For example, if you earn, say, 4% return PER MONTH, then it will take you 72 / 4 = 18 months!

And, that is the mathematical Rule of 72!

http://ezinearticles.com/?The-Rule-of-72-Will-Double-Your-Income-Guaranteed&id=2135879

Market Overview by Forex Yard

Economic News
* USD
Dollar Floats on Faltering Economy
The Dollar gained against several of it major currency pairs, such as the EUR currency cross in early trading yesterday. However, those gains were quickly eroded as a glut of poor economic data from the U.S. helped to drive the pair back to its opening price level. The market absorbed less than stellar economic reports from the U.S. economy. Poor production data, lower housing numbers, and an increase in new unemployment claims took the energy from the EUR bulls and sapped the earlier gains from the EUR/USD. The pair began the day at 1.2716 and rose to a high of 1.2809. The USD closed up vs. the EUR by only 2 pips at 1.2732. The release of more poor performing data from the U.S. helped to sap the added risk taking in the forex market and the currency pair ended the day near its opening price.

Against the Dollars other currency crosses, however, it lost some ground. The Dollar closed down 25 pips vs. the JPY at 97.58, reversing 3 days of gains. This may have been due to better-than-expected economic figures released from Japan. The GBP/USD made a slight correction in yesterday's trading, as the Pound closed up 52 pips on the Dollar to 1.4297, making some amends for the previous days 300 pip decline against the greenback.

It should be taken into account that the market largely didn't react overly negatively to President Barack Obama's announcement that the U.S. government will run a $1.75 trillion budget deficit. This amounts to roughly 12% of U.S. GDP. The reason for this may be that traders still have confidence in the new president. However, if Obama fails to help kick-start the American economy after 6 months, then traders are likely to realize that Obama's talk is substance, and not addition. This may on effect lead to a bearish Dollar in the medium-long term.

Later today, there are several important economic data releases coming out of the U.S. The most important of these publications is the Prelim quarterly GDP figures at 13:30 GMT. Analysts have forecasted that the U.S. economy is contracting by 5.4%. Combine this and further long term pressures of such a large budget deficit and we could see the Dollar depreciate against the EUR, perhaps to the 1.2800 level. However, if the results turn out to be better-than-expected, then the EUR/USD pair may reach 1.2650 by late trading.
* EUR
GBP Moves on British Bank Bailout
The GBP appears to have offered some stability in Thursday's trading. This comes about as Britain announces its most recent banking bailout. Yesterday, the British government unveiled a plan to protect banks from future losses related to bad debt. The plan was announced to backstop British banks that have lost billions of Pounds in the global financial crisis. This plan may ensure that British banks keep lending in spite of the large losses.

The new plan helped to increase risk taking in early trading yesterday, resulting in the GBP rallying against the Dollar and the EUR. However these gains dissipated as the day wore on, as risk sentiment disappeared. The GBP/USD closed at 1.4297 from 1.4245 Wednesday. The Pound also gained some ground against the EUR, as the pair closed down 33 pips at 0.8904.

A week banking system that has suffered losses from toxic debt has characterized the may put downward pressure on the GBP in the coming weeks. This is likely to continue as more pressure may fall on British bank regulators to nationalize the ailing banking system amid the global financial crisis. Royal Bank of Scotland (RBS) has in effect already been nationalized by the most recent capital injection by the British government. Further involvement could put help to depreciate the GBP against its major crosses.



* JPY
JPY Free Fall Continues
The JPY continues to fall against the major currencies, but the selling in mass of the Yen was briefly halted by better-than-expected production data. The USD/JPY fell early this morning as preliminary industrial production fell by 10%. While the number appears to be drastic, traders were prepared for a much larger drop. When this did not occur, the JPY was given a large boost. The pair closed at 97.58, down 25 pips from yesterday's opening.


This production data is a stark reminder of the economic situation in Japan. Concerns regarding the fundamental weakness in the Japanese economy are having traders push the USD/JPY to its highest level in almost 4 months. The recent gains for the JPY may not hold as the market is very negative on its outlook for the Japanese economy. Further appreciation could take place in the USD/JPY and send the pair back to the 98.50 mark by the end of today.



* Oil
Crude Oil Surges on Renewed Supply Cut Fears
Crude Oil experienced a sharp rise in prices yesterday as the Organization of Oil exporting Countries (OPEC) signaled it may be ready to make more supply cuts in the future. The price of Crude Oil jumped close to 5% yesterday to close at $44.48, up from $42.76. The United Arab Emirates (UAE) said it would reduce production supplies to Asia. This leads some Oil analysts to believe that more production cuts may be in store from the Oil cartel at their next meeting in March.

It appears OPEC may follow through on its promised supply cuts. In the past OPEC has announced future supply cuts, but member nations have sometimes been reluctant to comply as the drops in production lead to falling revenues for OPEC members. Recent data shows that the member countries have been steadily reducing their daily supply counts. This may lead to a further price appreciation for the commodity, perhaps to the level of $46 by the week's end.





Technical News
* EUR/USD
Narrow range trading continues as the pair did not make a significant move in either direction, and is currently traded around the 1.2745 level. However, the 4 hour chart's RSI is floating near the bottom border, suggesting that the possible next move might be a bullish one. When the upwards breach occurs, going long with tight stops appears to be preferable strategy.


* GBP/USD
The typical range trading on the hourly chart continues. Both the daily RSI and Slow Stochastic are floating in neutral territory. However, the pair currently sits near the bottom border of the 4 hour chart's RSI, suggesting an upward correction may be imminent. When the upwards breach occurs, going long with tight stops appears to be preferable strategy.


* USD/JPY
The price of this pair appears to be floating in the over-bought territory on the daily chart's RSI indicating a downward correction may be imminent. The downward direction on the 4-hour chart's Momentum oscillator also supports this notion. Going short with tight stops might be the right choice today.


* USD/CHF
The pair has been range-trading for a while now, with no specific direction. The Daily chart's RSI providing us with mixed signals. All oscillators on the 4 hour chart do not provide a clear direction as well. Waiting for a clearer sign on the hourlies might be a good strategy today.




The Wild Card
* Crude Oil
Crude Oil prices rose significantly in the last week and peaked at $44.50 a barrel. However, 4 hour chart's RSI is floating in an overbought territory suggesting that a recent upwards trend is loosing steam and a bearish correction is impending. This might be a good opportunity for
forex traders to enter the trend at a very early stage.
http://www.forexhound.com/article.cfm?articleID=127191