Stocks, Forex and Other Money Matters

Introduction

The exchange rate refers to the value of the US dollar against the values of currencies of other countries. Such a rate helps determine how much we pay for imported goods and services and how much we receive for what we export, among other things. When the value of the US dollar drops, imports become more expensive, and we tend to reduce the volume of our imports. Simultaneously, other countries will pay LESS for some of our products and that will tend to boost export sales. If imports and exports are a substantial part of a country’s economy, as is the case with Canada, the exchange rate plays a particularly important role in our economy. The exchange rate between two countries’ currencies is particularly important if the two countries are heavily involved in trade.

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Popularity: 29% [?]

FOREX trading looks easy yet few succeed.

If you are thinking of trading FOREX then you need to consider the fact 95% of traders lose their equity quickly.

FOREX trading is difficult as it means you have think and act in a totally different way and adopt a different mindset to win.

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Popularity: 16% [?]

The early Greeks used to sit around for days and debate how many teeth a horse has. They thought they could figure it out by just sitting there, instead of checking the horse.

A lot of investors sit around and debate whether a stock is going up, as if the financial muse will give them the answer, instead of checking the company.

- Peter Lynch

Popularity: 26% [?]

Though this may not be the specific and ultimate rules , but some simple observation
especially to those who want to get their feet wet trading the Stock Market. Trading requires
Knowledge, Discipline and Patience.

Discipline:

I believe this is the most important of all, we must have the discipline to adhere to any trading plan that we adopt , not forgetting effective risk control. Apply limit on your loss and stricly adhere to money management technic.

Trading Plan/Strategies:

Just like in any other business set up, trading plan can be seen as a business plan.
I believe one need to be clear on the objective, whether it is for cash flow or capital appreciation and action required when an opportunity arises. And remember to hold cash while wating for the right opportunity is a trading plan itself.

Patience:

This is the final element, where patience is needed to wait and observe for the right opportunities or setup. And remember to let your profit run, when you are right.

Popularity: 20% [?]

Want to own part of a business without having to show up at its office every day? Or ever?

Stock is the vehicle of choice for those who do. Dating back to the Dutch mutual stock corporations of the 16th century, the modern stock market exists as a way for entrepreneurs to finance businesses using money collected from investors. In return for ponying up the dough to finance the company, the investor gets shares of stock-specialized financial “securities,” or financial instruments-that are “secured” by a claim on the assets and profits of a company.

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Popularity: 50% [?]

The illegal buying or selling of securities on the basis of information that is generally unavailable to the public.

An example is the purchase by a director of shares of his or her firm’s stock just before the release of surprisingly good earnings information.

Popularity: 29% [?]

In-depth study of the business behind the stock price, which may include analysis of balance sheets, profit & loss, management skills, competitive market advantages, use of capital, and many financial ratios.

Fundamental analysis attempts to determine the true value of a security, and, if the market price of the stock deviates from this value, to take advantage of the difference by acquiring or selling the stock.

Popularity: 26% [?]

The investment strategy of purchasing securities and holding them for extended periods of time. Investors using the buy-and-hold strategy select companies on the basis of their long-term outlook. Such investors are not influenced by short- or intermediate-term movements in the price of a security. Such long-term investors typically focus on business fundamentals rather than market emotions.

Popularity: 26% [?]

The value of a security, justified by factors such as assets, dividends, earnings, and management quality. Intrinsic value is at the core of fundamental analysis since it is used in an attempt to calculate the value of an ongoing business, and thus its proper stock price. Intrinsic value can vary widely among different analysts. Warren Buffett uses a method that involves discounting the future cash earnings of a business to current value (discounted cash flow).

Popularity: 42% [?]

Stocks which tend to see their share prices (and profits) rise and fall in regular (although not regular enough to easily predict) patterns. The patterns of rise and fall are often tied to economic growth and contraction.

Examples include basic materials manufacturers like steel companies or aluminum companies.

Popularity: 24% [?]