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Monday, August 2, 2010
Wednesday, June 2, 2010
The In's and Out's of Stock Market Software
Stock market software is a broad term that includes a variety of automated computer programs that can help a trader find opportunities for trading and to analyze the market. When looking for the software be aware that there are several cost options. Free, a one time fee and monthly subscription are often how they will be structured and they will offer many different options and parameters.
The variety of software types and brands can be overwhelming. A few types available are stock day trading software, stock management programs, stock charting and analysis software and stock evaluation. Some features of the various software you may find could include real time market updates and reports, reports on gains and losses across the investment portfolio, share comparison and tools for portfolio analysis. Some programs even basically give a buy or sell on lots of stocks, forecasting upward or downward price movement.
Most of the programs take in all kinds of data on stock, mutual fund or currencies in various markets and then evaluate and analyze that data giving the investor real time reports on market conditions. Be sure you know however if it is indeed “real time” or EOD (end of day) updates. The two will vastly effect your decision making... Stock price programs and stock watching programs will keep an eye on the price of a stock and alert you when certain criteria which you have input, triggers an alarm. Often you can receive a text or email for this alert.
Using stock market trading software, traders can locate profitable trades and use up-to-the-moment information. Experienced traders will often use the stock market trading software to analyze the market and scan for opportunities where a beginner trader can use it to learn the basics of the market. Many of these trading platforms will offer new users a free practice trading account to get a feel for their software before putting real money in the game.
It is highly recommended that an inexperienced trader open a free trading account. It's great to not only learn the software but it is thrilling to buy something and watch it go up. This will give confidence to really trade. With so many options and the ease of accessibility, the new trader will have the information needed to make fast effective trades in the market.
The variety of software types and brands can be overwhelming. A few types available are stock day trading software, stock management programs, stock charting and analysis software and stock evaluation. Some features of the various software you may find could include real time market updates and reports, reports on gains and losses across the investment portfolio, share comparison and tools for portfolio analysis. Some programs even basically give a buy or sell on lots of stocks, forecasting upward or downward price movement.
Most of the programs take in all kinds of data on stock, mutual fund or currencies in various markets and then evaluate and analyze that data giving the investor real time reports on market conditions. Be sure you know however if it is indeed “real time” or EOD (end of day) updates. The two will vastly effect your decision making... Stock price programs and stock watching programs will keep an eye on the price of a stock and alert you when certain criteria which you have input, triggers an alarm. Often you can receive a text or email for this alert.
Using stock market trading software, traders can locate profitable trades and use up-to-the-moment information. Experienced traders will often use the stock market trading software to analyze the market and scan for opportunities where a beginner trader can use it to learn the basics of the market. Many of these trading platforms will offer new users a free practice trading account to get a feel for their software before putting real money in the game.
It is highly recommended that an inexperienced trader open a free trading account. It's great to not only learn the software but it is thrilling to buy something and watch it go up. This will give confidence to really trade. With so many options and the ease of accessibility, the new trader will have the information needed to make fast effective trades in the market.
Tuesday, June 1, 2010
Investing in an Asset Allocation Fund
Asset allocation funds vary from a balanced fund in one way... versatility. While balanced funds keep a set mix of stocks and bonds to keep up with the market (typically 60 percent stocks and 40 percent bonds), the allocation fund varies in the amount it keeps in both. The Vanguard Asset Allocation Fund, for example, will move money between S&P 500 stock index fund, treasury bonds, as well as money market securities. The factors determining where invested money will be placed depends entirely on the current market.
Choosing the right fund depends on several factors including your age, how long you intend to invest, how much you want to invest, and how much risk you would like to take on. Asset allocation funds are a single mutual fund that attempts to accomplish financial goals by itself. Investors who utilize this financial vehicle will obtain truly diverse holdings along with consistent returns, to prevent investing in several different funds at once. While it seems as though you are essentially putting all of your eggs in one basket so to speak, this technique of investing has grown popular in the bull market and has shown to perform similar to balanced funds over a five-year period.
Each fund in the allocation of assets varies in composition and opportunities. While the composition of the FMC Select Fund and PaineWebber Tactical Allocation funds performed far above the average, (57 percent return between 2001 and 2006) within different economies, different compositions will prosper. For conservative investors, you may want to stick to balanced funds, which will not make you rich quick but will build your savings over time.
Life-cycle and target-date funds are a form of balanced fund that is often used as a retirement vehicle. These funds have a mixture of stocks, bonds and cash securities that start with higher risks for return and will decrease in risk as you grow older. As most know, at a younger age it is recommended to be risky, but once you reach ages near retirement, losing everything is not an option.
No matter which investment vehicle you choose for the best potential, be sure to invest wisely. Always consult a financial and mutual fund expert if you are unsure of market trends and the right time to invest. While you may not become a millionaire overnight, you will be able to live a comfortable and certain retirement, in an uncertain decade.
Choosing the right fund depends on several factors including your age, how long you intend to invest, how much you want to invest, and how much risk you would like to take on. Asset allocation funds are a single mutual fund that attempts to accomplish financial goals by itself. Investors who utilize this financial vehicle will obtain truly diverse holdings along with consistent returns, to prevent investing in several different funds at once. While it seems as though you are essentially putting all of your eggs in one basket so to speak, this technique of investing has grown popular in the bull market and has shown to perform similar to balanced funds over a five-year period.
Each fund in the allocation of assets varies in composition and opportunities. While the composition of the FMC Select Fund and PaineWebber Tactical Allocation funds performed far above the average, (57 percent return between 2001 and 2006) within different economies, different compositions will prosper. For conservative investors, you may want to stick to balanced funds, which will not make you rich quick but will build your savings over time.
Life-cycle and target-date funds are a form of balanced fund that is often used as a retirement vehicle. These funds have a mixture of stocks, bonds and cash securities that start with higher risks for return and will decrease in risk as you grow older. As most know, at a younger age it is recommended to be risky, but once you reach ages near retirement, losing everything is not an option.
No matter which investment vehicle you choose for the best potential, be sure to invest wisely. Always consult a financial and mutual fund expert if you are unsure of market trends and the right time to invest. While you may not become a millionaire overnight, you will be able to live a comfortable and certain retirement, in an uncertain decade.
Sunday, May 23, 2010
Fixed Annuity - The Water Fall of Fixed Payment
An annuity, in simple words, is an annual payment. Annuity is also a company’s (usually an insurance company) product that allows you to accumulate tax-deferred assets, which are converted to a source of lifetime annual income… so simple, isn’t it?
In other words, we can say an annuity is a periodic payment made regularly by a company to someone. The company can be an insurance company and this someone here can be a policyholder, a bondholder, an employee or a retiree. The duration can be fixed or contingent such as lifetime of the recipient.
Annuity generally refers to an account-usually a retirement account, to which the person contributes during his working life. As the investment market dictates, this cash is in turn invested and the annuitant starts receiving the principal and the earnings after retirement. Many types of annuities exist in market, as one can opt for fixed or variable contribution as well as fixed or variable payments can be received. One can choose to go for onetime payment or monthly payments over fixed time duration.
Now coming to the fixed annuity- as the name suggests, it provides the annuitant a fixed return for the life of annuity. It is a contract that allows you to accumulate earnings at a fixed rate during a build-up period. The rate is fixed here and this is sometimes called as ‘guaranteed-dollar annuity’ as the income to be received is fixed. However, it is not the case in variable annuity. In variable annuity the return is divided into two parts, one part is small and fixed and the other part depends on the performance of the chosen portfolio.
The main difference between fixed annuity and variable annuity is the investment vehicles in which the money is invested by the companies. For fixed annuities, the amount is invested in low-risk vehicles like bonds and for the variable ones money is invested in high risk vehicles like mutual funds and stocks where the risk is high but the chances of bigger returns are more. The fixed one gives you an assurance of the safer returns.
In other words, we can say an annuity is a periodic payment made regularly by a company to someone. The company can be an insurance company and this someone here can be a policyholder, a bondholder, an employee or a retiree. The duration can be fixed or contingent such as lifetime of the recipient.
Annuity generally refers to an account-usually a retirement account, to which the person contributes during his working life. As the investment market dictates, this cash is in turn invested and the annuitant starts receiving the principal and the earnings after retirement. Many types of annuities exist in market, as one can opt for fixed or variable contribution as well as fixed or variable payments can be received. One can choose to go for onetime payment or monthly payments over fixed time duration.
Now coming to the fixed annuity- as the name suggests, it provides the annuitant a fixed return for the life of annuity. It is a contract that allows you to accumulate earnings at a fixed rate during a build-up period. The rate is fixed here and this is sometimes called as ‘guaranteed-dollar annuity’ as the income to be received is fixed. However, it is not the case in variable annuity. In variable annuity the return is divided into two parts, one part is small and fixed and the other part depends on the performance of the chosen portfolio.
The main difference between fixed annuity and variable annuity is the investment vehicles in which the money is invested by the companies. For fixed annuities, the amount is invested in low-risk vehicles like bonds and for the variable ones money is invested in high risk vehicles like mutual funds and stocks where the risk is high but the chances of bigger returns are more. The fixed one gives you an assurance of the safer returns.
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