Howver, please be aware that we are not recommending any fund or investment for your personal situation. This blog is for informational purposes only. Please seek professional advice before making ANY decision.

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.

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.