Guest Post - My Stocks Investing

Stock Trading and Forex For Beginners

Post author:Marubozu
Post published:May 13, 2012

Guest Post

Today, there are so many forms of trading but two of the most viable for people are the stock trading and the foreign exchange or forex. For you to understand which one would suit your preference best, it would be good to understand the difference and similarities between the two before you make that final decision.In stock trading, the first thing that you need to understand is what “stocks” means. As defined, “stocks” are the “smallest unit of ownership in a company”. Here, since you own a share of a company’s stock, you are a part owner of the company, thus, you reserve the right to vote on members of the board of directors of the company as well as in other matters concerning the company.

There are actually two types of stock—the “common stock” and the “preferred stock”. The first type is the kind that mostly held by the majority of individuals while the other is just like the first type, only that it restricts you to have more freedom than the former except in the “dividends” area.

Forex or Foreign Exchange refers to a market wherein the different currencies in the world are circulated. Simply put, “forex” refers to the market where one can find almost all currencies across the globe and gain profit from it. In forex, all of the global trades are rooted in a real time. Here, the transactions for goods and services are done 24/7 all over the world. These transactions for specific kinds of services and goods are usually done across the national borders, thus, requiring for non-domestic currencies as payments.

Some people often confuse the stock market with the foreign market. This is because they think that they both have the same operations and functions in dealing and transacting business. But, there are big differences between the two. A good trader must know it at heart to be able to deal with the challenges in the forex and came out triumphant in it.

The major difference.

Experts say that is very important to understand what sets forex apart from other types of market out there. People who are planning to get into it should familiarize themselves with the structure of the forex to be able to come up with strategies and approaches that will create an impact to the market and will generate a lot of transactions across the globe.

The first thing that sets forex apart from other markets is time or the time frame. Experts say a good trader in the forex should know that this industry is the only industry that literally runs 24 hours a day and 7 days a week. This understanding will lead the trader to come up with various techniques and methods to make transacting easier, efficient and good results.

Another thing that sets forex apart is the absence of exchanges. In the forex, there are no exchanges in terms of transactions but there is what they call the “exchange-based” forex that usually come in the forms of futures.

Where forex transactions are done is what also sets forex apart. Unlike in other markets, the transactions in forex trading are coursed through the inter-bank market wherein the bank itself will directly handle the financial transactions coming from various local and international dealers and brokers.

Over the years, more and more people are fascinated and interested in getting into stock trading and forex this is because they are now seeing how viable and profitable the process could be. But of course, this can only be beneficial to those who understand the market very well.

To learn more about a Stock Trading System that will further your education about trading, the Paradigm Shift Trading System is an excellent resource. With over 24 hours of video training in 11 modules that cover stock and options trading in detail, you will be ready for successful trading and will be able to rapidly grow your net worth regardless of market conditions.

Apple’s Partner ZAGG Falls But Rises Again

Post author:Marubozu
Post published:May 9, 2012

Guest Post: Peter Cruz

The price per share from ZAGG has fallen by 14.1% in the morning of May 3^rd of this year because of an article that was published in Seeking Alpha which have claimed that figures in revenue it was reporting were not adding up to their calculations. The article implied that ZAGG was committing fraudulent activities allegedly in its finances. The article’s publishing time in high speed Internet was also suspicious to many people. This was probably an act by the author to shorten ZAGG’s stocks. It became suspicious because ZAGG was reported to have good earnings in the afternoon of that day.

ZAGG as a company is the main partner for Apple in making cases for its products. That being said, it was obvious that it is meant to walk the paths that Apple did and make healthy revenue growth for the financial quarter this year. It was supplying its main product to Apple named the invisibleSHIELD, which is a plastic cover for Apple products such as its iPad 3.

It is a very popular case choice for users and is being used by many because it effectively prevents damage to expensive Apple products like the iPads. InvisibleSHIELD covers for the iPhones and Apple’s other products are also being marketed by ZAGG.

ZAGG’s marketing strategy has been very effective as it sold products through different mediums such as Best Buy, EBAY and even Apple stores. Its aim is to continue providing high quality products in order to capture a large part of the market share within the cases industry and fervently pursues this strategy as its growth continues with the success from Apple.

This effective strategy has had their financial numbers growing from $76 million in 2010 up to $179 million in the last year. They also had a net income that nearly doubled within this same time period. For a company that started in 2005 in a backyard shed, these are remarkable figures indeed.

The valuation of ZAGG went low, especially in the morning of May 3^rd – falling to 14.1%. Wall Street however has rated it as a solid buy, giving it a 1.0 rating which is its highest. It is likely that its revenue growth this quarter is going to soar, which will cause its share price to increase. Predictions on ZAGG stock values have been positive even for the coming months ahead.

ZAGG Incorporated (ZAGG) designs, manufactures and distributes protective coverings, audio accessories and power solutions for consumer electronic and hand-held devices under the brand names invisibleSHIELD, ZAGGaudio, and ZAGGskins. The invisibleSHIELD is designed for iPods, laptops, cell phones, digital cameras, personal digital assistants (PDAs), watch faces, global positioning (GPS) systems, gaming devices, and other items. As of December 31, 2009, ZAGG offers approximately 4,000 precision pre-cut designs with a lifetime replacement warranty through online channels, big-box retailers, electronics specialty stores, resellers, college bookstores, Mac stores, and mall kiosks. The ZAGGaudio line of electronics accessories and products was released during the year ended December 31, 2008. In June 2011, it acquired iFrogz, Inc.

The effect of Europe Union EU printing money on Bond, Stock Market and FOREX

Post author:Marubozu
Post published:April 9, 2012

Guest Post

Since the end of the last recession, the state of the global economy has remained fragile with many countries struggling to sustain growth. Several remain in dire straits financially and are teetering on the edge of another collapse. The actions available to Central Banks are reasonably limited and with interest rates lowered to record levels, there is really only one option left to consider and that is quantitative easing.

Quantitative easing, or QE as it is known, is effectively a way of printing more money, although in reality it is usually achieved via electronic means. QE is a measure that can only be taken in countries where the Central Bank is responsible for the currency. This makes it viable in both the UK and the U.S. but across the Eurozone the individual member banks are powerless in this regard. Any QE in the Eurozone must be undertaken by the European Central Bank.

Despite how it is often phrased in the media, quantitative money does not literally mean more banknotes being released into circulation. Instead, it is a complex process that involves the Central Bank purchasing newly created financial assets, which in turn inject money into the economy. This is achieved by the bank`s excess reserves increasing and freeing up more cash to be lent out to customers.

If, however, the banks do not loosen their lending criteria despite the increase in their excess reserve, QE will fail. It will also be unsuccessful if an insufficient amount of QE is released. When QE works as intended, the yield on bonds is lowered as the price of the financial asset increases. With a lower yield, businesses should find it cheaper to raise any capital required, thereby driving growth in the economy.

QE also has an impact on the stock market because as the yield on bonds falls, many will switch to alternative forms of investment, such as the stock market. This inflates the price and encourages trading. The International Monetary Fund (IMF) has previously said that it believes the end of the recession in G7 countries was at least in part caused by the QE policies put in place by the Central Banks. However, while the stock market can expect to be stimulated by QE, there is not such a positive effect everywhere.

An increase in the amount of money will have the effect of pushing down the value of a currency compared to others. This can be a distinct disadvantage for those importing goods as it means the drop in value of the domestic currency inflates the price. It also is bad news for any investors or creditors who are holding the devalued currency as it means their money is worth less. Conversely, a devalued currency is of great benefit to exporters as well as those who hold a debt in that currency`s denomination.

With several rounds of QE employed in recent times, some of the world`s biggest currencies have seen their value dip and none more so than the U.S. dollar. The greenback is lower in value than it has been for some time and there has even been speculation that it may be replaced as the global marker in the not too distant future. However, while the dollar is still loitering in the doldrums, there is currently no indication that the U.S. is about to embark on a further program of QE. This could mean that during 2012 the dollar starts to strengthen again, particularly as countries such as China are deliberately holding back their own currency rate.

The euro`s future is less certain and at the moment, all banks are purely focused on its survival. With the Eurozone debt crisis still a major threat and no approval for the ECB to embark on a mass round of QE, it wouldn`t be unthinkable for those in the forex market to see the single currency potentially disappearing in the next two years.