1. High leverage

Leverage is an essential component of Forex trading. In fact, few retail investors could afford to trade without leveraging up to a greater or a lesser extent. The standard Forex order size is 100,000 currency units, which amounts to $100,000 if you were to trade the US Dollar.

However, you’ll be glad to know that you don’t need to pay $100,000 upfront. Instead, you could open a position with $1,000 and borrow the remaining $99,000 from your broker. This translates into a 1:100 leverage ratio. In some parts of the world, such as Japan and the United States, the maximum leverage ratio is capped. However, you’ll find few limits in other jurisdictions. For example, Forex brokers in the UK can offer up to 1:500 leverage ratios. Compare UK Forex brokers on ForexBrokersAZ.com.

High leverage magnifies the potential for profits as well as losses. And it’s important to remember that you could stand to lose more than your initial investment if prices move against you.

2. Forex never sleeps

The global foreign exchange markets trade round the clock 5 days a week. In fact, you’ll find investors buying and selling currencies every hour of the day and night with the exception of weekends and holidays. Trading starts in Tokyo around 5pm New York time on Sunday afternoon before moving across to Europe around about 3am EST and then on to America by 8am EST time. This gives Forex trading an edge and liquidity few other asset classes can match.

3. Commission-free trading

Most Forex brokers offer commission-free trades. This could make a big difference to your bottom line if trade small positions on a regular basis. Instead, they earn a living through a small mark-up on the price you pay. Spreads typically range from 2 to 3 pips across the largest and most liquid currency pairs. That’s just 0.02 to 0.03% for the most liquid Majors.

4. Profit even in falling markets

If you’re familiar with stocks, you’ll be used to thinking in terms of buying stocks with a potential for price appreciation. Forex trading is a little different because currencies are always traded in pairs rather than by themselves. For example, going ‘long EUR/USD’ involves simultaneously buying Euros and selling US Dollars. There are no restrictions on buying or selling and this means more trading opportunities whether prices are rising or falling.

5. Diversify your assets

Last but not least, investing in currencies in an opportunity to diversify your portfolio away from more traditional asset classes such as cash, stocks or bonds. Diversification is a simple yet effective way to reduce risk.

This article was written by ForexBrokersAZ.com, a comparison for Forex brokers. Unlike other Forex portals, ForexBrokersAZ.com compares brokers down to the account level, helping you find a broker that ticks all your boxes.

I wrote my first bullish take on TheStreet TST back in October. Of course the numbers don’t lie. Then I was not so concerned with the analysis of the company as I was for its continued assistance from Jim Cramer. The Mad Money star is a majority shareholder and continues to be a poster boy for several of the hallmark products offered by the company including Action Alerts Plus.

In many ways though, TheStreet is a bargain. For $2 or less, young investors can own a stock that sells for less than the cash value of the company. The Street does not have any borrowed debt. This is actually more rare today. Even rarer, the company is trading for a price that is less than its cash holdings. Essentially, if TheStreet did not offer any services, you are investing in cash holdings that are worth more than what you are paying at less than $2 a share.

Even with my bullish past in this company, many red flags have emerged that have worried me as an investor, not a speculator. In fact, a lot has to change before TheStreet emerges as a solid investment.

My first concern is the lack of profitability. As of current TheStreet has $57 million in sales but $-8.57 million in income. This is a fundamental concern. Many investors argue that with growth a lack of profitability is tolerable. However in this case I see little room for growth.

Financial markets news and commentary is available everywhere and most of it free. Action Alerts Plus is also a hard sell and one of the worst performers in the investing category of affiliate programs such as Commission Junction. Premium services are down 7%. With Jim Cramer’s face plastered all over it I expected more. The competition is endless and in many cases offers most of their services for free.

Further I have to be worried about the strategy of the company going forward. TST does not have a long term strategy that makes it any different from any other financial news source. The website is awash in annoying advertisements (some of which are unrelated to TST, losing business) and poor navigation. As a user I hate to have to click to the next page of an article to only be teased in the title. No thanks, I’ll just go back to the Fool.

As far as management is concerned, they are all over the board. TheStreet has failed to find a solid group of individuals with the foresight to move the company out of their backwards strategy for profitability, actually most recently taking a beating. Daryl Otte’s recent placement as CEO and then resignation in March is troubling. Perhaps exciting for those looking for a change.

Some are arguing the large holding of stock management has including Jim Cramer, a majority stockholder as evidence for confidence in the company. However as I pointed out, insider trading in penny stocks is not always a great indication of confidence. This is because TheStreet sells for such a small price that Cramer and company can afford to own a majority with little risk to their net worth and everything to gain if the stock eventually recovers. You as a small investor will suffer the loss.

As I stated, a lot of things have to go right for TheStreet to turn around. A larger web presence with increased traffic does nothing if TST cannot capitalize and monetize their readers. With 25% more traffic this quarter, TheStreet should have better profitability.

Never mind the 5% dividend or $1.00 per share. It looks juicy but is likely not stable and certainly not growing anytime soon. Keep an eye on the TheStreet for the fact that it is so cheap but wait for profitability and positive revenue before even thinking of pulling the trigger. If they can’t get out of the gutter this penny stock will end up like all others, over to the pink sheets.

The IMF (International Monetary Fund) has stated before that in order for the Chinese yuan to become a reserve currency, the country would need to take steps towards establishing a more flexible exchange rate, making deposit rates and lending rates more flexible, and opening up the capital account. When the People’s Bank of China announced that the Chinese yuan would be allowed to fluctuate by up to 1% on either side of the trading band (formerly only 9.5% was allowed), many analysts saw it as a significant step in the right direction. However, others will tell you there are still a number of major factors that stand in the way of the Chinese yuan becoming fully convertible and suitable for use as a global reserve currency. Here is a look at these factors:

Political Structure

One of the main reasons the Chinese yuan is not likely to replace the dollar anytime soon, say analysts, is the country’s current political structure. In order for its currency to reach reserve status, a country is required to have an open market that allows foreign currencies to flow in and out freely. However, China is currently a single-party state that doesn’t allow for free market capitalism.

Economy

The Chinese economy is largely driven by exports, which also makes it unsuitable as a reserve currency country. If it became a reserve currency country, China would be required to push out Chinese yuan and renminbi into the global economy in the trillions, in order to cope with the current account deficit. This would only be sustainable if China had an open economic growth model driven by consumption.

GDP

The average per capita income in the United States is still significantly higher than in China; many analysts see this as a clear indication that the dollar will not be yielding its reserve currency status to the Chinese yuan anytime soon. Even if China’s GDP surpasses that of the US, it could still be decades before the Chinese yuan replaces the dollar as a reserve currency.

Nicky Warner is an experienced, enthusiastic writer with a broad range of interests including world finance and economic news. Whether you’re just starting to experiment with a new MT4 demo, or playing the foreign exchange market with a professional MetaTrader 4 download, Nicky has currency news and advice to educate and inform you.

To help with this goal, let’s start with one of the basics: the Net Asset Value. Here is a short primer on Net Asset Value and it’s usage in the financial and investment world.

So what is Net Asset Value?

Simply put, this is the value you get from subtracting the value of an entity’s liabilities from the value of its assets. It is sometimes referred to as book value. It is different from market capitalization because the former represents the price at which the entity or company is valued in the market while net asset value is used to determine its asset-liability position.

How is Net Asset Value used in business?

The net asset value, together with market capitalization, is a tool used by investors to determine if a public company’s shares are a good investment. Armed with information on the assets and liabilities of a company, investors can determine if a company is a risk or if it has significant growth potential. In the latter case, they may opt to pay more than the computed net asset value to take advantage of this potential.

More often than not, a company usually has a lower net asset value compared to its market value. If the reverse is true, then the consensus by most business analysts is just to let the company wind-up its affairs rather than keep it operational as a going concern.

In relation to Mutual Funds, what does Net Asset Value refer to?

First off, a mutual fund is a type of investment scheme made up of funds contributed by many investors. The resulting mutual fund is then used to invest in securities (bonds, money market instruments, stocks, etc.). The end goal is for the fund to profit from the investments in order to benefit the investors.

In this context, the net asset value refers to the price per share of the mutual fund. It is arrived at by getting the total value of the securities in fund’s portfolio, subtracting the liabilities and then dividing the resulting value by the number of outstanding fund shares.

It’s basically the dollar value of a share in the mutual fund. Net asset value is computed daily although the variations of the computed value tend to be minimal. The net asset value is the same as the redemption or sale value of a share in an open-end mutual fund but for a closed-end mutual fund, the market price and the net asset value tend to differ.

When computing for net asset value, always remember this formula: assets less liabilities. If you need to compute for a per share value, just divide the difference with the number of shares. It’s a simplistic way of looking at it but it’s an effective way of remembering and understanding net asset value and what it represents.

Research and find under-priced stocks

If you can identify a stock that is trading well below its intrinsic value, you are likely to make a profit by purchasing it. You must study the performance of the company to determine whether the stock really is a bargain or not. Cheap stocks are not necessarily under-priced as they could be cheap for a good reason. A stock that is under-priced is actually priced incorrectly and will be worth more than its current asking price. One secret of success in the stock market is to identify under-priced stocks that will rise in price. If you buy them when they are still undervalued or
undiscovered, you will reap a handsome profit when other investors discover them.

Spot and identify trends

You can learn to use technical analysis to spot existing trends in the market. You may be able to use these to predict accurately what a particular stock is likely to do in the future. To do this effectively, you will require historical data to help you determine future trends. Although you cannot guarantee that past performance will lead to a predictable future, you may be able to judge the best times to buy and sell.

Stay calm when all around you panic

When markets tumble or collapse, many investors in the stock market try to sell their holdings at the same time. They often forget that these holdings are being purchased by others who view them as potentially valuable
investments. Those people who can stay calm and evaluate the situation rationally are more likely to avoid losing their investment in the stock market because of mass-hysteria.

To be truly successful in the stock market you will need to think independently. When a downturn first appears, you need to know whether this is the time to buy or the time to sell. If you make the wrong decision it could cost you a lot of money. If the stock has an intrinsic value compared to the current price, a downturn can be the signal to buy more of the stock. If the stock price rises, the best time to sell is before the stock price gets out of line with the underlying value. You can sell high when others start to offer a price that is higher than the underlying value of the stock.

Pete Southern is an active investor and writes for many stock market websites. His current investment portfolio is tech heavy with top positions being in Apple, AAPL and IBM stock.

Midas Letter is a professional investing company that knows their stuff. These professionals who are on CNBC, BNN, etc are specialists in the mining sector; gold, silver, and mining stocks. Most of the companies they cover in the newsletter are affordable penny stocks and traded on the TSX, offering security to the investor.

Midas Letter is unlike many websites offering a premium stock picker or investment newsletter. Their website is clean and lacks all of the gimmicky junk to try to spam products or services to you. There is no crap about “last chance” and “this secret is only for you.” We all know those and we all hate those stock newsletter pages that open with a loud video and are impossible to close the window of.

Gold and silver mining stocks are big money. In fact, millionaire politician Ron Paul holds exclusively gold and silver mining stocks in his portfolio. Mining penny stocks offer a great opportunity for young investors to make money. Photo by pluckytree

Not only is this newsletter free of spam but it is also well written and filled with useful information. If you are the kind of trader who just wants charts and picks (analytical) this newsletter will work. However if you are the type of investor who like fundamentals, the story behind the stock and any rational reason on its move, this newsletter is also for you.

By using the newsletter of a company that focuses directly on one sector you gain the expertise that they have accumulated. Instead of chasing the news of the big moves of the day Midas Letter is researching and watching the moves of small cap and micro cap mining stocks listed on the Toronto Exchange.

If you take a look at the site it is hard to believe that most of the information is free, from interviews with company CEO’s to discussions amongst the researchers on the next biggest move. This whole site is well worth the time and attention. The premium newsletter proves to be even better.

Mining gold requires more expensive tools than just a pan. Midas Letter informs you of the mining penny stocks with the best equipment to mine gold. Photo by iluvcocacola

The only catch might be the cost at $49 a month. Although that may be expensive to others it does provide a 30 day money back guarantee that I took advantage of. No hassle, which is nice. For those who can afford that and are making daily trades on mining stocks $49 a month is only a drop in the bucket.

Did you make the right move and invest in Magellan Minerals, International Tower Hill, New Gold Inc. Ventana Gold Corp., Chesapeake Gold Corp. or any of the countless other gold mining penny stocks? If you didn’t, you need the MidasLetter premium stock picking newsletter. Click Here to Check it Out!

1. Keep it Short and  Simple

Although NewYorkApartmentsforSale.com sold for $42,000, it is keyword rich and a competitive market. The domain will probably pay for itself very quickly. You and I are not so lucky. Try to focus on two word domain names. I say two because just about every one word is registered.

2. Forget most Extensions

Just because a keyword is available in a crazy extension that no one has heard of does not mean it is worth money. If anything it means everyone else thought about it and left it alone. Why did they not register it? A perfect example is a geo domain. I have seen many pure country or American state domain names in extension like .cc and .ws not even make their reg fee at resale. There is a reason for that.

3. Consider Registration Fees

Yes, the domain might cost $7.99 or you got a great discount code to make it cheaper but what will you do next year when it is up for renewal? Are you buying a lot of names? 1,000 .info domains for a couple of bucks might seem great now but when you cannot sell them you are stuck with a pretty high bill and a difficult portfolio to manage.

4. Quality over Quantity

Indeed some domainers make a lot of money regging junk domains and flipping them like crazy. However, this takes far more time than you will imagine or plan for. Consider buying only a select few domains that you would like to register. The emails back and forth between buyer and seller haggling the price can become a nightmare and take way too much work. Doing this for thousands of names will be a new full time job.

5. Have a Buyer in Mind

Before you even think about pulling out your credit card or Paypal account consider who you are going to sell or market the domain to. Have accounts set up at the popular forums such as Namepros. Be ready with eBay or GoDaddy auctions. Have an idea of who would want to buy the name or better yet need it for their business or interests. But don’t be stupid.

6. Avoid Trademark Violation

Not a day goes by when a new domainer posts a thread in the appraisal forums of a domain name forum hoping to be cheered for registering that million dollar domain name with the word Google or Facebook in it. Don’t do it! This is sometimes known as cybersquatting and can get you in serious legal trouble. Avoid misspellings at all costs! If your ideas for domain names have words that are trademarked in them and you plan to develop them you will likely be breaking the law.

7. Have a Development Idea

Before you register anything ask, ‘how could I develop this into a website?’ Realistically consider if you would want to take the domain name and make it into a fully functioning website. Most domainers cannot make a living domaining alone. Many implement internet marketing strategies and own several websites for diverse income. If it is not something you are interested in or couldn’t see yourself developing, let it go.

The Advantage of Using the ADX Indicator

There are many tools and other indicators which are available to the traders in the Forex Market, so one is bound to ask the question that what is so special about the ADX Indicator. Its importance can be judged by the fact that it tells you when a strong trend is present in the market. You trade with the trend and you will maximize your chances of making a profit with low risk. This is because a strong tend in the Forex Market is not expected to reverse suddenly and can be relied on to go on for a while. It gives you a great opportunity to plan your strategies accordingly as you will have plenty of time to contemplate the situation and assess it.

Have an Aggressive Approach

It is said that you should not be too aggressive in the forex market because you will only increase the chances of loss instead of profit. However, if you keep on trading at the support and resistance levels expecting that they will hold for a while, then you will not be one of the people who become millionaires in the Forex Market. You have to throw a little caution to the wind without going berserk, something you can do with the Average Directional Index. With the momentum and knowledge of the trends available to you, all you need to do is follow it and you will have a great chance of cashing in on this opportunity.

One thing that you have to keep in mind about this indicator is that it only measures the strength of the trend. It means that you will not be able to know whether the market is trending upwards or downwards, only that whether the current trend is strong or weak. You will have to use other indicators or information to be able to judge if the Forex Market is one an uptrend and downtrend.

How to Use the ADX Indicator

Once you start using the ADX Indicator, it is imperative that you know what it is going to tell you about the Forex Market. The strength or weakness of a trend will be provided to you and you can then see if you should trade further or just make an exit. This can be easily assessed once you have the information presented to you. All you have to do is see whether the trend is showing a high reading or a low reading. High reading means that the trend is strong and backing it will lead you to a potential gold mine. If you can spot a currency which has a strong trend, then it is advisable that you trade using it.

On the contrary, a low reading indicates that the trend for an exchange rate is weak and it is not a good idea for you to continue trading in it. In this case, you should dispose off the currency that you are holding or else you might end up facing a loss in the long run, which can be devastating.

Remember, the Average Directional Index does not tell you whether you should buy or sell. It will only tell you whether the trend is strong or weak and the rest is up to you. Following a strong trend and avoiding a weak trend is the best approach to use in the Forex Market.

Read Forex brokers user reviews before you start trading: Plus500 review, AVAFX review

To answer the first question, we go back to Cramer’s time in school. Cramer graduated from Harvard Law School with his doctorate being admitted to the New York Bar in 1985. His university days were spent working long hour freelance jobs at local newspapers. Between studying and working, Cramer left stock picks on his answering machine that impressed his professors and colleagues.

Martin Peretz, owner of The New Republic was so impressed that he gave Cramer $500,000 to invest. Although Cramer’s picks suffered some losses, Peretz maintained confidence and was able to make capital gains of $150,000 in less than two years.

Cramer has elite experience in investing. He was taken on by Goldman Sachs in 1984. He later founded his own hedge fund, Cramer, Berkowitz, & Co in 1987. In his 12 years, only one year returned less than the market average.

The Street, originally TheStreet.com offers many services to investors. It covers news in the financial markets as well as premium services such as Action Alerts Plus. In recent years, Cramer has taken a backseat in the company although he is still one of the largest shareholders.

Taking his experience and his growing entrepreneurial desires, in 1996 Cramer founded TheStreet, a penny stock I watch long term. This company offers investing advice, newsletters and world market news online through several websites.

His history shows he has the experience and the know how to invest. Let’s delve a little deeper into the ethics of Jim Cramer and if his interests are really toward the investor.

Cramer’s reign as most of us know it on CNBC began in 2005 with Mad Money. What many first time and young investors fail to realize are the SEC laws that Cramer is bound to in regards to his show and The Street through Action Alerts Plus. Check out my review of Action Alerts Plus.

You may have thought, “why does Cramer always advertise Action Alerts Plus Charitable Trust picks” when he talks about a stock? Why is he so quick to advertise his service? This is not an advertisement. Cramer is following the law by telling the viewers that a given stock is within the portfolio so as not to skew his research and work with CNBC, independent of The Street and Action Alerts Plus.

In addition, Cramer is not allowed to trade any stocks he talks about in the show within 5 business days of mentioning it. Conspiracy theorists have questioned this ruling, advocating he personally trades stocks that he does not mention, those that are far better than what he tells his viewers to buy. This is simply not true. Not only is Jim officially retired from investing, but he only trades for the charitable trust.

Jim Cramer makes his money from working for CNBC and The Street. He is worth well over $10 million from his time working for Goldman Sachs and his hedge fund. Besides that he receives income from guest appearances as well as his books.

Another contention viewers have is about Cramers investing track record. Cramer has come under fire, perhaps most famously on Jon Stewart’s program on Comedy Central. In that episode Stewart criticizes Jim for supposedly giving a buy rec on Bear Sterns the day before the financial meltdown in 2008. However the incident was taken out of context and not meant to be a buy rec but rather a vote of confidence in the caller’s money being liquid at Bear Stearns in a brokerage account; not a mention of the common stock. Cramer was right, the money was safe and it was insured.

Was Jim Cramer unfairly blamed for the 2008 financial crisis by Jon Stewart? It is often troubling to see the media criticize investors like Cramer, who lack much of the experience or education. Cramer maybe entertaining but there is a reason Jon Stewart is one Comedy Central.

Controversy has also followed Jim Cramer from his days at his hedge fund. Video clips have leaked recently of Cramer advocating some questionable practices in short selling and getting reporters to drive the price of a stock down to make some quick money. He has later revealed regret at making these comments and hopes that the SEC would be better educated and more involved in cracking down on these practices.

Those who question the returns on Jim Cramer’s buy and sell recommendations have some validity in their arguments but one most take them in the context of who they are directed to. Critics, namely Barons reported those that followed Cramer’s buy recommendations would have returned on average, 12%, about 10% less than the S&P500 in the two most recent years. Although this is positive and a head of inflation, many need higher returns.

This brings me to Cramer’s audience. Cramer’s buy recommendations are not meant to be the same for everyone. The Mad Money program is specifically designed for individuals, and often non-professionals. When Cramer tells a caller to buy, sell or hold that rec is for that individual caller, not you and me. Each person has a unique situation (asset allocation and diversification). By this I mean, we can both hold the same stock but have a different outcome due to the other stocks and assets we own. Cramer knows this and is happy to provide individual assistance.

Cramer’s Mad Money is most helpful because of the research he presents and the questions he asks. He enables you to think for yourself and continue to question a stock or investment. From management interviews to his segment, ‘am I diversified’ Cramer gets us thinking more about our investments. This is his goal. Cramer wants us to be better informed and make better decisions.

What do you Get for $7?

Steve Parker, the man behind Penny Stocks Psychic will email you weekly updates on the stocks to buy and hold similar to any other stock alert system. This one is more useful than the traditional because it is affordable (most are several hundred dollars) and it deals with stocks you can afford to buy in large volumes; penny stocks. This allows you to take full advantage of the program.

Parker shows you stocks that are trading at literally a penny or less a share. This is allows just about anyone the opportunity to invest in thousands of shares and take advantage of a large payday when shares go up just a fraction of a cent. As he says on his website you can invest $200 or less instead of buying one share for $74 a share.

Why Should I get Penny Stocks Psychic?

This penny stock picking service is worth it because it eliminates a lot of your emotion in trading. Many of us buy stocks because we like the company or are interested in the product or service they provide. In most cases this can be a disastrous way to invest. It is even worse with penny stocks. Steve Parker cuts out all the emotion and trades specifically on making money.

Another awesome benefit of this service is the amount of time it saves you. Most days I am way too tired or busy to study charts and patterns. I have a family to be with and passions to pursue. I’ll let this stock picking service do all that work for me.

Are there any Cons with Penny Stock Psychic?

Like any other investor, Steve Parker is not perfect. The markets are unpredictable. Don’t expect every trade to work out perfectly. But don’t be afraid to follow the trades. This program gives you some excellent step-by-step instructions for making the best use of the reports and suggestions for how much or how little to buy of a particular stock.

If you are not familiar with penny stocks you will also need to take a deep breath. Parker makes recommendations on stocks that literally trade for a penny and oftentimes less. Some of these companies stocks are questionable and some might be scams. This is day trading. Get in and out. These are not long term investments.

The webpage is a pain in the butt to click out of. But if you exit it and go through several last attempts to get your attention the trial offer is dropped to less than $5. I wish I would have seen that initially.

Are you Convinced?

Honestly, I don’t know how Penny Stocks Psychic makes any money. Your $7 one time cost is currently a lifetime subscription to the email service. Not only that but he has a 60 money back guarantee. I’m not that stingy with my $7 but I like the feeling of trust.

Want to know a secret? Many of us experienced traders started by using pen and paper or in the 21st century we can use a free tool that will let us track stocks with virtual money. We do all of the trades without the risk of real money. This is exactly what Parker recommends for those who sign up for his site.  Watch the first few weeks and record the trades. Watch what went up and down and get a feel for the investing style. Then pull out your real money.

Even if you do not trade penny stocks this would be a great affordable way to learn how day trading in penny stocks works using this affordable stock trading newsletter.

Click Here to sign up for Penny Stock Psychic!