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<title>Latest Investing Articles</title>
<link>http://www.betterlifeadvice.com/</link>
<description>Articles at BetterLifeAdvice</description>
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<title>1031 Exchange and Tenancy-in-Common:  Seeking the Right Advisor to Achieve TIC Investment Objectives</title>
<link>http://www.betterlifeadvice.com/finance/investing/1031-exchange-and-tenancy-in-common-seeking-the-right-advisor-to-achieve-tic-investment-objectives.html</link>
<guid>http://www.betterlifeadvice.com/finance/investing/1031-exchange-and-tenancy-in-common-seeking-the-right-advisor-to-achieve-tic-investment-objectives.html</guid>
<pubDate>Mon, 26 Oct 2009 10:45:56 -0700</pubDate>
<description><![CDATA[ A long-established section in the federal tax code, section 1031, allows real estate investors to sell property that has been held for investment purposes and defer capital gains and depreciation recapture taxes if they acquire "like-kind" exchange property of equal or greater value and reinvest all of their equity.  Since the mid-1990s, many investors have experienced the benefit of reinvesting their equity into investment property interests structured as Tenancy-in-Common (TIC). TIC owners hold an undivided fractional ownership interest in investment property evidenced by a deed of trust. 

TIC, also known as Co-ownership of Real Estate (CORE), enables an investor to participate in the ownership of institutional-grade, professionally managed investment properties.  The investor's equity can be diversified amongst several different properties, geographic markets and real estate companies, potentially increasing both the value and safety of the real estate investment. TIC/CORE investments are designed to offer preservation of capital, predictable cash flow and long-term appreciation in institutional-quality investment property assets that benefit from greater economies of scale.

With its features and benefits, TIC/CORE is an increasingly popular 1031 exchange option for many real estate investors.  However, 1031 exchanges and TIC/CORE transactions are very complicated, with both tax and legal issues topping the list of potential pitfalls.  It is therefore essential that investors be knowledgeable about what to look for in a quality advisor.  Financial advisors are required by securities law to be properly licensed in order to consult clients regarding TIC/CORE transactions and other investment interests in real estate. Financial advisors should hold both Series 7 and Series 63 securities licenses to qualify them as knowledgeable, well-rounded consultants in the investment process.  It is essential that they have experience in the commercial real estate business, in addition to an understanding of personal investment objectives and client suitability issues.  

But perhaps the most important component to look for in a TIC financial advisor is their intimate, trusted and deeply rooted relationships with key real estate companies.  This attribute is critical to their ability to provide the best opportunities for their clients.  There are almost 80 real estate companies across the United 

States that are either already involved or considering involvement in the TIC/CORE industry as a real estate provider.  As with any industry, these 80 companies represent varying degrees of acumen, experience and quality.  To achieve the greatest potential for a client, a financial advisor should have consistent access to the top ten percent of these companies in order to provide their client access to the best properties available.  Obviously, a new financial advisor with little or no experience or industry knowledge may not have access to the top real estate providers, as these providers prefer to work with experienced consultants that specialize in this unique segment of the market. 

Investors should also be aware of how their financial advisor stacks up, looking for a history of successfully completed transactions.  A long and proven track record indicates that a financial advisor is an experienced professional.  An investor wants such an advisor in their corner asking all the right questions, making appropriate and suitable recommendations, understanding the nuances of successfully completing TIC/CORE transactions and providing answers to any and all tax and legal questions. 

When considering a 1031 exchange or TIC/CORE investment, investors should ask the following specific questions of the financial advisor:

* What percentage of your business is 1031 exchange and/or TIC/CORE related?
* How many investors have you consulted that invested in TIC/CORE structured properties this year?  How many last year?
* How long have 1031 exchanges and TIC/CORE been a focus of your investment recommendations?
* Do you have the appropriate licenses to complete this transaction (Series 7, Series 63 securities licenses)?
* With which real estate providers do you work most closely?

As customer demand continues to drive this segment of the real estate market, the emphasis on quality - quality consulting, quality property, and quality transactions - will be increasingly important.  Part of the qualitative process is ensuring that financial advisors representing a client make appropriate recommendations for that client based on the client's best interest and not based on any "bias."  A final issue that needs to be addressed is that it is not unusual for "referral" compensation to be paid between referring parties. This practice is illegal and a complete breach of ethics,.  Therefore, if any form of compensation changes hands - disclosed or undisclosed - between financial advisors and Qualified Intermediaries, real estate companies or other unlicensed individuals derived from an exchange transaction, a felony may have occurred.  

In short, investors should take the time to identify a reputable advisor who not only can provide acceptable answers to the above questions, but who will also have the relationships necessary to guide their clients into the appropriate investment.  It is important to remember, firms or individuals involved in recommending, offering or selling 1031 TIC/CORE investments must be licensed with a broker-dealer, the SEC, the NASD and the state securities regulators in every state in which the firm or individual operates and in which the client resides. Any "unlicensed" firm or individual involved in recommending, offering or selling these investments is in direct violation of federal and state securities laws.

Co-ownership is the fastest growing option for 1031 exchange investors seeking suitable replacement property.  Properly structured and presented, such investments can also generate new listing opportunities for real estate agents while satisfying both the IRS "like-kind" investment property requirements and the SEC and NASD securities regulations.  The advantages of co-ownership of institutional-grade real estate are clear and compelling.  When exploring co-ownership, smart investors need to seek out industry experts to guide them through the replacement property process.  It is indeed the wise investor who is aware of his or her long-term goals that seeks experienced guidance to chart their course, thereby turning TIC/CORE investment opportunities into realities.

(c) 2005, 1031 Exchange Options.  Reprint rights granted so long as the article and by-line are reprinted intact and all links made live.  This article is neither an offer to sell nor an offer to buy real estate or securities. There are material risks associated with the ownership of real estate. You must be an accredited investor. Securities offered through Sigma Financial Corporation, Member NASD/SIPC. ]]></description>
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<title>$300 + 10 Minutes a Day =  $30,000?!?</title>
<link>http://www.betterlifeadvice.com/finance/investing/300-10-minutes-a-day-30-000.html</link>
<guid>http://www.betterlifeadvice.com/finance/investing/300-10-minutes-a-day-30-000.html</guid>
<pubDate>Mon, 26 Oct 2009 10:37:56 -0700</pubDate>
<description><![CDATA[ We all know the saying, “work smarter, not harder”, but could it actually be possible to work THAT much smarter? Working only minutes a day and replacing, Exceeding your current Income? Don't worry, Its perfectly legal and people are doing it right this very second around the world!

Its FOREX Trading, and what you don't know, could be costing thousands of dollars. 

Forex stands for Foreign Currency Exchange Market, commonly referred to as FOREX, FX, and 4X. You may be familiar with the stock market, but there are a few reasons Currency Trading can blow Stock Trading right out of the water! 

There are 3 Major reasons why Currency Trading can out preform the stock market any day! 

There Is a Very low Investment of only $300 dollars needed to start.  This is a lower investment when compared to the investment you would make with stocks, futures, or day trading. Of course you can start with something more than $300, but just start where you are, whatever that is and it will grow. 

Forex is the most liquid market in the world so it offers a leverage of up to 100:1. The Stock Market offers 1:1 and and Futures 15:1. This gives your money awesome room to grow and gain even more leverage! 

The Forex Market Open 24 hours a day and has a trading volume of almost 2 Trillion dollars a day. This makes the market trend well and technical analysis works pretty well too. You can focus your attention and analysis on one or two pairs of currency instead of the 40,000+ stocks in the Stock Market. 


The Forex market is open 24 hours, can be accessed anywhere in the world with an internet connection, and can be the ultimate tool for building wealth. Make money working 10 minutes a day, or a few hours a day. Work day or night, and make money while the market is up or down. The Forex is flexible and can fit around anyones schedule! 

Not sure you want to risk that $300?  Gain the experience you need by playing around with a free demo account, then when you feel ready open your first account and start building your wealth! What do you have to lose ?  

Best Wishes

Maranda Mann ]]></description>
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<title>3 Reasons To Invest In Dubai Investment Property</title>
<link>http://www.betterlifeadvice.com/finance/investing/3-reasons-to-invest-in-dubai-investment-property.html</link>
<guid>http://www.betterlifeadvice.com/finance/investing/3-reasons-to-invest-in-dubai-investment-property.html</guid>
<pubDate>Mon, 26 Oct 2009 10:29:56 -0700</pubDate>
<description><![CDATA[ Dubai one of the states in the United Arab Emirates (UAE) seeks today to move away from its traditional oil dependence to a more balanced one based on tourism and services. As a result, its economy has grown with more and more tourism resorts coming up to meet this aim. This article will list three reasons why you should invest in the Dubai today.

Firstly, Dubai as mentioned earlier is becoming a services hub and in particular a financial services hub, there is going to be an increase in the number of foreign professionals who are flocking there to work and with a high pay and tax free status over there, the average rental yields of properties there is above the average. Currently the single room studio apartments are doing the best in terms of rental since the expatriates that work in Dubai tend to be single individuals so this would be a great real estate investment tip to note if you intend to invest in Dubai.

Secondly, the cost of Dubai property relative to international standards is still very low and as a result the chance of a large capital appreciation increase is very high. Coupled with the bullish take on rentals as mentioned above, the prices of your real estate investment in Dubai will be set to soar in the next few months.

The reasoning cited by some real estate professionals is that when US and UK sourced money starts flowing into such properties, the value of the real estate will reach international standards and you would make a handsome profit from the capital appreciation.

Thirdly, there is currently a Disneyland attraction being built there and this would result in an increase in tourist visitors to Dubai. If your property is located near Disneyland, there is a chance that you will be able to rent out your property to people going there on holiday. As for problems with rental collections, most real estate companies double up as property mangers and developers so they will be able to handle most of the payment collections on your behalf.

In conclusion, Dubai represents one of the emerging markets where your investment dollar may make a lot more. Spending some time considering whether you want to investment in Dubai property may be worthwhile when considering the potential benefits involved. ]]></description>
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<title>4 Tips to Build a Successful Portfolio</title>
<link>http://www.betterlifeadvice.com/finance/investing/4-tips-to-build-a-successful-portfolio.html</link>
<guid>http://www.betterlifeadvice.com/finance/investing/4-tips-to-build-a-successful-portfolio.html</guid>
<pubDate>Mon, 26 Oct 2009 10:21:56 -0700</pubDate>
<description><![CDATA[ Walking through the financial maze of stocks, bonds and mutual funds can be quite a challenge. American Century Investments offers the following tips to give you the know-how on building a profitable portfolio.

* Know your goals. Consider how much money you'll need for your children's education or your retirement. Whatever your vision for the future might be, set your goals and develop a concrete plan for meeting them.

* Define your investment time horizon. If you're not planning on retiring anytime soon, you might want to have a portfolio that includes more long-term investments. If retirement is just around the corner, consider a more conservative approach.

* Determine your risk tolerance. Figure out your risk comfort level and compare that with what you can afford. In general, the longer you have to invest, the bigger risk you can take.

* Consult a professional. In order to avoid financial pitfalls later on, it is often wise to seek professional guidance when putting together a portfolio.

"Recent research shows that investors continue to grapple with some of the most basic investment concepts, suggesting a greater need for financial advice and guidance," said Doug Lockwood, a certified financial planner.

To help investors meet their financial goals, American Century Investments has developed On Plan Investing, a program designed to help investors build and maintain diversified investment portfolios - at no additional cost.

Combining educational tools, advice, market insight and investment products, On Plan Investing helps investors develop a personal investment strategy, whether they are new to investing, seeking guidance but still want control over their investment mix, need help positioning their portfolios with a long-term perspective or need help understanding how the markets work. ]]></description>
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<title>5 Pitfalls To Avoid When Searching For Your Next Investment Property</title>
<link>http://www.betterlifeadvice.com/finance/investing/5-pitfalls-to-avoid-when-searching-for-your-next-investment-property.html</link>
<guid>http://www.betterlifeadvice.com/finance/investing/5-pitfalls-to-avoid-when-searching-for-your-next-investment-property.html</guid>
<pubDate>Mon, 26 Oct 2009 10:13:56 -0700</pubDate>
<description><![CDATA[ Finding a bargain investment property on paper is only half of the process of property investment. The other half of real estate investing is going down to the property to examine the real estate investment property physically for defects either in terms of the construction and legal title and other liens that can be on the property. You do not want to spend lots of legal costs later to undo the bad lemon you bought into. This article will highlight five possible things to consider when searching for your next investment property.

Firstly, unless you find a property that is really run down and you want to tear it down to its foundations, you want to look out for properties that might have potential electrical and water piping problems. The reason why this is critical is that, wiring and water piping is usually hidden behind walls and other furniture fixtures and repairing them can be a very costly affair since you have to hack into the walls and run the piping and wiring if the problem is very serious. If you are new to property investing try to bring a electrical engineer along with you when you are doing some property inspection.

Secondly, foundation problems are usually harder to spot. When walking around the property, look for cracks appearing at the side of the house and the foundation that goes into the ground. Look for large unusual holes found at the side of the property and cracks on the exterior paint of the building. You might want to bring a civil engineer and a contractor along to figure out how much it would cost to fix the property if you suspect the repairs involved will be substantial. You can also bring them along to give a “grim estimate” to the house owner and bring down the cost of the property.

Thirdly, roofing problems can be a persistent nightmare to you and your potential tenant if you are purchasing the real estate for tenancy purposes. When inspecting the house, look around the ceiling near the windows and around the edges of the walls to look for new paint or yellow spots or cracks with water in them. Most sellers would be smart enough to eliminate the water bubbles after a heavy rain when trying to sell the property, but it is always important to figure out if there is a major leaking roof which might cost you are lot into repairing it. Use this defect to negotiate the price of the property further if you are interested in the property.

Fourthly, another reason why the investment property in question might be a bargain might be because there are legal problems associated with it. Common ones include, multiple owners that cannot agree whether to sell or not. Litigation here would be futile and you should avoid such property once you learn about it.

Another problem might be a lack of clean title. Did you know that the seller can be selling you only the building without the land or maybe there are existing tax liens on your property or some other liens that can prevent you from getting good title to the property? Spending some time chatting with a reliable real estate attorney to learn about common real estate problems in your area can save you lots of legal problems later.

Fifthly, bankruptcy of your seller or one of the part owners of your real estate may depending on the legal proceedings of your state affect your ability to transfer title quickly. Most states make it a requirement that the receiver of the bankrupt has to agree so pay careful attention to the bankruptcy legislation of your state. That being said, sometimes the banks are willing to sell you at a bargain so as to recover the bad debts quickly so do your homework before purchasing such an investment property.

In conclusion, these five pointers can be used as a starting point for you to evaluate your property investment. Spend some time to think rationally about the properties that you have seen and see if they have any of the above flaws and consider if you want to continue purchasing them and whether the costs that you may incur in fixing them will justify the discount of the property to the market value. Above all, take massive action today and pursue your property investment dreams. ]]></description>
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<title>7 Common Mistakes of Estate Planning</title>
<link>http://www.betterlifeadvice.com/finance/investing/7-common-mistakes-of-estate-planning.html</link>
<guid>http://www.betterlifeadvice.com/finance/investing/7-common-mistakes-of-estate-planning.html</guid>
<pubDate>Mon, 26 Oct 2009 10:05:56 -0700</pubDate>
<description><![CDATA[ Even though planning your estate isn’t an enjoyable job it’s necessary so that you can efficiently and successfully transfer all of your assets to those you leave behind.  With a bit of careful planning, your heirs can avoid having to pay estate taxes and federal taxes on your assets.  As well, a well planned estate avoids confusion for your loved ones. 

Still, with all the advantages of estate planning, many people make a great many mistakes in the process.  The most common mistake when it comes to estate planning is not getting around to doing it at all.  Make sure that you take the time to plan at least the financial portion of your estate so that you leave your loved ones behind with some amount of security. The following seven mistakes often put families into great difficulty after a loved one’s passing.

1. Don’t fall into the trap of thinking that estate planning is just for the rich.  This is completely false as planning your estate is essential for anyone who has any amount of assets to leave behind.  Many people don’t realize that their estate is as large as it really is, especially when they fail to take into account the assets from their home.  

2. Remember to update your will and to review it at least once every two years.  Factors that can change information about your beneficiaries include deaths, divorce, birth, and adoption.  As your family structure changes so does the change in your assets and who you want to leave them to.

3. Don’t assume that taxes paid on your assets are set in stone.  Talk to your financial planner about ways that your beneficiaries can avoid paying taxes on your assets.  There are several strategies for tax planning so that you can minimize taxes or avoid them altogether.  

4. All of your financial papers should be in order so that it’s easy for someone to find them.  Make sure that one of your loved ones has information on where to find the papers necessary for planning after your death.

5. Don’t leave everything to your partner.  When you leave all of your assets to your spouse you are in reality sacrificing their portion of the benefit.  You’ll get an estate tax credit but will forfeit part of this if your spouse is your only beneficiary.

6. Ensure that your children are well planned for.  Many people take a lot of time deciding what to do with their assets and forget that they need to appoint guardianship for their children.  There are many details to take into consideration when it comes to guardianship.

7. If you don’t have a financial advisor, get one. Financial Planners and Advisors are trained intimately in these matters and can provide asset protection well above whatever fees they may charge. If you need help selecting the right financial advisor, get the Financial Advisor Report. 

The above mistakes are common when people are planning their estate.  Take the time to plan for your death even though you think that you have years before it becomes an issue.  The key to successful estate planning is being prepared. ]]></description>
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<title>Angel Investors Bring Big Ideas to Reality</title>
<link>http://www.betterlifeadvice.com/finance/investing/angel-investors-bring-big-ideas-to-reality.html</link>
<guid>http://www.betterlifeadvice.com/finance/investing/angel-investors-bring-big-ideas-to-reality.html</guid>
<pubDate>Mon, 26 Oct 2009 09:57:56 -0700</pubDate>
<description><![CDATA[ If you're an emerging company with the next great product, sometimes you need an angel on your side.

A study by the University of New Hampshire's Center for Venture Research showed that "angel investors" - high-net-worth individuals willing to invest in entrepreneurial companies at an early stage - shelled out more than $18 billion into early-stage companies last year alone, compared to $304 million by venture capitalists.

Finding an angel investor, however, is not an easy task. Safer Smokes Inc. is one company that understands the challenge of attracting the right investors.

This development-stage company is tapping the smoking cessation market with a unique tobacco-free, nicotine-free smoke called Bravo, which has the appearance of a traditional cigarette and burns like tobacco, but is actually made from lettuce fibers.

"Bravo lets you smoke your way out of the tobacco habit gradually," said Puzant C. Torigian, chief executive officer of Safer Smokes.

For companies like Safer Smokes, it may be too soon to approach large venture capital firms, yet time to move beyond networking with family and friends. Angel investors to the rescue.

"The challenge for raising capital in today's market is in harnessing the courage and vision of the angel to see through to the real investment opportunity," said Torigian.

So how do companies like Safer Smokes attract their angel? 

* Have a clear-cut target market for your product or service. For example, Safer Smokes is targeting the smoking cessation market, which has sales approaching $10 billion per year, up from $6 billion just three years ago.

Most angel investors prefer companies that are likely to show positive cash flow within their first 18 months, so having these kinds of statistics about your market can be an incentive.

* Match the business plan objectives to the angel's risk tolerance. Investors want to know the product or service will be unique and well-cultivated. Safer Smokes has a patented solution that company officials say will "affect the landscape of the health care industry." ]]></description>
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<title>Angel Investors Bring Big Ideas To Reality/Radio</title>
<link>http://www.betterlifeadvice.com/finance/investing/angel-investors-bring-big-ideas-to-reality-radio.html</link>
<guid>http://www.betterlifeadvice.com/finance/investing/angel-investors-bring-big-ideas-to-reality-radio.html</guid>
<pubDate>Mon, 26 Oct 2009 09:49:56 -0700</pubDate>
<description><![CDATA[ If you're an emerging company with the next great product, sometimes you need an angel on your side.

A study by the University of New Hampshire's Center for Venture Research showed that "angel investors" - high-net-worth individuals willing to invest in entrepreneurial companies at an early stage - shelled out more than $18 billion into early-stage companies last year alone, compared to $304 million by venture capitalists.

Finding an angel investor, however, is not an easy task. Safer Smokes Inc. is one company that understands the challenge of attracting the right investors.

This development-stage company is tapping the smoking cessation market with a unique tobacco-free, nicotine-free smoke called Bravo, which has the appearance of a traditional cigarette and burns like tobacco, but is actually made from lettuce fibers.

"Bravo lets you smoke your way out of the tobacco habit gradually," said Puzant C. Torigian, chief executive officer of Safer Smokes.

For companies like Safer Smokes, it may be too soon to approach large venture capital firms, yet time to move beyond networking with family and friends. Angel investors to the rescue.

"The challenge for raising capital in today's market is in harnessing the courage and vision of the angel to see through to the real investment opportunity," said Torigian.

So how do companies like Safer Smokes attract their angel? 

* Have a clear-cut target market for your product or service. For example, Safer Smokes is targeting the smoking cessation market, which has sales approaching $10 billion per year, up from $6 billion just three years ago.

Most angel investors prefer companies that are likely to show positive cash flow within their first 18 months, so having these kinds of statistics about your market can be an incentive.

* Match the business plan objectives to the angel's risk tolerance. Investors want to know the product or service will be unique and well-cultivated. Safer Smokes has a patented solution that company officials say will "affect the landscape of the health care industry." ]]></description>
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<title>Angel Investors Definition</title>
<link>http://www.betterlifeadvice.com/finance/investing/angel-investors-definition.html</link>
<guid>http://www.betterlifeadvice.com/finance/investing/angel-investors-definition.html</guid>
<pubDate>Mon, 26 Oct 2009 09:41:56 -0700</pubDate>
<description><![CDATA[ Angel investors are one of the financing options that you can look into when you decide to start your own business venture. Business start-up is not only a crucial process it also requires a lot of time, effort, and of course money. If you do not have the money needed to fund your business, then how can you start your operation? That is why, when you start planning your business venture, you have to carefully consider your capital. And if you do not have a large amount to start with, you can rely on angel investors to provide you capital. But before looking for one, you have to make sure that you understand the angel investors definition. 

Angel investors are high-net worth and accredited individuals that give financial aid to future business owners who are in need of start-up money. They are well-educated, have valuable experience in business, and possess a large sum of money which they invest in exchange for ownership equity. They are usually the best financing option during the early stage of the business. Nowadays, lots of individuals choose to become angel investors. And so when you start your search for the right angel investor, it is important that you know the angel investors definition of each type.

Corporate Angel Investors Definition

Corporate angels are former business executives who have retired early or have been replaced. Although investment is one of their goals, they look for personal opportunity at the same time. So, usually they want to acquire a position in the business as part of the deal. But this should be thoroughly discussed since some corporate angels can be too controlling.

Entrepreneurial Angel Investors Definition

Entrepreneurial angels are successful business owners themselves. Unlike the corporate angels, they can take bigger risks and provide larger amount of money since they have a steady income source. Usually, these businessmen want to assist future business owners to have a successful start-up and eventually a competitive business. The major advantage of these angels is that they are less demanding and they allow the business owner to grow in his own, with them only as financial back-up. 

Enthusiast Angel Investors Definition

Enthusiast angels are retirees who simply enjoy getting involved in different business deals and transactions. They are mostly above 65 years old and are already wealthy even before they start their own businesses. Just like the entrepreneurial angels, they also don’t want to play any role in business management.  

Micromanagement Angel Investors Definition

Micromanagement angels are individuals who have exerted their own efforts in order to become wealthy. Because of their experience, they believe that they know exactly how a business should be managed. Although they are not active participants in management, they can be very visible when the management of the business starts to have problems and is not doing well. 

Professional Angel Investors Definition

Professional angels are lawyers, accountants, and doctors who want to make investments in companies that offer a service or product with which they have little experience. Their main goal of investing is to be hired by the business at the same time as consultant in their area of expertise. 

These are the different types of angel investors that you might encounter when you start looking for the right angel investor for your business. By keeping these angel investors definitions in mind, you can easily decide which one is appropriate for you. ]]></description>
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<title>An Overview Of Forex Investing Strategies</title>
<link>http://www.betterlifeadvice.com/finance/investing/an-overview-of-forex-investing-strategies.html</link>
<guid>http://www.betterlifeadvice.com/finance/investing/an-overview-of-forex-investing-strategies.html</guid>
<pubDate>Mon, 26 Oct 2009 09:33:56 -0700</pubDate>
<description><![CDATA[ FOREX trading refers to an international, 24/7, over the counter, exchange market where currencies of different nations are bought and sold. Trading is always done in pairs assuming the price of currency bought to go up and that sold to fall down. It is the largest liquid financial market making it impossible for any single investor to influence the prices of currencies.

There are two kinds of FOREX investing strategies:

TECHNICAL ANALYSIS
FUNDAMENTAL ANALYSIS

TECHNICAL ANALYSIS:

Technical analysis is mostly undertaken by small and medium size investors.
A technical analysis considers factors that are actually affecting the market rather than factors that can affect it. Thus the price quoted reflects all the factors that have influenced it. Only market generated facts and figures are taken into account and factors like fear, hope, expectations or other changes are not considered. Thus the analysis is generally based on these suppositions:

• Price reflects all actual market movements. That means price includes everything known to the market like supply and demand of foreign exchange, political factors, trade agreements etc. It is not concerned with what resulted in change rather deals with actual changes. It works on the assumption that price can take only one of the three directions:

&#61607; Upward
&#61607; downward
&#61607; sideward

• It rest on those market patterns that have been identified as significant. That means those factors which are repetitive in nature or will produce desired results.

• History always repeats itself as human psychology changes very slowly with time. That is market movements are predictable.

VARIOUS TECHNICAL INDICATORS ARE:

1. RELATIVE STRENGTH INDEX:

It takes into account the ratio of upward and downward movements in index and expresses it in the range of zero to hundred.

2.CHARTS:

Charts include various hills, slopes, curves that develop on a chart over a time and reflect some major and minor changes in pattern. Some of the chart formations include:

• TRIANGLE
• RECTANGLE
• HEAD AND SHOULDERS
• DOUBLE TOP AND BOTTOM
• SAUCERS
• V

3.GAPS:

A gap represents area on a bar chart where no trading took place.

• UPGAP: it is formed when the lowest price on a particular day is more than the highest price of previous day.

• DOWNGAP: it is formed when highest price of a certain day is less than the lowest price on previous day.

NUMBERS:

Various number theories are used in technical analysis like:

• Fibonacci theory
• GANN

STOCHASTIC OSCILLATOR:

This indicates the overbought or/and undersold condition. It uses a scale of zero to hundred percent.

FUNDAMENTAL ANALYSIS:

It is the one where current economic, political, financial situation of the country of currency is studied. A country’s economical and political condition depends upon many factors like the interest rate, unemployment level, exports and imports, per capita income, percentage of population living above and below the poverty line, inflation, trade relations with other countries, tax policies etc.

A fundamental analyst studies and evaluates all these factors before coming to any decision. Thus it helps in long tem decision making and making profits in short term by extra ordinary developments.

Some of the indicators that help in fundamental analysis include:

1. GROSS DOMESTIC PRODUCT:

It reflects total market value of all the goods and services produced in a country during a given year.

2. RETAIL SALES:

This reflects total receipts by all the retail stores in a country.

3. CONSUMER PRICE INDEX:

It reflects change in prices of consumer goods.

4. BUSINESS CYCLE:

It reflects various phases through which a business passes. These phases include:

• EXPANSION
• PEAK
• RECESSION
• DEPRESSION

5. MONETRY POLICY:

It controls the supply of money in an economy.

Trading successfully needs knowledge, time and understanding of a market. You cannot earn continuously in a Forex market due to its volatile nature. Thus as a trader you should try to consider both technical and fundamental strategies of forex trading and make decision based on market expectations and trends. Try trading with money that you can afford to loose without any regrets. Trade with logic and if you are not sure quit and take rest for some time. ]]></description>
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