Which is the best website to monitor investment portfolio.?
Question:
I currently use money.cnn.com and finance.yahoo.com. Both are inherently plagued next to problems. money.cnn.com is affected next to server down problem quite deeply, while Y! finance, close to so many other sites allows one and only long positions and I have fairly a lot of shorts surrounded by my portfolio.
Any suggestions for a website with nice layout and which allows shorts will be importantly appreciated. Any additional features to represent option etc would be great though not required.
Answer:
If you are a subscriber, the wall street journal (wsj.com) is honest, it even tracks splits and dividends. Businessweek.com used to do a very polite portfolio tracker, but it is down while they get the investigational and improved model fixed. Considering other fixes they've done lately it ought to be polite.
Go with the below website
Go to http://moneycentral.msn.com/
later near the top right within the blue you will see the "portfolio" link.
Click "portfolio"
after login with msn term or sign up if you don't have one and your adjectives set.
Best tourist destinations to invest surrounded by? (in/out country)?
Question:
Answer:
Disney?
Dubai definitely! Tax free haven sure to delight in a future of prosperity
There is so much local investment at hand to make it work that if you can receive in at the right price next to your investments you will do well for yourself!
Good luck!
London, France, Spain
Anaheim California or Orlando Florida. Everyone loves the happiest place on floor! :)
Puerto Rico Americans won't have to own a passport to go nearby so that will be their island of choice!!
What will be the single biggest commercial application of Nanotech?
Question:
What will it be?
Answer:
Clothing. The clothing will be made to change colors base on the day, or repair itself, verbs itself, or even reweave itself into new shapes. Not simply will clothing become more "fashionable", but it will become safer too. If someone were to grate a knee, the clothing might even be designed to become inflexible as the clothing hit the surface.
Less than 1/4 of a inch.
Between medicine, materials, and information technology advance, I would say medical advance.
While it has other been the dream of go without instrumentation, nanotech can conceal all the wires, switches, test, and controls, plus a pile of redundancies inside things and out of sight. It is the skill to make diagnoses, to deliver medicine, to mend bone and tissues that will do some far more fabulous things than changing color or trapping odors or making motion picture behave like structural steel. Good stuff ahead.
Medical use can be big, if the nanotech application can cure most sickness at once. Chances are it will help one one disease at a time. Think more or less how many cars and trucks here are in the world. I imagine there be about 10 million sold surrounded by the US along last year. If nanotech can be used to take home a better battery (and several companies are working on it) --- imagine about it, drive 200 miles pollution free (I know, the coal-fired power plants pollute, but it is much easier to put scrubbers on one smokestack power plant than it is to verbs up the tailpipes of hundreds of thousands of cars), stop off for a bathroom break for 5 minutes while you can recharge for a buck or two.
You cannot kill somebody if you enjoy a tracking device in your vein.
Is it time to achieve out of emerging market? the open market is getting crushed today.?
Question:
Answer:
If you are investing with a 10 year + time horizon, Today is not a problem, If you be investing for next month, this wasn't the instrument to do it.
All markets be in motion up, have corrections, move about up again
Emerging markets are volitile but are an big part of the adjectives encomy of the world.
Russia is considered an emerging market and it have gone up 37 times (3700 %) since 1998. In emerging markets, don't verbs about a down year, down month or down year. But don't have adjectives you money in consequently either.
Fear is the best time to buy more for the long drag
LOOK, if you would have be buying during the bear open market of 2000-2003 ,,,,you would be sitting pretty now .
THis bazaar was bound to correct. Nothing go straight up. This is healthy.
I enunciate start dipping into the cash and buy during the FEAR.
long possession, today is not a problem.
short term you should hold been out contained by the beginning of the year.
www.letsgobble.com
So you are operating on the notion of Buy high and put up for sale low.
Nice way to turn broke.
Review the reasons why you own assets in the emerging market, are they still valid. Know upfront that the volatility in the sector is much sophisticated than almost every other sector with conceivably Microcaps pulling up a close second.
I am not going to tell you what to do. I can one and only say what I do.
During the 72-73 tolerate market, I be buying, during the 81 and 87 crashes I was buying even more, during the 91 selloff, buying and from 2000-2003 continued to buy.
This is money i.e. for the ultra long term investment portfolio; I don't diligence about the year to day, month to month gyrations.
Take a cavernous breath and decide, do I want to buy it when it is going on public sale or do I want to sell it inflict everyone else is?
Yesterday was the time to put on the market.
Tomorrow will be time to buy.
Today we watch the lemmings.
What are accurate stocks to invest surrounded by for a 16 year hoary?
Question:
what are some good blue chip stocks to invest within?
or any high risk stocks, beside a good outlook to invest contained by
Answer:
There are many honest mutual funds that over the years have averaged 10% annual return. And some even more. That is one choice you should seriously consider. You can research them on Yahoo finance, consequently go to their trellis site and research further.
There are plenty of high risk stocks and some even enjoy a good outlook. The problem is that one is more plausible to pick a high risk stock that go to hell. There is about a 10 to 1 ratio contained by that respect.
Your other responders gave you a long index of good stocks. Here is a different tack to guess about taking. From your own personal experience, what products and services do you conspicuously like? Think give or take a few investing in those companies that supply them. You will be using your expertise and most predictable have better results than taking our poor counsel.
BUD
There is no guarantee, but my favorites are:
WYNN, GE, AMTD, HBC, AXP, FXI, GLD, XLE
A very apposite stock is symbol NXG Northgate minerals
http://finance.G00GLE.com/finance?q=nxg...
It is about five years feeble on the market and shows exceptionally strong potential. It is a gold mining company out of CANADA.
Gold will be rising significantly inside the next five years, Northgate have a strong management troop and several key mines.
I have an economic professor who would play stocks by exit the Wall Street Journal and playing darts...it is adjectives about diversification and keeping your money surrounded by for the long term...if you invest near a large company scrutinize out for fees, referred to as loads...
If your looking at the long run, invest in the index approaching QQQ. I would stick with no nouns mutual funds until you have some time to really guess out where you want to put your money after you seize your career going.
You can use www.sharebuilder.com to buy stock at $4 a purchase which is around the lowest your going to find anywhere around.
Good luck, and remember if it sounds to good to be true, it most probable is. Don't buy stock on someone else recommendation minus at least doing some research on the company.
Anything tied to the Euro; since the American lifestyle and the dollar are going straight to the toilet.
Galxo Smith Kline (GSK)
Infineon (IFX)
Ericsson (ERIC)
Buhrmann (BUH)
ICICI Bank (IBN)
are a few.
If you are unresponsive set on American stocks, I guess oil is the path to go for at tiniest a few more years since $100 per barrel grease is here by summer most say.
P.S. So NOT buy mutual funds. The boy is 16, so you should be as aggressive as possible. Mutual funds are a horrible investment. They are ever so taxed and you own very exceedingly very little upside to compensate for the amount you hold to give to Uncle Sam. I enjoy been around stocks and investing my entire go (my father a broker for over 40 years, and myself for a few as well, earlier investing full time on my own.)
Go for indexes on USA stock exchanges: SPY, COMPX, INDU
I know a share is a lot of money but you can buy portions of a share.
I have GE forever and it made not money. I have owned tons of stocks and your big problem is when to market them so make yourself a aim of say, 30%, and trade when the stock gets to that smooth.
BOOK ,ANIMAL,HOUSES,COMPANY`S,OIL,S...
Unless you have a LOT of money to spread around, I would support you to look into mutual funds rather than individual stocks. Limit it to 3 funds.
Permit me to suggest Vanguard S&P 500 index fund, a domestic growth and income fund (that emphasize growth over income) like American's Investment Company of America, and an international fund, any diversified like Dodge & Cox International, or locale-specific resembling Fidelity Latin America.
I own most of these funds, and I am pleased with the results.
travel on the nyse website and check some companies from brasil,,, their are some big banks
I'd suggest taking a look at what's getting the nod @ http://caps.fool.com and do some research into them yourself @ http://quote.fool.com (see the investing division on the main http://www.fool.com website for how to do this).
Though some that may be of interest:
Anheuser-Busch (BUD)
Toyota Motor Corp (TM)
Honda Motor Co (HMC)
BOLT TECHNOLOGY (BTJ)
Cadbury-Schweppes (CSG) - could be worth a punt, as there's the possibilty of the company splitting between the constituent that makes Cadbury's Chocolate, and the section that makes Dr Pepper / 7 UP / Canada Dry ginger ale.
What is a lisc Ins agent competent to disscuss in connection with investments ?
Question:
This for comparison sake of the pros and consof different investments compared to say indexed or fixed annuities.
In the organization or in a seminar... and be contained by compliance with NASD rules-tho they do not regulate ins agents not NASD lisc?
Can you disscuss generality ie assett allocation and risk without giving specific investment proposal on say funds etc? Fees-can you mention ??
Again: compliance for agents near state Ins lic only short NASD lisc...the dos and donts to stay kosher!
Answer:
Do not talk going on for investments at all. That is your one and only choice. Otherwise, get a securities licence or register as an investment adviser.
That is the eay answer; in that are more nuances, but it would require like mad more info on your part.
You can report this interrogate with more detail on www.seclaw.com and concrete securities attorneys may chime in beside the appropriate solution.
An insurance agent shouldn't be discussing investments, at all. Everything they vend is a fee-loaded, piss-poor returner. If someone wants to invest, they should buy mutual funds, not annuities or unharmed life policies.
An insurance agent can discuss the benefits of products they submission and are licensed to discuss. They cannot tell the client to trade stock or mutual funds, or instruct them that they are not in the right investments. All Insurance Agents are allowed to do is point out the benefits of Annuities (Fixed) and the safekeeping features vs. being contained by the market. The piss poor interest as one of your answers refer to are not as major to some people (Such as seniors) as safekeeping, avoiding probate, and the risk that comes with Mutual Funds and the Stock Market.
WHAT IS A GREEN SHOE OPTION ? How is it related to an IPO ? How does it affect the current price of the share?
Question:
How does the already listed shares of the company get affected when the company opt for a green shoe option ? Answer individual if you are sure.
Answer:
___try these ____
http://blog.tomevslin.com/2006/05/vonage...
http://finance.yahoo.com/personal-financ...
http://www.jvp.com/corporate/corp_faq.ht...
Green Shoe option is a provision which give the underwriter the right to sell more shares than initially planned by the issuer. This usually occur when the demand for a guarantee issue is higher than expected, which help smooth out fluctuations in constraint and supply in an IPO.
The underwriters enjoy thirty days in which they can buy these extra shares at the IPO price. Hence if the stock go up, the bankers can profit by buying at the IPO price and then selling at the marketplace price.
Of course, green shoe option would singular be exercised if the trading price in inferior markets is difficult than the IPO price. (Who's going to exercise an out-of-the money option, right?)
Therefore, when the underwriters are allowed the right to buy (up to a max. of 15% more shares) at the productive IPO prices when the demand is big, prices for the securities in the lower markets will instinctively drop, thus help stabilizing the prices.
Definition from Yahoo Finance:
A green shoe clause allows the group of investment bank that underwrite an initial public offering (IPO) to buy and offer for public sale 15% more shares at the same offering price than the issuing company originally planned to flog.
The clause is activated if constraint for shares is more enthusiastic than anticipated and the stock is trading in the lesser market above the offering price.
But if emergency is weak, and the stock price falls below the offering price, the syndicate doesn’t exercise its chance for more shares.
This contract provision, which may be acted on for up to 30 days after the IPO, gets its nickname from the Green Shoe Company, which was the first to agree to market extra shares when it went public within 1960.
------------------------------...
QUESTION: How is the "over-allotment option" (OAO) used in stabilizing an initial public offering (IPO)?
ANSWER: As previously noted, IPO stabilization occur when the lead underwriter of a untried issue purchases shares in the days after the IPO to prevent, or hindrance, a sharp decline in the stock price. Does the front underwriter end up next to a long position in the stock after stabilization? The answer contained by most cases is no. Then, how does the underwriter begin next to a short position in the stock i.e. covered after IPO stabilization purchases? The short answer is the "over-allotment option" (aka the "Green Shoe option").
QUESTION: Recently we referred to a 15% over-allotment option (aka Greenshoe) for IPO underwriters. What is the maximum over-allotment odds (OAO) allowed and how does that figure receive set?
ANSWER: The 15% maximum over-allotment option is the standard set by the National Association of Securities Dealers (NASD). The Green Shoe Option derives its term from the first offering containing an over-allotment option underwritten by Paine, Weber, Jackson & Curtis for the Green Shoe Manufacturing Company (later renamed Stride-Rite Corporation) within October, 1960.
The original Green Shoe Company over-allotment leeway was equal to 10%; however, underwriters like greased lightning discovered the value of have a contingent short position in an IPO. In recent years, enormously few deals are done short an over-allotment option.
What Chart is the best to analyst Stocks?
Question:
There are many types of chart analyst for stock marketplace, which are the best and most usefull chart type? usch as RSI, MACD? please tell which are the Top5 charts for you, and why is that?
Answer:
Heck, I don't even try. Too indolent. I go to this site and they do the analyzing for me.
http://www.stockta.com/
I solely have one : Slow Stochlastic
It works most of the time if you are feeling like to follow it.
Start buying when it drops to 20 and more when it starts to move up above 20.
Sell when it reaches 80 and short when it turns to below the top.
I resembling MACD histogram. I use the 12,26,9 parameter set and watch for it to "roll over" at tops, and "bottom out" at bottoms. To confine things a little faster, I also plot an MACD histogram next to 5,13,5 parameters. It is faster and lead the action a short time better, although it gives more false signals. Using the two together works economically for me. I also like to keep watch on the crossings of the 7, 20, and 50 day EMAs. Some moral signals there. A little belated, but fairly consistent. Missing a top's exact timing is OK. Missing the top altogether is not.
what happen to supply if constraint rises?
Question:
Answer:
If demand rises, supply lowers, because more citizens need it. Therefore, making the supply low.
Supply stays alike (in the short term), but prices may rise. In the long term, supply may increase such that the effect on price is temper, or even so much that prices may fall again. Unless supply is fixed, surrounded by which case prices rise, which may result within a fall surrounded by demand and a tentative equilibrium will result.
Supply decreases.
RISES
supply and constraint have an inverse relationship. If one go up, the other goes down.
Prices will rise due to more constraint of a product than there is.
Like what's occurring with gas prices and other predetermined resources.
supply and demand effects the price of an item. Take tomatoes for instance, contained by the summer supply is high and it is competent to meet the constraint so price is reasonable. In the winter supply is low, due to out of season. The just ones available are hot house tomatoes. The demand is elevated versus the supply so the price is high. You will take-home pay any price if the demand is nearby.
To answer your question, nought happens to supply except I don`t know be sold out. When the demand is large as for a toy at Christmas time. The stores stock what they think will supply that year. When the demand it illustrious that toy will be sold out.
the more demand rises supply also rise!! i well-educated it in my goverment class lurk i mean economics.
If emergency for widgets goes up, at first the supply (of investigational widgets for sale) goes down so the price of respectively new widget go up as now 2 or more relations are bidding against each other to buy a widget. The widget manufacturer see the price going up, and realize they can make profoundly more money now on respectively widget sold so they make seriously more of them. Supply goes up, very soon many stores own them to sell to the 2 or more empire who want them and the price goes down. Manufacturers are usually slow to counter so they keep on making more even after everyone who requirements one has bought one. With supply up, and emergency down, price goes down.
Sluppy shrinks Prices move about up stock Vaule Raise as well
Either you increase the supply plenty to match the emergency or you reduce the supply to increase your prices to the stratosphere.
Supply creates it's own deman say Say's law a proposal in Economics.
To your press supply rise with emergency may be after some confusion about price which the supplier might be or might not know how to raise due to lot of other econcomic factor.
What is the best trellis site for trading stocks online?
Question:
I am new to it and want to dablle a moment or two online.
Answer:
It depends on what you are looking for and how much you want to put in.
Scottrade requires a $500.00 initial investment.
ShareBuilder have no minimum but I find their selling price a bit high.
TD Ameritrade $9.99 commissions and $2000.00 minimum investment.
E*Trade $1000.00 initial investment. Their commissions are highly developed and they charge a quarterly account allowance.
I think forex is the best one, my friend make like 10k trading
a month .. http://www.easy-forex.com/gateway.aspx?g...
For a greenhorn, I would recommend TradeKing.com. It is the cheapest around and has appropriate beginner functionality.
How much money does it embezzle to receive started beside stock investing?
Question:
Answer:
If dealing with traditional brokers who charge $10 commission tax a go, you're probably looking at have to cough up $500 - $1000 per purchase to get started (in UK replace $ signs for lb signs).
However you can take started for even less, approaching (ideally) $20/lb20 - $120/lb120 at somewhere like http://www.sharebuilder.com or it's UK equivalent @ http://www.halifax.co.uk/sharebuilder... (depending upon where on earth you're located).
To start learning what adjectives the blurb means, I recommend these sites:
- http://www.fool.com/school/basics/basics...
- http://www.fool.co.uk/specials/2005/spec... (UK equivalent)
- http://www.investopedia.com
- http://quote.fool.com (US stock quotes)
- http://quote.fool.co.uk (UK stock/share quotes)
- http://www.simustock.com (US pretend stock game to practise on until that time spending real money)
- http://www.bullbearings.co.uk (UK pretence stockmarket game)
http://beginnersinvest.about.com/cs/warr... (Bio of Warren Buffett, the greatest stock investor ever)
- http://www.warrenbuffett.com/ (fan site)
- http://www.investopedia.com/terms/w/warr...
I started afternoon trading with $1000 and doing average ROI of 18% on a daily basis. then rerolling different balance the subsequent day after 15 days I be at $12,353.45.
i got my niece and nephew started hasty with contribution stock from oneshare.com.
now they release up the "odd and end" amounts of their paychecks, along beside a set amount that they set aside each month and buy extra stock with the shares they already hold, or they can buy just one share of any stock that they deliberate sounds fun. they got their first share of stock from me just about 15 years ago, and now they both enjoy impressive portfolios of stock that they enjoy accumulated themselves.
but if you want to a moment ago "test the waters" so to speak, i suggest oneshare.com for as little as $10.00 or smaller quantity per share, you can buy stock.
Can you buy a business?
Question:
by only using your 401K as collateral? no money down
Answer:
Investigate any business scheme you are going into. It is dependent upon the amount of your 401 to the type of business you will get into. If your heart is not into it or you don't hold a passion for that business. You will find it difficult to flourish. On my website you will find some information to serve you in any business project. I hope this helps.
And remember P-I-E (planning is everything)
GOOD LUCK!
www.tagurit.lattice
In the business world, anything is possible. You just own to find a seller inclined to agree.
No.
I am a single mother that desires information on stocks.?
Question:
I don't know anything about stocks. I don't know where on earth I should go to do my research on that subject. I'm trying to bequeath something to my daughter when she grows up!!!
Answer:
I would suggest a no load mutual fund. They are manage by investment professionals. Choose one that has a long permanent status capital growth purpose. You may even consider one that offers a systematic investment plan.
There are hundreds to choose from.
P.S. I own bought stocks on my own and have lost money on most of them. I own made lots of money on my mutual fund investments.
My best advice is first to start reading the Wall Street Journal every light of day.
There are a lot of ways to pick stocks. Any of the main companies will have at most minuscule SOME information available for you online. The one that springs to my mind first is Fidelity Investments, they have added something know called the Trading Knowledge Center to comfort teach clients around investing in individual stocks.
I would consider a couple of factor, though. First, are you sure that stock is best for you? Would it be better to get a diversified mutual fund to mimize the risk of the investment? Whether it is actively manage or passively (meaning an index fund) you get the benefit of others choosing your stock for you beside minimal cost.
If you are focused on the idea of individual stock and don't want to embezzle the time to go out and swot up much, think of it this way-buy what you know. What mode of soda do you drink, Coke or Pepsi? What brands of cleaning supplies do you use, what kind of vehicle do you drive? Where do you shop? If you feel confident ample to spend your money there, why not invest within the underlying company? Just a thought...
If you want two examples of stock research and what goes into it, I own reports (free) on my website at http://www.valuestockreports.com/stockre...
If you email me at research@valuestockreports.com... I'll do my best to help you within the learning process.
Best of luck.
Get to the library.
check out http://www.fool.com/
it (and other sites simply have to look for them) have tons of information for investors of all types of competence.
GET A FINACIAL ADVISOR
ask your friends/ coworkers who they trust.
i would suggest you read Jim Cramer and view his mad money on cnbc
For broad investing info: fool.com
My reccomendations are
#1, if you can afford to invest at least $500 at a time, invest within an S&P 500 index fund (an ETF).
#2, if you need smaller investments, find a no load/no transaction excise mutual fund that is base on the overall market and allows small investments
Anything that doesn't brand name sense, search on the site above and it will.
Mutual funds are great for long permanent status investments. In addition to Cramer. I would study CNBC fast Money, FOX Saturday Business Block. Morningstar.com have a great tutorial for learning in the region of stocks, bonds, mutual funds etc.
Get this book. Parlay your IRA into a family fortune. by Ed Slott
Open a brokerage sketch at Zecco and invest in the ETF DIA every week.
By the time she go to Harvard she will have millions.
I hold the following bond. PLS HELP?
Question:
Trade date
12/31/2003
Company
Xcaliber .corp
Coupon
6.2
Maturity 12/31/2013
Yield
5.443
Price101.772
Size
1k
What would the journal entry look similar to to record the first semiannual interest allowance?
How did you figure that out?
Answer:
(coupon rate) 0.062*1,000(par value)=$62
coupon payoff 62/2=31
coupon rate is the coupon price
the journal entry would be Interest income (Debt) $31.00
The interest reward is going to be the coupon/2
$1000x.062 = 62 dollars annual interest. Semi annual is half that. =31 dollars.
buying precious metal futures?
Question:
i am planning to invest around $10,000 in silver futures. i dont enjoy to pay commission. i plan on buying during a lull and selling when the price rises more or less $.30-.40. After this i will have made a hugely small profit on each ounce of silver but a full-size profit overall. enough to overcome the cost of the endorsed fees for trading like this. subsequent, i will buy again when the price of silver drops at least $.30-$.40 and keep on to sell when it rises again. following the process, over a interval of about a year and a partly making trades like this 1-3 times per week. my friend made a model of this and projected that i stand a apposite chance of tripling my assets over that year and a partially. WHATS WRONG WITH THIS AND WHAT RISKS AM I TAKING? IN OTHER WORDS, WHAT CAN GO WRONG WITH THIS PLAN? INCLUDING THE $30-$50 GOVERNMENT TAX ON EACH SALE, WHAT OTHER COSTS AM I UNAWARE OF. this is important because if at hand are others, i might not make it over the "hump".
Answer:
First of adjectives, your friends model seems to be making several assumptions.
As several posters said, futures enjoy an expiration date, which means, if you haven't realize that you're profit by expiration, you'll need to any sell the contract at a loss or rollover to a brand new contract month which will incur additional costs.
Now, silver can move $.30-$.40 cents contained by a day, which money you'll need to be monitoring the flea market during the day. Can you do that?
Also, futures are terrifically highly leveraged, implication a small move can mean huge losses. For instance, the COMEX silver contract is 5,000 oz. of silver. The fringe is $4725. In one of your edit's you said Silver will never fall. You indicate, never fall to zilch, but it does fall. If you bought 1 contract at the dawn of the year, silver was trading at $13.01/oz and by 1/12 dropped to $12.43 per oz. That's a $.58 loss per oz. or $2900. Actually, from untimely Dec. 2006 to 1/12, silver dropped $1.62/oz. or a total loss of $8,100 ($1.62 x 5000 oz.) which means you would hold been hit next to a margin nickname. Maintenance margin is $3,500, substance you'd havet to put up an additional $3,500 to protract the position or you'd be closed out.
What your talking in the region of can be done, BUT you either necessitate to be a day-trader with direct floor access (meaning you have need of to be sitting at your computer screen and hold direct access to the floor broker to execute the trade quickly as if you do not, that $.30-$.40 profit could evaporate against the clock in the time the establish is filled) or you need to be a pit trader.
How you get past not have to pay comissions is interesting, since that's how the brokers receive their money.
Anyway, what you're proposing isn't as simple as you think it is. It can be done, but if you're an sour floor trader, you'll need solid time data feed, high speed access directly to the floor to formulate the trade, etc. But, really to do something like this, you want to be a pit trader, which means you'd entail to buy a seat on the exchange contained by question and that can run upwards of $250,000 or more.
Also, at hand is a learning curve as you'll involve to become so intuned with the silver flea market that you know when prices are going to turn. I have a friend to be exact so intune with the sugar marketplace that he knows the all your own of the market so resourcefully that he can see turning points coming based on price goings-on and market behavior - but it took him years to become that intune near it.
What you are proposing is more or less scalping the open market. Can it be done? Yes, but it's not going to be as easy as you reflect it is.
I'll give you an example of what can travel wrong. You have $10,000. At current outside edge requirements, even 1 contract puts you at 47.25% of your account equity - not biddable. In futures, you should never commit more than 5% of your account equity to a trade, so to propose what you're doing, you'd really stipulation an account of roughly $100,000. But, you only hold $10k, so you purchase 1 Feb. 2007 silver contract at $12.55 (what it's trading at now). Good news comes out that cause the dollar to rally strongly thus pushing precious metals prices down and silver drops $1.45 over the subsequent several days to $11.10 (which is highly possible as silver as lately as Oct. 2006 was contained by the $11 range). You lost $7,250, you'd be hit with a outside edge call because there'd singular be $2,750 left contained by your account. If you hold margined 2 contracts (which would be insane with a $10k account), a $1.45 loss would reduce to nothing your account and you'd obligation to come up with an auxiliary $4500 to make up for the shortfall.
Like I said, what you're proposing can be done, but you really want to be aware that it's not going to be as easy as you believe and you really need to be monitoring your position constantly. You'll necessitate direct floor access (preferably electronic trading as opposed to the interested outcry method) or in the pit yourself.
If you do indeed want to go this route, I would suggest you do it near the mini-silver contracts (1,000 oz.).
Futures are not ranked as one of the riskiest investments for nought. If you look at your friends model, he's probably only computing consistent gain. What he has slipshod to take into consideration are losses and equity drawdown.
In my belief, what you're poposing (scalping) is best left to the pit traders.
Are you within the US? There is no tax here until year expiration.
The problem is that it will move far enough away from you that you will become convinced that it is not coming spinal column, or, if you figure if I know it was going down 5$, I should own taken a small loss.
Also with futures, within is a month of delivery. You hold to put in brass to make up for losses, since you with the sole purpose make around a 1% deposit. Silver moves 1% and you've either doubled your money or lost it adjectives. Playing with tangible money is not as rational as pretend.
Welcome, sardine, to the world of sharks!
If everyone have this plan, would EVERYONE make money and not lose a dime? I doubt it.
The problem beside this and every other investment plan is GREED and FEAR. You get greedy, you receive slaughtered. You get fearful, you take slaughtered.
Why is it that when I buy a stock after it after a $1 dip, knowing it's a good company, afterwards why is it I don't sell it and put together a profit next week when the rumors are proven false?
Investing your single $10K in this plan is not merely fraught with extreme risk, but, hey, it's your money.
"When two family meet, one near knowledge and one next to money, they soon part company. The one next to the knowledge have the money, and the one that had the money get the knowledge."
WealthBuilder
THATS WHAT THE HUNT BROTHERS SAID IN 1970'S WHEN THEY LOST OVER A BILLION DOLLARS.
TOOKING A WACKING AND NEVER CAME BACK..
10G IS SMALL INVESTMENT.
AT ALMOST 7.00 OUNCE..
WON'T MAKE 500.00 YEAR FOR ALL THAT LABOR AND TROUBLE..
AND THEN HOPE MARKET STAYS UP AND DOES NOT DROP BACK TO 4.50 AN OUNCE..
YOU TAKE A LOSS THEN.. OF 2.50 AN OUNCE AND BE YEARS BEFORE IT BOUNCES BACK.
how could a party double or lose all of their money on a 1% money in price? seem to me the person would any lose or make 1% of their investment. To double or zilch a 100% change would inevitability to take place, which is impressively unlikely in the commodities flea market. I don't see any risk of losing all your money unless you are stupid plenty to continue to not quit after several losses.
You are aware futures expire, right?
If you buy silver today at $1.00 and you hope it will step up by $0.30 in the adjectives and it does not.
YOU CANNOT WAIT FOREVER UNTIL THE PRICE IS UP AGAIN.
In that case you will lose your money.
Unlike ETFs. You cannot only hold your silver until the price is up again.
If you cannot sell your adjectives contract before the expiration date (And nobody will buy your contract if the price is certainly higher than the flea market price) you will lose 100% of your contract cost.
With enough futures within the wrong direction you will lose all your money deeply quickly.
At lowest with ETFs you can hold your silver for a while hoping it will be in motion up in the adjectives.
With futures you cannot wait that long.
It seem you really need to be in motion back to the drawing board beside your plan.
Also $10,000.00 is too little to invest it in the futures open market.
The question is how do you know the price will rise? Hopefully you're a proficient hi-tech analyst. I know commodities are not like stocks but this doesnt show they will keep rising within price. In fact, tons investors are claiming the metals bull market have come to an end. Furthermore, you cant never be sure if the price of the commodity will trip up 5% before it rises 4% or even worse. Some relatives think commodities are much more in safe hands than stocks because they're more liquid and thus are less volatile. This is not true, as the most recent bag at the beginning of this month when silver suffered a 10% decline contained by only 3 days. Or contained by early september of '05 when it lost 20% of its importance in smaller quantity than 2 weeks!. As you can see silver has bungled to recover the losses from september, if you have invested your money at that time hoping to ride it until you get a 4% gain you would still be waiting. Your strategy is nought new, its something commonly done by swing traders but even they can share you it is not as simple as you make it give the impression of being, your trades wont always rise, you will hold many losses, have a profficient knowledge of controlled analysis cuts some of those losses. Unless you know about swing trading and systematic analysis I think your strategy is a not a polite idea.
One piece I noticed as the risk from what you enjoy written is 'the price of silver never drops and never will rise' and you strategise to hold it till the price rise once having bought into futures. This mode that the futures can expire without the price have really risen which can be a risk. You cannot hold onto a futures contract for eternity, it has expiration date on which date you will have to fulfill the contract unless it is resembling a LEAP option where on earth you can contract long term expiries. Study the silver flea market carefully try to bring hold of when the price moves up after it has come down and depend on it to bring in trades which will be a more educated route of investing. If your friend has tripled the investement surrounded by and year and a half later probably it will work that way. Then your assertion that once the price come down it won't rise again is not hugely reliable to answer this question.