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What is a securities investment?

When a government or company requires money to finance special projects or provide services, it can borrow from lenders or issue securities. An investor can buy these securities hoping to get back profit or income if the investment is successful.

What are securities?

Securities are the certificates or documents that show you have an interest in the capital, assets, property or profits of a company or business. They describe your rights as a shareholder or investor, or a company's obligation to you.

Are there different types of securities?

Yes. Each type of security carries different rights and obligations.

• Equity securities include common or preferred shares, which make the investor a part owner of the company or other issuer of securities. In return, the investment entitles the investor to a portion of the profits.
  
  
• Debt securities include bonds and debentures which make the investor a lender to the issuer or company. Government or government agencies often issue bonds.
  
  
• Mutual fund shares or units are another common type of security. A mutual fund investment enables an investor to pool his or her money together with many other investors. Professional fund managers then invest the money in a wide variety of investments. The original investor does not have to make the investment decisions.

Other types of securities include:

• limited partnerships in real estate or films.
  
• some education savings plans that invest in securities.
  
• oil and gas leases.
  
• options on gold, silver and foreign currency.

Overview of Forex Trading

Overview of Forex Trading

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:

 Upward
 downward
 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.
About the Author:

Willie Reynolds maintains a site offering free Forex tips .

Read more articles by: Willie Reynolds

Market Volatility

The markets have been swinging lately, and unfortunately most of the movement has been downward. Especially in the resource sector. Some companies have seen some large losses!

Will investment securities continue to go down? nobody knows - but definitely not forever!

When will investment securities turn around? Again no one knows.

Buy and hold - well - if you are overly exposed to the resource sector, you may not want to buy and hold.
If you have a well rounded diversified investment portfolio - then yes - buy and hold is the proper strategy.

What really is the market

The markets are as old as human existence itself. When Eve gave Adam that first apple, that was the first trade in the markets. What Adam recieved in return from Eve we will really never know!

People wonder now is investing in the markets worthwhile. Will the markets continue to go up? What if they go down for the next 5 years, 10 years or longer? Do we know what will happen in the future?

We don't know what will happen tomorrow, but we have a pretty clear picture of what will happen in the long term. As long as man continues to develop, as long as trade continues to expand, as long as new developments occur, new inventions, new discoveries, the markets will keep rising.

Why - because that is nature. If we can create more, become better at what we do, we will trade others for what they do, and that trade is in essence the markets.

And another reason why - because it has too! I am frightened at the thought of the markets not moving forward. If we had 5 or 10 or 20 years of flat or declining markets, we would have more troubles than just losing a little savings.

So have confidence in man, in trade, in growth.

Have confidence in the markets!

Why do we need to invest?

By: Debra Lohrere

It is vitally important in this current day and age for all of us to begin taking control of our financial situation and start planning for our future, and the futures of our children.

We can no longer rely on the government to hand out an aged pension once we retire. We cannot take for granted that at the end of our working life we will be taken care of financially.

The world population is ageing, due to the baby boomer generation, and within 30 years there will be so many retired people, compared to the number of working age people, that it will be economically impossible for the government to afford to provide any reasonable source of monetary assistance for the elderly.

The government has realised this, and that is why they introduced the compulsory employer paid superannuation scheme and are even now beginning to give financial incentives to Self-Funded retirees.

Most of us have never sat down and even considered the ramifications of why the compulsory super was introduced and for many of us it is a matter of too little too late. Even for the young women in our society – who have a full working life ahead of them, they still cannot rest assured of a comfortable retirement.

Why is this? It is because that unfortunately even with contributions at the current level of less than 10%, someone on an average wage who works continually for 30 years, is still going to find themselves trying to survive on an income equivalent to less than $20,000,00 per annum in today’s dollars.

You will notice that I said continually working for 30 years. This is another reason why women are particularly disadvantaged. Firstly because they often have to take up to ten years leave from the workforce to raise children, secondly because women in general earn less than their male counterparts and thirdly because an enormous proportion of the women in Australia, for example, will never have received any superannuation contributions, prior to the compulsory superannuation being introduced, and will therefore not have had contributions made over their entire working life so far, giving them even less to fall back on by the time they retire.

Many women may previously not have thought of lack of superannuation contributions as being a problem, as their husbands may have been contributing to super since they first began work. Unfortunately though with the high number of divorces in this country, it is unwise to rely on the fact that your partner’s superannuation will be there for you in your retirement years and even if a large proportion is awarded in a settlement – that it will be sufficient to sustain a comfortable retirement for any length of time.

All of these factors are why women now more than ever, need to begin taking action to build up a source of ongoing income, that will grow to such an extent, as to be able to provide a secure and happy future for themselves and their children.

It needs to be a source of income that is unrelated to physical work…that is an income that is generated from income producing assets – and not from our personal efforts.

One of the best sources of creating this ongoing income stream is to begin building an investment property portfolio, also aptly paraphrased as bricks and mortar.

We need to start investing in income producing assets now, so that they will have time to grow and develop so that we will be financially independent for our retirement years.

The most important concept to grasp in relation to building wealth for retirement and for creating finances that can be directed toward charities, or helping out your family is that of Compound interest.

In mathematical terms 72 divided by Compound Interest Rate of Return = Years for Money to Double in Value.

Therefore if you have $1,000.00 invested at 10% interest, then the number of years that it will take for your money to double to $2,000.00 is 7.2. It will quadruple in 14.4 years and be worth 8 times as much in just over 21 years.

If your money is invested at 7% interest, then it will take approximately ten years to double in value. If it is invested at 5% it will double in just over fourteen years.

The two most important aspects of compounding are one: rate and two: time. The higher the rate and the longer the time something is left to compound, the greater the final result will be. This is why the sooner we start investing, the better.

Debra Lohrere is the author of several books on property investment, creating financial security, goal setting and the power of compounding. Please visit her homepage www.debra.lohrere.com/home.shtml or storefront at www.lulu.com/DebraLohrere

Buy and Hold Investment Securities?

Investment Securities Buy and hold strategy has been debated for years - here is a great article on that Investment Securities idea.

Buy and Hold Investment Strategy

Gary Jsudha@stockrhythms.com Dynamic mutual fund Management
http://www.stockrhythms.com/

Buy and Hold Investment Strategy

"Buy and hold" is one of the most heralded investment strategies promoted today. "Buy and hold" is also one of the few investment methods where you are guaranteed to lose money 2 out of every 5 years...so why do it?Before expanding on the questionable value of "buy and hold", it's probably best to take a deeper look into who's spending their millions of dollars of marketing money convincing you that "buy and hold" is the best idea and why.

"Buy and Hold"

Promoters"Buy and hold" promoters vary but I'm going to single out the mutual fund( http://www.stockrhythms.com/investing-in-mutual-funds.htm ) companies at this point since they seem to have the deepest advertising pockets and are highly visible in their promotion of "buy and hold". Mutual funds have a strong vested interest in having you buy into the "buy and hold" mentality since their entire business model depends upon the average investor keeping their money parked...through good times and bad.Remember, the mutual fund companies are earning a profit from your investment even while you are accepting losses! So "buy and hold" is really the greatest investment strategy available, it's just a matter of perspective. If you like that your mutual fund company profits while the Bear Market ravages your account value, then "buy and hold" is for you!So let's look at some data to see how this really works.

"Buy and Hold" Facts

Between 1929 and 2002, there have been 14 Bear Markets with an average of 39% slashed off the value of stocks. During this 74 year period, it took an average of 3.5 years to return to breakeven!Every time a "buy and hold" investor loses money in a down market, they lose invaluable time to reaching their financial goal. After eliminating overlapping Bear Markets, 41 years were spent suffering through a Bear Market or returning to break even.In other words, "buy and hold" investors spend 2/3 of their time just to break even!"

Buy and Hold" Myths

My favorite myth or scare tactic used by investment gurus is; "buy and hold" investing is critical since you cannot afford to miss the bull run when it hits. And they go on to cite what happens to those that miss the "big days".Ah...good point, what does happen? If you would have invested $100 in 1926 and just left it there until 1993, your investment would have climbed to $80,000. Conversely, if you had tried to time the market and missed the 30 best months, your investment would have only been worth $1,200. "

Buy and Hold" Does Work Better?

So I've just convinced you that "buy and hold" does work better right? But what would have happened if you used market timing and missed the 30 best months and missed the 30 worst months? Your investment would now be worth $120,000 or 50% more than simple "buy and hold". Not to get too carried away but if you had avoided the 30 worst months and still managed to hit the 30 best months, your investment would have increased to an astronomical $8,600,000. Now I'm not going to try to convince you that market timing is going to hit every winner and miss every loser but I also don't think it's fair for the "buy and hold" advocates to represent only one side of the equation to their benefit either." Buy and hold" is a guaranteed method of losing money during every Bear Market. Give yourself a fighting chance by looking at a better way to invest. "

Buy and Hold" Replacement

So how do you avoid losing money every Bear Market with "buy and hold"? The simple answer is "get out of the stock market when it's the Bears turn". Of course, that's usually harder to do than to say.This is where we can help you to become a better stock market investor. Not only are we going to show you how to avoid the Bear Market losses, we're going to show you how to profit from the Bull Market and then turn around and profit from the Bear Market.And I'm not talking about extreme market timing, I'm talking about a conservative, time tested investment process.

A Better Investment Plan

There is a better way to position yourself for a higher probability of investment profits than extreme market timing( http://www.stockrhythms.com/market-timing.htm ) or passive "buy and hold". One that has been tested and proven with over 74 Years of Stock Market Research! Our proprietary Olympic Ring( http://www.stockrhythms.com/how_it_works.htm ) investment system has been issuing profitable trading signals, trade after trade, year after year, and we can start doing it for you too! Maximize your returns while lowering your overall risk through the use of a highly scientific and emotion free system. And unlike the "buy and hold" investment plan, you'll be positioned to profit from the Bear Market and the Bull Market. Now won't that be a change!Let us show you a better way to invest!

Call us (toll free: 877-554-4800) today to learn how we can help you earn a profit in both directions.

Or download a FREE COPY of our stock market investment book( http://www.stockrhythms.com/mutual-fund-book.htm ) so you can learn from the past to earn in the future - Invest With History

Investment Security Terms and their meanings

A few terms and their meanings that relate to investment securities.

“Broker” means a person defined as a broker or dealer under the federal securities laws, but does not exclude a bank acting in that capacity.

“Certificated security” means a investment security that is represented by a certificate.

“Good faith,” for purposes of the obligation of good faith in the performance or enforcement of contracts or duties within this chapter, means honesty in fact and the observance of reasonable commercial standards of fair dealing

“Investment Security,” means an obligation of an issuer or a share, participation or other interest in an issuer or in property or an enterprise of an issuer.

“Security certificate” means a certificate representing a investment security.

Investment Security Related Sites

Investment Security Related Sites

For Excellent investment related information check out the Investment Strategy Blog.
Another good source of Investment advice is the Investment Management Blog.

Financial View is a great website for Financial and Investment information!

Investment Securities

Investment Securities

There are many variations of investment securities, but if you go deeper your realize you realize the investment world is divided into owners (those who invest in equities or stocks) and loaners (those who invest in debt or bonds). The owners are the most common group and the ones that most people think of when they hear investment in securities.

This is the most widely accessible way of investing in investment securities. Individual investors become owners of publicly traded company by purchasing the stock in that company. They can then participate in the growth of that company over time which will give them a return on their investment security.

But how do you know what investment security should you put your hard earned money in. Which company will grow, and which will go bankrupt? Well believe it or not - and most experts will not tell you this - there is reliable systems to know where to put your money. The right investment securities can be found, but you have to know where to look, and most of all
-HOW TO LOOK!

Look, vast wealth is NOT for everyone. Real Money takes some doing. Keeping it takes even more doing and continuing to keep making it is hard work. Most people go through lucky streaks in their lives. But intentionally bringing in large amounts of cash flowing on a regular basis is a learned skill.

To choose the proper investment security you need to learn about levels of risk! Also price to earning, income, balance sheet profits, taxes before earning and many other complex ideas. We want to help you cut through all that clutter - and give you the advice you really need! What will make you the long term wealth you need and want!

Why do you want to buy an security investment. Is it just to say that you own a stock - a part of a company! No! The reason is you want to make money - earn wealth - then preserve and increase that wealth over your lifetime. Just picking a couple wrong investments in the securities market could set you back years! Don't take chances - learn how the experts do it.
Learn from an expert - about dividends, stock splits, warrants, puts, options, etc. We will guide you through the process of know what you need to know!

Always enhance your knowledge - it is the one thing that is priceless!

Investment Securities

Investment Securities

Welcome to my Investment Securities Blog. We will learn about investment securites that make you money and investment securities that can cause you to lose your retirment savings.