Some say that financial investments are all about risk. Big risk, big return – low risk, low return. From this perspective, creating the potential for big returns through taking large risks is the primary goal of any savvy investor.

For many would-be investors, however, the potential for gain is not enough to offset the risk; many investors are not so much interested in making enormous sums in a high-risk environment as making smaller, but safer, amounts of money. Some of these investors are private citizens seeking to steadily grow their wealth; others may be large corporations looking to responsibly invest their funds.

Auction Rate Securities

The auction rate securities market was once a highly attractive option for such safety-minded investors. By adding a fluctuating, auction-reset interest rate onto long-term bonds, broker-dealers created a debt instrument which could benefit both borrowers and lenders. Issuers enjoyed the ability to deal with their long term debts in the short term, while bondholders could take advantage of asset liquidity while receiving a higher return than most money market instruments.

What is Liquidity?

Liquidity is a measure of how easily and efficiently an asset can be converted into cash. It is determined by measuring three qualities of the asset:

- How rapidly an asset can be sold

- How frequently an asset can be sold

- How much of the asset’s value is lost during a sale

Basically, a liquid asset is one which can be sold rapidly, at virtually any time, without losing much of its value during the transaction.

The Significance of Liquidity

Why is liquidity an important concept for investors? Liquidity is essentially a measure of how easily an investor can enter and exit a given market. In some ways, liquidity is analogous to demand, though not identical. An asset for which demand is high, constant, and enduring is likely to have high liquidity, as potential buyers are always available and usually willing to pay well to take on the asset.

Liquidity allows an investor to limit risk and reduce his or her commitment to the market; by purchasing assets with high liquidity, the investor retains the ability to convert his holdings to cash at any time – either to cut losses or walk away with a significant profit. It also creates a safety net for investors who may have other financial obligations by allowing them access to their invested funds on short notice.

To learn more about the role that liquidity continues to play in the auction rate securities market, visit the website of auction rate securities lawyers Williams Kherkher and Shepherd, Smith, & Edwards at http://www.auctionratesecuritieslawsuit.com.

Joseph Devine

Forex trading has become hot! Its heavy leverage allows traders to capitalize with big gains and the lure of huge profits sends many traders to forex on a daily basis. Sadly, most of these traders won’t be around for long. As many as 90% of all new forex traders lose their capital and bring their accounts to zero within six months. Largely because they come into the forex market with the mistaken belief that all they have to do is learn a trading system and trade by the signal their favorite indicator gives them and they will be able to average out a profit. What they fail to realize is the false signal can wipe out a large portion of their trading account.
 
At this point I might as well tell you I am no fan of indicators! Indicators are nothing more than mathematical algorithms of some sort of movement in price, with a few other variables added depending on the indicator. What the forex trader should be concentrating on is the price chart itself. Why? Because the trained forex trader will be able to tell much more about the market by watching price movement than with any indicator or trading system. Price movement tells the story of fear and greed, which are the two most important criteria a currency trader needs to be able to discern. The volatility of the forex markets creates many trading opportunities that can be spotted by watching the price chart. Candlestick trading for instance will teach you to spot reversals in price before the majority of other traders. Western technical analysis in its original form also allows the forex trader to spot weakening of trends and areas of likely reversals before the rest of the crowd.
 
Before we all had our PCs charts were drawn by hand. There was no fancy charting software or trading platforms. What we take for granted as an instant chart took traders of old a lot of time to plot. These were the pioneers of technical analysis and they were looking at the chart NOT indicators. Japanese Candlesticks, the best form of analysis in my opinion for forex, has been around hundreds of years. These technicians were very proficient in reading the mood of the markets and many became very wealthy doing it. Many modern technical analysts combine Western chart patterns with Japanese Candlesticks and also do quite well in forex.
 
Computers have brought us instant access to the currency markets but along with it have come hundreds of indicators which will do nothing but confuse the new forex trader in my opinion. If you must use an indicator, learn to read the chart first. Learn the major candlestick reversal patterns as they relate to forex as they are different than other markets. Then plot your indicator and see how it relates to the chart. I’ll bet you’ll find you trade from the chart more often than you think.

B.M. Davis is an active trader and the publisher of the Forex Candlestick System. If you would like more information about candlestick charting the forex market please visit http://www.forexcandlestickcourse.com

For some time now the year end statistics have shown that automated trading systems trading stock on the New York Stock Exchange has increased in volume over the previous year and the trend now is expanding to the Foreign Exchange Markets (Forex.) In order to optimize your results trading on the currency markets it is essential in today’s ever increasing competitive field that you utilize all the tools at your disposal. A complete knowledge of all the various aspects of Forex trading is no longer sufficient to maintain your status as a successful trader. Especially, when your competition has already taken the next step, which is an automated Forex trading systems.

There are numerous instances where a retail trader has hastily entered into the currency markets after taking a Forex trading course and retreated form the market just as quickly as they entered. They then contemplate what caused them to fail and one of the factors was they were always behind the trading curve. The importance of an automated trading system when entering the currency markets can not be understated. There are numerous types of trading systems on the market today. One software system might focus on trends, the next on signals and another could be based on specific strategies determined by the developers of the currency trading platform and programmed into the software.

Many currency trading systems incorporate state-of-the-art Forex software that makes winning trades with pinpoint preciseness on Auto Pilot and are able to make victorious trades over ninety per cent of the time. The problem with some of those systems is that the winning trades profits can be often on the small side and the one losing trade in ten they make can wipe out the profits of the previous nine winning trades. At the other end of the extreme are systems that make winning trades less than fifty per cent of the time, but when they hit a profitable trade it is often a large one and wipes out the loses in your account from the previous losing trades.

Hopefully, if your this far along in the Forex markets that you are contemplating purchasing a Forex trading system you are already an experienced trader ready to make the next step in the evolution process or if your just beginning to trade the currency markets you have all ready taken one of the exceptional Forex courses that are available today. Regardless of the situation, once you decide on the Forex trading software you will purchase that you realize you still have a long learning curve in front of you regarding the software. The purchase of the software is just the first step. It is just essential that before utilizing it with a real money account you are able to make winning trades consistently over a minimum of a month’s period time using a demo account. Only at that time are you ready to use your new Forex trading platform at the next level with a real money account.

When you start researching the market on Forex Trading Systems you are going to find that there are literally hundreds of them on the market today. So which is the best? Which is going to make me the most money over the shortest period of time? Which is going to make me money consistently over an extended period? The answer is that once you have eliminated ninety five per cent of the platforms that are not first-class, all the rest will do what you require depending on your trading profile and your risk tolerance level. In other words each of the distinguished trading systems approaches the situation a little bit differently. Your purchase of the product needs to be based on your trading personality and which product best suits that personality. But, NONE of the systems will perform profitable for you if you do not spend time learning to operate the software and programming your specific trading personality into the system.

William R. Alheim, Jr., CPA, MA – for reviews of the TOP 10 Forex Trading Systems on the market today go to http://www.tradingforexreviews.com/

Trading is absolutely a game, where you can win or lose. As similar to any other investment or business, forex trading has its own pros and cons. But, if you are with good knowledge and understanding about the Forex market, then success is definitely yours! There are many ways to improve your trading results. The top 5 tips to help improve your Forex trading are easy to understand and just as simple to implement into your strategy. Correct application of the tips will result in more successful trading which of course leads to higher earning and profits, something every trader strives for.

Since Forex trading requires extensive knowledge in many areas, the first tip is to expand knowledge and attend seminars about trading. Seminars show you different techniques, ways to analyze your collected information, provide a place to talk to others and also give insight on different ways of perceiving one market.

The second tip is an extension of the first and that would be to build all your skills that you have acquired in trading. Important skills to build upon are drawing charts and patterns that help you to visualize trends and cycles.

The third important tip is to be complete when devising trading strategies and plans. Successful plans take into consideration that major events can happen which result in losses. Being prepared for any situation is essential and that includes calculating in catastrophes and history changing events.

The fourth tip is based on the facts included in the third one, namely that losses are possible no matter how much you analyze a situation. That is why this tip involves establishing an emergency fund which will counterbalance any negative income and still leave you the means to invest if something worthwhile comes up.

The last tip is to simply rest and take some time to think things through. Forex trading is strenuous and sometimes keeping up with things on a daily basis leads to bad decision making. With Forex it is better to watch for a while and rethink your plans and create new, more successful strategies.

Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. For a limited time get his free Money Management to a Million Dollars e-course here: http://www.pipsalot.com

HYIP – High yield investment programs. As the name suggests these programs offer high yield for your investment.

Why/How do they pay their members?

Every site is involved in some kind of program which requires investment to make profit. The best way of getting money is to borrow. Banks are a risk as they have high interest, so in turn they become the banks and offer members different plans of payment depending on their amount deposited. They generally have a wide variety of plans that are offered to its members.

All the owners of HYIP use the money they receive to deposit in shares, stock market, property, forex and many other money earning programs. From the profit they are making they give their members the promised incentives. There are even programs which don’t deposit in any program (These are the programs which are likely to turn scam).

HYIP is a very risky program. You can say it is almost like gambling, if your luck is good you will find the right program which will fetch you profit. If your luck is bad you will end up losing all your money. It is clearly advised for anyone to deposit money which you are willing to lose. You cannot look into HYIP as a solution to your financial status. This is really a high risk involved program. Members who have extra cash, which they are ready to risk, only should take part.

Before joining a HYIP always do a bit of background check on the site.

Look for proper contact details and see whether the support is responding properly for your queries about their investment plans or not.

Next there are number of monitors that are available on the net which constantly monitor these sites. So you can search in them to see the honesty of the site. There are sites which are in the market for more than 6 months also. The few other things is the look of the forum, their interest rate (should be reasonable and not hiked only to attract members).

Last but not the least you are solely responsible for your investment in a HYIP. So be wise and choose the right programs to invest, make use of the monitors.

Cashtalk discussion about HYIP: http://www.cashtalk.org/

I’ve noticed that many people new to trading are a bit confused about the mechanics of setting up and funding a trading account with a broker. You needn’t be, if you can manage internet banking, then establishing and operating a trading brokerage account is a snip.

The first step is to find your broker. As a trader, you are looking for an efficient electronic platform that lets you manage your account and trading activity interactively over the internet. A few things to look for include:

• Low cost of execution for the contracts you intend to trade. Prices are either quoted as a “round trip” or “per side”. As a future trade involves two separate transactions – Buy to open, Sell to close, or vice versa – a “round trip” price covers both sides. If you see an advertisement for $5 per side, you know that a trade will cost you $10.

• Fast execution of the orders you enter. By “fast” I mean virtually instant execution of market orders. The trading platform must provide a direct electronic interface to the market. Do not entertain any two stage system where orders are submitted to brokers who then submit them to the exchange.

• Support for all common order types. At the very least, you should be able to enter market, stop and limit orders. If you don’t want to be tied to the screen for the full session, you should have orders such as “one cancels other” or “one triggers other” available, so that your strategy can be automated.

• A chart is the trader’s basic tool for analysis and good brokers supply excellent packages as part of their offering. You should be able to display market information in multiple formats and time frames. The package must support the display of common indicators and studies on the charts.

• Real time data feeds are vital to the day trader. You should be able to watch your charts updating on your screen in real time. You should also be able to see “market depth” information. (This shows the number of orders resting in the market at various bid/ask levels.) In general, there is a monthly charge for this service, which is often waived if you make a certain number of transactions.

• Access to international markets. The move to electronic markets has enabled brokers to provide direct interfaces with exchanges around the world. As well as the US Markets, you want to be able to trade European and Asian markets. This is particularly important for non-US based investors.

• 24-hour support service is essential. Most of the time you will never need to contact your broker by phone, conducting all your normal trading activities via the internet. But if something does go amiss, you want to know that there is somebody available to fix your problem immediately. In fast moving markets, time can be of the essence.

• Last, but not least, it is useful if your trading platform allows you to trade futures options as well as pure futures contracts. As your trading develops, you may want to utilize option strategies and it is frustrating if that means you have to change your broker.

During my career I have used two futures brokers – Xpresstrade and Interactive Brokers. Both provided excellent service. Xpresstrade uses a browser based trading platform which means that you do not have to download any special software onto your computer. I found it simple to use, with powerful features, and the support was first class.

Interactive Brokers (IB) is my current broker and I am delighted with their offering. Everything is automated, and there are a multitude of different facilities available on their trading platform. For example, orders can be entered through a conventional order entry screen, directly from a “book trader” screen, or by using graphic tools directly on the charts.

IB has excellent support services. However, they cater for the knowledgable trader and are not into “hand holding” support. A beginner may find their interface more confusing than some others, like Xpresstrade.

As an indication of prices you can expect, Xpresstrade charges $5 per side for common electronic contracts; IB charges $2.40. Both offer discount structures for volume traders.

As I type this I am following the Corn market at the Chicago Board of Trade. Click here to see my simple trading screen.

I have two windows open. On the right is the charting window set to follow the session using 2 minute candlestick bars, with volume shown along the bottom. It is easy to display studies, or draw trend lines on the chart.

To the left is the “book trader” window which displays market depth at various price levels, and permits one click entry of all common order types. For example, left clicking a particular price level enters a Limit order, and a right click enters a stop order. Buy/Sell buttons at the top of the screen enter immediate Market orders.

This is a great setup for day trading. Screens are easy to customize; so each trader can have their own setup, according to personal preference and the tools they like to use.

I have noticed that new non-US traders sometimes feel reluctant to open accounts with US brokerage firms. Naturally they feel more comfortable and “connected” working with a brokerage based in their own country.

But I advise you to think internationally in this business. The US futures markets are big and the industry servicing them is well established and sophisticated. Look for the “best” brokerage, not necessarily a local one. Remember that your interaction will be totally web based, so it really doesn’t matter where their office is.

Another fear I have heard expressed by new offshore traders is that their money is not secure, or may be difficult to access. All that I can say is that in over ten years trading experience I have found depositing and withdrawing funds to be simplicity itself, and absolutely reliable. US futures brokers are strictly regulated, maybe better regulated than brokers in your own country.

The best brokers provide facilities on their website which completely automates the account application process. Be prepared to spend a bit of time on this because because there are several documents to be read and completed. It can be a bit intimidating the first time you do it; there is a lot of boilerplate ensuring that you understand the nature of various risks involved. You are also asked questions about your assets and prior trading experience. It is important to read this material carefully, but avoid becoming too discouraged by all the legal language – the brokerages need to advise you of all worst case scenarios and, naturally enough, ensure that they can not be held responsible for losses incurred during normal trading activities.

Quite soon after submitting your application form you will (hopefully) be advised by email of your account acceptance and provided with details including User Id and Password. Login and change the password as soon as possible.

An offshore trader using a US brokerage has a couple of extra steps to go through. You must fax (or email scanned copies of) your passport and a utility bill to comply with stricter security regulations since 9/11. You will also be asked to fill in a W-8 form for tax purposes. If you have no other business activity in the U.S. and live in a country which has reciprocal tax agreements, completion of this form means that the brokerage does not have to withhold a percentage of profits for taxation purposes. This simplifies matters, because you only need to declare income and pay taxes in your own country.

Once you have a user account and password, you can log into your account. At this point you need to fund it. This is normally done by a standard electronic funds transfer. Offshore traders may need to wire funds, but this is a simple thing to arrange from your bank branch. (In my case, Interactive Brokers provide the facility to deposit funds using the standard Australian funds transfer system which is easily done via internet banking.When the funds arrive in your account, it is activated and you can view your balance on the screen. When you trade, the balance is updated in real time.

Normally there is a facility on the secure web site to set up details of your bank account. Having done this once, you can withdraw funds whenever you wish with just a few clicks of your mouse.

That is all there is to it. Following these few simple steps sets you up with a brokerage account providing access to markets throughout the world, with software facilities which were once the exclusive province of large investment houses.

Now you are ready to start playing the trading game!

David Bennett is an independent Futures Trader. He lives on the Gold Coast of Australia, trading financial and grains futures contracts in Chicago.

Visit http://12oclocktrades.com for more articles.

I think I can really illustrate some important points by showing how simple behavior can lead you to failure. This is a big business where there is a lot of money to be made. The problem is most people that get involved never really take the time learn any solid methods or tactics and leave themselves to figure it out on their own, which ultimately leads to failure.

Tip: Hold onto your bad trade. It will go back up.

I hear this all the time. It typically comes from people that are stuck in the middle class and can’t seem to get into the upper class. The idea is that the market fluctuates and you can expect your trades to return to a normal level.

I suppose in some cases this is 100% true. The problem that never seems to be discussed is that this can take years. Imagine being bought into the USD at it’s peak. It’s going to take many years to go back up, if you’re lucky. That is a lot of time to have money out in the market.

The better thing to do would be to cut your losses, take your remaining money and reinvest it in a profitable trade, so you’re earning an immediate profit on it.

Tip: Trade by only looking at currency graphs. Ignore outside forces.

There are a lot of people hop on their computer first thing in the morning and start trading. It seems smart in a way, but there is a lot of things that affect the market. The currency graphs you see are just the results of what is happening. There could be a huge announcement by a central bank or financial news that causes the currencies to go erratic. If you trade before these, you’re just gambling away your money.

The Forex Trading Machine is an easy to follow automated trading machine. It’s much different than others. All automated traders are built on a “blackbox”. This means you see what goes in and what comes out, but never what is going on inside. The creator of the Forex Trading Machine decided to be different and share two books on all the strategies and techniques used by the software.