Know your forex terms Before we delve any deeper into the possibilities that exist in the Forex market, we need to go over some basic Forex market terms. Pip: A pip (percentage in point) or point, is usually the smallest unit of measurement in the Forex market. Most currency pair quotes are carried out four …
Quite simply, FOREX (FOReign EXchange) investing is where you buy or sell one currency against another, say USD (US Dollars) against EUR (Euros). Say an investor feels the US dollar (USD) will go up against the Canadian dollar (CND). He would purchase a lot ($100,000) of USD/CND at say 1.110 thus controlling CND 111,000. As …
Futures investing is a form of trading in which you speculate on whether or not the price of commodities will go up or down. You, the investor, try to buy low and sell high. The trader doesn’t usually actually buy the commodity itself, but rather buys a futures contract. These have various expiration dates which …
Investors who partake in momentum trading are looking for stocks that are moving rapidly, and on high volumes either up or down. Penny stocks or OTC stocks are not normally available for short selling, so these will be on an upward movement. This is short term trading, less than the trading day normally, hours and sometimes even minutes. It is a favorite of day traders.
The goal of the momentum trader is to buy just before the stock is going to make its move and then close the position before the movement ends or when they have hit their desired price point.
This form of trading is not for the weak of heart, study up, learn all you can, and try some practice trading before you jump in.
Happy investing.
Warren Buffett’s company Berkshire Hathaway is going to invest $5 billion into Goldman Sacks. So not everyone needs a government handout. To be fair Mr. Buffett is a shrewd investor and he obviously sees potential in this investment, the man does not give money away.
You can read about it here in the Wall Street Journal