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Friday, December 18, 2009

Beginners Guide To The ETF Trading System

By Patrick Deaton

One thing you have probably noticed is that there is no end of systems, strategies, and methods that are available for ETF traders. Many of these strategies and systems are hybrids or clones of other systems that are effective and have been used for several years. Some traders will advocate an ETF trading system while other do not use any systems or strategies.

Michael Eckhardt and Richard Dennis wanted to answer the question of whether a person could learn ETF trading, and succeed, using a simple system. Their experiment, in'83 proved that anyone can learn to trade successfully if they follow the rules of a system and act on them accordingly.

The Turtle ETF trading system also showed that even though a system is simple. For instance, all systems have a Step 1, Step 2 approach, most people deviate from the system even when they are winning.

Trend following and vector rotation are also a big part of most ETF trading systems. When an effective system is used consistently it normally will show the expected gains. However, if a person is not inclined to follow the rules of the system the results will be variable and usually result in losses.

Since the study was done in '83, there have been many hybrids of the Turtle ETF trading system introduced. As with any system, this one also had some flaws that were discovered over time. However, the people using this system saw average annual returns of up to 80%. Those were the people that followed the rules of the system carefully. The people who didn't follow the rules of the system saw losses or no return.

The system that you select will give you a structured set of rules that, when combined with your strategy, will help you to gain entry when the trend is first starting and exit when the trend starts to move. An important part of a systems effectiveness is using it with the right ETFs.

Most traders are using different systems simultaneously. One ETF trading system may work great with a vector, while the same system will be ineffective for another vector. Studying the effectiveness of a system for the vector you are trading in will allow you to make knowledgeable decisions about which systems and strategies to employ with your ETF trading.

The better you understand a system, the easier it is to set realistic goals. Setting buy and sell limits is the safety net for any system or strategy that is being used for the first time. Knowing the history of the ETF trading system will help to plan an exit strategy based on the trends of the sector that is being followed.

Traders and professional are an invaluable resource. Finding out what ETF trading system works well in a particular sector can save time and money. By discussing the different elements of a system it is possible to learn about, a prepare for, the flaws in that system. Finding the system that most closely matches your personal trading style will also help you to create a winning system and strategy when you begin trading. - 23159

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Credit Card Debt Consolidation Loans: Understanding the Basics

By Layla Vanderbilt

Credit card debt consolidation loans are a great resource for anyone who is trying to get back on their feet. The recent recession does not help the many people who are now suffering under the stress of credit card debt. People who have several credit cards and those who start to see that their debt is getting out of hand should think about getting one of these loans.

A consolidation loan for credit card debt puts all of your debts together into one package. A loaning company pays off these debts for you and creates a loan for you to pay off. By organizing all of your debts into one you are making it easier on yourself by lowering overall interest and monthly payments. As long as the interest set my the lending company is reasonable this is often a good solution. The biggest problem people have when dealing with a credit card debt consolidation loan is that they don?t make their payments on time. there are several penalties for this.

To make sure you don?t end up in debt, you need to ensure that your interest rates stay low. Keep making on time payments to ensure that your rates get changed. Even paying the bill a few days late can cause your interest rates to go up. Credit card consolidation companies are eager to give you lower rates, so long as they can trust that you will make on time payments.

Getting a credit card debt consolidation loan is simple enough if you know where to look. There are many different sources online that can help you. In fact, there are so many companies online that it may make it harder for you to find a dependable business. You can also go to your local bank to look for help. They are usually happy to give you all of the information about credit card debt consolidation loans and help answer any questions you have.

There are some lending companies, particularly credit card debt consolidation companies, that can put you in more debt then you started. They run scams that end up taking your money without paying off the people you owe money to. Sometimes these companies will claim to negotiate better interest rates and lower payments with your creditors, but they never do so. There are legitimate companies out there, but you must do some research first.

By talking to the bank before you go to a private company you are avoiding the many scams that are out there. They can inform you of the best and worst companies in the business to give you somewhere to start. Double check on the internet to be sure that the lending company has no serious complaints and a good reputation with its other customers. - 23159

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The Elements Of A Good ETF Trading System

By Patrick Deaton

Exchange traded funds -- which is what the abbreviation "ETF" stands for -- can be an exciting way to get started on making a good income from trading in the markets. Gaining an appreciation for the ETF trading system and its place in investing activities is necessary in order for any small investor to get started in ETF's. Keep in mind that markets all have risk, and making money is not guaranteed.

Think of exchange traded funds as being similar to mutual funds in how they are set up, but they're also similar to stocks in the way they are bought and sold and traded. The advantage to investing through an exchange traded fund is that the costs involved are generally low and they are very efficient from a tax perspective. It's easy to keep track of all your activity, in other words.

Most of the time, ETF's restrict membership in them, if one wants to call it that, to authorized participants. In this case, "authorized participants" generally means large institutional investors only. ETF's also require trading be done in what is known in the industry as "creation units." These are huge blocks of stocks. No small investor can come close to meeting those requirements.

There are a number of good ETF trading systems that can be found on the Internet. Through a trading system, the small investor who has a small amount of starting capital -- usually in the range of a few thousand dollars -- can sign in and participate in the daily trading activities, usually known as the trading day -- of the fund. The ETF trading system stands in for the institutional investor.

ETF's also operate predictably in that they all will track one or another of the major market indexes and will base their trading activities on that index. For instance, many exchange traded funds track the activities taking place on the Standard & Poor's 500, which is one of the top market indexes in the world. Many times, trading system investors track activity by the minute.

Keep in mind that just about every ETF trading system has certain rules that an investor who wishes to enter into the system must adhere to. Many ETF's share similarities in how they track markets, also. One popular way is through what the industry calls "trend following." It's safe to say that this is probably one of the most popular ways trading systems use to operate.

As far as one of the most common ways these ETF trading systems operate, it's a fair bet to say that following trends in the market is probably the most popular. Investors participating in the trading system can gauge market movements (called trends) and jump in and out, making their money on the margins or on movements. Usually, trading systems require investors to settle by the end of the day.

An ETF trading system can be a great way for people who don't have the time to spend all day buying, selling and trading assets. Usually, the starting capital requirements are very reasonable and there are a great many trading systems out there and tutorials for trading systems that can teach a person how to engage in ETF trading with little to no stress involved. - 23159

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Fundamental Analysis - Basics Of Fundamental Analysis

By Prema Laga

The forex trading trade sees forex traders analyzing the markets through a multitude of ways and techniques. The methods fit in to one of three groups :- Fundamental Analysis, Technical Analysis and a combination of both methods. Though all 3 methods contain their good points, a forex trader that has a stellar comprehension about both technical along with fundamental analysis main beliefs usually is able to obtain a enhanced picture from the forex markets.

Fundamental analysis looks at the major factors for every currency. The aspects that drive currencies are all economic as well as political in nature. This is the primary cause of why the forex markets act in response to economic information for example the non farm payroll, unemployment rate data as well as retail sales figures. Although the economic state concerning a nation really affects the performance of a specific currency, the local political situation also does move currencies with great result. Nationwide disease, natural disasters for example floods and earthquakes as well as political turmoil can all influence a currency and are noticed in fundamental analysis. Therein lies the trouble with fundamental analysis. This type of analysis requires a great comprehension of both micro and macroeconomics in addition to market reaction to properly benefit from it.

Monetary policy decided upon by central banks have a great impact on the forex markets additionally. Response to the forex markets are normally alike regardless of the currency in question.

These factors will ultimately affect the decisions made by the fundamental trader. Important factors such as interest rates in addition to international trade are looked into carefully.

Price can move exceedingly rapidly if the economic data released had a huge impact on the specific currency. Volatile currencies such as the pound/yen can experiences spikes upwards of 100 pips if the data had a big impact.

At times the market undergoes whiplash as massive buying along with subsequent selling take place. A hundred pips up and a hundred pips the other way in a matter of seconds. Especially on volatile pairs like the Pound/Yen.

As this article does not seek to cover the entire issue on a single page, we have elected to cover just the basics of fundamental analysis. Needless to say, reading about how markets respond to economic factors would further sharpen the forex traders skill set in this area. Since economic data always influences the market, it is critical to have an eye on the release schedule.

The staff of i-Forex-Trading.com are undivided in recommending the exceptional economic calendar that is provided by the people over at www.forexfactory.com for free. - 23159

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What Are The Bonuses Of Exchanging A Debit/Credit Card For A Travel Money Card?

By Robert Thomas

There are many people living in the United Kingdom that have postponed trips to the U.S or Europe because of the terrible currency exchange rates; however, you can remedy this situation by using travel money cards, which are not extensively know but provide an appealing variation.

So what are travel money cards, you ask?

A modern entry into the plastic money family, travel money cards let you load up a card at a known exchange rate, which you can spend at your leisure when you arrive at your destination.

You can apply for these cards on the providers' websites online, and the transfer of funds to the card can be made on the phone, the internet, or through SMS services, in some instances. At this time, only the pound, euro, and U.S. dollar can be uploaded onto currency cards.

What's the big difference?

First, you'll find a much better exchange rate with these cards than conventional bureaux de change, located on the High Street. You also receive a fixed rate when you have downloaded money to the card, so you can keep track of how much you're spending each time it's used abroad; while credit and debit cards operate on a real-time exchange rate for each transaction, so it's hard to track your spending.

Is there more?

Not at all. When you use a traditional credit card or debit card to make a purchase abroad, you are typically charged around 2.75% of the transaction as a fee for the foreign currency exchange.

These foreign currency exchange charges also apply in shops and eating establishments; however, a travel money card does not have these associated costs. The rates charged for obtaining cash with a credit or debit card can be very high, but since you have prepaid the amount on your currency card, it is not a loan, and there are no fees for the service.

Anyway... Is there a catch?

Well, since the cards need to have funds transferred to them before you leave, you might find yourself having to save up for your travels, instead of just relying on your credit cards. However, considering these economic climate that's not such a bad thing, is it? Another trivial drawback is the costs required for ATM withdrawals, but the good news is those fees will be a lot less on prepaid cards than on credit or debit cards.

To give you an example, when this is being written, RBS and NatWest have a 2% withdrawal fee, which means a 6 fee for every 300 you take out. The comparison is currency exchange cards fees could be as little as 1.50 for any amount you take out from an ATM.

The real downfall for you is the charge you're charged for using your card to pay for something in a currency other than one fixed - and FX convert fee; using the example of a dollar transaction which is made with a euro currency card, you could be paying a fee of up to 2.75%. However, there are a number of cards that don't charge this fee (see list below).

What about credit cards that can be used without FX costs?

These traditional credit cards are: the Abbey Zero, Nationwide Gold, and the Post Office. The problem that continues (i.e. the last two) is that even though they're a fantastic deal (no foreign exchange fees), they have cash withdrawal costs of 2.5% at the time of this writing (minimum 3), and don't measure up with travel money cards (unless you're opting for credit for your holiday).

In contrast, the card from Abbey has no cash withdrawal costs no foreign exchange conversion fees,costs as always, there's a catch -- it's got the highest interest rate of the three, at 25.9% presently.

Tell me more. So which travel money cards are the best?

The best card available for euros is the FairFX Euro Currency card, because its ATM fee is the least at 1.50; it has no foreign currency exchange fees and has excellent exchange rates. Another euro card, the Indigo Travelcard Euro has just a slightly higher ATM fee of 1.95, but its convert fee is high at 2.75%. There is no convert payment associated with the ICE Travellers CashCard Euro, but the ATM fee is a whopping 3.

FairFX also leads the pack on cards where the Dollar is the main currency. It has no conversion fee, and an ATM cost of only $2. No conversion fee and $3 ATM withdrawals brings the ICE Travellers CashCard Dollar in at a close second. No conversion charge means you can use the cards anywhere.

What's the best travel money card for world travel?

An 'Anywhere Card' has just been lauched by FairFX as a new global travellers card - an ideal card to take everywhere in the world.

One of the great things about the Anywhere Card is that there are no ATM costs, and no loading fees either! A 1.5% transaction fee is the only charge you'll incur - and that's at the time of the transaction, so you don't need to worry about exchange rates. - 23159

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