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Stocks & Mutual Fund InformationHow Covered Calls Turned a Trader AroundSidney felt sick as she looked at her latest OptionsXpress trading statement. In just 8 months, she had managed to turn her $120,000 account balance into less than $70,000. Struggling Stocks, Booming Commodities04/28/2005 Using Sector Funds to Construct Diversified Mutual Fund Portfolios?Sector funds are too risky.? ?I doubled my money with Fidelity Select Technology in 12 months!? ?Avoid sector funds.? If all of this sounds confusing, you are not alone. Sector funds are among the more misused and misunderstood investments. So, how should you use sector funds? Why Is The Macedonian Stock Exchange Unsuccessful?The Macedonian Stock Exchange (MSE) is not operating successfully. True, some of the parameters which we use to measure the success of a stock exchange have lately improved in the MSE. For instance, the monthly money volume has increased together with the number of transactions. But this is a far cry from success. Again With the Bubbles?A few years back ? it seems like an eternity today ? the U.S. stock market experienced a severe bubble burst. Legitimate stocks rose beyond reasonable valuations and ideas merely in the germination stage sold for prices far beyond those of real proven companies. When the bubble burst, billions of dollars of shareholder value evaporated. One would have thought we?d learned our lesson. A Personal Stock Market Investment Philosophy∙ Make every investment in the stock market a long-term investment. Commoditizing the worldLet?s discuss commodities; with the latest Enron situation, it is important to understand the way things work. A commodity is anything useful, especially a transportable agricultural product or mining product. This comes from the Latin word ?commoditas? meaning roughly advantage, convenience. So then what is a commodity? Well we consider Gold, Silver, wheat, corn, pork bellies, coffee, etc all commodities. If you look in the back of the WSJ or Investors Business Daily you will see a listing of all the commodities traded on the commodities exchange. Enron made some errors no doubt, but let?s not judge all commodity markets in haste. Mutual Fund Expense LiesWhen purchasing mutual funds we are cautioned to read the prospectus, look at past performance, check out the fund manager?s record and see what their expense ratios have been. Successful Trading ? Establish Your Risk LevelBefore you embark upon a journey of trading stocks or futures, and before you make any trades, you MUST determine and establish your risk level. Traders that fail to do this are usually doomed from the start. The fact is that most trading accounts that go bust are because of the failure to determine at what point the trader will cut their losses and move on to the next trade. Rookie traders are particularly prone to do this. They hang on to losing positions hoping that they will turn around ? only to watch the price drop even further. Too much thought and effort are expended on the buying decision instead of the selling decision. The sad truth is that it?s the selling decision that will determine your fate as a successful trader. And successful trading is dependent on how long and how well you can protect your account against loss until the big profit comes your way. Setting a risk level for your account and for your trades will provide such protection. Successful Trading ? Taking Profits - Part 1So you?re started trading, you bought some positions with your online broker, you?ve set some reasonable stop-losses to protect your account and all of a sudden one of your positions move strongly in your favor ? so what do you do now? This my friend, is probably the hardest situation to deal with in trading the market ? believe it or not. Successful Trading ? Taking Profits - Part 2Suppose your position has made a big move and you moved your stop to your purchase price as recommended. Then let?s say your stock continues to make a big move and now we?re asking again the questions we asked back in the first paragraph. The first profit taking technique you can use is a trailing stop. If you moved your stop to your purchase price, then you?ve already used a trailing stop. Now you can continue to move your stop up as the price rises until the market ?stops? you out of the position. So in essence, what you?re doing is letting the market decide when to take profits. What is a Mutual Fund?Ever wondered what is a mutual fund? A mutual fund is a pool of money run by a professional or group of professionals called the ?investment adviser.? Advantages and Disadvantages of Mutual FundsOutlined below are some of the advantages and disadvantages of mutual funds. Every investment has advantages and disadvantages. But it's important to remember that features that matter to one investor may not be important to you. Whether any particular feature is an advantage for you will depend on your unique circumstances. Different Types of Mutual FundsThis is a guide to the different types of mutual funds. When it comes to investing in mutual funds, investors have literally thousands of choices. Price to Earnings Ratio - P/EAfter finding the price of a particular stock, usually the next number everyone looks at is the P/E ratio.
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