The Price/Earnings to Growth (PEG) Value Ratio

The PEG (Price/Earnings to Growth) ratio is a tool that can help investors find undervalued stocks. It's not as well known as its "cousins," the P/E and P/B ratios, but is just as valuable. When used in conjunction with other ratios, it provides investors a perspective of what the market thinks of a stock's growth potential relative to Earnings per Share (EPS) growth. The PEG ratio compares a stock's Price/Earnings (P/E) ratio and its expected Earnings per Share (EPS) growth rate. If the PEG ratio is equal to 1, it means that the market is pricing the stock to fully reflect the stock's EPS growth. Which is "normal," in theory, because the P/E...

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No Load Mutual Funds or Exchange Traded Funds (ETFs) ?

If you are fed up with early redemption charges and ever increasing mutual fund management fees on top of bad-performing fund managers, read on. There is a quiet revolution going on in the no-load mutual fund industry and you, the individual investor, may benefit from it greatly. I am referring to Exchange Traded Funds (ETFs), which have been around for years, but have grown tremendously since their inception. There are currently over 100 choices with around $10 billion in assets. In a nutshell, an ETF is a specific kind of no-load mutual fund that you might consider to be a basket of stocks. ETFs are diversified like mutual funds, only they...

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The Best Investment!

"I can get no remedy against this consumption of the purse: borrowing only lingers and lingers it out, but the disease is incurable."Shakespeare, William (1564 - 1616) How thick is your billfold these days?Is it full of cash or credit cards? One of the critical keys to investing is only to use money that is free of other obligations. The quick way to increase the power of your money is common sense: Pay for everything in cash and don't incur any debt! That's easily said if you have a high income. But not everyone has that luxury, and even those of you who do, find it hard to resist the temptation to borrow. Formulate a debt reduction plan today...

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The Charles Dow - Stock Market Theory

The Dow Theory is certainly the most celebrated, complicated, and least-understood interpretation of market action, probably because neither Charles Dow, who founded the Dow Jones Company, nor any of his various disciples has ever defined the theory precisely. In essence, the Dow theorists hold that there is a primary movement in the market at all times -- a kind of basic tidal action. Then there is a secondary movement, which might be likened to waves. And finally, there are the ripples on the surface that represent the daily movements of the prices. The Dow theorists contend that it is possible to tell when either the primary or secondary...

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Compound Interest ... The 8th Wonder and Albert Einstein

The best long-term investor's friend is called compounding, and it can certainly make you rich! I never cease to be amazed by the power of compounding in an investment program! Indeed, seeing literally pocket change become millions over time is truly a remarkable thing! Here's the story of an ancient Athenian merchant entrusted with a large sum of money to establish a trust fund to run for 2,000 years. This Athenian pocketed all the money except a single Drachma, which he invested in Athenian government bonds paying 3 percent compounded annually. He didn't live long enough to see the results, but after 2,000 years that Drachmae wound up being...

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Neural Networks Learn Forex Trading Strategies

The latest buzz in the Forex world is neural networks, a term taken from the artificial intelligence community. In technical terms, neural networks are data analysis methods that consist of a large number of processing units that are linked together by weighted probabilities. In more simple terms, neural networks are a model loosely resembling the way that the human brain works and learns. For several decades now, those in the artificial intelligence community have used the neural network model in creating computers that 'think' and 'learn' based on the outcomes of their actions. Unlike the traditional data structure, neural networks take in multiple streams of data and output one result. If there's a way to quantify the data, there's a way to add it to the factors being considered in making...

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Forex and Some Important Facts about Bollinger Bands

Forex trading is nowadays one of the most looked after occupation for many persons of all ages around the world. This is due to its great advantages over other capital markets and its high profitability potential; among these advantages you will find that is extremely easy to access a trading platform from the best forex broker firms thanks to the internet; and also you will notice that Forex has a high liquidity along with a high leverage. But having a good broker firm and great trading platform is only one part of what you need in order to make your forex trading career a winning and profitable one. You need to have the right knowledge and techniques in order to forecast with the best accuracy what the market will do next. One of the techniques used to predict the Forex market behavior is...

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Trading Forex With Pivot Points

Pivot Point Trading are used today by Forex Traders and are calculated on the previous days move and trades are entered when the market hits a support or resistance line of the pivot point providing your OB/OS indicator is in agreement. All the support and resist lines are put in place 1st thing in the morning. then you wait for the market to hit those entry Points. Contrary to what some might believe, trading Forex with Pivot Points are probably the most popular method used in trading the financial markets today. Long before the invention of computers this was the method used by the traders in the pits to determine hidden support and resistance levels. The Pivot Point is still used by experienced floor traders and technical analysts alike. The major advantage now is that we now have computers...

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How To Read Forex Charts: 5 Things You Must Know

Learning the basic skills in forex, such as how to read forex charts, is really important. This is because once you have this vital skill under your belt, it will be a lot easier and quicker when the time comes for you to learn and practice an actual forex trading system. By the time you finish this article, you'll learn how to read forex charts, as well as know the pitfalls that can occur when reading them, especially if you haven't traded forex before. Firstly, let's revise the basics of a forex trading as this relates directly to how to reade forex charts. Each currency pair is always quoted in the same way. For example, the EURUSD currency pair is always as EURUSD, with the EUR being the base currency, and the USD being the terms currency, not the other way round with the USD first. Therefore...

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What's the .382 Fibonacci Ratio in Forex Trading?

It was mentioned in a past article that Fibonacci forex trading is the basis of many forex trading systems used around the world by profitable forex traders. These systems are all based on the famous Fibonacci ratios (.236, .50, .382, .618, etc.) and each of them can specialize in a particular ratio along with other minor indicators in order to make the pinpointing of the entry and exit levels as accurate and profitable as possible. One of the widely used Fibonacci ratios is the 0.382 ratio. As it can be easily seen on any forex chart, currency prices are continually changing and they follow an oscillatory pattern with peaks and valleys. The limit of the peak is usually called a resistance level while the valley is usually called a support. In order to find the 0.382 ratio level what you do...

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