Secrets Of Warren Buffett

By Mike Swanson

Warren Buffett strategy is known worldwide for being one of the most successful at buying stock picks ever. His philosophy is based on the Benjamin Graham process of value investing. When he took control of Berkshire Hathaway in 1965 he invested $10,000, this investment today is worth nearly $30 million. If he has invested this amount in the S&P 500 it would have grown in value to $500 000!

Looking at numbers like this is it not surprising that the Warren Buffett legend has also grown to mythical proportions. But how did he do it? By value investing, he like many other bargain hunters, looks for product that are undervalued, finds them and invest in their stocks. The majority of other buyers don't see the investment value in these products, but Warren Buffett does.

Undervalued stocks don't normally attract investors, but their low worth is what attracts Warren Buffett. He is able to predict what they will be worth by analyzing the fundamentals of the business, and this is what helps him to predict that the market will eventually favor his stocks.

He is not concerned with facts such as supply and demand. This is normally what controls markets, but Warren Buffett is not looking for short term gains, he is looking for long term, return on investment. The quote that best describes the way he thinks is: "In the short term the market is a popularity contest; in the long term it is a weighing machine".

He looks at stocks in terms of the company's overall potential to make money. Because he seeks long term investment value, capital gain is of no consequence, and this is what makes value investing so different to other methods of investing.

There are a number of questions he asks himself when evaluating the relationship between the price and the level of excellence of a stock. These include but are not limited to the return on equity in terms of performance, whether the business avoids excess debt, if the profit margins are high and are they increasing, how long it has been a public company and whether the company relies on a commodity for its products. - 23196

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Triangle Formations In Currency Trading (Part II)

By Ahmad Hassam

Spotting a descending triangle in a downtrend signals the downside breakout of the support level. The crowd psychology behind the descending triangles is that every time the currency price goes down to a certain level that forms the support there are buyers who want to hold that level stubbornly. They thus push the price up each time the support level is tested.

Thus when the price bounces off the support level, the bears take the opportunity to short again. Sellers are quite anxious to sell as they feel that the currency price should fall over time.

As with an ascending triangle, bulls and bears face a skirmish with both camps not feeling confident of the next market move. Spotting a descending triangle should allow you to be prepared for a downside breakout from the support level especially if it is a down trend.

When the support level is broken many of those long positions which have been placed above that level soon get stopped out. Prices tend to break in the middle or the final third part of the triangle formation.

If the descending triangle is formed during an existing downtrend, it tends to give off even more bearish vibes than if it is formed during an uptrend. But you should always assume the continuation of the prevailing trend unless you have reversal signals in the form of technicals or turn around of the market sentiment.

With that said, prices also sometimes breakout from above the descending triangle successfully in a burst of bullish momentum.

Symmetrical Triangles: There are no horizontal lines in symmetrical triangles. This differentiates it from the ascending and the descending triangles. A symmetrical triangle consists of two converging trendlines that join a series of lower highs and higher lows. A symmetrical triangle has some resemblance to a wedge pattern.

The higher lows are formed when buyers of the currency pair are willing to pay a bit more to get a piece of action. As they are willing to accept less and less of the price over time, the lower highs reflect the mildly bearish conviction of the sellers.

A symmetrical triangle tends to be less reliable as compared to an ascending or descending triangle. There is no way to predict the future breakout direction until one of the symmetrical triangle lines is penetrated. As with the other sloping triangles, breakouts usually occur in the middle or the final third of the triangle.

Decreased volatility can also be detected with the exponential moving averages and the Bollinger bands besides the triangle formation. You should always consider other pieces of information so that you can better pinpoint a higher probability trade set up when trading triangle breakouts. - 23196

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Know These Forex Charts. Learn Forex Trading!

A Forex Trading Course on Major Currencies

By Bart Icles

Everyday, different types of currencies are traded in the foreign exchange market. Some of these currencies are valued more than the others and some are traded more frequently than the rest. If you are new to the forex world, it helps to learn more about the major currencies traded in the forex market so you can have a head start on big trades. A forex trading course on such a topic helps so you can get to know these major currencies a little better.

Perhaps the most popular currency in the foreign exchange trading arena is the US dollar (USD). This currency makes use of the decimal system in determining denominations. Its denominations have lots of nicknames like mills, eagles, and Unions. It is common to see the US dollar paired with other currencies in the trading market and it remains as one of the frequently traded currency in the market. Recently, oil price hikes and the recession in the US mainland has caused fluctuations in the value of US dollar but trends in the past few weeks show that this currency is gradually gaining strength.

Pound sterling or GBP is another popular currency in the forex trading world. It is the official currency of the United Kingdom, as well as the Crown dependencies. This currency is also dubbed as the quid and is sometimes abbreviated as the sterling. In wholesale financial markets, it is typical to hear payments accepted in sterling instead of pound. The term pound is used more to refer to units of this currency - 5 pounds, 10 pounds, and so on. You might also hear traders referring to it as the British pound but this is not considered an official name of the said currency.

The euro (EUR) is one the most powerful currencies in the forex market today. It is the official currency of the Eurozone or Euro Area. Several small European states have also adopted the Euro because of currency unions with member states. These small states include The Vatican, San Marino, and Monaco. Montenegro, Kosovo, and Andorra have also unilaterally adopted the said currency.

Although its value is significantly small when converted to US dollars, the Japanese yen has proven its notable presence in the currency market over the years. Its symbol is JPY and is widely used as a reserve currency after the US Dollar, euro, and pound sterling. Large quantities of yen are often counted in multiples of ten thousand and are often quoted in hundreds or thousands. - 23196

About the Author:

Your forex training starts with a desire to learn and a drive to become a great trader. Using forex trading training takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Dubai Real Estate Market and Investment Possibilities In It

By Mohamed Whitesnow

The real estate property sector in Dubai is showing bright prospects and today it would be quite wise to buy an apartment in Dubai. The value of real estate is increasing gradually in Dubai due to the high tourist footfall and Dubai becoming one of the most important trading and holidaying destination of the world. The rental expectancies of a property in Dubai are high as well, with a steady growth, that is becoming an important reason for many to acquire Dubai properties.

People from all over the world are coming to this wonderful city for holidaying and thus huge hotels and resorts have sprung up. This is the principal reasons for owning real estate in Dubai as it will result in great dividends in terms of rent. Worldwide resort and hotel chains are looking for possibilities in Dubai to grow their business. You can either buy Dubai property and then resell it to these corporations or you can also let it out for rent.

Due to the enormous demand of properties in Dubai, the prices have raised excessively with overpricing of real estate becoming one of the major issues. The real estate sector of Dubai has not been able to solve the problem of lapse of supply in comparison to the enormous demand that is there in the market. Thereupon, before you plan to buy properties in Dubai, do take professional help to understand the correct value and growth prospective of this assets. Without proper professional help, you may end up buying something with an overrated price and low future prospects.

There is a enormous disharmony when it comes to the comparison between the supply of villas and flats in Dubai. Real estate division of Dubai has not been able to meet up to the demand of the number of villas in comparison to the availability of the apartments. The square meeter area and the facilities are the main reason why construction corporations are more interested in high-rise apartment buildings rather than the one floor houses.

If you are looking to invest in houses then you can check out the Jumeirah Beach Residence area in Dubai. It is among the largest residential and commercial projects of the world with a capital of about U.S. $ 1.6 billion. There are a number of hotel towers in this region, which makes investment in Jumeirah Beach Residence one of the smartest investments in properties in Dubai. In terms of Gross Domestic Product, real estate market in Dubai has shown visible improvement in the past few years and it looks like it grows further in the future.

At the moment the amount of money made from leasing is roughly 4 to 11% of the cost of the land. Indeed you can confidently propose that the property market of Dubai has large hopes, you can with proper instruction from experienced and experts in the field of realty in Dubai invest in skyscraper apartments. You can also research on your own the kind of property market about the estate prices by going through various websites and thus decide on your perfect house investment.

You can easily afford an apartment in a Dubai sky-scraper and it is great investment in the properties section of Dubai. If you are able to utilize this property in Dubai properly then you will find that it is very profitable. The rental incomes from the high-rise apartments are quite high and you will be making huge profits from the investment of yours. To understand the value and prospects of type of property you must consult professionals, preferably real estate lawyers and reputed agents to find out the possible benefits and profits that you are going to get form this property in Dubai.

Do ensure that you are buying Dubai property that have future growth potential. It is better to opt for real estate in Dubai, which is in the developing area rather than the developed area. This is because, after development, the prices of the property will surely increase. Moreover, the chances that the property in the developed areas will be overpriced are high. You can easily opt for a real estate in Dubai through a loan. It is risk free because the rent that you are going to receive from your properties in Dubai will pay for the loan as well as give you a huge profit.

And the last thing you should know is how the global economic depression affected the real estate prices in Dubai. As most of you have expected the prices have dropped a lot. So the end of the fourth quarter of 2009 can be the right time for purchasing property in Dubai with a normal price. - 23196

About the Author:

Muhamed Whitesnow is a businessman working for Dubai Bulletin Board a Dubai Classifieds featuring listings of Dubai Property for Sale and for Rent.

Begin Learning to Trade Commodities, Start Your Commodity Trading Plan

By William Davies

Embarking on learning to trade commodities gives the eager future trader a new perspective of what is really possible in commodity trading. It may be a focus on one area such as cotton or orange juice or alternatively taking the broad spectrum of the commodity markets, whichever it is, you will increase your understanding hugely. Just think about the big crude oil trades that happen daily on the New York Mercantile Exchange and how energy security worries and supply shortages affect prices. Have you thought why platinum or nickel prices might fall, and why might cocoa prices shoot up very quickly?

These are exciting markets to study, so finding a top quality commodities training provider is so important. How do you go about learning to trade commodities? What are the key areas you need to master with confidence so that you feel comfortable entering the global commodity markets? Firstly, if you are learning to trade commodities find where to do the commodity trading courses that may be on offer. Either start your commodity education at home using study materials with an online training package or attend a top quality trading school where students cover all aspects of commodities and futures.

Why should you choose to go to a commodity trading school? One advantage is immediate face to face contact with your coaches and you might be able to have one to one coaching. Your tutors may well have real world trading experience under their belts, and may indeed still be active commodity traders. If so you will really want to use their knowledge to the full. Also you can share thoughts with colleagues as you network with them after the course.

While on location you benefit from watching "live" trades executed by your tutors, who can give you feedback about the price action. It is arguably better to understand a technique when you observe it happening in real time, rather than in theory. Here you get a sharp edge to your learning curve in commodity trading, and the coaches can offer you help as you tailor your personal commodities trading plan. The expansion of global trading centres means that you are likely to find a training centre close to your home, such as in Dubai, Singapore, London, Toronto, as well in US cities like Philadelphia, New York, Milwaukee, Dallas and Chicago.

Let's look at the alternative of training courses for commodity trading online. What are the benfefits here? If your commitments mean you cannot get to a centre when the courses run or you live too far from the location, the online version is ideal. When you take up this option you have maximum flexibility and you cover both technical and fundamental aspects of trading.

The online commodities trading packages most likely provide students with e mail support from the tutors along with resources like charts, blogs, forums and video to supplement the main material. Along with CDs and DVDs software may also be downloaded so students can link up with the markets and trade without committing capital.

So you are about to start learning to trade commodities. What will be covered? Broadly speaking, courses focus on fundamental analysis, that is supply and demand for commodities and how these are affected by inflation and in the case of crops, weather patterns. Traders also use technical analysis to compliment the former approach. This includes looking at commodity charts for price action, using techniques like Fibonacci numbers, Japanese candlesticks, moving averages, volume and support and resistance lines.

The course is likely to show you what a commodity futures contract is and how easy it is to trade electronically, how you place your futures order and set your commodity futures margin, as well as understand how hedging in commodity trading works. The whole area of risk management and preservation of capital is also an important aspect of learning, as is the psychology of trading and having a commodity trading plan. All these basic areas will be covered when you start learning to trade commodities. - 23196

About the Author:

The author, William Davies, contributes articles for a website on Commodities Trading, offering an informational resource for those wanting to learn more about markets. Discover how you could begin learning to trade commodities here.