California Tax Free Municipal Bonds

By Samuel James

Stock market investments are considered to be very risky investments. The other alternatives that are there are the bonds.

A lot of states issue bonds for example the state of California issues the California Tax Free Municipal bonds and these are issued and secured by the State government of California. That means in the event of anything happening money will be paid by the State of California to you.

Muni bonds offer the benefit that it will be easy to get the safety into your portfolio. California government is under the stress because of huge deficits so be careful while investing. Overall the belief is that these are the one of very safe instruments for investment. There are a lot of states that offer these bonds apart from California.

Always get your states municipal bonds as then they are tax free. This is because of the reason that these bonds are no longer tax free for residents of other states. That will mean that the State tax will have to be paid though the federal tax is not there.

Always spread your risk and that is good for your investments. Diversify so that some part is in municipal bonds. For higher gains you should invest some part in the stock market and you should have some part on the savings account.

More diversification means better money making opportunities. The diversification essentially means that you are spreading your risks. In case the stock market does not do well then you will at least have the other avenues where you can hope of getting stable returns. These bonds may not have sky rocketing returns like the stock market but the earning from these will be stable and very predictable. So invest in bonds for stability and safety. - 23196

About the Author:

The author suggests diversification using California tax free municipal bonds and independent broker dealers

Forex Trading System: Managing Risks And Maximizing Profits

By Mark Thomas

The internet has rapidly changed every aspect of communication. Information flows freely and interaction happens at instant. Along with the increase of internet usage, so does the rise of trade. The internet has paved the way for the further flourishing of the forex trading system. This system allows one to purchase foreign currency and invest on it. Since the internet has evolved rapidly, more and more companies are willing to gain larger audiences by transcending national borders. Thus, forex trading is also at a rise. With the right know-how, your investment can come back double, triple or even more.

The money required in investing on a forex trading system ranges from 5 dollars to as much as 500 dollars. Also, the rules of each forex trading system vary from one another. For example, each of them has different terms on how long you should invest on them. If you are going to invest your money, you must read the terms and conditions of each company. By having the right information, the right knowledge, and the right decisions, one can develop a strategy in order to create a profitable trading system which can double or triple your investments in no time.

However, investing money always comes with risks. The market is place where one can risk big and make big. On the other hand, these risks can also lead to big losses. Risks are complementary to being a forex trader. One of the top skills for a trader is risk management. This involves knowing which activities you must partake in and which should not. Thus controlling losses is essential. Managing your losses will make you become more flexible and open up more opportunities. By knowing which activities are profitable, and which could lead you to losses, you can maximize you earnings.

Investing right means earning large money Profits can only be achieved by having the right information, making the right decisions and at the same time, managing risks in order to control losses. Only with this, a profitable trading system can be achieved. Also, a trader must have the necessary tools to ease up his work. These are the must-haves of any trader.

Trade on Track is a forex trading software that helps you log, analyze, and calculate the trading performance of the companies that you have invested you money in. By giving up to date announcements and warnings, managing risk is much more convenient. This makes the life of a trader much easier. What is interesting about Trade on Track is that it has two versions out there, the lite version which is free and the Pro version that is paid monthly.

The internet has made many things possible that used to be a tedious process of risk management. Data can now be stored securely as well as gathering information at top speeds. Forex trading software has made trading life more convenient than ever before. - 23196

About the Author:

Are you interested in Forex Trading? Want to improve your Business? Then, use the forex tool which avoids mistakes, increases your confidence and accuracy. Just visit the website http://www.tradeontrack.com, get the forex tool and earn beyond your expectations.

Discover The Truth About Out Of The Money Covered Call Option Writing!

By Marc Abrams

Many websites and e-books on investment training strategies promise you incredible things. Writing Covered call options on stock is one of the most popular trading strategies taught today. These websites promise that you can earn up to 10% monthly returns using that very strategy. Sound good? Read on.

Under the right circumstances, impressive monthly returns can be achieved by selling out-of-the-money covered call options. This strategy has been successfully used by me. However, it is not without its disadvantages. The public has not been properly educated by the website and e-book marketers. This strategy is marketed as having low risk and being conservative. They leave you holding the bag when it all goes wrong.

When the stock market is rising in value selling out of the money covered calls works well. Additionally, when the stock market is neutral (not going up or down by any meaningful amount), this strategy also works well. Please tell me when the last time was that the stock market remained neutral for any length of time?

We are currently in the midst of an extremely volatile market. We have recently seen swings in the Dow as much as 200 points in either direction on any given day. Hardly a profitable market for an out-of-the-money covered call writer. Once that stock you are holding starts to decline, so do your profits. I can assure you that profits can evaporate very quickly. I have seen stocks fall from $10 per share to $1 per share over night! There is never enough premium on an option sale to cover that kind of decline.

The key to out-of-the-money covered call writing is to select stocks that will get called. Too many advocates of this strategy do not want the stock to get called. They want you to keep the stock so you can sell a covered call option on it the next month. This is a flawed strategy. You need to select stocks that are trending up in value, hence, a rising market. Those are the stocks that will maximize your profit. If the stock gets called, I know I ended up making my maximum anticipated return.

What if the stock shoots way up in value? If the stock shoots up through the strike price and remains there at expiration, it simply gets called away. Isn't that what you wanted to begin with? You may think you left money on the table by not being able to participate in those gains. If that upsets you then just buy the stock outright and don't sell covered call options on that stock. Instead, let the stock get called away and take your profit for the month. Then look for another stock to buy and sell calls on for the next month.

Remember, selling out-of-the-money covered calls can provide an excellent source if income in a rising stock market. However, the stock market we find ourselves in today is less than ideal for this strategy. There are, however, other strategies that will offer significant protection in a volatile or declining stock market. - 23196

About the Author:

Marc Abrams Is A Certified Public Accountant With Over 15 Years of Financial And Investing Experience. Visit Marc's Website at http://www.rebuildingmyfuture.com To Learn More About Writing Covered Calls In Today's Stock Market

Trade Dow Futures (Part II)

By Ahmad Hassam

As a percentage of the total number of futures contracts traded, stock-index futures are by far the largest category of futures contracts traded. That dominance clearly speaks of the major role that stock-index futures play in risk management for the entire stock market. Stock index futures like the Dow Futures are traded for speculation as well as hedging purposes.

There are many advantages of trading stock index futures like the Dow Futures. Stock index futures like the Dow futures are a better option than trading individual stocks. Some of these advantages are gains in the futures markets are taxed at a lower rate than the stock market capital gains.

Globex is a 24 hour electronic trading system for a wide variety of futures contract. If something happens on the stock market overnight when it is closed and you want to hedge your risk, you can trade Dow Futures on Globex. Many futures brokerages offer lower commission rates as compared to stocks.

When you trade stock index futures like the Dow Futures, you are betting on the direction of the contract value, in this case DJIA and not on the individual stocks that make up the index.

In a sense by focusing on the value and the general trend of the stocks as a group, you are blocking out a good deal of the noise that is often associated with the daily gyrations in the prices of the individual stocks.

Aside from hedging, you can simply speculate with the futures contract like the Dow Futures just by using technical and fundamental analysis. Stock index futures like the Dow Futures are guaranteed to move in response to the economic indicators. You can setup positions with both futures and options as you wait for the news to hit the wire.

For the past many years, the monthly employment report which is issued the first Friday of every month at 8:30 AM EST has been an excellent mover for stock index futures like the Dow Futures.

You don't need to trade every major index contract in the world to be successful; you just need to find one or two with which you're comfortable -the ones that enable you to implement your strategies.

The better off you are, the more you know about a particular type of a contract. So the best way to trade futures contracts is to become a specialist in one type of the contract like the Dow Futures or the S&P 500 Futures or NASDAQ-100 Futures.

You can use your knowledge of technical analysis to figure out how many days the Dow Futures contract tends to spend rising or falling using Bollinger Bands or Moving Averages. You can get an idea when the Dow Futures contract is likely to turn around. So by becoming a specialist in trading Dow Futures you can make a lot of profit daily for the daily movements in DJIA. This way you can become a Dow Futures swing trader. Every time profiting from a turn in the DJIA! - 23196

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Trade Dow Futures. Learn Swing Trading!

Investor Visas; How to be Eligible

By Sam McDougall Turner

Relocation to the United States of America can be a very difficult process. However there are several ways that you can vastly improve your chances of being granted a visa. One of the most common of these is to opt for an investor visa. There are two basis types, temporary and permanent.

The temporary investor visa is called the E-2.

The E-2 visa is so popular because it can be renewed or extended as many times as you like so long as the conditions of your visa being granted in the first place are still being met, such as the investment that qualifies you for an investor visa. For this reason, the E-2 visa has become known as the temporary green card.

The purpose of this visa is to allow foreign people who have invested considerable amounts in the US to relocate there to further develop and run the business or businesses that they have invested in.

You may fit the criteria for this visa if you are the investor in a foreign business, or are a vital employee such as a manager or executive, and if you and the large shareholders in the business are nationals of countries that have a long standing Treaty of Trade, Friendship and Commerce with the United States of America.

If you are an executive or a member of corporate personnel, then you must be a national of the same country as the corporation to qualify. An investment in the USA must have either already been made or that the investment is in progress. So if you posses substantial financial assets, then you could be entitled to the E-2 visa.

In short, the E-2 visa is most suited to those who are looking to invest a considerable sum of money in order to purchase all or part of an existing company, or to set up a new company. As the investor is expected to take an active role in the direction and management of the business, the E-2 visa is not suitable for silent investors.

Because investing in a US business and getting a visa is so uniquely complex, in order to ensure that your investment qualifies you for an E-2 visa, it is advised that you should seek competent, professional legal advice before investing. In order to get the best advice, you should contact a recommended business broker that has knowledge and experience in the criteria needed in an investment to make you eligible for an E-2 visa. - 23196

About the Author:

When you have decided to invest in a US business, our law firm will be able to assist you in the legal process and complex and lengthy paperwork involved in applying for an E-2 investor visa. Go to www.visas4america.com for advice on applying for an investor visa.