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Friday, November 20, 2009

Make Large Profits With A Commodities Benchmark

By Selwyn Petrov

Commodities benchmarks are used to help investors and traders better understand how they are doing compared to the rest of the market. When people know how they are doing compared to the market, they know if they are allocating their money to the right places.

When you use this method to measure your investments, you will want to make sure to use comparable indexes that are relevant to your investment. You do not want to compare your cocoa or coffee investments to nickel or lumber trades, for example. This would not accurately depict how you are doing with your investments. The risk is often higher if you stay in one sector such as lumber though the returns are often higher as well. If you compared your rubber or orange juice exposure to energy commodities, then you would be misled on how well your investments are doing.

When you are trading crude oil, you will want to compare your investments to an energy index. If you are trading in a soft commodity, then you will want to compare your trades with an index weighted to soft commodities. You will also want to compare your investments to investments that are similar in size to your investment. So an ETF in gold should be compared with a precious metals commodity index while an ETF which follows agriculturals like wheat should shadow an index weighted to agriculture.

Another large index used to compare investments is the DJ AIG Commodities Index. This is a good indicator of how the major world commodities are performing. You will know if you are invested in a commodity that is moving in the same direction as the whole economy. When you compare your commodities to this index, you will be able to know how you are doing compared to the most traded commodities in the world. This can always be helpful in guiding you towards the right investment.

The Dow Jones Industrial Average is also a great way to compare your investments to the entire market. This index is formed of many large companies that go up and down with the overall movements of the market. This is a great way to compare your investment to the market also, because if you are doing as good as this market, you are doing as good as the average investment available anywhere in the market.

When you are looking for a commodities benchmark, you want to find an index that is relevant to your investments. An index that is full of relevant investments will increase or decrease in a similar way to your investment's value. This helps you understand how your investment is moving proportionately to the industry you are involved in. By performing these comparisons, you will also understand the price movements of your investments better.

If you are investing in commodities, then you will want to compare your investments to relevant indexes tracking commodities. You may also want to base your investments on other irrelevant indexes, in order to know how you are doing compared to the market as a whole.

The best option for a commodities benchmark is a commodities index. By finding an index that tracks commodity values, you will be seeing how the market of commodities is moving relative to your own investments. This is a great way to measure how successful your commodities investments are overall. When using these benchmarks, your goal is aimed at beating the market. You always want your investments exceed the profits of the other options available to you in the open market. - 23196

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Selling Real Estate Using Twitter

By Jerome Pennix

At every real estate conventions, boot camps, or seminars the topic of marketing comes up. Someone will mention Facebook (that's a whole different story) which is always closely followed by a comment about Twitter. So... let's evaluate is Twitter worth it? If it IS worth it, how can you best use it for great results? First, lets look at just what Twitter is and what it can do for your marketing efforts.

Twitter.com is a website that anyone can make a profile and become a "micro-blogger". Twitter is like an original blog (aka web-log) in that it allows you say anything you desire to say to anyone and everyone that will see it - with a single exception. Twitter only lets you to express yourself--0 letters at a time. So it's a little similar to using you cell phone to send the world a text message. When you identify a profile of a person whose Twitter posts (called "tweets") you can "follow" that person - whenever they put up something new, it will show up on your Twitter home screen. If someone locates YOUR profile and follows YOU, then you will be notified that that person is "following" you. Now that you know the basics, let's look at making this a useful and PROFITABLE avenue for you.

Because the old saying "Out of sight, out of mind" is absolutely true, you'll need to remain active with your "tweeting". You should be posting at a minimum, once a day. Find something to "tweet" specific to real estate - something that your "followers" will find useful. If you just start sending info about homes you have for sale, it probably will not get you as far as you planned. Think about it this way - when was the last time you opened and really read an email from someone attempting to sell you something?

If you give your followers something they can use or something they find interesting (even if it ISN'T about real estate) then you'll have a chance to keep their attention. When you gain their trust, they'll be more open to consider what you have to say when you want to offer them something you've listed.

Twitter, like other social networking sites, is a good way to connect with others - just keep in the forefront of your mind that they're people and want to be acknowledge like people. They aren't money makers. So connect when a person follows you, send them a short personal message letting them know you appreciate it.

Remember that being upfront and transparent with people and giving thoughtful data is what Twitter is all about - the money will come if you treat people like people and post often so that your Twitter marketing is consistently on the radar! The more you do that, the larger your following will be - and the larger your following, the greater your chances of communicating with someone who needs to make a deal - which, of course, means a better chance for you to profit! - 23196

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Exchange Traded Funds And ETF Trading

By Patrick Deaton

Exchange traded funds and ETF trading activities and how to use them can make for excellent investment vehicles for anyone looking at generating good rates of return on investments in the exchange traded fund. Basically, an ETF is nothing more than an index fund that tracks one of the big market indexes out there. For example, many track the Standard & Poor's 500.

ETFs can also be trusts. At any rate, they are set up much like a mutual fund is, and they have a solid basket of market securities contained within. They are listed on the stock exchanges and are traded all throughout the trading day, which is sometimes known as intraday trading. Looking at trading activities in an ETF on the trading day basis is a good way to go about making money from one.

Currently, there are over 100 different ETFs on the American Stock Exchange. Most ETFs have a wide range market sectors and indexes that they represent. They are involved in many industries, most stock market indexes, many sectors in individual markets and also represent many international regions. They also may represent a wide range of corporate bond or Treasury indexes.

Those investors who are thinking of participating in ETFs should know that investors will be buying and selling shares based on the collective performance of a particular portfolio which is treated as a single security. The benefits to such trading activity are numerous, including that this combines stock investment liquidity with the stability of investing in index funds.

Any size investor (large institutional or small individual) will readily see the numerous advantages to participation in an exchange traded fund. Small investors normally are participating through a trading system, so keep that in mind. Costs involved in running an ETF are usually much lower and -- as they are not indexed based -- management fees are also very low.

This is particularly attractive, and is made possible because an ETF is not considered to be actively managed on a very close basis. In other words, there are not a lot of movements in the fund that require management to get involved on trades and such. This is supported by the fact that studies reveal that there is no advantage with actively managed funds over these kinds.

ETFs can operate in this way (meaning non-active management) because they tie their net asset value on each trading day to the assets that underlie the fund. This can make an ETF extremely transparent because it tends to replicate the holdings that are contained in the index that the ETF is tied to and which it tracks on a daily and intraday basis.

Most small investors usually trade throughout the day through pricing and trading of security portfolios. ETF trading makes this possible because there aren't any restrictions placed on trading activity, such as restricting trades to once a day, at the end of the day. Many small investors using a trading system, though, do this. Additionally, ETF pricing is also available throughout the day, making it particularly attractive. - 23196

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A Day Trading Career

By Terry Connor

There have been a ton of examples of people who started out day trading as a side income to becoming a day trader as there career mode. Day trading does have its risk but it can be very lucrative at the same time. Lets look at the Marty Forex scenario to see how a day trader makes not only profit but a living as a professional day trader.

At the start of the work day Marty Forex decides to purchase a 100 shares of Forex-Trading Inc for by watching the trends Marty feels confident that this particular stock is on the rise. Turns out Marty is right as Forex-Trading Inc jumps up a full point before it is even lunch time. Marty decides to sell off his stocks in Forex-Trading before the end of the day and by doing so Marty is successful and makes a profit.

If the amount of profit that Marty Forex makes for this trade is $100 (obviously an amount simply for this scenario) he would most likely use half as account cover capital, and half as re investment. Of course, no one in the day trading game is doing any investing with $50; again, this figure is simply for illustration. If he makes five similar trades for the business days, with equally similar results, he will have made $500 of profit. Keeping with that theme, trading five days a week would net Marty $2500 of profit per week. (Commissions, overhead costs and other business expenses, realistically bringing the amount down to $2000 or less would reduce this figure.) This is still a nice bit of profit, considering that this is only one stock's trade performance. Marty Trader probably handles quite a few more trades than that in a day's time.

Now unfortunately not every trade is going to result in a profit so lets look at a scenario where Marty Forex handles ten stock trades per day with the same $100 profit. We will say that Marty is successful on 30% of his trades so out of the ten trades Marty makes $300 profit. Same scenario for a typical week will see Marty bringing home around $1500 before expenses kick in. Hopefully with more education on determining what a stock is going to do next Marty can increase his success percentage which increases his profits.

Day trading is a skill and like any skill it is important that you get as much education and information before you begin to jump into the world of stock trading. For some who have that sixth sense that can pick the winner from the loser day trading can turn into a rewarding career. - 23196

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More Than Just A Vacation - Houston Investment Areas

By Duke Morgan

Houston has seen unprecedented growth in its property market in recent times. Surrounded by diverse suburban localities that range from glitzy and glamorous neighborhoods to casual college-centric localities, Houston has arrived on the American real estate scene. People who come to Houston get there dream home, whether it is a large expensive villa or the traditional family style home.

Kingwood

Kingwood was planned by the Friendswood Development firm and the fruits of the brilliant work done are apparent today as Kingwood surges to become one of the fastest developing suburbs of Houston. The "Greenbelts" is a leisure park in Kingwood which is quite popular amongst the citizens of Kingwood. A lot of national retailers have opened their outlets in Kingston to cash in on the booming market. This has further increased the inflow of residents to Kingwood.

The house prices have also gone up due to increasing demand and today they stand a touch above the national average. Kingston also boasts of excellent educational institutions all of which have been awarded the highest recognition by the Texas Education Agency.

Clear Lake

Clear Lake owes its development to the expanding aerospace industry of the 60s. It has been a major contributor to the Houston economy since then. Clear Lake is also popularly known as the gateway to bustling Kemah Boardwalk and Galveston Bay areas.

Kemah Boardwalk is thronged by city dwellers that come here to have a relaxed picnic. Populated with a wide variety of games like skee ball etc., it never fails to give its money worth to people on a sunny day. The boardwalk also has arrangements for shopping and eateries to suit the needs of people.

Clear Lake is also famous for its educational competency; the Clear Creek Independent School District has been honored as a "Recognized" school district for six consecutive years.

Sugarland

Initially named because of being the home base of Imperial Sugar, Sugar Land is now the fastest growing of Texas' 45 largest cities. In an exclusive feature CNN/Money pointed out that more than 2,300 restaurants are within a 30-mile radius of Sugar Land, as well as 80 theatrical troupes and 50 public libraries. Sugar Land offers eight outdoor parks. As the city continues to grow and expand from its current base of almost 70,000 residents, there is sure to be an increase in outdoor activity space, a trademark of most Space City suburbs.

Sugarland also boasts of a terrific schooling system that was recently named amongst one of the 100 best school districts in America in which to obtain a fine arts education. - 23196

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