Trading Commodities, Bonds & ETF’s
January 1, 2001
A commodity or "futures" contract is an agreement between two people. The "seller" of a futures contract agrees to deliver a specific item to the "buyer" of the contract for a certain price on a fixed date in the future. The buyer of a futures contract agrees to take delivery of the same item under the same terms. The buyer of a futures contract is said to be "long" the market. The "seller" of a futures contract is said to be "short" the market.
Futures contracts are essentially "paper transactions" in that they do not involve the purchase and sale of the actual investment instruments themselves. They are contracts for delivery at a specified future date. Because no delivery takes place prior to a specified period, no money actually changes hands. Consequently, the buyer of a futures contract does not have to pay money for goods received, and the seller of a contract does not receive any money for them.
But as with any investment vehicle, the key question is not how exciting or popular they are… but whether you should incorporate them into your individual investment strategy. And that depends on your goals and preferences.
Delving into the topic of Exchange Traded Funds (ETFs)… The first major benefit of an Exchange Traded Fund is that it’s a fund that tracks an index or sector, but trades like a stock on the major exchanges. So this immediately gives you the best of both the stock and mutual fund characteristics. Other advantages include flexibility, low cost, transaction ease, and tranparency just to name a few…
Commodities, Bonds & ETF Articles on Smart Profits Report:
Futures Commodities: How To Invest In The Volatile Commodities Market
The Gold Market: Supply-Demand Issues Set To Send Gold Prices Higher
Global Agriculture: Key Factors That Could Spark An Agri-Business Investing Boom
Investing in Commodities: 4 Advantages Why Commodity Investing is Better Than Trading Stocks
Corn Commodity: Cashing In With Sales Up 170% On The Government’s Best-Laid Ethanol Plan
Commodities: How to Create Your Own ‘Mini Hedge Fund’
Exchange Traded Fund Investments: Four Key Advantages Of Exchange-Traded Funds
The Best Commodities Website on the Internet
Options On ETFs: Increased Safety and Profit Potential
Commodities Trading: Looking For Profits Amid the Commodities Collapse
A Bond Play: Now, Something Completely Different
EMinis & ETFs: "Trade" E-Minis With Less Risk Using ETFs
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Ethanol & Alternative Energy
January 1, 2001
Far from being an energy panacea, ethanol is merely a politically-correct Band-Aid. A sign of hope in a country that’s scared to death of paying $80 to fill up the family SUV for the foreseeable future.
And when voters get scared, politicians leap into action. Unfortunately, fast government action almost always results in irrational action. And what could be more irrational than stuffing a perfectly good ear of corn into your gas tank?
But is help on the way? By now, you might have heard about how ethanol could change the future of our energy situation. It’s something the government is promoting heavily, for several reasons:
- It makes the U.S. a little less dependent on Middle East oil and inches us closer to energy self-reliance.
- It’s less polluting than gasoline - not by much, but every little but helps.
- The technology to run cars on ethanol already exists.
Ethanol & Alternative Energy Articles on Smart Profits Report:
Ethanol Fuel: How To Combat Rising Food Prices Due To Ethanol’s Costly Production
Alternative Energy Sources: How To Profit From The World’s Carbon Dioxide Dilemma
Renewable Energy Resources: How To Profit From Rising Oil Prices & A New Boom In Renewable Fuels
Ethanol Investments: Two Ways To Profit From the Shift Towards Ethanol
Ethanol Investing: Part 1 of The Smart Profits Report Ethanol Forum
Ethanol Investing, Part 2: The Smart Profits Report Ethanol Forum
Ethanol’s Government Intervention: Why the "High-Growth" Ethanol Business Matters to Investors
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Global Markets Investing
January 1, 2001
Earth is the third planet from the Sun and the largest of the terrestrial planets. It is the only planet known to have liquid water on the surface and the only place in the universe found to harbor life so far.
Current projections indicate that the world’s human population will reach seven billion in 2013 and 9.1 billion in 2050. Most of the growth is expected to take place in developing nations. And where there are developing nations, there are developing global markets to invest in…
Global Market Investing Articles on Smart Profits Report:
Israel’s Emerging Market: U.S. Markets Deflate As The Tel Aviv Stock Exchange Rises 254% Since 2002
The Indian Rupee: The One Trend That Could Derail The Tech Titans
The Economy of India: GDP Growth Is Exploding And Stocks Are Surging… Is It Time To Bet On India?
Emerging Markets: Four Ways To Cash In On The "Made In China" Debacle
The Bank of England: How To Profit From The Credit Crunch And Subprime Woes
Made In China: How To Profit From China’s Tarnished Toys & Outdated Infrastructure
The Global Economy: U.S. Sub-Prime Mortgage Meltdown Affecting World Markets
The British Pound: A Dose of Inflation Makes The U.S. Dollar’s Pain The British Pound’s Gain
Global Investing: Legendary Investor Predicts Triple Bubble… Here’s Four Ways To Beat It
Global Markets Investing: Get 300% More Bang For Your Investment Dollar And Diversify Your Portfolio
The China Stock Market: Shanghai Selloff Triggers Global Fallout… But The Warning Signs Were Already There
The Best Emerging Market of the 21st Century
What’s Happening in the Global Markets: The Global "Ripple’s" Headed Our Way
Emerging Markets of India: Two Plays In India… With Caution
Emerging Markets of China: Forget the Great Wall of China - Let’s Go Shopping
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Crude Oil Investing
January 1, 2001
Profiting from crude oil is big news. But crude oil hasn’t always been the center of attention. Americans used to take cheap oil for granted. Did you know that there are over 3,000 products made from crude oil including: gasoline, ink, crayons, bubble gum, dishwashing liquids, deodorant, eyeglasses, records, tires, ammonia, and heart valves.
All crude oil is not the same. Crude oil is called "sweet" when it contains only a small amount of sulphur and "sour" if it contains a lot of sulphur.
World crude oil reserves are estimated at more than one trillion barrels. The Members of OPEC currently produce around 28 million barrels per day of oil, or some 40 per cent of the world total output, which stands at about 86 million barrels per day.
The trouble is, all the inexpensive oil has already been found. What remains is hard-to-get, expensive oil - most of it in unstable nations. In order to make it worthwhile for oil companies to invest the capital necessary to get at the remaining oil, prices need to rise. This is how capitalism works.
Crude Oil Investing Articles on Smart Profits Report:
Crude Oil Prices: Here’s What An Industry Insider Says Is Next For The Runaway Oil Market
Renewable Energy Resources: How To Profit From Rising Oil Prices & A New Boom In Renewable Fuels
Crude Oil Prices Per Barrel: Former Market Maker Reveals Where Oil Prices May Be Headed
The Price of Oil: Smart Profits Report Oil Forum
Gasoline Prices: How To Win Big In The "Ethanol Decade"
The Future of Crude Oil Prices: How a New Saudi Development is Bearish for Oil Prices
Profiting From Crude Oil: In the Age of "Perpetual Shock"
Crude Oil Trading: A Red Flag for Oil Bears as Technicals Point to a Rebound
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Stock Market Information
January 1, 2001
Once a stock begins dropping, the public starts to get nervous. As a correction unfolds, fear sets in and the retail investor selling intensifies. You can feel the angst of investors, with the amateurs usually the last to sell - often at, or close to, a low.
Once a stock has undergone a substantial decline, it’s very tough to overcome the "fear factor" - even by the professionals. Most of the players are bearish, and the media hates the stock. It’s mentally very tough to buy into this kind of weakness, but if the sentiment and technicals are set up right, buying a stock near its low point, is quite a thrill. And it can set you up to maximize your profits.
Being an optimist when everyone is selling or a pessimist when everyone is buying requires independent thinking and is one of the hardest things a trader can do, although history shows that opposing the crowd can be very profitable.
Stock Market Information Articles on Smart Profits Report:
The Nasdaq 100: As The Nasdaq 100 Hits 6-Year Highs, Can The Other Indexes Follow?
Investing In The Stock Market: You Work Hard For Your Money, Now Make Sure It Works Hard For You
Successful Trading Systems: How To Find The Cornerstones Of Investment Success
10-Year Treasury Bonds: Bond Yields March Higher As Fed Shoots Itself In The Foot
Investing In The Stock Market: Three Factors That Could Buckle The Bulls
Trading System Design: Two Critical "Pre-Trade" Functions That Breed Success
Market Transitions: The Three Main Market Conditions, and a Plan for Each
The Stock Market: A Tale Of Two Bulls… 2000 Vs. 2007
Merger & Acquisition Special Report: Global M&A Just Hit $2.2 Trillion
Lessons From Warren Buffett: Two Ways To Avoid Getting Burned By "Competition-Style" Investing
First Five Days Indicator: 3 Reasons To Forget This Useless Myth & Follow The Average True Range Instead
Merger Mania: 4 Ways To Profit From $60 Billion In 48 Hours
ISE’s IPO: Finding Value In ISE’s Upcoming IPO
International Securities Exchange Options: Two Strategies For Getting Runaway Stocks On The Cheap
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Stock Market Research
January 1, 2001
Some pundits and investors are always salivating. Those who believe that good news on one or both of a couple key looming events will be enough to send the stock market soaring skyward. History has proven over and over again that the stock market’s reaction to good news is highly temperamental, and it often reacts negatively. But why? What causes such unpredictable behavior?
Once again, don’t be surprised when the good news myth gets busted. The anticipation of market-moving news gets gullible investors excited, but the excitement is soon punctured shortly thereafter with lots of disappointment. This pattern repeats itself over and over.
You would do well to heed the words of the legendary speculator Lord Rothschild’s savvy piece of contrarian advice (paraphrased): "Buy on the sound of the war-cannons; sell on the sound of the victory trumpets."
Stock Market Research Articles on Smart Profits Report:
Market Forecast: What Technical Analysis Says About The Markets In 2008
Investment Research: How To Avoid Getting Burned By The Analyst & Banker Tag-Team
The Stock Markets: Using ESP To Chart The Next Move As The Indexes Race To All-Time Highs
Stock Market News: Gold & Oil Reach Upside Targets As The Dollar Falls
The Airline Sector: Airlines Are Headed For The Bermuda Triangle… Time To Bail Out?
Cutting-Edge Technology: The Hottest Trend Of 2007 In Technology & Finance
The Stock Market: Fight The Froth And Battle The Blow-Off… Four Tips To Combat A Toppy Market
Successful Trading Rules: Top Trader Michael Guido Reveals 3 Timeless Trading Rules
Euro vs Dollar: The Three Technical Factors That Point To A Dollar Rebound
Stock Market Direction: This Volatile Market Can Eat You Alive… Here’s What To Do
Stock Market Milestone: Here’s Its Spring Synopsis… A 30-Point Range Holds Key To Next Move
2007 Market Rally: Where The Major Indexes Are Heading
Stock Market Trend: 4 Significant Warning Signs Sending Stock Market Into The Danger Zone
The Stock Market’s Reaction to Good News: Why It’s Best to Sell at the Sound of the Trumpets
Price Shock: How To Respond To Three Types Of Price Shock During Earnings Season
Stock Market Investing: 3 Things Investors Must Master To Improve Their Trading
Forecasting The Market’s Behavior: The "One-Stop" Website For Identifying Sector Trends
Impending Market Downside for August: Volatile Markets Poised for a Pullback
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The U.S. Dollar & Interest Rates
January 1, 2001
The U.S. Dollar & Interest Rates - Site Map
Interest rate decisions sure can be entertaining, can’t they? Of course, that entirely depends on your definition of "entertaining."
While all this Fed chopping might jam enough liquidity into the markets to prop them up for a while, it doesn’t bode well for Americans’ standard of living. And it’s creating a much larger worldwide macroeconomic problem that you need to know about in order to protect your wealth.
Unfortunately, there is no easy fix. A weak united states dollar makes our goods and services cheaper and other countries’ products more expensive. That means capital inflows into the U.S. will increase, our exports will increase, and our imports will slow.
You might not see much effect when you buy a few items from the corner store. But you see it at the gas pump. And if you travel, your purchasing power is greatly diminished.
Yes, the U.S. dollar will turn back up eventually because the currency market runs in cycles. But the bottom line is that it will remain weak as long as we print more money than we save. So we either reign in consumption or we become a true financial melting pot.
U.S. Dollar & Interest Rates Articles on Smart Profits Report:
The Weak U.S. Dollar: How To Combat The U.S. Dollar’s Demise Through Global ETFs
Fed Interest Rates: Depressed Economy, Inflation Fears & A Weak Dollar Present Problems For Fed
The Federal Reserve: Will The Fed’s Latest Trick Bring A Treat For Investors?
Current Interest Rates: The Inflation Numbers Are Out… Here’s The Bullish And Bearish Spin
Federal Reserve Interest Rates: How To Prepare For A Potential Price Shock
D-Day for the U.S. Dollar: As the Fed Gets Back to "Normal," Why August 8, 2006 is Key
The US Dollar’s Next Move: Ignore The Dollar Doom Merchants… The Greenback’s Got Room To Run
The FOMC Speaks: Will the Fed Pause? Does It Really Matter?
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