Free Stock Market Investing Tips

While you may not need to worry about stock fraud when trading for your own forex account, any investor or speculator in the financial markets would do well to at least have a basic familiarity of what is involved in a stock fraud.

Unlike foreign currencies which trade in a huge, global marketplace, stocks of small companies can lend themselves to manipulation and fraudulent practices more readily. The primary reason for this has to do with the nature of the stock market and the comparative lack of liquidity which does not usually present an issue in the currency market because of its size and depth.

As a result, stocks tend to be more carefully regulated and monitored by agencies such as the Securities and Exchange Commission which was founded in the aftermath of the huge stock market crash of 1929. A variety of different fraudulent practices involving stocks are listed in the sections below. Read the rest of this entry »

I had a good week in the markets this week. Treasuries were brutalized, while precious metals, especially silver, did well. I have been gradually pushing more portfolio in favor of commodities, especially silver, and betting against treasuries for a couple months now.

I believe politics and government will affect the economy significantly. With our current economic crisis and the people’s belief that the government must “do something,” I think we’ll see a lot of intervention.
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Almost all stock brokers offer margin trading, which is essentially borrowing money from them to purchase more stocks. Many investors do not understand margin trading or whether or not it is good for them.
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In order to understand the meaning of “asset allocation”, one should pay in mind that even the best performing asset differs from one year to the other and cannot be predicted easily. Thus, a safe mood is to invest in more than one asset class. Thus, by diversifying the overall risk (for you will be waiting for a variety of returns), you will have a more justified, fundamental asset allocation. Some critics describe this diversification as the “only free lunch found in the investment game”. Moreover, because of the problems associated with “active management” that have been discovered by academic research, many investors are drawn to the increasingly popular passive investment style.

Thus, to financially plan you asset allocation, you should start searching for the appropriate asset that reflects your abilities and the risks you expect.

Asset Classes Include:

- Bonds

- Cash

- Stocks

- Foreign currency

- Real estate

- Natural resources

- Luxury collectables (wine, cars, art, … etc)

- Precious metals

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