Know about Different Order Types in Markets Forex

Forex is considered to be the leading marketplace globally with transactions of more than 1.8 trillion dollars taking place everyday. Forex prices keep on changing because of factors like world economy and political events that takes place in different countries. Though forex trading is not easy and has lots of intricacies, a person trading for a particular country’s currency, has to study and observe the present scenario and future prospects of that country’s currency.

Forex trading is a wide market place for selling and buying currencies and is also known as over-the-counter trading market. Global money managers, international money brokers, registered dealers, huge multinational corporations, private speculators and traders are the participants who are mostly involved in Forex markets.

A market order type is basically an order which is carried out to sell and buy at the current market price. Those customers, who are using AC Markets’ online currency trading platform, can click on the selling and buying button after completion of a specific deal size. The execution of the order is instantaneous, which means that the customer gets the same price as seen at that point of time.

The process of Forex trading involves certain steps that include:

A customer specification to the dealer about the deal size and currency pairThe dealer basically gives a two-way price, one is the Ask for price and the other is by biddingThe customer may ask for re-quote The dealer then confirms the trade. Usually under normal market circumstances ACMarket dealers respond to market orders within five to ten seconds.

Limit order is also an order which is basically placed to buy and sell at a certain price. This order contains two components, namely duration and price, where the trader specifies the price at which he wants to sell or buy a certain currency price.

Stop orders are also placed in order to buy and sell at a specified amount or price containing same two variables, duration and price. This order is basically used for a limit loss potential on a transaction. An OCO which is an acronym for ‘Order cancels Other’ stands for an order which is a mixture of two limit or stop orders. Two orders having price and duration variables are also placed below and above the current price.

For more information on Forex Currency Exchange, Online Currency Trading, Online Forex Market, Forex, Forex Trading, Online Forex Trading, Online Forex Currency Trading, Silver Trading and Forex Exchanges, visit www.ac-markets.com

About the Author

Atraczion is a well-known author who has been writing for Ac-markets.com, the leading Online Market Forex company based in the Switzerland. Ac-markets.com provides services about Online Forex Market Trading, Forex Currency Trading, silver trading, Online Currency Trading, offering the most competitive, transparent,simple execution to the forex foreign exchange trader.

Sell and Rent Back: Debt Advice for the Retired

As the global economic conditions continue to be very fluid, it is important for people to make sure that they are handling their debt well. Often, people will seek out debt advice in order to improve their situation. There are a number of reasons why it is important to make sure that everyone manages their debt. It is even more critically important for retirees to be able to manage their debt well. There are a number of reasons why it is very important for retirees to manage their debt. One of the main reasons is because a lot of retirees are on a fixed income. In addition, their costs often go up more than the average person. The reason why their costs go up is because of the health care needs that many elderly people have. Those needs could be for medications that they need, or it can be because of some other treatment or surgery. But by taking some simple yet important tips, elderly people can work to manage their debt and make sure that they are able to enjoy their golden years without the stress of crushing debt.

A lot of elderly people have homes which they own outright or are almost paid for. If they are lucky to be in this position, then it certainly gives them options in being able to help manage other part of their debts. They could sell rent back in their home in order to deal with other bills, or they could undertake an equity release arrangement, which are available in some parts of the world. Also, it is important for elderly people to make sure that they have a good handle on the amount of money that is coming in for each month. This is important because a lot of seniors are on fixed incomes. In addition, elderly people can often qualify for discounts on programs or even get some of them free when they reach a certain age. By taking the time to do some research in these areas, that can help elderly people reduce their debts. Receiving good debt advice is very important for every person, but especially so for the seniors of the world.

About the Author

For more information on how you could use the Sell Rent Back scheme or the equity release scheme to gain money from your home, visit the experts at http://www.swiftcapital.co.uk today.

First Time Buyers Advised Against 'Overstretching' Property Budgets

A rising proportion of first-time buyers are looking to purchase a home located near their place of work, it has been suggested.

In research conducted by Alliance & Leicester Mortgages' movingimproving index, just over half (51 per cent) of those consumers looking to get their first foot on the property ladder rate living close to the workplace as the most crucial factor when choosing where to buy a home. An additional 34 per cent of respondents ranked good transport links as a vital feature when opting to purchase a house.

Meanwhile, 28 and 17 per cent respectively saw closeness to friends and family and the proximity of shops and nightlife as important aspects. The desire to live near workplaces was attributed to a need among consumers to reduce as much pressure on their day-to-day finances as possible.

Stephen Leonard, director of mortgages for Alliance & Leicester, said: "Many first-time buyers are obliged to look closely at their priorities and overheads when they move. Clearly choosing the right location is key to long-term happiness in a new home, but buyers should also be careful not to overstretch their budgets and may opt for a short commute to work to help keep costs down".

Findings from the financial services provider also revealed that 40 per cent of those Britons currently renting want to purchase a property but are currently unable to do so. In contrast, 52 per cent of potential first-time buyers currently living at home claim that they are unwilling to move out. With Alliance & Leicester pointing to research from the Office of National Statistics revealing that the average house bought by a typical first-time buyer accounted for 145,970 pounds last year, renters were indicated as having more realistic projections on the value of accommodation.

Consumers looking to a purchase a property while still living with their parents are reported to be prepared to pay 137,796 pounds to make their initial steps on the housing market. However, this figure is some 8,174 pounds below the typical price for a first-time buyer's home. On the other hand, those renting are aiming to spend an average of 152,731 pounds - more than 6,700 pounds above the usual price paid for a property. "It's interesting to see that many still living with their parents are actually looking to spend the least on a property and may well be underestimating the cost of buying their first home, while renters appear to have a more realistic idea about moving and buying expenses", Mr Leonard added.

Last month, findings from the National Housing Federation (NHF) indicated that increasing property prices in rural regions are increasingly unaffordable for young first-time buyers, who are heading towards town and cities in response. According to the NHF, the typical house in the country cost 240,222 pounds last year, in comparison to 196,700 pounds in metropolitan areas. The study also revealed that a consumer living on their own in the country would have to earn around 41,000 pounds a year just to be able to afford secured loans costs. Gina King, head of region for the federation, added that such consumers are "stranded between not being able to afford to buy or rent in these largely expensive markets".

About the Author

Steve Smith writes for 1 Stop Finance Shop, where our visitors have access to all types of finance from payday loans and unsecured tenant loans, to self employed loans for homeowners.

Money Saving Tips

People are always trying to save money, especially with today's economy. No matter what your reason for saving, through this e-book, you will discover ways never considered.

The price of everything has gone up, requiring people to be more conscientious about money. The problem is that by the time the mortgage, car, utilities, and credit cards are paid, there is little money to put aside. Saving money is not that hard, just a matter of learning all the different options and being creative.

In addition to the obvious of putting money into a retirement fund or savings account, there are hundreds of ways to save money. Although some ways of saving may not seem like much, once you add them up at the end of the year, you will see how substantial the savings really are. Keep in mind that saving is more than a single lump sum of money put aside. Saving is something found in your everyday life by the way you live and the choices you make.

Rome was not built in a day and neither will your bank account be. Each penny saved is one more penny than before. If you have the ability to save big, that is great. However, most people are not in that position, which is why this e-book will show you how little savings can add up quickly.

Be encouraged that it is never too late to start saving, regardless of your age. Set your mind that now is the time to start building your future.

1. Holiday Gift GivingThis tip is especially helpful for large families. Although it is fun buying for and receiving from everyone, it can be very expensive. Make an agreement with your family that you will continue to buy for the children but that the adults will go with a name exchange. This way the children are not disappointed and you can spend a little more on one or two people rather than spreading your money thin. For the members that you did not pick to exchange with, bake a loaf of their favorite homemade bread or cookies.

2. ClearanceAlways head straight for the clearance rack where you can find amazing bargains. Sometimes you may have to dig a little to find the right item but the savings will be well-worth your time. Most clearance racks offer variety, current trends, and great value. For example, Bed, Bath & Beyond has a clearance section where you can find all kinds of wonderful household items for a fraction of the original cost.

3. Thrift / Surplus StoresUnfortunately, thrift and surplus stores have been given a bad rap. Many of these stores are filled with hundreds of top quality items. Name brand merchandise is easy to find but just like clearance racks, it takes some time to find. Find a thrift or surplus store close to where you live and then plan spending some time to find those outstanding bargains. One woman in Kansas City, Missouri located such a store about 20 minutes from her home. After shopping through every isle over the period of two hours, she walked out of the store with eight huge garbage bags filled to the brim with designer clothes for her and her children, many with the original tags still attached. She even found a couple of Liz Claiborne suits for herself at $5.99 each and a Dooney & Burke purse normally valued at $225 for $19.95. Her children had an entire season of school clothes and best of all, she paid less than $200.

4. Wrapping Paper and BowsCreate your own wrapping paper, which is not only unique, but also fun. Use plain brown grocery bags and craft-like paints to make your design. After wrapping the gift, let your creative juices flow. For example, using black and yellow craft paint, create a miniature road. Then dipping toy truck tires into red paint roll them along the paper making tire tracks. You can then draw free hand a stop sign, yield sign, or stop light. Next, using a hot glue gun, glue a couple of the miniature trucks to the paper. This is perfect for a young boy. He will be just as thrilled with the wrapping as the actual gift. For a girl, you can simply create miniature bows from existing fabric or lace and glue them on brown paper then free hand draw colorful flowers. Just use your creativity and look around for items you already have on hand to use.

5. ReuseWhen you shop, look for items that can be reused. Rechargeable batteries are a perfect example. Even though the initial purchase may be more than non-rechargeable batteries, there is a definite savings over a long period. Another option would be to purchase a nice artificial Christmas tree. Many of the current artificial trees look amazingly real and with the right lights and ornaments, you can change the look from year to year.

About the Author
To read the rest of this guide, please visit 101 Money Saving Tips

The Easiest Way to Fail Financially

There you are, walking down the store aisle, and you see it. "It" can be anything from a candy bar to a magazine to some tool you've wanted for months. It doesn't cost much, so you go ahead and buy it.

It's called impulse buying, and it's one of the biggest hindrances to your financial wellbeing. While each item may not cost much, impulse buying is one of the primary reasons so many people are in serious debt. Credit cards make impulse buying all too easy. So how can you control the impulse? Here are a few easy steps:

1. Don't go to the store. It's tough to get impulses if you don't subject yourself to the temptation. Of course, you can't avoid stores altogether, but you can limit your trips to only those times when you really need something. This really helped me cut down on impulse buying. I used to stop by a store just to see what was on sale. When I made the decision not to go shopping unless I really needed something, my spending was cut significantly.

2. Make a list -- and stick to it. When you do go to the store, make a list and buy only those things on the list. It's simple. And it works!

3. Take only enough cash to buy exactly what you need. Leave those credit cards at home. If you don't have them, you won't be able to follow-through on any impulses you may have. Taking the right amount of cash will help you stick to your list.

4. Make a rule to delay all unnecessary purchases for at least one day. When you see something you really want, tell yourself you'll think about it and come back later when you know you need it. Well-known financial author Larry Burkett says this made a huge impact on his spending when he started using it. He said in his book Your Finances in Changing Times, "The reason (it made such an impact) was obvious: once I left the store, the impulse passed."

Those people who plan out their spending and follow their plan the closest are the ones who find the most financial success in life. Impulse spending is what happens when you either have no plan or don't follow your plan. And it will set you back every time.

Budgets are a great way to impede impulse buying. But they aren't a sure-fire answer. In fact, if budgets aren't handled properly, they can actually tempt you to spend frivolously, so make sure you use them wisely.

About the Author
Steve Kroening writes for Success magazine and also publishes Wisdom's Edge. You can get Biblical tips on health, finance, relationships, parenting, and success, delivered to your email inbox every week. Simply visit http://www.wisdomsedge.com and sign up for this free e-zine.

How You Can Turn One Dollar Into Eight

If I told you there's a way to turn one dollar into eight and it's practically risk free, would you be interested? Of course you would. Well, there is a way to do it. It's easy. And it is practically risk free.

Here's all you have to do. Hewitt Associates just released a study that shows how investing in your early years can make you wealthy in your retirement. The study says that any dollar you save at the age of 25 will be worth $8 at the age of 65. So if you have $10,000 in the bank at age 25, you will have $80,000 by the time you're 65. All you have to do is leave the money in the bank. It doesn't get much easier than that.

What if you're not 25 anymore? As you age, the returns will be less. Still, every dollar invested at age 35 will be worth $5 at age 65. And if you start at age 45, that dollar will be worth $3.

If you're in your 30s or 40s, please don't let this discourage you. It is far better to start saving now than to just give up completely and not save at all. It's never too late. Why turn down $5 or $3 just because it's not $8? And if your children are grown, show them this information and encourage them to start saving now.

Just as it's never too late to start saving, it's also never too early. If your children are young, every dollar they save now could be worth $10-$12 when they retire. So take the time to teach your children about saving for the future. The book of Proverbs tells us to "Train up a child in the way he should go; even when he is old he will not depart from it" (22:6). Most parents relate this just to spiritual training. Few will extend it to finances. However, training your children to handle finances biblically is one of the best things you can do for them. Start them young and it will be a habit they continue the rest of their life.

And don't forget that one of the best teaching tools is to lead by example. We all should be saving at least 10% of our income. Kids can easily save from 50% to 90%. And the younger they start, the more they'll have in the future.

About the Author
Steve Kroening writes for Success magazine and also publishes Wisdom's Edge. You can get Biblical tips on health, finance, relationships, parenting, and success, delivered to your email inbox every week. Simply visit http://www.wisdomsedge.com and sign up for this free e-zine.

Borrowing To Fund Gambling Is 'Dangerous Spiral Into Debt'

Millions of Britons are borrowing money to go gambling, new figures indicate.

In research carried out by MoneyExpert, some 21 per cent of the money put on various bets and wagers across the country every month is sourced by going into debt or dipping into savings accounts. Overall, 14.3 million adults - about one in three - claim to gamble at least once every month, with an average stake of 21 pounds 37p. Meanwhile, almost one million people - the majority of which are men - spend between 50 and 150 pounds per month having a flutter which in turn could put pressure on their personal finances. Findings from the independent financial comparison website also revealed that 13 per cent of gamblers can only afford to fund their habit by borrowing money, with a further eight per cent reported to be using up their personal savings - which could act as further proof of the potential debt problems being created by Britons. .

Credit cards were the most popular form of borrowing to finance betting, the figures show, funding 1.4 million - or ten per cent - of gamblers. Meanwhile, an estimated 143,531 consumers have used cash from personal loans to fund gaming, with 1.1 million dipping into savings schemes. The study also revealed that two per cent of those putting on bets have run up debts on their overdraft to do so. .

Sean Gardner, chief executive of MoneyExpert, said: "Millions of us enjoy a flutter on the Grand National and play the lottery every week. But borrowing money to fund a habit like gambling is potentially disastrous - it'll inevitably lead you down a dangerous spiral of more and more debt. Borrowing when there is by definition a real risk you'll lose the money is a dangerous game to play - whether you win or lose your creditors will want their money back"..

"Anyone who is betting using a credit card for example should be extremely wary - if you start to miss repayments it'll affect your credit rating. It's very easy to lose track of the money you owe on your credit card, particularly with online gambling"..

He added that as "credit isn't a licence to print money", consumers who have run up debt problems should look to get professional advice and draw up a plan to pay off money owed. Advising that "if you have racked up debts through gambling the important thing is not to bury your head in the sand", Mr Gardner suggested that taking out a cheap personal loan could be an option for those looking to reorganise their finances. .

Earlier this year, research carried out by MoneyExpert revealed that millions of Britons are developing debt difficulties by going away on holiday. The firm suggested that 1.4 million consumers are still paying money owed from a break they went on last summer, with some 926,000 saying that it takes them at least 12 months to complete repayments incurred from a previous vacation. By constantly running up borrowing to finance a trip away, Mr Gardner warned consumers risk being "trapped in a spiral of debt which ultimately threatens to overwhelm them". .

About the Author.

Steve Smith writes for the 1 Stop Finance Shop where you can apply online for debt consolidation loans. We specialise in all sorts of personal loans, and secured loans with online application.

The Beginners Guide to Day Trading Online

Day trading is highly profitable—and highly tumultuous. Moreover, the financial markets have changed considerably in recent years. Expert author Toni Turner gives you the latest information for mastering the markets, including:
• Decimalization of stock prices
• New trading products such as E-minis and Exchange Traded Funds (ETFs)
• Precision entries and exits
• The new breed of trader
Written in an accessible, step-by-step manner, A Beginner’s Guide to Day Trading Online, 2” Edition shows how to day-trade stocks in today’s market.

NATIONAL BESTSELLER! Toni Turner is the bestselling author of A Bpninri Guide to Day Trading Online, 1” Edition, I Beginner’s Guide to Short-Term Trading. An i trader with fourteen years’ experience, popular educator and speaker at financial con and trading forums across the country. Mc i has appeared on NBC, MSNBC, CNN, CN CNBC’s Power Lunch, with Bill Griffith. 1 been interviewed on dozens of radio programs featured in CBSMarketWatch.com, Fortune magazi and Bloomberg Personal Finance. She currently ser’ as a consultant to Townsend Analytics, Ltd. Ms. Turi resides in Irvine, CA.

How to Make Money In Stocks

By William J O Neil.
A winning system in good times or bad.

I found this book on Amazon.com. It's pretty good. Click on the picture below to get more details at Amazon.

Understanding The Basics Of Estate Tax Planning

by: crackmarketing

Federal tax laws exempt property up to two million dollars from estate tax. They also allow a one million-dollar lifetime limit for gifting property without attracting any gift tax. However, there is a rider that the value of the gift must not exceed twelve thousand dollars to any one person during a single calendar year. Estate tax exemption is set to rise further to $3.5 million in 2009 and stands to be repealed in 2010, which will be a year free from estate taxes. Thereafter, in 2011, the Congress is expected to confirm a full repeal of estate taxes failing which, the old estate tax structure would return with an exemption limit of $1 million.

There is a supplementary provision to estate tax that is known as Marital Deduction. This allows one spouse to leave any amount of property at death to a remaining spouse without creating any estate tax liability. This provision is applicable only if the remaining spouse is a US citizen. If not, then the benefit of marital deduction can be availed only if the property of the deceased spouse is left in a QDOT or qualified domestic trust. This position has been effective since the passing of the Technical and Miscellaneous Revenue Act (TAMRA) in 1988. Among other requirements, a qualified domestic trust needs to have at least one US trustee who is citizen of the United States or is a domestic corporation. If the value of the assets of the deceased exceeds $2 million, the QDOT needs to be a US bank.

In order to avoid soaking of a substantial portion of ones assets in estate taxes, and to let a greater share be available for the benefit of loved ones, people form bypass or family trusts. These are excellent means to lower estate taxes. Such trusts can have a character of a lifetime trust or a testamentary trust. In a lifetime trust, the property is passed on to the trust either during the lifetime of the grantor or owner of the property. In a testamentary, trust the property passes on to the trust through a will after the grantors demise.

The trust is a separate legal entity that enjoys the status of an owner. The property it holds is not recognized as part of the estate of the grantor. No estate tax can be imposed on the grantors death as the owner i.e. the trust still survives. The trust property is managed by trustees for the benefit of designated beneficiaries.

When a married couple forms a bypass trust as part of their estate plan, each leaves property up to their estate tax exemption limit (currently $2 million) to the trust. On the first death, the rest of the property of the deceased can pass on to the surviving spouse under marital deduction without paying any estate tax. The assets in the bypass trust can be made available to the surviving spouse for upkeep, health and other needs. The survivor may even be authorized to draw a certain amount of the principal every year. On the death of the surviving spouse, the trust assets would pass on to beneficiaries named in the trust deed without attracting any tax. This is because the trust was created with assets within estate tax exemption limits to which the creator of the trust was entitled. The assets of the last to die spouse would be taxed subject to the exemption limit of $2 million.

This way, the whole estate (of both the spouses) gets the additional exemption benefit of $2million of the first to die spouse also which leaves more money for their surviving children/heirs/beneficiaries.

It should be noted that if the first to die spouse does not create a bypass trust and just lets the whole property pass on to the surviving spouse through marital deduction, his/her entitlement for the $2million estate tax exemption would simply fizzle away. Fewer assets would pass on to loved ones after the death of the second spouse in this case.

About the AuthorSacramento CPA firms offers Estate Tax Planning to individuals and businesses. We have former IRS auditors who know the system to make sure you only get the best advice. Discover a bevy or articles at : http://www.april15.com.

All About CDs (Certificate Of Deposits)

by: adrianadams

When the richest people in the world are asked to give advice about how to earn and retain money, their response almost always resounds with the same principles: Your money should always be working for you, instead of you working for it.

The ideal situation is to put your money into something with a high rate of return. Then, while you are enjoying life, your money is constantly returning more. One option is to put your money in a CD (Certificate of Deposit), which is a type of account offered by many banks. They don't work like regular bank accounts. So if you've been contemplating ways to make your money work for you, read on.

CDs are characterized by being registered for at a fixed amount of time. When you put your money in, you tell the bank that you are going to leave it for a certain amount of time. The most common amounts are 3 months, 6 months, or any amount of years up to 5. The specific interest rate is set at the beginning, and does not change over the period of time.

The money in the CD is held until it 'matures', at which point the customer can withdraw it without bringing about any fees (which are applied if he or she withdraws before the date of maturation).

This may sound like a bad deal, but consider this: since the customer has to put up with having their cash unavailable for so long, they have their diligence rewarded with a particularly high interest rate. This is the aspect that attracts people to using CDs. Since they are offered by regular banks, they are completely insured. This makes them an almost entirely risk free investment, as long as you know you won't need the money.

If you've got a large sum of money sitting around and you're not doing anything else with it, then you should make every effort to put it to work. Some people are not cut out for high risk investments like the stock market. If this is the case, then the calm assuredness of CDs could be perfect for you.

Talk to people at your local banks to find their specific terms and conditions for CDs. Look for things like flexible liquidity, high interest rates, and time periods that suit your needs. Hopefully you will find something that is perfect for your finances, and will put your money to good use.

Forex Trading - Profit and Loss Calculations

by: amaramar

Most online forex brokers you pick will have a trading platform that can automatically calculate your profit and loss. However, you should still understand what goes on behind the calculations. You'll be able to keep tabs on your broker's honesty that way, but you'll also have surer footing yourself as a trader if you know all of the fine details behind those calculations you depend on so much.

Profit and loss calculations are relatively simple. You just need to remember two basic formulas.
When the US dollar, also known as USD, is the "quote currency," or the second of the paired currencies, the formula is:

Profit = Price Change in Pips Times x Units Traded
When USD, or US currency, is the base currency or the first currency in a pair, the formula is:
Profit = Price Change in Pips x Units Traded / Exit Price

As an example to illustrate this, let's use the following scenario. USD is the quote currency and we will also say that the broker requires 1% margin. This means that you can trade $100,000 in currency for only $1000.

Therefore, if you are looking at EUR or USD, currently trading at 1.2518/9, you predict that the euro will rise in value against the US dollar. Therefore, you execute a trade to buy euros and simultaneously sell US dollars.

Therefore, you buy $100,000 worth of units at 1.2519. Remember that you have to take the asking price, or the second number in the quote.

If your calculations are correct and the price rises to 1.2532/3, you initiate a trade to sell euros and buy US dollars. For this trade, use the bid price, which is 1.2532.

Since you bought at 1.2519 and sold at 1.2532, you profit was 17 pips, or 0.0017. To convert that into real money, we use the formula above, so that it looks like so:

Profit = Price Change in Pips X Units Traded
Which means:
Profit = 0.0017 X 100,000 = $170.
In other words, you made $170 on that trade. If you trade $100,000 in a currency pair with the US dollar the quote currency, a pip will be worth $10. 17 pips equal $170.

When the US dollar is the base currency, let's say you buy 100,000 units of USD/JPY (Japanese yen) at 117.22. The price goes up and you sell at 117.35. Therefore, you just made 13 pips.
To calculate what your profit was, use the second formula:

Profit = Price Change in Pips X Units Traded / Exit Price
Which means:
0.13 X 100,000 / 117.35 = $110.78.
So as you can see, this is relatively simple once you get the hang of it.

About the AuthorVisit 123OnlineTrading.com - Stocks, Forex and Options to find more great information about forex trading. Besides a large selection of educational articles concerning stocks, options and commodities you can also find powerful online trading books. Other Resources: 123OnlineCurrencyTrading.com - Forex Trading Directory

Stock Market Fundamentals

by: JohnPorter

As so many people opt for online trading one wonders what are the reasons for so many people going for something new leaving the traditional method. A little investigation throws up quite a few reasons.

First of all it is convenient and easy. You don't have to leave your room. Who could have imagined a few years before to trade on stocks while lying on his bed with his laptop in front of him? But this is how easy online trading has become. And who wouldn't want that extra bit of comfort. With online trading you can trade at whatever time you feel. Yes, you can trade beyond actual trading hours of the market. So now you can come back from you regular work, take a shower, have your dinner, spend time with your family and before you go to bed spend an hour looking at your investments.

But whatever the comfort may be and however convenient it is to carry out trade online, you still will require to know the fundamentals of the stock market. We discuss a few here.

Growth Buying Stocks are shares or stocks of companies which are making healthy profits over the recent few years. Since the companies are generating more revenue and are growing at a rapid rate, there stocks are on high demand. This pushes up the price because investors think even a high price is okay cause the stocks will keep on rising. Though that might be true for the recent future, there is a time when the prices will stop to rise or may even start to decline. To predict that time is what separates a good investor from an ordinary one.

Unloved Stocks are shares of companies that have not been doing well in the recent past, and hence investors are not to keen. When there is a lack of interest, the price per share drops and many investors believe that this is the right time to invest on them when you buy the shares for less, wait for the company to recover and regain its feet and then sell them at a high profit when the price begins to climb as the company generates higher revenue.

Then you will also need to learn about the small-cap, mid-cap and large-cap shares. And then there are the micro-cap shares which are mostly involved in the various share market scams.
However, the fact that fundamental analysis shows that a stock is undervalued does not guarantee that it will trade at its intrinsic value any time soon. Things are not so simple. In reality, real share price behavior relentlessly calls into question almost every stock holding, and even the most independently minded investor can start doubting the merits of fundamental analysis. There is no magic formula for figuring out intrinsic value.

When the stock market is booming, it is easy for investors to fool themselves into thinking they have a knack for picking winners. But when the market falls and the outlook is uncertain, investors cannot rely on luck. They actually need to know what they're doing.

That said, there is much that the investor can do to learn about fundamentals. Investors who roll up their sleeves and tackle the terminology, tools and techniques of fundamental analysis will enjoy greater confidence in using financial information and, at the same time, will probably become better stock pickers. At the very least, investors will have a better idea of what is meant when someone recommends a stock on strong fundamentals.

About the AuthorFind more Online Trading and Online Trading info online. For Online trading related articles: http://www.online-trading101-fyi.info

Options Trading 101

by: amaramar

Options trading is much like stock and bond trading. Trading strategies can range from a simple buy and hold to a highly advanced use of technical analysis. Then there is everything in between. Although options trading may be similar to stock and bond trading, there are some distinctions that make options a desirable investment opportunity.

They are a contract that confers the right to buy which is a call option, or sell, a put option an instrument. This instrument could be a stock or bond, but the instrument is sold at a predetermined price which is referred to as the strike price, on or before an expiration date.

Options that may be exercised at anytime prior to the expiration are referred to as American options. European options, on the other hand, are exercised precisely on the expiration date. Although the terms refer to regional or geographical implications, the exact association or meaning has been long forgotten through the passage of time. Still, American style options are written for stocks and bonds while European options are generally written on indexes.

When options expire, they do so on the Saturday following the third Friday of the expiration month that is on the contract. Investors will be hard pressed to find a broker who is available on a Saturday, plus, the US exchanges are closed. These factors force that expiration day to be pushed up on day - The Friday before the expiration.

When determining a selling strategy for an option, there are two choices. The holder can keep the option until its maturity date or expiration date, or they can sell before the expiration date. For ease of understanding, this information will pertain to American options only.
Most investors do hold their options until the mature then they trade the underlying asset. Say the buyer purchased a call option at $2 on a stock with a strike price of $25. Options contracts are typically set on 100 share lots. Therefore, in order to purchase the stock, the total investment is:

($2 + $25) x 100 = $2700 (Ignoring commissions.)
This strategy works as long as the market price remains above $27.

If the investor speculates that there is a peak in the price before the expiration date; if the price has risen above $27 but appears to be on the decline with no hope of recovering then it is preferable to sell.

On the other hand, if the market price is below the strike price and the option's expiration date is near or the price is expected to decline further, then it would also be a desirable condition for selling. In this case, it is best to sell before the price falls any lower to curb any further loss. The loss can be minimized, however, by using it to offset capital gains taxes.

Of course, another alternative is to allow the contract to expire. Options are not like futures. The investor is under no obligation to buy an asset or sell it; they only have the right to do so. When taking into account the premium, strike price and current market price, it may yield a more minimal loss for the investor to simply "eat the premium."

It should be noted that options do still carry a certain degree of risk. These uncertainties are the same as are associated with stocks. In reality, stock prices can rise or fall, a little or a lot and show erratic, unpredictable behavior over fluctuating time frames, but, these risks are exacerbated with the fact that, like bonds, options have an expiration date.

The reality is that the price of the option itself may change over the passage of time. The contracts are traded just like stocks or bonds and both the price of the underlying stock amount and the amount of time left until the expiration date are both influential factors in the rate and amount of change.

A way to offset the premium loss or even profit is to sell the option but not the underlying asset.

About the AuthorVisit 123OnlineTrading.com - Options, Stocks, Forex to find books, tips and advice about online options trading. Besides a large selection of free educational articles you can also find powerful books about online trading in general. Other Resources: 123OnlineStockTrading.com - Stock Trading Links

Options Trading Strategies, Basic Concepts

When venturing into the options market, the best way to get the lay of the land is to be acquainted with at least some of the more elementary concepts. These will aid the new investor in successfully executing basic trading strategies.

Two basic terms, the call and the put, are the epicenter of the trading strategies. To buy a call confers the right, not the obligation, to buy at a price that is pre set. Conversely, puts give the buyer the right to sell at a pre set price.

Options are both sold and bought, meaning that the seller grants the buyer the right and takes on an obligation to fulfill the other side of the trade. The variations to this maneuver include: Long Calls The long call is the easiest to understand and is the most basic concept. MSFT (Microsoft) traded at $28 with June 31 options that were to expire on the third Friday of June. The strike price was $31, meaning that it was pre set so if exercised it had to be bought at that price.

Short (Naked) Calls When the writer, the person selling the option, does not own the underlying stock and the option is exercised, then he or she is obligated to sell. Under those circumstances, that action is considered a naked call. Because the person is on the selling side of the contract, his position is considered to be short. The short call status incurs the most profit by the amount of the premium if the market price of the underlying asset decreases. When the price exceeds the strike price by more than the premium, then the short position takes a loss. Long Put When a trader anticipates that the future market price of an asset, such as a stock, will fall before the expiration date is able to sell the stock at a fixed price.

The buyer, put buyer, is not obligated to sell the stock, but he or she does have the right. If the market price does drop below the strike price before the option expires and the decrease is more than the premium paid, then the seller profits. If the price increases or fails to drop enough to cover the premium then the trader will allow the contract to expire worthless. Short Put

When a trader speculates that the future market price will rise, they can sell the right to sell an asset at the predetermined price. If the asset's market price increases, the short put position incurs a profit that is equal to the amount of the premium. This amount excludes any transaction costs and commissions. However, if the price drops below the strike price by more than the premium amount then the writer loses the money.

There are several trading strategies that are basic to the market. These strategies employ the characteristics of four basic trading positions. These strategies have one of several outcomes: pure profit plays, speculating on gaining a profit or creating a combination of speculation and hedging. When positions move in opposite directions, it is called hedging. Hedging bears a profit less that sheer speculation, but they do compensate by offloading a certain degree of the risk.

Bull spreads and bear spreads are common strategies that can help the trader manipulate the market, depending on the market emotion. Bull spreads utilize a long call with a low strike price and combine it with a short call at a higher strike price and a short put with a higher strike price. On the other hand, bear spreads use a short call with a low strike price and a long call with a high strike price.

Alternatively, the short put can be used with a low strike price and a long put can be used with a higher strike price. There is a great deal of software on the market that can aid in these types of trades. Options trading software can offer users concrete demonstrations of the how these strategies work. They show how they behave under different assumptions regarding future prices, volume and other factors, combined with various expiration dates and strike prices to show how these different scenarios can result in a profit or a loss.

About the AuthorVisit 123OnlineTrading.com - Options, Stocks, Forex to find books, tips and advice about online options trading. Besides a large selection of free educational articles you can also find powerful books about online trading in general. Other Resources: 123OnlineStockTrading.com - Stock Trading Links

Debt Advice For People With Poor Credit

People that have poor credit have a lot of work to do in order to get their credit score back up to a level where they can get the credit that they need. By having a good debt management plan, a person will be able to improve their credit over the course of time.

There are some things that people can do in order to improve their credit, and not all of them are simple and easy to do. What are those things, and how do they help people get the goal that they want, which is to improve their credit? For people that have poor credit, it is important to know that your credit did not become poor overnight, and it won't get better overnight. It will take a lot of time and effort to improve your credit rating to a level where you would like to have it.

Once people understand that simple yet important reality, and then they can take the steps that they need to get their credit back on track, like seeking debt management advice. While it may seem like a simple thing, stopping the damage is the first step that people can take in order to improve their credit. Once people work to stop the damage, then they need to figure out what all they need to fix. What debts should they pay off first? While every case is different, in general paying off credit card debt is one of the best ways in order to start to improve one's credit score. Making those payments to the credit card companies on time is also very important. It is estimated that about 30 percent of a person's credit score is determined by whether they make their payments on time or not. Also, don't take on any new debt when working to improve your credit score. Refuse or don't accept any offers for new credit cards. Once people start to pay off credit card debt, then they can start to work on paying off any other debt that they have, such as car loans, student loans, or other forms of loans that people will take out in order to serve their needs.

About the AuthorIf you have a poor credit rating and would like some debt advice, visit the experts at www.debt-free.org.uk

Seven Types of Loss Mitigation During Foreclosure

By Expert Author: Nick Adama

Homeowners dealing with the threat of foreclosure should know about as many options as possible, if they are attempting to save their houses before they run out of time. Some of these options fall under the category of "loss mitigation," which usually refers to a third party (usually either third party company or a division of the bank) that helps negotiate with borrowers to find solutions to foreclosure.

But under this category of loss mitigation fall a number of solutions to foreclosure that may apply in various circumstances. Some lenders may not offer each of these solutions right from the start of negotiations, but homeowners can always request more information about them if they believe one may be appropriate for their foreclosure situation. The seven solutions detailed below are typically classified as loss mitigation.

Cash for keys. In a cash for keys agreement, homeowners are offered a set amount of money from their bank to move out. The offer is usually presented by mail or in person through a local third party, such as a real estate agent or law firm. Banks offer such solutions in order to negotiate a peaceful transfer of a foreclosed home and give the former owners some cash in their pockets for moving expenses.

Deed in lieu. A deed in lieu of foreclosure can be given to the lender by homeowners who are just trying to unload the house, avoid foreclosure, and move out. Borrowers offer to give the deed to the property back to the bank in return for the mortgage company not going through with the foreclosure process. At that point, the bank would be able to list the house for sale and attempt to recoup some of its losses.

Loan modification. Much press has given to the idea of modifying mortgages that are in foreclosure. There are a vast number of ways to do this, from lowering the interest rate to extending the repayment period of the mortgage. The only real drawback to this solution is that banks are rarely that enthusiastic about modifications, because a properly structured one will benefit homeowners more than lenders.

Partial claim. For homeowners with a mortgage guaranteed by the FHA, a partial claim may be used to give the bank a one-time payment from the government in order to stop foreclosure. In exchange, a lien is placed on the property, although the lien has a zero percent interest rate and does not have to be paid back until the first mortgage is paid off or the home is sold or ownership is otherwise transferred.

Short sale. A short sale allows borrowers to sell their property for less than the total amount that they owe to the lender. All of the mortgage companies have to accept a reduced payoff for the sale to close, or the homeowners will have to bring cash to closing to pay off any remaining liens. While this can help borrowers avoid losing their homes, banks are not very quick to approve short sales.

Short refinance. With this method, the bank agrees to lower the total due on the mortgage in order to facilitate a refinance through another lender. Oftentimes, homeowners may be approved for a certain amount of money to refinance, but the amount they owe on the first mortgage along with fees and unpaid interest makes it impossible. A short refinance allows the refinance to go forward and the foreclosure to be ended.
Special forbearance plan. Under a special forbearance, homeowners can make a lower payment or have no payment at all for a certain period of time. This can be more easily negotiated well before homeowners default, as banks will not be fond of borrowers who ask for lower payments after they have begun missing them. In addition, the homeowners will eventually need to pay back any payments they missed.

Homeowners facing foreclosure have the problem of not knowing what options may be appropriate for their individual situations. And unfortunately, the lenders are often no help, pushing borrowers into expensive repayment plans or filing fraudulent lawsuits alleging foreclosure. However, the more that they know about various solutions that will help them save their homes, the less stressful the situation will be.

About the Author/Author Bio
Nick publishes articles on the ForeclosureFish website, which aims to teach borrowers how they can avoid on their homes while they still have time. The site describes various methods to save a house, including foreclosure refinancing, cash for keys, mortgage modification, filing bankruptcy, and more. Visit the site today to read more and find out what alternatives you can use to prevent the loss of your home: http://www.foreclosurefish.com/

Bi-Weekly Mortgage Calculator

Bi-Weekly Mortgage Calculator
This calculator will show you how much you will save if you make 1/2 of your mortgage payment every two weeks instead of making a full mortgage payment once a month. In effect, you will be making one extra mortgage payment per year--without hardly noticing the additional cash outflow. But, as your about to discover, you will certainly notice the increased cash flow that will occur when you pay your mortgage off way ahead of schedule!
Enter the principal balance of your mortgage (call your mortgage lender and ask for the current payoff amount):
Enter the amount of your monthly mortgage payment: (principal and interest portion only):
Enter the your mortgage's current interest rate:
This is how much interest you will pay under your current monthly payment plan:
This is how much interest you will pay if you switch to a bi-weekly mortgage payment plan:
Bi-weekly Mortgage Interest Savings:
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The Clear Benefits of Loan Consolidation by Scott Fromherz

Debt consolidation offers clear benefits to anyone who is juggling multiple credit card payments and loans. The first most obvious benefit is the total savings over the term of the new consolidation loan due to lower interest rates. The second clear benefit is increased cash flow due to lower monthly repayments. These two primary benefits lead to secondary benefits that impact every area of a person's life.

Debt consolidation is usually considered when people feel squeezed financially. It can often save them from financial disaster. However, debt consolidation should not only be considered as an emergency measure to resuscitate finances that have flat-lined (or for rescuing those that are about to), it is a strategy that should be considered by anyone with multiple sources of debt to reduce expenses and save money. The difference between consolidating or not consolidating debt could be your child having a college loan versus a paid education, driving a quality car versus a bomb, owning your home in twenty years instead of thirty or countless other possibilities. Even if you can easily cover all your debt repayments, your overall financial position can improve with debt consolidation.

For those who are enduring financial pain, however, debt consolidation can provide a much needed miracle. It can take pressure off the finances by freeing monthly income and making it easier to cover current expenses. For many people, debt consolidation has prevented foreclosure on their family home and has stopped the debt collectors in their tracks.

Serious financial stress can place a great deal of strain on relationships and plant the seeds of family breakdown. It can also lead to serious stress related illnesses. The benefits of debt consolidation, therefore, are far reaching. The decision to consolidate your debts could save your marriage and keep your family together. It could also prevent you or family members from becoming so stressed you get seriously ill.

Even if your financial circumstances are not so severe, debt consolidation can increase your expendable income which can then be used to reduce debt faster, increase savings and investments or simply to improve the quality of your life. After all, doesn't it make sense that more of your money should stay in your pocket and less go to financial institutions? The long term savings in terms of interest payments can also be very significant and therefore your long term financial position will benefit from effective debt consolidation.

There are number of different debt consolidation loans to choose from. If you are a homeowner with enough equity in your home, probably the best loan for this purpose is a home equity loan. This is because it usually offers a lower interest rate than other loans available to you. A home equity loan used to be known as a second mortgage and the risk is more easily seen with the old term. The loan is attached to your mortgage which means that if you miss a payment, you are vulnerable to losing your house. However, this is unlikely since by consolidating your loans, your monthly expenses will decrease making payments easier.

The most popular way to consolidate loans is to use a personal loan. Personal loans are usually unsecured which means that you do not need to provide collateral in order to obtain the loan. They usually have lower interest rates than other consumer loans and fixed terms so that the debt will be finalized by a particular date.

Low rate credit cards and home equity lines of credit can also be used as debt consolidation loans. However, the risk with these loans is that you can actually increase your debt levels if the card has a higher limit than your current debt or at the very least spend up to the current limit. If you do this, you'll never get out of debt. Yet, even knowing this, if we are under financial pressure most of us will use whatever we can to alleviate it. Therefore, these loans are best used if the debt consolidation is for a specific and ongoing purpose such as medical or education expenses that could not have been met without the loan.

Of course, as with any financial decision, it is important to check into your options carefully. Some loans will be better than others for your personal circumstances. A good adviser can help you find the right loan to meet your needs and may even be able to advocate for you with your lenders to smooth the process and alleviate stress. Whether you choose to handle your debt consolidation yourself or to seek the help of a professional, the right debt consolidation loan will provide clear benefits that can vastly improve your life.

For more information on loan consolidation go to http://www.ConsolidationFind.com

Loan Amortization For Year-rest Installment Loan

This blog will teach you how to work out a rough schedule for a yearly-rest installment loan. A yearly-rest loan is a loan where the principal amount is reduced on a yearly basis. To work out a schedule for this type of loan, you must first work out how much is the yearly installments and divide that by two. To do this, open a spreadsheet and do the following below. Remember to follow each step as it says or the formula will not work.

Suppose if you would like to apply for a two-year loan of $8,000 at 10% per annum. To work out the monthly installment amount:
1) In Cell A1, type " Annual-rest Installment Loan"
2) In A3, type "Amount of Loan".
3) In B1, type "8,000"
4) In A4, type "Interest Rate per year"
5) In B4, type "10%"
6) In A5, type "No. of Installments per year."
7) In B5, type "2"
8) In A6, type "No of years of loan"
9) In B6, type "2"
10) In A7, type "Interest rate per month"
11) In B7, type "=B4/12"
12) In A8, type "Total number of installments"
13) In B8, type "12"
14) In A10, type "Amount per installment ="
15) In B10 , type "=PMT(B4,B6,-B3,0,0)"

The amount that you would have to pay for the installment is $384.13 per month.

To work out the loan amortization schedule, in the same spreadsheet, do the following:
1) In D1, type "Loan Amortization Schedule"
2) In E2 , type "Principal at beginning of month"
3) In F2, type "Interest due at end of month"
4) In G2, type "Installment Payment"
5) In H2, type "Principal Repaid"
6) In D3, type "=1"
7) In E3, type "B3"
8) In F3, type "$B$7*E3". Copy this formula from F4 to F26
9) In G3, type "=B10"
10) In H3, type "0". Copy this value from H4 to H13 and H15 to H25
11) In H12, type " =SUM(G3:G14)-SUM(F3:F14)". Copy this formula to H26
12) In D4 to D26, type 2 all the way to 24
13) In E4, type "E3-H3". Copy this formula from E5 to E26
14) In G4, type "=G3" and copy this formula from G4 to G24

The final result will look something like this:

You may change the figures in B3, B4 and B6 to see how this schedule changes together with the monthly payments payable. Do remember to change the number of payments in column D to correspond with the number of years.

Disclaimer: Please note that aside from the schedule above, there might be other charges by the bank such as admin fee, processing fee etc. Do check with your bank officer or financial planner before making any decision to go ahead with any bank loans.

Loan Amortization For Monthly-Rest Installment Loan

This blog will teach you how to work out a rough schedule on working out a monthly-rest installment loan. A monthly-rest loan is a loan where the principal amount is reduced on a monthly basis. To work out a schedule for this type of loan, you must first work out how much is the monthly installments. To do this, open a spreadsheet and do the following below. Remember to follow each step as it says or the formula will not work.

Suppose if you would like to apply for a two-year loan of $8,000 at 10% per annum. To work out the monthly installment amount:
1) In Cell A1, type " Monthly-rest Installment Loan"
2) In A3, type "Amount of Loan".
3) In B1, type "8,000"
4) In A4, type "Interest Rate per year"
5) In B4, type "10%"
6) In A5, type "No. of Installments per year."
7) In B5, type "12"
8) In A6, type "No of years of loan"
9) In B6, type "2"
10) In A7, type "Interest rate per month"
11) In B7, type "=B4/B5"
12) In A8, type "Total number of installments"
13) In B8, type "B6*B5"
14) In A10, type "Amount per installment ="
15) In B10 , type "=PMT(B7,B8,-B3,0,0)"

The amount that you would have to pay for the installment is $369.16 per month.

To work out the loan amortization schedule, in the same spreadsheet, do the following:
1) In D1, type "Loan Amortization Schedule"
2) In E2 , type "Principal at beginning of month"
3) In F2, type "Interest due at end of month"
4) In G2, type "Installment Payment"
5) In H2, type "Principal Repaid"
6) In D3, type "=1"
7) In E3, type "B3"
8) In F3, type "$B$7*E3". Copy this formula from F4 to F26
9) In G3, type "=B10"
10) In H3, type "G3-F3". Copy this formula from H4 to H26
11) In D4 to D26, type 2 all the way to 24
12) In E4, type "E3-H3". Copy this formula from E5 to E26
13) In G4, type "=G3" and copy this formula from G4 to G24

The final result will look something like this:

You may change the figures in B3, B4 and B6 to see how this schedule changes together with the monthly payments payable. If you have to change the number of years, don’t forget to change the column on the number of payments to (12 * number of years).

Disclaimer: Please note that aside from the schedule above, there might be other charges by the bank such as admin fee, processing fee etc. Do check with your bank officer or financial planner before making any decision to go ahead with any bank loans.

In the next blog, we will discuss annual -rest loan schedules. See you around when I post my next blog.

Time Value of Money : Future Values

In this blog, we'll explore how to use a spreadsheet to calculate future values without dealing with any complicating formulas. Just follow the instructions step by step and you will never go wrong.

Future Value of a Single Payment

1) In A1, type "Interest Rate Per Year"
2) In A2, type "No of years"
3) In A3, type "Value In the present day"
4) In A5, type " Future Value = "
5) In B5, type "= FV(B1,B2,0,B3)"

Suppose if you would like to put $10,000 into a one year fixed deposit that pays an interest of 5%. To find the future value of this deposit i.e, the value of the deposit on the day the fixed deposit matures, do the following:

1) Type 5% in B1
2) Put 1 in B2
3) In B3, type -$10,000

The future value will be reflected as $10,500. The final result will look like this:

Try changing the values in B1, B2 and B3 to watch how the future value changes.

Future Value of a series of payments

To find the future value of a series of payments, do the following:
1) In A1, type "Interest Rate Per Year"
2) In C1, type "If you're workign with months, divide this figure by 12)
3) In A2, type "No of years"
4) In C2, type "If you're working with months, multiply this figure by 12)
5) In A3, type "Amt Per Payment"
6) In A4, type "Arrears/Due"
7) In C4, type "(Key in 0 if the payment is made in the beginning of the period and 1 for the end of the period)"
8) In A6, type "Future Value = "
9) In B6, type "=FV(B1,B2,B3,0,B4)"

Suppose if you have to deposit $1000 at the end of every year for 5 years at an interest of 4%. To find the future value of this investment, do the following:

1) In B1, type 4%
2) In B2, type 5
3) In B3, type -1000
4) In B4, type 1

The future value of this investment will be worth $5,632 and the result will look something like this.

Try changing the values in B1, B2, B3 and B4 to see how the future value changes.

I hope that you found this blog useful.

Time Value of Money - Present Values

If you hate figures and are not very good with the calculator, then you've come to the right page. In this blog we'll learn how to calculate the present value of an amount without all those complicating formulas that you see in most finance textbooks. All you need to do is to open up a spreadsheet and you're ready. Just follow the step by step instructions on setting up the spreadsheet and you're on your way to working out the figures in a jif. Please note that the following instructions will only work if you follow the steps exactly as it says.

Present Value of a single payment

To calculate the present value of a single payment. Do the following:
1) In an excel spreadsheet , type "Interest Rate Per Year" in Cell A1.
2) In A2, type "No. of Years"
3) In A3, type "Value in the Future"
4) In A5, type "Present Value = "
5) In B5, type "=PV(B1,B2,0,B3)"

Suppose if you will be receiving $20,000 in a year from now and you would like to find out what this value is worth today if you know that the interest rate is 2%. To do this, you have to do the following:

1) Key in 2% in cell B1.
2) Key in 1 in cell B2 for the number of years.
3) In B3, key in -20,000 as the value in the future. This figure has be keyed in as negative for the answer to work.

The present value will be $19,607.84. This is what the $20,000 of the future is worth right now. The final result will look something like this:

Try experimenting a bit by changing the interest rate, amount or number of years and watch the present value figure change. Now wasn't that easy?

Present Value of a series of payments

To work out the present value of a series of payments, do the following:
1) In A1, type "Interest Rate Per Year"
2) In C1, type "(If you're working with months, divide this figure by 12)"
3) In C2, type "(If you're working with months, multiply this figure by 12)"
4) In A2, type "No of Years"
5) In A3, type "Amt Per Payment".
6) In A4, tyep "Arrears/Due"
7) In C4, type "(Key in 0 if payment is made beginning of the period or 1 for end of the period)"
8) In A6, type "Present Value = "
9) In B6, type "=PV(B1,B2,B3,0,B4)"

To illustrate an example, if you have to make a payment of $1000 at the end of each year for the next 5 years with an interest rate of 4% and you would like to know what will the total value of the figure be as at today. Do the following:

1) In B1, type 4%
2) In B2, type 5
3) In B3, type -1000
4) In B4, type 1 because payment is made at the end of the year and not the beginning of the year.

The present value that you will get is $4,629.90. The final answer will look something like this:

Try changing the interest rate or number of years or even the amount per payment to see how the present value changes.

I hope that you find this blog useful. In my next blog, I will cover future values.

Stocks

The thing about stocks is that the risk factor is a lot higher and the fluctuation rate is a lot higher too. However, higher risks means higher returns and you should only buy stocks if you have a strong heart and are willing to ride the waves of volatility.

In my opinion, if you're a first time investor and are afraid of risks but still want to try buying at least a stock counter, try buying blue chips first. This is because they are pretty steady and tend to fluctuate slightly lesser. However, blue chips can be rather expensive. They do sometimes pay a decent amount of dividends too. Unlike most unit trusts, the dividend rate is higher and more regular. Plus not all unit trusts pay dividends at all compared with stocks.

Buying stocks means to focus on only one company in a single country. Unit trusts on the other hand, tend to focus on many stocks from either one or several industries in one or several countries. The risk spread is therefore different. There is no hard and fast rule on which option is the best. I would therefore say that it would be good to have a good mix of stocks and unit trusts in your portfolio.

Keep an expenses record

I think it's always good to keep an expenses report all the time. Although it may sound tedious in the beginning, you'll be surprise how useful this expense report can be. Here are a couple of uses that an expense report can do for you.

Firstly, it may give you an general idea of your spending habits. For instance You may discover that you've been spending too much in say, snacks and clothes and then you'll be able to start watching your spending for the month onwards. This would aid you in controlling your spending and finding out where does all your income goes to in a month.

Having an expenses report allows you to track your spending and then plan your budget for the following month.From there you'll be able to also set a target on how much to save per month for that dream vacation you've been planning for.

There are many ways in which you can track your expenses. Some people prefer to collect all their receipts and place them in an envelope. However, if there are too many receipts to track, it's always good to write a brief note of what the spending was for. Add those receipts up on a daily or weekly basis. Never accumulate them for a month because the whole process of tracing your spending can be very tedious. Plus you could also loose some of the little pieces of paper if they fly out of your wallet by accident.

Alternatively, you could keep a diary or notebook and record your expenses for the day with the description and amount stated on it. You may then add them up by the week or the month.

If you prefer to go paperless, you could always key them into an excel spreadsheet on your computer, PDA or iphone and let the spreadsheet do it all for you with the right formulas.

These are just some of the ideas you could use to watch your expenses. Hope you enjoyed this blog.