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Saturday, April 25, 2009

6 Things To Know About The Economy And Gas Prices

By Terry Stanfield

The economy and gas prices are very closely related to one another. The economic effects on gas prices can make the cost of gasoline rise or fall, depending on the economy. Gasoline supply and prices follow basic rules of economics in that when the supply is low and the demand is high, the prices go up. The price of gasoline as well as the supply can also effect the economy, making it a two way street. If the supply falls short, it can also have an adverse effect on the economy.

Gasoline prices are always fluctuating in accordance with supply and demand. To learn about how the economy effects gas prices, a person has to understand basic economic principles. Everything about the price of gasoline is dictated by the basic concept of supply and demand.

The first thing that someone needs to understand about gas prices is that when there is an increased demand for the product, it can effect the supply. When the supply of gasoline falls short of the demand, the price will jump.

When the economy is in trouble, people will hold off on taking trips and also will curtail going out and using fuel. This causes an increase in the supply of gasoline and causes the prices to drop.

The economy and gas prices are related to the effect that when the economy is doing well and people are using more fuel, the supply of gas goes down and the prices for gasoline start to rise.

Economic effects on gas can also go the other way. If there is a shortage of gas or oil, this can cause the prices of gas to skyrocket because the demand is stagnant while the supply is running low, which can negatively effect the economy.

There have been times in the past when gasoline supply and prices negatively impacted the economy. When the supply ran short, it effected the travel industry and also curtailed spending as people began to use less fuel.

A high supply of gas and low demand usually means a trouble economy. When no one is going out or traveling due to a poor economy, then the demand for gasoline drops, the supply goes up and the prices tend to drop.

The economy and gas prices tend to mirror one another. It is clear to see the economic effects on gas prices in recent times as the demand has dropped sharply, causing prices to plummet. Gasoline supply and prices can be an indication of the economic state of the country. - 23210

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Forex Trading- A Must Read

By fxreport

Forex Trading is financially the most rewarding strategy for Traders. With more than $2 trillion dollars turned over daily is also the most liquid trading market available. However in order to be a successful Forex Trader the simple most important thing that any trader either trading in the Forex market or looking to trade Forex can do is to educate themselves to become better Forex Traders. Today we will look at some key educational lessons to help you become a better Forex Trader.

As a novice Forex Trader you should be aware that there are 9 big No No's when it comes to forex trading. You should make sure that you don't make the same mistakes that 90% of traders make, which is loose there money. These below are the 9 biggest reasons why people end broke from Forex Trading.

1. Scalping or Day Trading Although there are many articles about day trading or scalping as a new trader you should try to avoid it, as it is not a wise decision for a beginner. The reason for this as there is so much to learn about you can make. Forex Trading and learning to day trade first up is the most risky strategy that you can use.

2. Using a Guru There are experts everywhere that are willing to sell advice, but remember 90% of them will end up broke. They will offer to do it only commission, but ultimately it is your money that they will lose.

3. Using Bad Brokers- They are like gurus. Make sure that you research the brokers first and make sure that you check the figures of these brokers before committing. If you are looking for a Great Broker then view the CFD FX REPORTthey have recently researched all the brokers and have come up with some excellent brokers that can help you with your trading future.

4. Practice with demo accounts- for months If you use practice accounts for months, you are only kidding yourself as you don't have the pressure of your money on the line.

5. Habitual trading Some Forex Traders trade just for the sake of it. They think that if they are not in the market they will miss a move. If you trade just for the sake of trading then chances won't be in your favor. Over trading will only make you go broke faster.

6. Mix fundamentals and technical inputs- Just confusing yourself If you are trying to mix both you just confuse yourself and drain your bank account, not an ideal strategy for Forex Trading.

7. Breaking your Rules Patience is the key to forex success. So many traders get the perfect system but fail to wait it and will just trade for the sake of it, breaking there own rules. Have rules and stick to them.

8. All or Nothing- Massive Leverage Too many traders are trying to make it rich from the first trade if that is your plan then you will ultimately end up broke. Today there are many trading platforms that offer massive leverage, such as 400:1 which can be too high. Make sure you use money management skills when using leverage.

9. Using too many inputs Many traders think that complicated systems are the perfect system but with it they are more likely not to succeed. The best rule that you use is simple is best.

So make sure that you get as much as education as possible before starting to trade, as great place to get lots of free quality education lessons is the CFD FX REPORT. Happy Trading - 23210

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A Brief Look at the Past of Mutual Funds

By Jeffrey Mute

You might be hearing a lot about mutual funds and are wondering why it is a popular investment opportunity. Investors prefer to invest in mutual funds over traditional forms of investments such as certificates of deposit and money market accounts because of one thing " the amount of return it brings to them. With a properly managed mutual fund, you can expect the biggest return of your investment.

For the novice investor, investing in mutual funds is recommended because you dont need to take crash courses and make crucial decisions that can affect the potential returns of your investment. Mutual funds allow you to get a feel of the industry before investing a big chunk of your money. It is also considered a low risk investment because it diversifies the funds asset over various investment options.

To fully understand the concept of mutual funds, it is important that we take a look at its history. Some historians believe that it was a Dutch merchant named Adriaan van Ketwitch who conceived the idea of mutual funds. But others believed that that the mutual fund concept started in the Netherlands when King William I launched his closed-end investment companies.

Nevertheless, the idea was so great that France and Great Britain acknowledged it. Soon enough, the United States followed suit. But the mutual funds of the past are very much different from what it is today. It was only during 1907, with the creation of the Alexander Fund, that the modern mutual fund began to take shape. Since then, additional changes have been included in the general concept including withdrawals on demand and semi-annual issues.

It was only with the establishment of the Massachusetts Investors Trust in 1924 that the modern mutual fund came to be. Roughly a year after the creation of the Trust, it has acquired assets totaling to almost $400,000.00 with 200 shareholders. In 1928, the fund offered its shares to the public. In the same year, another fund called the Wellington Fund was established. It was the first fund to include stocks and bonds as their investment options. Because of this the prices of stocks continued to rise making 1928 one of the most glorious years in mutual fund history.

Not long after came the Wall Street Crash of 1929. This was the worst stock market crash in history, which led to the Great Depression. But one positive thing emerged from these downtimes. Finally, the government noticed the advantage of the mutual fund industry and subsequently passed several laws to protect the investors.

This move was welcomed by the investors and trading in the stock market began to increase again. From then on, the mutual fund industry continued to flourish. Throughout the decades, more and more people become interested in mutual funds with its popularity ever climbing.

Now, it has continued to thrive and has become the most preferred investment option of investors. Mutual funds have truly proven itself throughout the years. Thus, you wont really wonder why a lot of people want to invest their hard-earned money in mutual funds because the industry has great potential to grow even more. - 23210

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Six Things To Know About How Oil And Natural Gas Are Extracted

By Terry Stanfield

Natural gas and oil drilling is a process in which machines are used to seek out these natural resources in the earth. Both processes are essentially the same when it comes to drilling, but yield different results. Crude oil drilling will produce oil that is used to refine into gasoline as well as petroleum products while natural gas drilling will produce gas harnessed for heating fuel.

Investors who want to make a profit on these natural resources that are an integral part of our lives should learn about the type of investment they are making. Investors should understand the difference between crude oil wells and natural gas before they invest in drilling. They should also understand how these products are extracted and why they are used.

Most oil investing is done with existing sites, although there are some investors who will invest in new drilling. New crude oil drilling or natural gas drilling can yield either gas or oil, or it can turn up as a dry well that does not yield anything.

When crude oil is found, it is extracted for use in petroleum products as well as for use in gasoline. It takes many barrels of crude oil to produce one gallon of refined gasoline.

Natural gas is used for heating homes and is also found in some wells. Some wells will yield both natural gas as well as oil and are considered to be the most valuable. Natural gas and oil drilling often produces crude oil. There is only a small percentage of crude that is used for gasoline as it is also used for making petroleum based products.

Most drilling is financed by investors who will pool together money for a new drilling project to begin. Other investments are made on wells that are already producing oil or natural gas and are usually considered to be solid investments.

Investors who invest in wells that are already established will see a profit based upon supply and demand in the industry. Investors who invest on a new project may see enormous profits if the well yields oil or natural gas.

Whether crude oil drilling or natural gas drilling, investments that turn up natural resources will usually yield a profit for investors. Natural gas and oil drilling takes place in the United States as well as other parts of the world as these resources are used thorough the entire world. Investors can make money if wells produce either of these valuable natural resources. - 23210

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Trade Currencies

By Samo Yanezic

Are you interested in learning more about how to trade currencies? Especially given the global economic slump, there are ever increasing numbers of people trying to find ways to insulate themselves from the vagaries of the economy by finding new sources of revenue. This makes learning how to trade currencies an especially attractive option. The foreign currency exchange market is an incredibly large and liquid market and trades can be conducted online, making getting involved easy for individual investors. All it takes is an eye for detail and the ability to watch the movements of the market.

If you'd like to learn how to trade currencies, you're in good company; there are many thousands all over the world looking into this form of investment. There are traders out there of all skill levels and with differing levels of success.

There are all sorts of people investing in this form of money making, and you'll find that the more information that you can put together, the better. Make sure that you know what information you are going to use and what kind of trading you are looking to doing. What currency pair are you going with, and what can you do when you are looking at a 24 hour market that never sleeps? What tools are going to be the most handy, and which ones are you going to be able to get right away.

If you are considering how to trade currencies and what you need to do to succeed, remember that you need to do more than just trade one currency pair back and forth. There are essentially four major world currencies and you will find that they have performed well over time. While the US dollar has always been one major player, you'll find that the Euro currency is making some real waves in terms of market stability.

Essentially, you need to keep your options open. Make sure that you think about the scope that you are looking to play in and that you think about what your options are going to be when it comes to rapidly expanding or deflating markets.

There's certainly no shortage of instruction and guidance out there targeted towards beginning Forex traders. These are good resources for those looking to get a background on how the market works and learning how to trade currencies to make consistently profitable trades. However, one of the best resources for beginning and experience currency traders alike is the news. You'll want to be up to date on world events and economic news in particular.

A well informed currency trader is a successful currency trader, so keep apprised of the latest political and economic news from all over the world. Cyclical behavior is the norm in economies of all scales - so if you can watch these recurring trends and spot when a currency is on its way up or down in value, you can make some very lucrative trades.

If you're interested in investing in the currency exchange market, remember to get as much information as you possibly can before you get started. Knowing how the markets work is key to being able to identify the trends which govern the fluctuating values of different currencies and enabling you to profit from the ups and downs of the world economy. - 23210

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