Friday, January 18, 2019

Why Stock Market Investing For Dummies Is A Scam

Recently, phrases like stock market investing for dummieshave been very popular. But personally, I think these are basically scams to get us to buy books. The idea being that some one can write a book about stock market investing specifically for us dumb investors who have no clue what to do. The bottom line is that these books are so basic that they teach us nothing about how to invest in the stock market and actually make money. The only people who make money are the book publishers themselves. And for what — selling lowsy stock market advice as how to guides.
I’m not saying that the whole Dummies series doesn’t have a place and that there aren’t any good bits of information at all. I suppose that if you read Stock Market For Dummies and Investing For Dummies that you will no doubt find a tip or two. What you won’t find though is a comprehensive guide that gives you step-by-step instructions for investing in the stock market today.
The people who publish the Dummies books are not the only ones. You can check about any of the “best-sellers” and find basic generic information on the stock market and finance and find the same lame self help guides. What you’ll have a tough time finding is specific real world application of strategies that you can use to invest.
There are exceptions of course. I’d strongly recommend How to Make Money in Stocks by William O’Neil as my top choice. If you need a beginners book, I’d suggest The Neatest Little Guide to Stock Market Investing (2010 edition as of this writing). I’d even suggest How a Second Grader Beats Wall Street: Golden Rules Any Investor Can Learn. At least in that book, they offer a specific and measurable strategy that in the end will probably help you make money in the market.
Read O’Neil’s book along with The Successful Investor.If you ask me what I would do personally if I was a beginning investor, I would take the following steps:
  1. Subscribe to the Investor’s Business Daily.
  2. Start focusing on determining the overall direction of the market. The market indexes I would focus on would be S&P 500, the Dow Jones Industrial Average, the NYSE Composite and the NASDAQ.
  3. Only invest when the market is in a confirmed up trend.
  4. Start watching the screens in the IBD every day.
  5. Develop your own watch list of stocks.
  6. Start reviewing charts on your watch list and figuring out the best entry points.
  7. Set up a stock simulator to practice your CASNLIM investment strategy.
  8. Learn to sell stocks quickly if they don’t go up and sell them when they have gains of 20 percent or more.
  9. Keep a journal of all of your trades so that you can review them.
  10. When you are right one in three times, start using real cash.
In the end, actual experience is the best teacher. Learn by doing and put the stock market investing for dummies books back on the shelf where you found them.

Tuesday, January 15, 2019

Foreign direct investment as a component of structural change and economic growth

A striking indicator of success in reforming the economy and creating a competitive environment is the volume of foreign direct investment. Successful transformations in the post-socialist countries contributed to the appearance of foreign investors in the domestic markets of these countries, which, in turn, had a number of structural macroeconomic consequences:

the level of capitalization of national savings and the accumulation of fixed capital increased;
changed the structure of production and exports by type of economic activity;
there was a technological update of production, as well as an increase in the overall dynamics of economic growth.
The change in ownership structure in favor of expanding the non-state part and the ownership of non-residents also worked as a catalyst for market transformations.

The effect of foreign investment largely depends on the form of investment. Foreign direct investment (FDI), which comes to transformational economies, can be conventionally divided into two main streams: investments for privatization and so-called green field investments, or investments built from scratch. In addition, in the economic literature allocate export investment, sent to a particular country in order to use cheap labor. The latter may first be in the form of privatization, but later will require additional injections into the technological re-equipment of already privatized objects in order to set up export-oriented production in order to gain from the difference in prices in the domestic and foreign markets.

The most important macro-structural effects of increased investment activity of foreign capital in the domestic markets of countries with transformational economies are:

an increase in the level of fixed capital accumulation, which is accompanied by the emergence of an investment wave and the formation of a development model in the recipient country of FDI and at the same time is an investment and innovation one;
expansion of the development base;
qualitative changes in foreign trade in favor of investment imports and expansion of the export part of the highly developed countries of the world;
increasing the technological level of production and changes in the structure of production;
increase the export share of high-tech and medium-tech goods;
growth in economic productivity;
strengthening the upward dynamics of GDP.
Thus, among the positive results of attracting FDI, the main ones are:
gaining access to new production and business technologies;
expansion of cooperation with foreign companies;
information exchange;
increasing the level of education and qualification of human resources;
increase employment;
expansion and deepening of the domestic market, combined with its diversification;
growth of the general factor of labor productivity;
the expansion of foreign trade and the like.

How to choose the desired dilling center

DC is a company that provides access to Forex for ordinary traders. Sometimes dealing centers call themselves brokers, but brokers have a range of activities already. In this article we will use these two terms as synonymous, since the difference between them is not so great. In order to choose a reliable broker correctly, you need to know what you need to pay attention to and what should be avoided when choosing. View Dealing Center. How is currency trading. There are three options for which the operations take place. The first is that the broker creates his own foreign exchange market, that is, it is a trade within the company. We do not recommend you to work with such DCs, as there will be problems associated with a small liquidity of instruments and, moreover, the broker can interfere in the process of your trading, and this is completely useless. operations and lack of control of the broker. The last option - trading takes place through a representative on Forex, this is a common system of DC operation. If there is a high-speed channel for operations, then this method is not inferior to the second.

The reliability of the broker. Reliable are the largest DC in the foreign exchange market. The reliability of a broker is affected by: the number of offices of the company; number of clients; turnover of the company. Do not risk to cooperate with small and new companies, you can lose your money. Trading conditions. When you choose a company with which you are going to cooperate in the future, focus on those moments that are important for you. Trading conditions for different companies differ, for example, leverage or spreads may vary depending on the broker. Determine without haste. So, the main selection criteria are: the spread established by the broker; swaps; minimum invoice amount; scope of leverage; the level at which positions are closed automatically; order execution options; lot volume.

Bonuses - they help in trading, increasing your deposit by 60-100 percent, many firms give a chance to get bonus money with each deposit of funds. But this indicator, when choosing a DC, should not be the main one. The bonus is given to you not just so that in order to turn it into real money, you must work out the necessary number of transactions. Take the dealing center's choice as seriously as possible; you need to know where you are investing your money. To do this, check with which banks the broker cooperates. Find out what bodies it is regulated (for example, KROUFR). Test the conditions of the DC on a demo account and only then open a real one. The right choice will be the key to your successful and profitable trading in the future.

Friday, January 11, 2019

We create a portfolio - experience of the stock market

As a rule, the stock market is very different from the forex market in terms of the nature of the work and the instruments, strategies and indicators used. But sometimes the strategies that are widely used by capitalists to work in their market + are also salutary for the currency markets. One of these mutually beneficial strategies is the formation of a portfolio of currencies.

The portfolio of currencies is formed approximately according to the same principles as the securities portfolio. Currency pairs are selected in such a way that in the aggregate in the “basket” of acquired currencies there remains approximately an equal number of currencies with which operations are being conducted at the moment (there are open orders). Why such a strategy? It leads to the fact that in any movement of the market for a currency pair involved in the “currency portfolio”, there will not be any noticeable bias or a large floating loss - if a larger loss is incurred for one currency, a corresponding income will be generated for counterbalancing pairs. Thus, the overall structure of the portfolio remains unchanged, those transactions that turn out to be profitable are closed, those that accumulate unprofitableness are repaid by profitable pairs of correspondents.

Some awkwardness of such trade lies in the fact that it is quite difficult for a trader himself to implement such an algorithm. To do this, as a rule, they use trading robots, which they are charged with forming the portfolio and keeping track of its content, while the trader leaves the flow control over the trade. It is also very important that the portfolio type of trading is more reliable in terms of risk control, but at the same time it is quite problematic if the task is to obtain a maximized return. It is almost impossible to get the highest return with the help of this portfolio: the lower the risks, the lower the profit is the general rule of the market.

In addition, there are special tools and additional mathematical settings that allow you to sufficiently increase the profitability of algorithms that are based on the portfolio. There is a lot of open research into the mathematical analysis of this algorithm and its variants and improvements — so a good programmer will always find something to add to the standard scheme. The trader himself can also trade in such an algorithm without relying on a trading robot, but for this it is necessary both to use the built-in balance control tools in the trading terminal, and to actively maintain its own trading records.

Investment coins: make a profit from the money.

You can write a whole book about how to invest money to save them and get a stable income. However, we have only a small article at our disposal, and therefore we will focus on one of the quite promising types of investment - investing in investment coins.

Investment coin is a topical means of investing capital for almost 20 years: during this time it has been included in the turnover of most large banks. This investment instrument is a coin of a certain nominal value issued by the Central Bank (1,5,10,50 or 100 rubles). However, its real price and value are related to the content of precious metals in it: gold and silver. The cost of such a coin on the market changes according to the exchange rate of these metals, which, importantly, continues to grow even in times of crisis. Another advantage is the possibility of sale !! without intermediation of financial institutions, except for the bank. It is worth noting the availability of this type of investment: for example, as of February-March 2015, the cost of the silver coin "George the Victorious" is 1,200 rubles, which is quite affordable for the majority of Russian citizens.

One of the varieties of investment coins are collectible coins. Their purchase and sale began to be viewed as an investment instrument relatively recently: until 2011, operations with them were subject to VAT, which minimized possible profits. However, now the same rules apply to them as to investment coins, and it is impossible not to note certain advantages of this type of investment: first, the value of such a coin is not tied to the precious metals rate, but is determined by the circulation, composition, subject, preservation and prevalence that brings it closer to antiques, so stock prices do not affect its value. Moreover, interest in these coins can be caused not only from a financial point of view: some collectors are ready to pay an inflated price to complete their collections with the missing copy.

But it is also worth understanding that only experienced coin collectors will be able to extract real profit from collectible coins, and asking for professional help for one of them can cost a considerable amount and negate even the profit from a successful transaction.

There are pitfalls in the turnover of ordinary investment coins: first of all, the difference in the buying / selling rate. Therefore, it is not profitable to play on the difference in rates, selling and buying investment coins. This makes the coin a long-term investment. But in this case it is necessary to resolve the issue of storing coins: if the money can be deposited in the bank as a deposit, the coins are a physically expressed object and the bank will charge a certain fee for storing them in a dedicated bank cell, while storing them in an apartment may be risky, especially if it becomes known to your friends, and from them - to third parties. Moreover, freedom from paying VAT does not mean that the proceeds from a competent investment of funds are not subject to taxation.

In conclusion, we would like to note that any kind of investment is inevitably associated with risk, and investment coins are no exception. However, in the long run, they have been showing growth for more than a year than people who are prone to long-term planning. And if in a crisis period you do not wish to stop the movement of your capital, then investing in investment coins is a completely relevant way.

Thursday, January 10, 2019

SONOMA VALLEY BANCORP RECOGNIZED


- The August issue of U.S. Banker magazine recently spotlighted the community banks in the United States, recognizing the strong relationship between the community banker's health and well-being and the prosperity of local businesses. The article went on to rank banks ranging from $100 million to $373 million in assets, based on Return on Equity and growth in Earning per Share. There were three sets of ranking in each group, based upon the year 2000 results, and on three-and five-year results.

In the $131 million to $201 million group, Sonoma Valley Bancorp was ranked 8th in the one-year category, 6th in the three-year category, and Number 1 - Most Profitable in the five-year category. In the prestigious five-year rankings, Sonoma Valley Bancorp scored Number 1 in 5-year return on average equity of 16.38 % and also Number 1 in 5-year average growth of earnings per share of 17.8%, to earn the overall composite first place rank. Sonoma valley Bancorp shares are listed on the OTC Bulletin Board (OTCBB) and the stock symbol is SBNK.