HOW COMMODITY TRADING DIFFERS FROM STOCK TRADING

Written by Rob Hall


There are major differences between trading stocks and trading futures. While stories of fortunes made or lost overnight onrepparttar futures markets are largely untrue,repparttar 100505 futures trader, if using a sound trading system, can usually make more money onrepparttar 100506 futures market and make it much faster. However, if that trading system is not soundrepparttar 100507 trader can have greater losses.

This is because futures contracts are highly leveraged. Margins (the deposit required) on futures contracts are much less than for stocks, as low as 3% on some futures contracts compared with up to 50% for stocks. As well, futures investors are not charged interest onrepparttar 100508 difference betweenrepparttar 100509 margin andrepparttar 100510 full contract value.

The margins for futures contracts act more as a performance bond or good faith deposit whereasrepparttar 100511 margin for stocks is more of a loan.

Althoughrepparttar 100512 margin on futures contracts is quite small, it ridesrepparttar 100513 full value ofrepparttar 100514 underlying contract as that contract rises or falls, thus providingrepparttar 100515 leverage mentioned earlier.

Commissions charged by futures brokerages are normally much less than brokerage commissions for other investments.

Futures markets userepparttar 100516 open outcry (auction type) method of trading ensuring very public, fair, and efficient markets. Plus, it is much harder to trade on inside information as so many variables affectrepparttar 100517 markets. Also, futures markets are very liquid. Transactions can be completed quickly, which lowersrepparttar 100518 risk of adverse market moves

If you own stocks you are an owner ofrepparttar 100519 company. This allows you to share inrepparttar 100520 company’s profits, and losses, through dividends, and increases or decreases inrepparttar 100521 stock’s value. It also gives you certain voting rights withrepparttar 100522 company. However, a company can go bankrupt, leaving you holding worthless stock.

When you buy and sell futures you are only entering into a contract and don’t really own anything. What you have is an agreement to buy a commodity or financial instrument (wheat or Treasury Bonds for example) at a specified price at a certain date inrepparttar 100523 future.

Guidelines for the Ideal Home Business

Written by by Rob Hall


There is bad news and good news in starting a home business.

The bad news is 95 % of all new businesses fail within a short time.

The good news isrepparttar home business industry has reached $427 Billion annually, and is growing at an amazing rate. And, 80% of all millionaires today are self made.

So, there is a chance your home business will succeed but only after you have given careful thought as to what that business will be.

Here are some ofrepparttar 100504 attributes of an ideal home business that will improve your chances of success.

The Ideal Home Business:

1- Sell torepparttar 100505 Entire World The ideal business must have an unlimited global market,not just local or regional exposure.

2- Is not cyclical Your product/service does not rely on cycles to be in demand. The demand is constant, regardless of time, or price.

3- Product is Original Your product must be unique. It cannot be easily substituted or copied.

4- Minimal Labor Requirements A large portion of capital is not tied up in high labor costs.

5- Low Overhead Total overhead cost must be minimal. No high priced rent, power, labor, shipping, etc.

6- Does Not Require a Large Cash Outlay The ideal business does not tie up capital in all kinds of equipment.

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