Trading in the stock market today can be a daunting task for even the most informed investor or trader. In my opinion the best approach is to use a combination of both fundamental and technical analysis to catch the most advantageous moves in the market. Below we lay out an evergreen routine that can be used to evaluate the stock market today and everyday. Pre-Market Prior to the market open you should spend a couple of hours: getting … [Read more...]
A Bacon Illustration The best way to think about how stock market futures work is to understand a tangible application of a basic futures transaction. Let's assume you are a meat packer and you sell bacon and you need to buy pork bellies to make your product. Every day, the price of pork bellies goes up and down based on various market conditions. You would like to buy the pork at the lowest price possible so you can make the largest profit … [Read more...]
The stock exchange is nothing more than a marketplace where securities, commodities, derivatives and other financial instruments are traded among the participants. Its purpose is to ensure that a fair and orderly transaction takes place and allows companies, institutions and even governments a mechanism where they can buy and sell investments to the public. Major Stock Exchanges in the World The exchanges can be a physical location below is a … [Read more...]
Commodity prices are the costs associated with the purchase of any type of commodity. Some of the most common types of commodities see price changes throughout the day. Others remain a bit more steady. Pricing models are based on a standard unit of measurement recognized by the reporting agency. The most common pricing models focus on the weight of the commodity. Others focus on the number of items, such as the number of barrels of … [Read more...]
American and European banks have begun to pull out of the commodities trading market in recent weeks. However, state-owned firms, particularly from China and Russia, have been moving in to fill the gap. Parties involved have been announcing several important deals, as state-firms have started to buy out banks and take over their commodity trading operations amid a shifting market. The logic in these moves is quite simple: banks are facing … [Read more...]