The Law of Demand

The Law of Demand

The law of demand and it’s application The law of demand and it’s application to fundamental analysis of commodities rests upon an understanding of consumer behavior. The factors which characterize consumer choice and how the market place reflects individual consumer responses are key components of this economic theory. Understanding what factors have affected demand in the past will help to develop expectations about demand in the future and its impact on market price. Demand for a particular product or service represents how much people are willing to purchase at various prices….

You Bought the High

You Bought the High

Oops, You Bought the High I have seen and heard this many times from new traders. They buy right at or near the high of the day or sell at or near the low of the day and they can’t believe it. Either their emotions or trading strategy had them entering the market at the worst possible price, which is obviously not ideal. The focus of this piece is to understand why this happens and how we can correct that and also profit from it. As I mentioned above, there…

Asian Stocks Buoyed by China Stimulus

Asian Stocks Buoyed by China Stimulus

Asian Stocks Buoyed by China Stimulus as Crude Climbs Above $34 Asian stocks rallied, emerging-market currencies strengthened and crude oil climbed to an eight-week high as monetary stimulus in China brightened prospects for the world’s second-largest economy. European equity futures declined. Benchmark share indexes advanced across most of Asia after the People’s Bank of China cut lenders’ reserve requirements, freeing up funds to help spur lending in the nation. The yuan gained for the first time in eight days and higher oil prices buoyed Malaysia’s ringgit. Copper retreated after a…

How to trade futures

How to trade futures

How to trade futures? Here is some advice. The oldest form of trading gets a technology facelift. The concept of futures trading is as timeless as the marketplace itself. As long as people have been selling such tangible assets as oil, wheat or gold, there have been hedgers who want to protect against the possibility of a future price change and speculators who hope to profit if the hedgers are wrong. So, let’s talk about how to trade futures. A producer of wheat, oil or another commodity, rather than simply bringing his…

What Are Stocks?

What Are Stocks?

Let’s talk about “What are stocks?” The Definition of a Stock What are stocks? Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing. Being an Owner Holding a company’s stock means that you are one of the many owners (shareholders) of a company and, as such, you have a claim (albeit usually very small) to…

Introduction to the Forex Market

Introduction to the Forex Market

An Introduction to the Forex Market: Hey traders, this free Forex mini-course is designed to teach you the basics of the Forex market and Forex trading in a non-boring way. I know you can find this information elsewhere on the web, but let’s face it; most of it is scattered and pretty dry to read. I will try to make this tutorial as fun as possible so that you can learn about Forex trading and have a good time doing it. Upon completion of this course you will have a…

Dow settlement signals impact of Scalia death on class actions

Dow settlement signals impact of Scalia death on class actions

By Lawrence Hurley WASHINGTON (Reuters) – Dow Chemical Co’s agreement to pay $835 million to settle a price-fixing dispute provides evidence that Justice Antonin Scalia’s death is a blow to businesses that have had success recently in challenging class action cases at the U.S. Supreme Court. Dow (N:DOW), in the process of merging with Dupont (N:DD), on Friday settled the decade-long dispute rather than risk its fate being decided by a shorthanded, eight-justice court missing, in Scalia, a reliable vote in support of companies in class action cases. The Dow dispute, in which…

Stocks Rise After Fourth-Quarter GDP Revised Higher

Stocks Rise After Fourth-Quarter GDP Revised Higher

Stocks moved higher on Friday after the latest data showed fourth-quarter growth in the U.S. economy wasn’t as bad as feared. The S&P 500 was up 0.38%, the Dow Jones Industrial Average added 0.39%, and the Nasdaq rose 0.72%. The second estimate of fourth-quarter GDP was revised up to an annual rate of 1% from 0.7%, suggesting that the U.S. economy was in better shape than expected to close out last year. Economists had expected GDP to be revised down to 0.4% growth. A stronger U.S. dollar and an inventory buildup continued to hurt manufacturing, though, with exports…

Before the market opening

Before the market opening

6 things about stocks you need to know before the market opening It’s shaping up to be a feel-good Friday. U.S. stock futures are pointing up and nearly all global markets are posting strong gains. Here are the six things you need to know before the opening bell rings in New York: 1. Calm in China: Chinese stock markets were calm Friday following a sharp, unexpected drop on Thursday. Investors may have been placated by comments from the head of China’s central bank, Zhou Xiaochuan, who said the central bank still has the ability and…

5 things to look for in Warren Buffett’s annual letter to investors

5 things to look for in Warren Buffett’s annual letter to investors

It’s time for another eagerly anticipated epistle from the Warren Buffett. Berkshire Hathaway BRK.A, -0.15% BRK.B, +0.03%  will release its annual report at around 8 a.m. Eastern Time on Saturday, but the main draw will be the annual letter to shareholders from Buffett, the firm’s chairman and chief executive. This will mark the 51st year Buffett, 85, has written a letter to Berkshire investors. His track record — combined with his folksy ability to explain his investment philosophy, long-term strategic decisions and even his biggest regrets — have made the letters a must-read for investors and…