Becoming A Universal Market Trader!

The financial markets have begun 2008 in turbulent fashion, with huge falls being followed by recoveries of almost the same magnitude. The turmoil is being blamed on US sub-prime mortgage losses (ie greedy banks getting their fingers burned) and the subsequent fear the US is heading for recession.

NB That’s not to say you shouldn’t use stop losses on individual speculative stocks – you absolutely should – just that selling your entire portfolio in a down market isn’t wise.

A sharp drop in commodity futures fueled negative Market Sentiment as light crude oil slipped below $109 a barrel, down 2.07, or 1.86%, to 108.98 on the New York Mercantile Exchange.

Forex trading has opened up many exciting possibilities for retail investors like you and me. You can even start trading with $500 when you open a mini account with your broker. Brokers allow leverage as high 1:400 meaning that for every $1 that you have, your broker allows you $400 to trade. Well, this much level of leverage is dangerous and many people get their fingers burnt. Don’t use more than 1:5 leverage level. When you become highly experienced you can increase your level of risk taking.

For example, when Merck & Co Inc. (MRK) announced the withdrawal of its painkiller drug, Vioxx, that reduces uncertainty. Sure, shareholders lost money as the stock price plunged and volatility increased. But, sooner or later, Vioxx will be pulled anyway. Not pulling Vioxx only make the liabilities worse. Now, potential investors can estimate Merck’s fair value based on the ‘bad’ news. While the news is bad, it reduces uncertainty which reduces risk. This is in a sense good news for investors.

The amount of money can Forex can be enormous. The investment is a risk. Forex Autopilot software purchase not determine with certainty, 100% of the risk. This will help make life easier for investors in terms of identifying and analyzing the data. More or less, to help you manage risk. This point alone is a big reason why everyone involved in the transactions, the Forex Autopilot software.

So, I guess what I’m saying is, if you have the time to drill deeper into company’s that may be trading in sympathy, do so. There really are screaming bargains out there every day, in penny stock land.

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