Rather than family members giving me presents around the holiday season that they knew I would never use, they instead gave me gifts of gold and silver coins. I have to admit that there were times that I complained a little about the choice of gifts, but I have since stopped complaining.

Gold and silver coins are not only one of the hottest current investments, but they are also getting excellent returns. The gold coins that I complained about a few years ago are now being sold for well over a thousand dollars per coin! Getting in on this great investment is quite simple.

Gold Coins
There are three major types of gold coins that investors are going crazy for. The first and most popular is the American Gold Eagle coins. Each coin has a face value of fifty dollars and is one ounce of 22 karat gold. The other two popular gold coins are the American Gold Buffalo and the Canadian Maple Leaf. The American Gold Eagles and the American Gold Buffalo can be purchased directly from the United States Mint. At this time however, there is a shortage but production is set to soon begin again.

Silver Coins
While silver has not shown as great of a return as gold over the past few years, the prices are steadily increasing. When I first received silver coins as gifts in the late 1990’s, they were only five to six dollars per coin. The price per ounce of silver today has gone up to over fourteen dollars per ounce! Even my best investments over the years have not survived quite as well as my silver coins have.
Recent information predicts that the price of gold and silver is going to continue to rise over the next several years. If you are looking for a way to diversify your portfolio and invest in something that will give you the return that you’re looking for, gold and silver coins might just be the way to go. I am certainly glad that I held on to what I once considered boring holiday gifts.

Invest in Gold and Silver is a post from: Saving money tips - frugal living tips

Selecting a good forex broker- Just like there are several brokers in the equity, real estate, mortgage business etc., there are many brokers in the forex market also. You need to be careful that you choose the right broker. Some things that you should look for and would help indicate the right broker are:

Low spreads- Spread is the difference between the purchase price of a currency pair and the price at which it can be sold at some specific point in time. It is the difference that the broker will charge for selling the currency to you and the price that he will pay if he buys the currency from you. You have to pay this difference only once. The broker will add this to the price of the currency and keep it with him. This difference/spread is his earning in the deal. Forex brokers do not charge a commission and this difference is the way they make their money for the transactions they conduct. Looking into spreads to make a comparison of forex brokers you will find that it is much like the difference found in commissions charged by share brokers in the equity market. You can save money in forex trading with lower spreads.

Spread is calculated in pips. A pip is short for Percentage in Point and is the smallest amount of price move in the forex trade. For example, if the EUR/USD is trading at 1.3000 and later moves on to 1.3010 it is supposed to have moved by 10 pips. One pip is equal to 1/100 of one percent which can be numerically expressed as 0.0001. Accordingly two pips would be 0.0002, three pips 0.0003 and so on. An example of a five pip spread for any currency pair can be 1.1520/1.1525. In case you buy and sell immediately without any change in exchange rate happening, you stand to lose money for certain because the broker’s buy price is always lower than the selling price. Spreads offered by different brokers can greatly vary and though there may not appear to be much difference in a 4 pip and 5 pip trade it can translate into quite a big amount in real terms and mean even a 25% difference in trading costs depending on the number of transactions, the currency traded and amount involved.

Institutional backing- Forex trading requires huge capital and therefore forex brokers are generally attached to big lending institutions and banks which provides them with the necessary leverage. Brokers in the forex business also need to be registered with the FCM (Futures Trading Commission) and are regulated by the CFTC (Commodity Futures Trading Commission). All the financial information about a forex broker can be found by browsing the site of the broker or that of the company to which he is attached. You must make sure that the broker you choose is attached to a reliable financial institution.

These are just some points that are necessary to know as you prepare to enter the forex trading market. Make sure that you educate your self properly and get a broker who meets certain criteria and who will also assist you in developing a proper trading strategy suitable to your situation before you start forex trading.

Getting Started In The Forex Market is a post from: Saving money tips - frugal living tips

A class stocks
A class stocks are best if you plan to hold on to your investments for two years or more. This class consists of stocks that have a front end load (sales commission is charged at the initial stage of investment), attract the lowest 12b-1 fees (these are promotional expense charges levied by the mutual fund which eventually reduce the end returns on your investment) and investing in this class makes you eligible to receive discounts (in the sales charges levied by the mutual fund) when you increase your investment in the fund to reach a certain level known as the ‘breakpoint’. This breakpoint amount is determined right at the time of buying the mutual fund. You are also offered discounts when you express your intent of increasing your investment to reach the breakpoint by within a specified time through a letter of intent. When you fail to reach the breakpoint before the date specified in the letter of intent you have to pay the regular ‘sales’ fees. For example the regular fees may be 3.75% up to a breakpoint of $50,000. Investment over this brings down this fee to say 3.25% or even lower for greater investment as per the breakpoint schedule. Therefore when you make an initial investment of say $30,000 and sign a letter on intent to increase your investment to $50,000 within the next ten months you are charged 3.25% instead of 3.75%. If you fail to enhance your investment as agreed in the letter of intent then the charges will be 3.75% and not the lower fees of 3.25%.

B Class stocks
The special character of Class B stocks is that do not have any front-end load. Instead they have a contingent deferred sales charge or a progressively decreasing back end load which makes them best for investors with limited resources and for those who are prepared to make long term investments usually ranging between five to ten years. A back end load is a percentage of the asset value (usually 1.5%) charged by the mutual fund at the time of sale. Small investors prefer this class of stocks, as they do not require payment of front-end fees, which reduces their initial investment amount, and there is constant reduction of the deferred sales charge over time, which comes to zero at the end of the specified investment period. However, deferred sales charge/fees become payable if funds are withdrawn prior to the specified period. Another benefit associated with B class stocks is that they automatically get converted to A class stocks which have a lower yearly MER or management expense ratio. MER is a charge mutual funds levy on investors for managing the funds. A disadvantage with B class stocks is that no discounts can be availed of, as there are no provisions for a breakpoint. Because of this it is not possible to reduce investment costs even with an increase in investment.

C Class stocks
These stocks form the top choice of investors who plan to redeem (sell off) the stocks after a short period of time. The benefit of not having to pay front end fees extends to this class of stocks also. Back end load is also less; usually just one percent. Even this one percent is eliminated if the investment is retained for over one year. The main drawback of C class stocks is the compulsory back end load. This class also has a higher MER, no discounts or automatic conversions.

The Basics of Mutual Fund Classes is a post from: Saving money tips - frugal living tips

Complimentary services- The broker should offer free services like investment tips, latest stock quotes and investment planning software. When you are fresh to stock investing these things let you develop your understanding of the basics of stock investing. As you gradually familiarize yourself with the intricacies of stock trading you can move on to taking independent decisions regarding your investments. What you also need to assess is the speed of the broker’s website. It is essential to know how long it takes for the web page to load for processing a transaction, especially during peak hours. You must check all this in advance to know that the website does not suffer from any technical defects.

Phone/fax services- Different priorities may constrain your online presence for long stretches of time. Under these circumstances you may not be a position to carry on your stock trading activities through the internet and would stand in need of additional services like placing orders through fax or over the phone. Many brokers offer these services in addition to touch-tone telephone trading for a fee. It is best to opt for the services of an online broker that can offer such additional services. However, you need to acquaint yourself with the fee structure/service rates and related terms and conditions of different online brokers to ensure that you are able to select one that is offers the best services at the most cost effective rates. It is also important for you to conduct a research into the track records online brokers in order to check the quality of service they render to their clients.

Low commission rates- Many online brokers offer low commission rates in the beginning in order to attract new clients. Often, these rates are below the usual going rates prevailing in the market. You must be careful while selecting an online broker that offers low commission rates because it could be an indication of poor quality services. Even if they advertise low rates for all services a through check may reveal that the services offered are very limited most of which are of a nature that you may never use at all.

Security Deposit- Online brokers require you to make a security deposit with them. The amount of security deposit varies from one broker to the other. There are some brokers that charge very high rates of security deposits, often as high as ten thousand dollars. However, high rates of security deposits are no guarantee of the quality of services to be rendered by the online broker.

These are some of the things that you need to consider prior to selecting a broker to handle your online stock transactions.

Things to Consider Before Selecting an Online Broker is a post from: Saving money tips - frugal living tips

We wrote this article as a beginner’s guide to day trading online to give you more information about in day trading online.

Buying and selling stocks, currencies, future contracts etc. on the same trading day is referred to as day trading. It is considered to be a highly risky form of stock investment. Online Day traders indulge in rapidly buying stocks and selling them off the same day.

This type of day trading online is done with an aim to secure quick profits and is based on hopes of stock prices rising and falling within the short period that the stocks are traded during the day. Some people dabbling in stocks feel that settlement before the market closes for the day is contrary to market wisdom of allowing the profit to run. However, day trading helps traders to avoid any risk of price gaps. Price gap is the difference between the price at which the market closed at the end of a day and the price at the time the market opens the following day.

If things work out favorably, day trading online can provide very good profits as it yields quick returns. The risk factor however is very high and traders who are prepared to take the risk stand to generate high returns for themselves within minutes or hours of trading. Many traders do online day trading taking advantage of advancement in electronic communication and the huge benefits available through the use of the Internet.

The convenience of online day trading is contributing to its increasing popularity.
When indulging in online day trading it is important to work according to tested and tried strategies established overtime. Here are some strategies that every prospective trader should consider before going ahead with online day trading.

Identifying and following market trend

– When there is a rise in financial instrument prices it is usual for day traders to assume that the rise will continue and assume a continuing decline when a decline starts. Day trading is based on ‘trend following’ in which traders buy rising financial instruments and short sell when prices start falling assuming that the trend is going to continue. For example, as a day trader just as there is good news and the price for ABC stocks begins to rise you buy 1000 shares of stock ABC at price X at 10:35 am and then sell it again at 10:39 am when the price ups by 1/2 i.e. $0.50.You make a cool $500 within minutes which even after paying the typical commission of about $30 for a trade leaves you with $440 after your buy and sell activity.

Using Range Trading

– Under this strategy an expected price range comprising upper and lower price levels for both rising and falling stocks is identified and stocks are sold as they reach near the upper price levels in the range. This applies both to rising and falling stocks.

Scalping

– Scalping is also called quick trade or spread trading. In scalping settlement is done very fast; within minutes or even seconds of trading leading to quick high returns.

Playing news

– This is one of the most popular strategies employed by day traders who implement this strategy to gain quick returns. The playing news strategy consists of buying stocks that offer good returns and selling stocks with bad returns.

Despite its huge popularity and the various strategies that can be used to generate handsome profits, day trading online is not everyone’s cup of tea. Along with good profits the risk factor is also very high. Statistics reveal that out of the total day traders 80-90% lose money; only about 10-20% are able to make gains. Some say you have only a slightly better chance of making money day trading than you do in a casino. Day trading is expensive and requires full time involvement. However, financial discipline, quick decisions, money management and risk taking can make day trading online a potentially profitable business, even for a beginner.

Make Money Day Trading Online is a post from: Saving money tips - frugal living tips

So far the price is staying around the what that I bought it at. This is not a growth stock and I am not expecting huge gains in the price. My first dividend payout will be sent to me on the 15th. I will receive a whopping $11. As I add to my investments that amount will grow, I hope to eventually be collecting enough dividends to support myself. This will take a while but I am patient.

Wish me luck!

Investing in the stock market – Getting started update is a post from: Saving money tips - frugal living tips

I solved that problem by reading a couple of books on the stock market, these books talked about how to get started, how to evaluate the companies that you are investing in and what kinds of things to avoid.

The first thing I found out is that I needed a brokerage account. I also found out that there were different types of brokerage accounts. The more traditional option is the full service brokerage account where you get one-on-one guidance and advice from a qualified broker. These brokers will give you stock tips and even make stock purchases on your behalf. The downside is that you will pay hundrends of dollars in comissions for each trade that you make and there is always the risk that you are getting biased advice from someone who will benefit from your decisions.

Another option is to get a discount brokerage account which is more of a self serve type of service where you can buy your shares online. This only costs $29/transaction (sometimes less) but you have to do all of the stock market research yourself. There will usually still be a lot of company financial infomation available to you with these types of services.

Since I am starting with a small amount of money, I decided that it would be best for me to set up a discount brokerage account. I did that through my bank and then found a stock that is currently paying an annual dividend of almost 14%, has a high growth rate, and has a long history of high dividend payouts. I am going to start with that one.

So now I am all set up to invest in the stock market. I have my discount brokerage account, I have $1000 ready to go and I have my company all picked out. Tomorrow I am going to invest in the stock market for the first time. I am so excited! I will let you know how it goes.

Investing in stock market – getting started is a post from: Saving money tips - frugal living tips

This is very sad; it should be a lesson, and an early warning sign for us Canadians who are knee deep in debt, and maxed out on our mortgages. For those of us who aren’t, the recent economic troubles could mean a huge opportunity for investing in the United States and around the world. Our dollar is up, our real estate market is healthy, and our unemployment rate is low.

In contrast, in the United States foreclosures were up 75% in 2007, there were more than 2.2 million filings for foreclosures! That’s 2.2 million homes being sold at bargain basement prices. (Check out foreclosure.com to see all of the homes that are “on sale”) Also the US unemployment rate is on the rise, and their dollar is has been falling steadily for quite a while.

In spite of all of that, we Canadians are still going strong. This presents a rare opportunity for us. Many of us can now afford to buy beautiful homes in the US that we never would have dreamed of buying even a year ago. This weekend my boyfriend and I went for a drive south of the border. It is unbelievable how much cheaper the houses are there compared to here. A house that you would normally pay $300,000 for here in the Toronto area you can get there for under $80,000 in many towns and cities in Western New York. Some that are even right on a lake!

Other exciting oppotunities can be seen in the US stock market. I’m sure you’ve heard the term buy low, sell high. Buying now may be a good example of buying low, although there’s no way to pinpoint exactly when the market will turn around.

Investing south of the border may also help to provide income for you in the event that the Canadian economy suffers a blow. Just make sure that you do your research before you invest in any company, or property in Canada, the US or anywhere else.

As bad as things seem now in the United States economy, why look at the glass as being half empty when there are so many opportunities out there?

Huge buying opportunity for Canadians is a post from: Saving money tips - frugal living tips