Trading Stocks With Cash Account? Or Alternative Instrument?
Most people have the wrong idea that stock trading is a rich man’s game and requires a large capital to begin with. This is absolutely a misconception!!
In my definition, the rich can temporary manipulate the market the way they want it to be and we, the commoners, will simply follow suit with what the big boys do. Large capital is not necessary to build your investment portfolio given that we have a new instrument type called CFDs (Contract for Difference) available in today’s market.
CFDs enable investors to pay only a fraction of the contact value amount with indefinite time frame. Furthermore, you are allowed to long or naked short any counter in any market situations. Therefore, giving us the opportunity to profit in whether a bull or bear market. Before you rush off to open a CFD account, please ensure you have fully understood the instrument CFDs, the benefits and risks involved when trading with CFDs.
Know The Instruments You Play At Your Fingertips
You need to know the risk involved when playing with CFDs. CFD is often accompanied with margin trading, hence, to a certain degree, they carry a higher risk than trading in cash market. When you borrow for bad investments, the consequences may not only make you lose all your own capital, you might end up owning a debt as well. So what exactly is a CFD?
In layman terms, buying shares on margin is akin to borrowing money through a margin loan to buy stocks. It is the same logic as buying a house using a mortgage where you are not required to pay the full purchase price in advance, rather, only a down-payment.
Let me give you an example. Let’s say you have $10,000 spare cash for investment. You decide to play on margin since you only need to pay a fraction of the contract value amount unlike normal cash account. You went on to buy Stock A which is priced at $10.52. It has a 10% margin and you decided to buy 2,000 shares.
Contract value = 2,000 x $10.52 = $21,040
10% margin = $21,040 X 0.10 = $2,104
Instead of using $21,040 to buy Stock A, now you only need to use $2,104 to buy Stock A. In margin trading, you get to maximum your money value compared to trading via cash account where you are required to pay $21,040 on due date. Apart from gearing, the plus point is that you get to put your money into better use.
Drawbacks
As margin trading is considered high risk, if ever your investment starts to lose its value or even ends up worthless, you are likely to face a margin call. Using the same example, let’s see the difference in terms of the percentage losses/gains if you trade on margin and cash account.
Please note that the examples described herein are all gross profits/losses. Net profit = gross profit – (commission + interest)
Scenario 1A
Suppose Stock A issues profit warning and stock starts to plummet. You purchased at $10.52 but it is trading at $10.10 now. Assuming you have not exited at $10.10.
On Margin
Paper loss = ($10.52-$10.10) x 2,000 = $840
Percentage loss = ($840 / $10,000) x 100% = 8.4%
On Cash Account
Paper loss = ($10.52 – $10.10) x 2,000 = $840
Percentage loss = ($840/ $21,040) x 100% = 3.99%
Scenario 1B
Stock A is performing well and making new highs. It is trading at $11 now. Assume you are still in position.
On Margin
Paper gain = ($11 – $10.52) x 2,000 = $960
Percentage gain = ($960/$10,000) x 100% = 9.6%
On Cash Account
Paper gain = ($11 – $10.52) x 2,000 = $960
Percentage gain = ($960 /$21,040) x 100% = 4.56%
Your percentage returns while trading on margin is bigger since margin trading helps to magnify your potential gains; likewise, it magnifies your losses too.
In Summary
Remember, margin trading is a double-edged sword. It cuts both ways. Know your risk appetite and risk accordingly to your tolerance level. Please do not be greedy and borrow up to the maximum. Only invest with your disposable cash and ensure you have the cash flow to cover repayments should the investment fail you. Last but not least, know the cost of holding a CFD position overnight and always check your spreads before entering your trades.
July 2009Monthly Archives
What’s in Your Anti-aging Skin Cream? You Really Need to Know
An anti aging skin cream must have the correct ingredients to give your skin that smooth radiant glow. Most anti-aging creams don’t even come close to delivering what your skin needs. Your skin needs new collagen and elastin. It needs new cells and fibers. Let me show you what you need in anti aging cream to regain that smooth beautiful look. Also I’ll show you some ingredients to avoid.
As I mentioned, to get that new fresh look from your anti aging skin cream you need collagen and elastin. As we get older we get less. Your body needs to produce new elastin and collagen. When it does those terrible wrinkles slowly begin to leave. Then in time that new, fresh, younger looking face begins to appear
Skin’s Building Blocks
Not all proteins are alike but they are referred to as the building blocks of the skin. On such protein is called Keratin. If Keratin isn’t constructed or made the right way, it will not penetrate the skin. Therefore, most skin care products contain a useless type of “keratin”. The correct type of keratin must be in the anti aging skin cream or it is worthless. How do we find the correct type of keratin?
Ingredients that Work
Functional Keratin, also known as, Cynergy TK is a protein when added to an anti aging cream helps remove wrinkles. It is the only type that I found that really works. Other companies claim to have keratin but it is usually from the wrong source therefore doesn’t work.
From the Sea of Japan comes an ingredient that is a must for anti aging skin creams. It is called Wakame. Wakame is an algae or sea kelp that has a lot of good ingredients such as, potassium, B vitamins, iron, sodium and calcium.
A laboratory analysis of the sea kelp found that a component in it helps promote smooth and younger looking skin. And that is what anti aging creams are supposed to do.
As a extra bonus Wakame is an excellent antioxidant which will successfully fight free radicals. It will also help increase the skin’s protein level.
Antioxidants
Usually we think of antioxidants coming with the vitamins we take. But since free radicals damage skin cells it is very beneficial to include them in the skin cream.
Antioxidants like wakame, vitamin E and CoQ10 should be in anti-aging skin creams. But they also should be natural not some synthetic filler.
Special, Effective Formula
Nano-lipobelle is a special ‘nano-emulsion’ form of CoQ10, which PENETRATES DEEPLY into your skin. It is created in such a way that it will penetrate through seven layers of skin. It contains both COQ10 and vitamin E in a special emulsion created specially for use as an anti-aging skin cream. How effective is Nano-Lipobelle H-EQ10 in skin care? When applied to your skin, Nano-Lipobelle H-EQ10 can produce quite a dramatic anti-wrinkle effect, which has been confirmed by scientific studies. This is due to its ability to increase collagen and elastin production in the skin.
Ingredients to Avoid
Briefly, let’s look at a few of the things that an anti-aging skin cream should not contain:
-alcohol because it is drying. (stearyl and cetearyl alcohol are fine. They are waxes and have nothing in common with the alcohols that cause skin problems.)
-fragrance because it can be irritating.
-sunscreen because it alone does not reduce the risk of skin cancer and some compounds are hazardous.
-parabens because they are cancer causing suspects.
-paraffin wax or mineral oil because they clog the pores and strip natural oils, leading to dryness.
Our skin is our largest organ. We need to be careful what touches it since whatever does could end up in our blood. This is a common sense health precaution. If you wouldn’t eat it don’t put it on your skin. Use only natural ingredients in your anti-aging skin care creams. For more information please see my website. – Thanks, Margaret Bell
Margaret Bell is a dedicated advocate of living a healthy lifestyle and diligent researcher of skin care systems. Visit her site at: http://www.AHealthyRadiantSkin.com to discover which is the Best Skin Care Products Margaret recommends for all skin types. Be sure to sign up for her free Health newsletter and the soon to be released Complete Skin Care Guide, it’s free.
Ever Heard of the Serious Bird Flu?
Many do not care to know more about diseases other than those that frequently affect them and those they love like the cold fevers, venereal infections and the like.
Nevertheless, it is important to learn about some of the serious ones like bird flu, which is not very common in many corners of the world.
I know one may ignore because they do not live somewhere near birds of any type, but another person who does may catch and spread it.
What is bird flu?
This is an infection caused by avian or bird, influenza or flu, viruses. These viruses are said to occur naturally among birds, but those of the wild carry them in their intestines without them experiencing any harm.
The problem is that this is very contagious among all birds, but if those domesticated like chicken, turkeys, ducks catch the virus, their health deteriorate very fast and soon dies.
The owner of these domestic birds may then be subjected to the risk as is to be mentioned later on this article.
Types of domestic bird flu
The birds you have domesticated can either catch low pathogenic or high pathogenic forms of bird flu.
The two are differentiated by low and high extremes of virus attack. The low pathogenic form might be undetected and typically will cause mild symptoms like a drop in egg production and/or messy feathers.
High pathogenic on other hand spreads swiftly through group of poultry and may result to an ailment that affects many internal organs and highly fatal to the birds.
How does human become victims of bird flu viruses?
Many cases of avian flu infection in humans have resulted from direct or close contact with infected poultry like domesticated chicken, ducks and so on.
They could also get infected if they touch contaminated surfaces with secretions and excretions from sick birds.
What signs should tell humans are infected?
The signs of bird flu in humans have varied from usual influenza symptoms such as fever, sore throat, muscle aches and cough to eye infections, severe respiratory ailments (respiratory distress syndrome), and pneumonia among other life pressuring problems.
What is imperative to note is that the signs will depend on the specific virus subtype and strain causing the disease.
Diagnosis of bird flu
The biggest mistake any one would make is trying his lack to heal his disease thinking that it could be the usual flu.
Taking a step to visit the doctor is the way forward. He or she will take you through a laboratory test to confirm avian influenza in humans.
Implications of bird flu to human’s health
There are two key risks human health is exposed to from avian influenza. First, direct infection may occur when the virus passes from the infected bird to humans, at times leading to severe ailment.
Secondly, there is the risk that the virus, if offered perfect conditions will turn in to a form that is highly infectious from one human to other humans.
Treatment of avian flu in humans
Laboratory facts suggest that prescribed drugs approved for human influenza viruses should also work in treating bird flu infections in them.
The biggest problem though is that they may become resistant to these medications and they may not work.
READ MORE ON THIS ARTICLE ON THE FOLLOWING LINK
An original article by Esteri Maina onBIRD FLU
Fight Colds and Flu with Strong Immune System
Colds and flu are a common disease that can be inflicted to anyone who has a weak immune system. Weak immune system is probably caused by too much stress or other illnesses or through poor diet. Colds and flu are triggered by some allergens such as dust and pollutants and viruses. Colds are characterized by sneezing, blocked-up nose, runny nose, coughs and headache whereas flu shows additional symptoms of rapidly rising fever, chills, and body and muscle aches.
Colds and flu are communicable and therefore can be passed from one person to another. The viruses are transmitted by droplets from coughs or sneezes. These droplets are inhaled directly when they are floated in the air. They can also transmit through hand contact. The viruses, which can last for a few hours, are introduced to the nasal passages when the hand touches the nose or eyes.
Sufferers of colds and flu develop immunity to the virus encountered. However, this immunity offers limited protection as there are large number of different colds and flu viruses. The best way to prevent inflicted by someone with colds and flu is avoid getting contact with the existing sufferers. Wash hand regularly and thoroughly with anti-bacteria soap and avoid touching the face with hands.
Perhaps by avoiding the source of viruses, you could protect yourselves from being infected. However if in any cases you catch a colds and flu, you need a strong immune system to fight off the virus. Consuming plenty of leafy greens, sweet potatoes, Brazil nuts, walnuts, sunflower seeds, tuna and broccoli can strengthen your immune system.
Vitamin C and Zinc can prevent colds and flu. The duration and severity of colds and flu may be lessened by increasing intake of vitamin C up to 500mg daily for as long as the cold last. It will be easier to take supplement tablets than to consume 500mg of vitamin from food daily. However, too much vitamin C can cause stomach upsets, diarrhea, kidney stones and other problems.
Water and other citrus-based drinks will help in decongesting phlegm and mucus formations and hence minimizing the effect of colds. Drop few drops of thyme oil and eucalyptus oil in boiling water and inhale the stream. This can also have the same effect.
Ginger and chilies are good stimulant spices that help to fight off viruses. You can use them fresh in your cooking. You can also include plenty of fresh garlic in your diet as garlic is a natural anti-bacterial. Avoid eating foods rich in saturated fats such as chocolates and other dairy products as they tend to form more mucus that may develop into sinusitis. Low-nutrient foods, alcohol and smoking should also be avoided.
Colds and flu sufferers should get plenty of rest and drink lots of liquid. However, it is necessary to take medications to relief symptoms such as fever or muscle ache associated with the colds and flu. So, it is crucial that you see your physician for proper treatment.
Food for Health. Food For Weight Control. Food as Medicine . Everything About Food Nutrition Such As Vital Vitamins, Dietary Minerals, Fibre, Fat and Carbohydrate.
Adt, Adt Security, Adt Home Security, Adt Security Systems, Home Alarm Systems, Home Security
If the Peterson family had not chosen to install a home security system, hundreds of underprivileged people in New York would be in worse shape than they are already in. There is seemingly no correlation here between the Peterson’s home and the well being of at risk populations in Louisiana, but the two are undoubtedly linked. It just goes to show how installing a home alarm system in your house can potentially have a much broader significance beyond your immediate family.
Bill Peterson is a retired history teacher, working most of his life in the nearby high school. After 35 years of teaching, bill had seen a lot. One of the things that struck him most was the growing dominance of technological tools in our society and in education. He noted that students of lower socioeconomic brackets without access to a home computer were at a distinct disadvantage in terms of information access, computer literacy, and quality of future education compared to their more fortunate counterparts. That is why, after his retirement, Bill decided to contribute to the cause of promoting computer literacy. He used various social connections to get word out that he was searching for used and older computers that were still functional or moderately functional. After some technical training at the community college, he began to collect donations of recycled computers and computer parts and set up a workshop in his garage. There he assembled new working units, fixed problems with old machines, and compiled several computers that could be sold for 50-100 dollars, depending on the situation of the customer. The machines go to community centers, families, schools in low-income areas, etc.
While out to dinner with his wife, Stacey, one night, the Peterson house was empty, since their 2 daughters are both attending college in Florida. During their absence, there was a break-in attempt through the back screen door. With the removal of the screen, the home alarm was activated, which set off a loud, blaring noise. Because the thieves could not deactivate the system with the code, they were in a potentially very sticky situation. They were forced to flee the scene before they could rob the Peterson’s of their possessions. Bill received a call on his cell phone during dinner from security personnel of the home alarm company, who informed them that their alarm had just been activated and did they know anything about it. They quickly rushed home to investigate what happened and quickly pieced the scene together.
Bill and Stacey feel very fortunate to have dodged that bullet. Not only would they have lost many of their valuables and sentimental objects, but Bill’s recycled computers would have no doubt been stolen and his current project would surely have been destroyed. “He has invested so much in helping people learn and to have the same opportunities that we are lucky to have. It would be just devastating to see it all gone, just like that.”