Global Macro Trading and Asset Class Diversification

By John Malthus

Among the ten asset classes we have cash, equities, fixed income, commodities, currencies, real estate, private equity, venture capital, collectibles, and statistical arbitrage. Obviously not all of these are easily accessible by most retail investors but you can still get into five or more.

The first asset class is cash. Cash is the safe haven when we can't find any other good trading opportunities. For instance if stocks look like junk and bonds are no good you will likely have some money in cash as you wait for a good opportunity. So while its really a currency we look at cash as a separate asset class.

Equities are the next asset class on the list. We include domestic, foreign, and even emerging market stocks in the same broad asset class category. Equities represent ownership in a company.

Bonds also known as fixed income are simply loans to governments and corporations. In return for the loan you get interest payments. Most global macro traders look at US government, foreign government, and corporate bonds when looking for a fixed income trade. By looking at multiple sub classes we have more opportunities for great risk to reward trades.

Commodities are up next. Commodities include things like base metals, precious metals, agricultural products, livestock, and the energy complex like natural gas and crude oil. Macro investors are willing to invest in anything from gold to lumber to even livestock if they can find a good risk to reward opportunity.

The largest asset class is that of currencies. Currencies have long been one of the primary trading assets for macro traders. If you have an opinion on one country versus another then you have a basis for a trade. If the reward outweighs the risk then you can have another asset class to trade.

So what of the other assets classes? Well they tend to be less liquid so you need a lot of money to trade them well. For instance you can make a lot with real estate but you need to have a long time horizon. Same goes for art, venture capital, and private equity. You can trade this stuff but it takes a different time frame then most investors are used to. - 23208

About the Author:

The Macro Trader does research for a newsletter that gives the Global Macro Trader actionable trading ideas each week. Mean Reversion is but one of the many strategies that we use to help find the best risk to reward opportunities across the globe.

Now is the Time to Be a Creative Real Estate Investor

By Augie Byllott

Why Real Estate? What do Creative Real Estate Investors have to gain? How about early retirement? How about a shorter work week with more pay? How about loads of money in the bank? Sound good? This is the perfect atmosphere in which to get started.

I'd like to discuss a couple of things with you. Defaults are at an all time high. People are spending way beyond their means and this is not only on their homes, but with credit cards and other forms of debt as well. We have the bank as well as the home owners to thank for that.

The lending practices in the United States have made it easy for anybody in any condition with any financial history to borrow money - in many cases more money than they could afford to pay back. So right now in the housing market, whether it is single-family homes, condos, or multi-family properties, there are more defaults, more foreclosures than ever before.

Want to talk about Short Sale opportunities? More and more banks are being required to take back homes. Also, more and more people are filing for bankruptcy. Freddie, Fannie and many other government-backed loans are going sour ever day.

The number of homes selling below market value is at an all time high. Because so many people are in a bind and can't sell their homes when they need to, it's a buyer's market. That means we have Motivated Sellers. With so many options, it should be much easier to find a profitable deal.

We have all heard this saying - "in real estate you make your money when you buy and get paid when you sell." You may put money in your pocket when you sell the property, but if you bought the property correctly, you have lots of money making options. But if you bought the property incorrectly, you may not have any options. So finding motivated sellers and properties below market value is the first goal while investing in real estate.

One huge plus of real estate investing is that people are always in need of a home, so there is always a market. Even in this bad market, you can find buyers, if you know how. Now that the banks arent lending as easily, it can be hard to find buyers who can find loans. If you use your mind and think outside the box, this isnt a problem. If you have the education and can be clever, you can be the bank and will be well compensated for your efforts. Can you offer seller financing on your properties? Can you sell to the non-traditional buyer?

Now that seems crazy doesn't it? If there are more properties than ever before and at better prices, and if there are more buyers, then why don't the buyers just buy those properties? The reality is in most cases they don't have the techniques that I told you about. So now that you know it can be done, it's time to start investing! - 23208

About the Author:

Before you get started, come check out Augie Byllott's Real Estate Investment Guide for Creative Property Investors.

REBCO Oil Is A Worthwhile Investment

By Derek Powell

REBCO Oil, which stands for Russian Export Blend Crude Oil, is traded around the world. In most cases, the minimum trading unit is 1,000 U.S. barrels at a set barrel price. While much of the oil is purchased for delivery to be used as jet fuel, home heating fuel and gasoline, some purchase future contracts for investment purposes.

The price of REBCO Oil fluctuates, so investors can make money in this energy commodity by buying low and selling high. And it's an ugly, a lot of money can be lost if buying at a price that the futures market will not support.

REBCO Oil trading takes place on the CME, Chicago Mercantile exchange Globex electronic trading platform. This is where much of the world's major commodities and products are bought and sold. Here, the trading symbol is RE. If you want to conduct transactions off the stock exchange, consider the New York Mercantile exchange (NYMEX) ClearPort website.

You can invest in REBCO Oil by buying futures or options at a set price. Bear in mind that the buying price will fluctuate, so you need to be skilled at price selection. As the purchase price is not likely to be the same as the futures price, there is an element of investment risk.

Parties who have a direct interest in petroleum products are mainly involved in the buying and selling of REBCO Oil. These include manufacturers, refiners, factories, oil and fuel companies, importers, exporters, oil traders, global suppliers, wholesalers and trading agents.

The trading price for REBCO Oil, like other crude oil products, is based on several factors, among them its chemical makeup, delivery locations and financial terms. Because no crude oil type is the same, molecular and chemical differences could affect the oils quality and cause production, environmental and yield concerns.

The crude oil produced in Russia is classified as medium gravity sour crude, which means it has medium density and contains large amounts of sulfur. Depending on the sulfur requirements of a given country, this type of petroleum might need more refining to ease environmental concerns. As a result, REBCO Oil may not be in as high demand as light, sweet crude oil that has no sulfur concerns. Less demand translates into a lower purchase price.

Russia is the second largest producer of crude oil in the world and the world's largest exporter of REBCO Oil. 4 million barrels of oil per day is exported to refining markets. Future contracts have many benefits, including market transparency, financial protection and dependable pricing. These contracts are exchanged through the New York Mercantile exchange which partners with the Russian oil industry and Expertica Consulting Limited. - 23208

About the Author:

Author Derek Powell has a great deal of data about REBCO Oil. Check out http://www.thecommodityblog.com for up-to-date news.

Becoming a CTA Takes Time and a Savings Nest Egg

By Bill Johnson

Money controls every function of the world, and commodities trading advisors play a key role in that exchange. The National Futures Association defines a CTA as an individual or firm that directly or indirectly advises clients on the selling and buying of futures or options contracts. As professional money managers, CTAs are required to be registered with the Commodities Futures Trading Commission.

There's no formal education process to become a CTA. Although it may be helpful to first start at a trading firm prior to beginning a CTA career, it doesn't guarantee a successful career nor is it required by federal regulations. Many CTAs have had little to no formal training and still proven themselves successful. However, working first for a firm can help you decide if you really have a knack for trading futures.

Although a formal education process isn't required, credentials are. Before applying to the NFA, you must first pass the Series 3 exam that measures your understanding of the makeup and regulations of the futures market.

Many planning to take the Series 3 test first practice with online study packages that provide sample tests as well as test-taking strategies. Having an idea of what to expect can keep you from being blindsided on test day.

Deciding to become a CTA takes careful consideration. How much success have you had investing in the stock market, and was it continual through a variety of market conditions? Some success may be blind luck. Real talent sustains itself over time through all types of market conditions.

Also, consider your finances and personal situation. Starting an investment business is risky, and timing is everything. Unless your CTA firm has a substantial amount under management, you can pretty much count on not seeing a paycheck the first year or two. Even managing a $1,000,000 account with a 2 percent management fee would only earn you $20,000 a year, or $1,600 a month.

Plus, you'll also face trading costs, rent, technology costs and fees for traditional support. Establishing a successful CTA career takes time. Be sure you have money in the bank before you begin.

If you have a natural eye for investment, however, you should do pretty well in the long run. CTAs are a vital to the marketplace. Learning to spot the changes in the industry before they happen is the key to a sustainable and lasting career. - 23208

About the Author:

If you would like to learn more about the profession and want to become a CTA the author recommends going here to learn more.

Forex Trading- Who wants to be a millionaire?

By Forex Trading

We all want to make money from trading, and we all want to make millions from the stock market of the forex market. However it is a well know fact that over 90% of traders will in fact go broke and not become successful. So if we are to look at who does become successful there is a group of people that tend to become more successful than others.

There is a group of individuals who tend to make the better traders and their non mathematicians or College educated, they have a skill that anyone can actually learn and their very successful. The group of individuals I am referring to are...

Professional card players who are great at Blackjack and poker and the exact same skills you need in these games are the ones you need in Forex before we explain why lets dispel one of the greatest myths about Forex Trading:

One reason for this is if you watch all great card players, they will all have one common trait, which is patience. They also realize that they cannot win every hand, and as traders we cannot win every trade. If we understand this we are increasing our chances of success as a trader.

We also must realize there is more trading days to come, as there is more cards to be dealt. So if we miss a trade, don't trade for trades sake.

Forex Trading is Complicated

To enjoy Forex trading achiever does not take you have a college education or have a complex Forex trading strategy or knowledge of maths and the reason is simple - Forex trading is simple and if you get a system to Complicated it will break in the ever changing brutal world of Forex Trading. Also as humans we like to complicate things and we believe that if they are complicated, then we are smarter therefore it makes us feel better. Quiet often though simple things will make us a lot of money. This can be also looked at with trading strategies, keep them simple.

Mathematics doesn't aid, because markets don't move to certainties, you are only trading with odds and probabilities and that's why card players are so great at Forex trading.

Here are the reasons card players make such great Forex traders.

1. They are Patient

They wait for the right hand and only play when the odds are in their favour. Contrast this with the bulk of Forex traders who are always in the market or trying losing strategies like scalping. In Forex Trading you don't get rewarded for trading often, you get rewarded for being right.

2. The Ability to Fold

A fabulous card player will pass hands by when the betting odds are non in his favour and he is also happy to fold when in a hand, if he doesn't think he will win. He keeps his losses tight and he doesn't mind dealing them, as he knows his time will follow.

Most Forex traders on the opposite hand simply can't do this and run losses or get disappointed, as their emotions get involved.

3. Courage at the right Time

The fabulous card player knows when a great hand comes up, he needs to maximize his potential and will milk as much money from it as he can. They are prepared to bet huge amounts and hold on with discipline and win.

Contrast this with the average Forex trader who banks his profit early or bets 2% and thinks he is going to make a lot of money. In Forex trading, you need to hold and profit from long term trends and have enough riding on them to make a great profit.

4. discipline discipline discipline!

You have heard about how serious it is in Forex Trading and it is to take loss after loss as the market hurts your ego and makes you look stupid is hard. Most traders cant do - Professional card players know it's the key to success and are mentally prepared to do this and know they will hit a home run.

Keep it Simple.

Forex trading is simple and always has been and the huge difference between winners and losers is the correct to keep losses small and bet big amounts when the time is right.

That's why card players often become multimillionaire traders - there not interested in ego, being clever or Complex - but being able to make money and that's why this group enjoy Forex trading success.

Now that we have the patience and are ready to trade we need to find the Best Forex Broker which broker has most of the aces? Well visit us at CFD FX Report and we can show you who we recommend. Or you can email us at support@cfdfxreport.com

Happy Trading - 23208

About the Author:

CFD FX REPORT is the forex report and cfd report that traders need. We help our members with stock market education, finding a forex broker, finding a cfd broker. If your not using the best your costing yourself money!