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The tax, vat and accounting Blog
by Ahmad Hassam

Modified capitalization weighting involves adjustments to the capitalizations of the various component issues of the Nasdaq-100 index. The NDX contract at the CBOE is based on Nasdaq-100 as is the MNX. The Nasdaq-100 is a modified capitalization weighted index.

Russell 2000 is the well known benchmark for small capitalization sector. Several Russell Indexes have become benchmarks for specific areas of investment management. Frank Russell Company is one of the leading global investment consultants. It is also involved in performance measurement, analysis and investment management.

Russell 3000 Index as the name implies includes 3000 issues and these 3000 companies represent 98% of the investable US equities. The index is adjusted for certain factors such as cross holdings and the number of pairs in hands.

Russell 3000 is further split into subsets like Russell 1000 Index. It covers the top 1000 about 92% of the value of the entire 3,000 stock index. The Russell 2000 Index is the smallest 2000 companies in the Russell 3000 Index.

by Ahmad Hassam

There are 100s of ETFs and HOLDRS covering key industry benchmarks such as the various Standard & Poor Indexes, Russell Indexes or the Dow Jones Averages. There are ETFs that cover the other less well known narrow based sectors.

For example, SPY tracks the Standard & Poors S&P 500 Composite Index. It is the largest of the ETFs. You should know the major indexes as an investor that are either key benchmarks or have ETFs tied to them.

Standard & Poor: Standard & Poor (S&P) is the financial services segment of the McGraw Hill companies and has been providing independent and objective financial information, analysis and research for nearly 140 years.

It is also the provider of equity indexes. These indexes are also used as the basis for wide variety of financial instruments such as Index Funds, Futures, Options and ETFs. Investors around the globe use S&P Indexes for investment performance measurement.

by Ahmad Hassam

In case of currency trading, the cost of trading is hidden in the bid/ask spreads offered by the broker. Day traders often rake up major commissions charges if they are trading stocks which makes it that much more difficult to beat the overall market. In the end, if you are unable to breakeven, you cannot survive long in day trading. So the more you day trade, the higher your trading cost will become.

Swing trading also entails facing stiff trading cost. These trading costs come in the shape of spread in case of currencies or commissions per each trade if you are trading stocks. But these trading costs are nothing as severe in swing trading as in day trading. Price action spans several days to several weeks in swing trading. Market fundamentals can come into play to a larger degree in swing trading as compared to day trading.

Day to day currency movements are due less to market fundamentals and more to short term supply and demand of currencies or shares. Swing trading can also generate higher potential profits on single trades because the holding period is longer than in day trading.

by Ahmad Hassam

Determining your trading style is very important right from the beginning. Not knowing what type of a trader you are can make or break your trading career. Take the analogy of a cricket team. There are 11 players in each team in the match. All players are talented and super fit. Everyone can throw and catch the ball. However some are more skilled at balling. Others are more skilled at batting. If the baller is going to do the job of the batter, not many runs will be made and the match will be lost.

Investing in the markets is also the same. It depends on your personality makeup what type of trading is best suited to you. In general there are three types of trading: Positions trading, swing trading and day trading.

Position Trading is generally the buy and hold strategy of investing in stocks over a long haul. In currency trading, position trading means you are in a trade for many months. Usually positions traders are in a trade for a large long term move like when you carry trade. Options traders can also be position traders through covered calls.

by Hema Mahesh

Brochure printing is one efficient way to show the company image to the whole world. Customers are able to learn about your products, specification, utility scopes, prices and all essential information relating to the product or service that you desire to place before them. Naturally, the brochure printing should be a neat work of high quality printing job with best design and color combination to attract clientele so that it is able to make solid influence on them.

Brochures are beautifully created advertising materials for the promotion of your company image so that, your products are recognized by customers. The colorful printing is done with the mixture of four colors which are compatible to the computerized method of printing technology. This high grade work can only be done by a reputed and reliable printing company to create stylish brochures matching your marketing campaign for the fullest achievement of your targeted business output.

by Ahmad Hassam

Besides the interest rates, economic growth of countries can also have a big impact on the overall currency market sentiment. United States is the largest economy in the world. US economy is the key factor in determining the global currency market sentiment especially for the major currency pairs like EUR/USD, GBP/USD, CHF/USD and JPY/USD.

A strong economic expansion coupled with a healthy labor market tends to boost consumer spending in the country. Good economic growth means low unemployment. Low unemployment means jobs for the people. It helps in selling the stuff produced by the local companies and businesses.

A country with a strong economy is in a better position to attract foreign investors. Investments pouring into the country increase the demand for that currency. This increased demand causes that currency to strengthen against other currencies.

Some of the most important indicators of a country economic growth are: 1) Gross Domestic Product, 2) The unemployment rate and 3) The trade balance. Lets discuss these three economic indicators.

by Ahmad Hassam

Do you want to become a successful trader? If yes, than you should immerse yourself completely in the subject of forex trading in order to find your edge. If you are already a winning forex trader than you should try to understand exactly what your edge is.

The sharp moves often seen in the forex markets can be difficult to trade and often interpret even by advanced traders. Learning to read and interpret price action can be a huge advantage.

When the market is going in a steep decline, one should be really careful to measure the reaction of the long positions. You must try to understand if the sharp move has the chance to turn into a rout.

By looking at the reaction of the longs as soon as the rate begins to go south, you may be able to determine if the market is sitting on a large number of long positions. If the spike is followed by a sharp V recovery, you should be wary of shorting the pair.

by Ahmad Hassam

There are two trading strategies. One strategy depends on fundamental analysis in trading forex. The second strategy depends on technical analysis in trading forex. Whether you use fundamental analysis or a technical analysis as a trading strategy, you should understand the importance of economic data in shaping trading strategies.

Over 90 percent of currency transactions are done against USD. USD is either the base currency or the counter currency in most of the currency trades.

Choosing the right currency pair to trade is very important for you. USD is the most important currency and most probably you will be also trading USD most of the time. You should know that the release of certain economic data has significant and lasting impact on USD.

With experience, you will understand that currency markets reaction to the release of different economic data with time also changes. A few years back, US GDP figures used to be important for USD but they dont have much impact now.

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