Forex-education

Stock indices

2011-06-01T01:41:00.000-07:00

Stock indices

Notice: Everything, presented here, is the official information without my additions.
DJIA — USA
Nikkei — 225 — Japan
FTSE — 100 — UK
CAC — 40 — France
DAX — 30 — Germany
Hang Seng — HK (Hong Kong)
Dow Jones Index (DJI)

There are four Dow Jones Indices.

The Dow Jones Industrial Average (DJIA) — is the simple average that shows how 30 large, publicly-owned companies based in the United States have traded during a standard trading session in the stock market. It is the oldest and the most popular index of the stock market. Its structure is not invariable: its components can change depending on the positions of the biggest industrial corporations of the USA and the situation in the market. But in current situation such changes rarely happen. On the whole, its components have about 15 - 20% of the market share value of the shares traded on New York Stock Exchange. To calculate the DJIA, the sum of the prices of all 30 stocks is divided by a Divisor, the Dow Divisor. The divisor is adjusted in case of stock splits, spinoffs or similar structural changes, to ensure that such events do not in themselves alter the numerical value of the DJIA. Early on, the initial divisor was composed of the original number of component companies; which made the DJIA at first, a simple arithmetic average. The present divisor, after many adjustments, is less than one (meaning the index is larger than the sum of the prices of the components).
The Dow Jones Transportation Average (DJTA) — is the running average of the stock prices of twenty transportation corporations (airlines, rail carriers and road companies).
The Dow Jones Utility Average (DJUA) — is the index that keeps track of the performance of 15 prominent utility companies.
The Dow Jones Composite Average (DJCA) — the average that is built on the basis of industrial, transportation and utility Dow Jones indices.

"Standard & Poor's" index (S&P)

This index is published by the independent company "Standard & Poor's". This index is calculated in two variants, on the basis of stocks of 500 corporations and on the basis of stocks of 100 corporations.
S&P 500 (Standard and Poor's 500) is a market value weighted index of 500 corporations. Corporations are represented in the following proportion: 400 industrial corporations, 20 transportation corporations, 40 financial and 40 utilities companies. The index includes stocks of the companies, that are registered mostly on New York Stock Exchange. But also it includes stocks of some corporations that are registered on American Stock Exchange and some of those, that are in over-the-counter market. The index represents about 80% of market value of all stock issues, quoted on New York Stock Exchange. This index is more complicated comparing with Dow Jones Index, but it is perceived as more accurate because it represents more corporations than Dow Jones does, and stocks of every corporation are weighted to the value of all stocks owned by stockholders. S&P 500 futures and option contracts are sold on Chicago Mercantile Exchange.
S&P 100. This index is calculated in the same way as S&P 500, but it includes stocks of only those companies, that have registered option contracts on Chicago Board Options Exchange. Generally, these companies are industrial corporations.

New York Stock Exchange Index (NYSE Index)

NYSE Index measures all common stocks listed on the New York Stock Exchange. So, it represents an average stock price of all registered on NYSE corporations, weighted to market value of each corporation stock (with necessary updating if stock split, merger or takeover happens). Unlike Dow Jones Index that is expressed in points, NYSE Index is expressed in dollars. NYSE carries out operations with option contracts itself. Operations with futures contracts are carried out on New York Futures Exchange — a department of NYSE.
Stock indices

American Stock Exchange Indices (AMEX)

American Stock Exchange announces two main indices, calculated in two absolutely different ways.
AMEX Major Market Index is the American Stock Exchange price-weighted average of 20 Blue Chip industrial stocks of major U.S. Corporations. It was planned as some kind of substitute for Dow Jones Index. Although, AMEX calculates and announces this index, corporations included into AMEX Major Market Index are registered on NYSE. Notable fact is that 15 corporations are included into AMEX Major Market Index and Dow Jones Index at the same time. Chicago Board of Trade carries out operations with AMEX Major Market Index futures contracts.
AMEX Market Value Index is calculated in the different way. This index indicates a weighted market price of all emitted stocks of corporations included. In September 1973 this index was announced for the first time. The index consists of more than 800 stock issues, that represent capital issues of corporations from all major trade groups, registered on AMEX. Capital issues include not only general stock, but also American depositary receipt and subscription warrant. This index is unique from technical point of view, because in its calculation it is supposed that dividends, paid in cash to shareholders of AMEX companies, are reinvested and on this basis dividends are included in index calculations. Major Market Index option contracts are quoted on AMEX.

NASDAQ Index

Stock indices

There are several indices, carried out by National Association of Securities Dealers Automated Quotation that represent over-the-counter market on the whole as well as stock turnover of the corporations operating in separate economic sectors. NASDAQ Index is the main index, which includes stock of more than 3500 companies (except quoted on stock exchange). NASDAQ Index is a market value weighted index. In February 1971 it was calculated for the first time.
Chicago Mercantile Exchange carries out NASDAQ index option and futures contracts operations.
Fall in stock index results in national currency fall.

Stock indices

How to get profit on Forex

2011-06-01T01:38:00.000-07:00

How to get profit on Forex

After you read this presentation you will be ready to trade profitable.

1. Find out what is Forex and how to trade

2. Technical Analysis

3. Fundamental Analysis

4. Study Forex Platform

5. Psychology Factor

How to get profit on Forex

Start trading in the Forex market?

2011-06-01T01:31:00.000-07:00

Start trading in the Forex market?

You can open a cent account in Profiforex and start trading. Here everything is absolutely real, but you will risk with 100 times smaller sums than in the classic market trading.

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Start trading in the Forex market?

Forex strategies

2011-06-01T01:24:00.000-07:00

Forex strategies

Forex systems and forex strategies

Forex strategies

If you already understand the basics of forex trading, you are ready to develop your own forex trading system. Most forex strategies attempt to predict a future exchange rate. If a trader expects a foreign currency to appreciate, he or she buys it and then resells it with a profit. This is called a “long trade”. If a trader anticipates a foreign currency to lose its value in the future, he or she would sell it now. This is called a “short trade”. Of course, financial markets are noisy and no one has been able to anticipate all the price movements perfectly. However, if the win/loss ratio is high enough to offset the inevitable occasional losses and the transaction costs (spread), a forex system is profitable. Assuming a low spread, the only thing you need to become a thriving trader is a forex strategy slightly more successful than simple tossing of a coin. Whenever you are consistently better in predicting the foreign exchange market's behavior than you would be by pure chance, your forex trading strategy is profitable.
Forex strategies
Based on the employed forex system, the profit (and loss) can be realized anywhere between seconds and years. As I explain below, forex strategies also differ in how they predict the future exchange rate. But in general, almost all the forex systems may be roughly divided into those suitable for a ranging market and those suitable for a trending market.
Forex strategies

What is Forex

2011-06-01T01:14:00.000-07:00

What is Forex
The foreign exchange market (Forex) is the biggest financial market in the world. With a daily turnover of 4 trillion dollars, it dwarfs any stock market. Currencies are easy to trade because you can execute your orders instantly, online, and without paying huge broker fees. Although you have probably heard many stories of successful forex traders, careless forex trading has also brought some spectacular failures. The crucial distinction between those who trade currencies for living and those who keep losing money is knowledge. The Forex Learning Site is designed for people who want to learn to trade Forex seriously. A good starting point are our free forex trading tutorials. You can further your education by reading recommended forex books. When you are ready to trade real money, you can choose the best broker using the most comprehensive comparison of forex brokers on the web.
What is Forex