Frequently Asked Questions about Trading

How Do I Read Mining Company Reports?

Learn how to read mining company reports.

Reading jargon-deluged mining and exploration reports can leave even the pros bewildered. In addition to making sense of mining results and calculations, initial market reaction needs to be sifted. Response can sometimes bury accuracy in favour of emotions, despite stringent rules on reporting mining results. So how does the ordinary investor crack the mining report Rosetta Stone? Divide and conquer.

Correlations Between AUD/USD and Commodities

Everything about AUD/USD and commodities relationships.

To be able to make a profit when trading, you need to predict where the market is going. Currencies are moved and influenced by a slew of factors, among them interest rates, politics and economic growth and decline. Economic movements depend on the country's commodity prices. The Australian dollar and the New Zealand dollar, for example, are top currencies with very close ties to commodities like oil and gold prices.

Why Do You Buy Shares?

Why traders buy shares.

Obviously, for profit. But the real question is, why buy shares of a particular company? What do you look for? how can you know that its worth buying? The answer lies in the main two types of analysing stocks but there is no right or wrong answer. Each is used by different traders and implemented in different ways. And as every trader will tell you there is no one way to earn huge amounts of money in the market. Everyone has their own strategy that works for them.

What is a Shares Split?

Learn about shares split.

Shares are split when a company's share price has grown so high that investors think the shares are too expensive to buy, so the company divides them into multiple shares. In effect, investors are holding twice the amount of shares with half the price. Read more here.

Is 20% Annual Return Realistic?

Learn if a 20% annual return is realistic.

Consider the many factors that affect returns like timeframes, trading strategy, your particular portfolio, and social and economic upheavals. A stock may outperform 20 percent in a given year and maybe even 10 years, but this is the exception. Anybody can also get a one-year, one-time 20 percent return, but to expect the same rate year in and year out leans more toward the unrealistic. Learn more here.

Is It a Good Time to Enter the Market?

Learn about timing the market.

If you're asking questions about timing, chances are you have not done your homework. There are many 'number one' rules before trading, one of them is research. Spend time—and if you can afford it, money—to educate yourself about investing, strategy, trends and stocks.

You can also learn from the numerous free trading resources on the web. A review of recent and accurate market patterns should get you started and help you make an informed decision.

Newbie Wants to Start Investing with $1000

Newbies guide to investing.

Traders come from all walks of life. Some may start early with a finance degree under their belt. Others may start a bit late to earn extra income and study on their own. Whether you’re a newbie or a mum and dad investor, deciding on your trading capital is an integral part in the beginning.

What are Shares?

Everything about shares.

Shares are a unit of account in corporations, and include stocks and investments. Common and preferred are the two main types of shares. Shares are issued to raise money for the company. Along with shares, shareholders get other benefits from company like the rights to get dividends or the right to share in the capital. Shares vary, and so do entitlements that shareholders get.

How is Share Price Calculated?

Learn how to calculate share price.

Share price is the price of one share of stock. Share price is calculated by dividing market capitalisation (company value) by the number of shares issued by the company. Share price is determined before it is subjected to buying and selling impact. Stock Price = (Dividends Paid (Div) + Expected Price (P1)) / (1 + Expected Return (R)).

What is an IPO? Is it a Good Investment?

Learn about IPO investing.

An initial public offering, or IPO is the first sale of stock by a company that has gone public. It's an offer by a company of its shares to potential buyers prior to the stock actually being listed on the stock exchange. Companies go public and sell IPO usually to raise a large amount of money. Like all kinds of investments, the success of IPO trading depends on market conditions. Do your homework before investing.

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