Gold Investing
Gold investing, believe it or not, is still considered a standard for monetary exchange in many countries to this day. Gold is probably one of the most liquid investments and is traded in the stock market 24 hours a day everywhere in the world. In other words, this means that you can buy and sell gold in just about every country. There are different formats you can choose from gold investing, such as gold bars or coins, gold accounts, gold mining shares, gold stock, gold futures, and gold certificates.
Gold investing, as compared to other market sectors, can be quite complex and intimidating for investors who have not yet researched it in depth. Gold investing stands out as a diversifier and with your stocks, bonds and cash, gold can help offset variations in the market. There are a lot of financial consultants that recommend having at least 5% of gold in their stock portfolio. Some gold investors believe that a reasonable distribution of gold in a moderate, diversified portfolio is 5% to 15% during a bull market in gold and is 1 to 3% during a bear market in gold. This allocation will provide stable insurance for your stock portfolio, portfolio diversification, and excellent long-term return on investment. With gold up in price 23% in 2006, gold investing offsets weakness in other investments.
Gold is in a bull market because its core investment fundamentals are so outstanding. The gold price, like every other commodity or stock, is ultimately driven by supply and demand. When gold investing, coins are a popular way to invest as they are easy to buy and sell. Gold bullion coins are priced according to their weight. The most popular bullion gold coins are the South African Krugerrand, the Canadian Gold Maple Leaf, the American Gold Eagle and American Gold Buffalo.
Traditionally, gold investing has provided the best protection against financial disaster and turmoil. In circumstances such as currency deflation or high inflation, gold investing offers you both safety and security. The extent of the upside potential for gold is a function of the amount of paper assets that would be sold off and converted to gold, in the event of a financial catastrophe. If you have only paper in your stock portfolio, know that gold tends to move in the opposite direction of paper investments when stock trading.
Gold investing in gold mining shares is when you invest in the mining companies searching for the gold and not in the gold directly. The appreciation potential of a gold share is depending upon the future price of gold. When gold investing, it is important to note that many mining firms sell their future production years in advance. This means that with gold mutual fund investing your risk is more varied. Some funds offer a broad mix of international mining stock.
Diversifying into gold during troubled times, provides long-term investing protection for your entire portfolio. Gold investing should be based on macroeconomic considerations and investment atmosphere. These days, people are buying gold to protect their strong portfolio from a currency crisis, inflation, recession, and the fear of stock market crashes caused by economical and morale catastrophes on American soil.
Market Direction: Candlestick analysis is the purest form of technical analysis. It is the recognition of high probability occurrences that will result in high probability predicted price trends. Technical analysis is the evaluation of the previous price movements that can be projected for future price movements. Candlestick signals incorporate price movements that have been analyzed for centuries by the Japanese Rice traders. The signals represent the strongest indications of when investor sentiment has changed.
To make the probabilities that much greater, additional technical indicators can be contributed to the chart analysis. Is a reversal occurring when the stochastics are in the overbought or oversold condition? Is the reversal also occurring at a support or resistance level, a moving average, a trend line? The more parameters that can be put into place to analyze where everybody else might be watching for a potential reversal, the greater the probabilities of having all the stars in alignment. Candlestick analysis is built upon the assumption that everybody has made a decision of when to buy or when the sell based upon their criteria.
90% of all investment decisions are based upon fundamental analysis. Does that mean fundamental analysis is effective or ineffective? Doesn't mean anything one way or the other. However, candlestick analysis is only concerned with which direction a price is moving. It does not matter whether that price is moving based upon technical analysis or fundamental analysis results. But to put more elements in your favor, it does hurt to know what the fundamental reasons are for a stock/sector/index to be moving one way or the other. Candlestick analysis works extremely effectively when you correctly evaluate what the signals and patterns are indicating. The same is true with fundamental analysis. If an analyst does not evaluate fundamental elements correctly, they can be way off base for why and when to be buying or selling.
The Candlestick Forum wants to provide investors with every element of positive investment tools. One of the leading analytical minds in recent years is Jon Ogg. He has contributed to the profitability of a multitude of investors through his quick and accurate deciphering of investment information. Mr. Bigalow became associated with Jon Ogg back in the years 1999 and 2000 when S.O.E.S. trading was in vogue. Jon's mental capacity to grasp the ramifications of investment news contributed to big gains for many traders. Jon has the exceptional ability to quickly analyze many factors and provide an accurate analysis of how it should affect a stock or a sector. The Candlestick Forum and Jon Ogg have combined technical analysis with accurate fundamental research to create a service that will greatly enhance the short term investor as well at the long-term investor.
Candlestick signals show when a change of investor sentiment has occurred. Combining that information with Jon Ogg's assessment of the change of fundamentals in a sector or industry can produce powerful results. Is a trend reversal a short-term bounce or a long-term uptrend? That becomes better answered when the fundamentals that created a possible reversal in investors' minds is clearly exposed. Produce faster short term gains. Produce bigger long-term gains. Combining technical analysis with fundamental research produces an extremely effective investment platform. Click here for a sample of the ETF Candlestick Report. This new service will be available in the very near future.
Market direction - What indicates strong bullish sentiment or bearish sentiment? Decisive candles bodies. What should be interpreted when a trend direction consists mostly of doji's, small hammers, spinning tops, and small inverted hammers? A downtrend consisting of these signals would indicate the lack of forceful selling. This is what can be seen in both the Dow and the Nasdaq over the past week or two.
Nasdaq
DRYS
This information allows the candlestick investor to interpret that the Bulls have not yet left the market. A sideways action in the NASDAQ becomes evidence that the bears can not push this market down yet. Having the ability to analyze what each individual signal reveals as well as what a group of candlestick formations reveal makes evaluating the direction of the market extremely easy.
Chat sessions tonight - 8 p.m. Eastern time - Click here for instructions. There are still sectors acting extremely well in this sluggish market condition.
Good investing,The Candlestick Forum Team