China as a dominant force in world economics has been hotly debated over the last decade with many economists highlighting the degree to which inflationary pressure could impact sustained growth. The growth in emerging markets and the shift away from traditional manufacturing hubs in the developed world have led to a significant increase in money supply and excess liquidity. This has translated into inflation.

Recently China raised its benchmark rate for a third consecutive time, which effectively has meant that the economy is in a rapid period of growth and industrialisation.  This can have crippling implications on long term growth. Highlighted below are some of the consequences.

Interest Rates and Debt Levels
Inflationary pressure on an economy translates into higher costs and CPI. As costs rise, so does the level of debt, as people are required to borrow to cover everyday living. China runs the risk of heightened levels of public and private debt. The injection of credit cards and personal loans into the mix could further exacerbate the debt issue

Bank Liquidity
The Chinese government has a strict monetary and fiscal policy which focuses on controlling the levels of liquidity within the system. Excessive inflation levels could cause a reshuffle in financial liquidity requirements. To drain the funding / cash levels in the system, the central bank would be required to make stringent policy in the areas of minimum capital levels. In effect this could place strain or regional and local banks.

Property Prices
Property is the most important consequence of high inflation levels. Rising costs could flow over into property and housing prices could become unreachable for the middle class. Historically property price bubbles are driven by significant inflation and growth periods. In the case of China, we have seen a relatively small property shortage, which has had limited effects. Markets fear property scenarios.

The Currency
Periods of high inflation lead to a rise in interest rates and the local currency. People will invest in higher yielding currencies and will look at diversification. The competitiveness of China will be adversely affected as retail buyers will see an increase in costs. Travel and Tourism will also weaken in the event of a sustained rise in the currency. China like many of the Emerging Economies has to adequately control its inflationary pressures. If it is successful at doing this, then the long term economic implications would be quite positive for the nation.

Ben Mauerberger.com

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Options trading is as simple as buying call options for rising stocks and put options for falling stocks.

However, once you go beyond the initial stage of call and put buying, the whole universe of thousands of options strategies open up before you. For the first time you see almost endless possibilities of making money through options strategies and wonder which strategy is the best and which strategy to use for each situation?

This article will attempt to provide some simple guidelines on how to choose the correct strategy for your trading.

The two most common questions I hear from beginner options traders regarding options strategies are;

“Which is the best?”

And

“Which should I use when XXX happens?”

No Such Thing as the BEST Options Strategy

First of all, let us be clear that there is no such thing as a “Best Options Strategy”. Yes, repeat to yourself now that there is no such thing as the one options strategy that is fitted for all situations. All have pros and cons and all are good for the specific situation for which they are designed. As such, success in options trading is really the ability to execute the options strategy that best fits the situation you are in.

All Options Strategies Are Designed For Specific Situations

This brings us to the next and more important question of what options strategy to use when “XXX happens”.

As mentioned above, all strategies are designed for specific situations and the more complex they are, the more customizable it is towards a specific price goal. As such, understanding completely what is going on and being very accurate with your outlook becomes extremely important.

Yes, there is no magic in options trading. All strategies profit only within their specific outlook and limitations. If the underlying stock did not perform within those specifications, the strategy will incur a loss no matter how complex it is unless suitable adjustments are made in a timely manner.

Consider the Size of Your Account

Another important consideration when choosing which options strategy to use is the size of your fund or the amount of money you intend to use towards each trade. Very complex options strategies can involve combinations of up to 4 or 5 different options contracts which can take up a significant amount of commission for small accounts. Commissions can be significant enough to totally eradicate the possibilities of profit.

Small accounts also run into problem with credit strategies and naked writes that involves significant margins, typically running up to $100,000. As such, if you have a small account size, most of the credit spreads would be beyond your consideration (which of course makes the decision making process a little simpler).

How to Choose an Options Strategy?

Let us then go through the steps to be taken in order to decide which strategy to use:

1. Consider your account size and your account limitations. There are some strategies that your account simply cannot execute due to either fund size or trading level.
2. Understand your exact situation. You need to be able to quantify the direction in which the underlying stock is going to travel, the price goal the underlying stock is reaching for, the amount of risk you are willing to take for that trade. The more exact you can be with these parameters and the more accurate your outlook is, the more money you can make using options strategies.

For instance, if QQQQ is trading at $40 right now and you think it is going to go upwards. If you are not sure to what price it might move up to but is sure that the upwards move is going to be very significant, you could only buy call options using money you are willing to lose for that trade. However, if you can be more specific and say that QQQQ is rising but might not go beyond $45 by expiration, then you could use a slightly more complex strategy called Bull Call Spread by writing an additional call options against the call options you have bought at the $45 strike price. If QQQQ rose to $45 before expiration and is expected to stay stagnant at $45 till expiration, you could instantly write another call option at $45 strike price and then buy further out of the money call options at the same time to transform the position into a Butterfly Spread which is a neutral strategy.

See how you can apply and evolve your options strategies as long as you can be specific with your outlook?

1. Consider your level of experience. Whatever options strategy you choose to use, make sure you have paper traded it for a significant period of time and completely understand its limitations and the kind of adjustments that can be made when things go wrong. Many options beginners start out with very complex options strategies and panic when things go wrong.
2. Start simple. Start with simple options strategies such as the long call / put and the bull call spread / bear put spread to get a feel of how options strategies can be built up using the building blocks of options spreads.

In conclusion, there is no magic strategies that win all the time. Knowing which strategy to use is really a function of understanding your limits and the limits of the strategy you are considering. Knowing your limits means knowing what you can and cannot do with your trading account as well as the level of risk you are willing to take and knowing the limits of the strategy takes understanding exactly what it can and cannot do and then applying it to the exact situation you are facing. The more precise you can be with your outlook and the more accurate it is, the more rewarding your options trading will be.

Jason Ng is the Founder and Chief Option Strategist of Masters ‘O’ Equity Asset Management and author of Optiontradingpedia.com and Futurestradingpedia.com. Learn more about Options Trading and Futures Trading.

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If you want to find really cheap stocks, good penny stocks for 2011, you will need some penny stock tips.

Why These Stocks Make Large Moves

They have small market values and a little buying can really move the stock. Penny stock companies often have exciting businesses, so a given deal will have more effect on a small company’s stock than a big company stock. Also, investors in these stocks investors get carried away. Penny stock day traders ignore value and look for action.

Where to Find Penny Stocks

These stocks are generally found in the Pink Sheets market or on the OTCBB. The OTCBB recently has been purchased by Rodman & Renshaw. The OTCBB includes stocks not listed elsewhere that file reports with the Securities and Exchange Commission. The OTCBB has not other rules for admission.

Pink Sheet stocks are those not listed elsewhere. No SEC filings need be made in the Pink Sheets. There are no listing requirements. OTCMarkets.com quotes these stocks. On that site, click “Pink OTC,” and you will find the list of the Pink Sheet penny stocks.

Many of these stocks are not listed in any database you can search, unlike listed stocks. While this means a time-consuming by hand search through the entire list, you will be rewarded now and then with an overlooked gem that can give you huge profits.

In fact, this is how most of my big hits were found, by brute force, boring (but not boring for me), time-consuming research. For me, the only good a stock tip or a spam email bearing overheated recommendation of a stock is only good to find short sales.

The same is true of most penny stock websites that tout various stocks. These are paid recommendations for the most part and therefore biased if not downright terrible.

Stock chat forums will be of limited use. Much of the chat on these sites is posted by paid shills, long or short. Because they post anonymously, they are not afraid to use lies and other forms of misinformation. The moderators of at least one chat site can be biased as well. The one-sided dialogue has driven legitimate conversation away.

Rely largely on the source information given in the Pink Sheets and SEC filings. However, be aware that even this information can be misleading or incomplete.

You can also call the company.

On the Pink Sheets and SEC Edgar database, you may find annual and quarterly financial reports. From these you may be able to calculate the usual ratios that are the most important to any analyst – book value, price/earnings, revenue to market value, working capital per share, current ratio, and the like.

You should find a basic description of the business and stock structure.

Bear in mind that you are not looking for stocks that are good buys, you are looking for stocks that are screaming buys. Do not settle for anything less. If there is a 50-50 chance the stock will go up, avoid it. You want the sure thing. You want to be in the position where if the stock goes down you rejoice because in effect you can buy more dollars for fifty cents.

If you buy high-priced stocks on the hopes that some bigger fool will take them higher, you are hurt when they go down. Only buy cheap.

You are not looking for future possibilities, as these may never materialize. You are looking for hard dollar values, assets and earnings, that exist today. Only buy those stocks that are cheap based on the values you find today.

Having found those you will have reduced as much as possible the huge risk that exists in these stocks, you can then afford to look for the future hopes and dreams.

Let others buy the future possibilities and hope, you buy the current value and then you can hope for the future.

John Lux is a former OTC market maker and author of several books on investing: How to Find a Home Run Stock, How to Pick Hot Reverse Merger Penny Stocks, and How the Shorts Raid Your Stock, Destroy Your Company and What to Do About It — all available on Amazon.com. For more, go to his website, http://WWW.investing-performance.com or his website [http://www.hot-penny-stock.info]

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I tested the free features for the E*Trade Mobile Pro iPhone app in this video. The app itself is free to download, but you must have a E*Trade Pro account to use the majority of the features to trade, analyze stocks and the market, and manage your trading account. There are only 3 main features that are free: market overview with the major indicies (Dow Jones, NASDAQ, S&P 500), News, and customizable watchlists. These are 90% the same as the iPhone stocks app that comes standard with the iPhone and uses Yahoo! finance data. The market data are delayed for those without an E*Trade account.

1. Menu: Many functionalities to organize and manage your portfolio, analyze stocks and options to trade, and trade execution tools: Dashboard, Markets, News, Quotes, Accounts, Portfolios, Watch Lists, Trading, QuickTransfer, CNBC video, and more. Only the dashboard, news, and watchlist features are free. One of the unique features for E*Trade Pro users is the streaming CNBC videos that you can watch on your iPhone.

2. Markets Overview (on Dashboard): Shows the major market indices including the Dow Jones Industrial Average, NASDAQ, and S&P 500. Viewable in 2 different modes: chart mode with tabs to switch between the indices, and list mode that shows delayed market data for each of the indices.

3. News: The news shown on the Dashboard is general market news and can be expanded to show several pages of headlines, unlike the standard iPhone stock app that only shows 4 headlines. When viewing individual stocks, news is shown for that specific ticker. When a headline is clicked, the news article is shown in the E*Trade Mobile Pro app itself instead of opening in Safari. This is good in keeping you in the app instead of switching between E*Trade and Safari, especially if you are in a trade or about to make one.

4. Watchlists: Easy to add, arrange, and delete stocks from a default watchlist. To add more watchlists, you must have a E*Trade Pro account. A unique feature is the ability to add several tickers at once to the watchlist by separating tickers with commas when entering them into the list.

5. Ticker view: When you click on a stock ticker in the watchlist, you see a layout much like the Dashboard, but for the particular stock. The top shows the chart and can switch views to see the stock’s data such as current price, high, low, volume, etc. Below the chart/data box is the news box that shows several of the latest headlines related to this particular stock. When rotated to landscape mode, the chart becomes a full-screen chart. However, the chart is a basic line chart with no options to customize anything other than whether you want to see 1-day’s worth of data, 1-week, 1-month, 3-months, or 1-year.

Unless you have an E*Trade Pro account to access the advanced features, the free features with this app is very basic and not necessary when you already have the standard iPhone stock app. However, the advanced features are very complete, almost like you’re trading from your laptop or desktop computer. I will do a view review of the E*Trade Pro app advanced features for E*Trade users in the next post. The only other brokerage iPhone mobile app that gives you even more ability to trade on your phone is probably the thinkorswim iSwim for iPhone and thinkorswim mobile for Android.

Jeffrey Lin is an independent stock, futures, and options trader and the co-founder of http://marketHEIST.com, a consumer report guide for investors and traders. If you are having trouble finding the right investing or trading education, tools, and resources, you can find all the helpful solutions you need at marketHEIST. Also, see Jeffrey’s interviews with the folks who’s products you may use, including trading mentors, stock software designers, and book authors at http://marketheist.com/education/interviews

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WALL STREET, by CE Software, is a stock market game using the stock market as its vehicle. In the designer’s notes section of its rulebook Donald Brown, the author, says “Any similarities between it (WALL STREET) and real life are largely coincidental”.

While written with tongue in cheek the statement is, none the less, true. WALL STREET isn’t much of a simulation of the stock market; rather it can better be described as a game which uses the stock market as its vehicle. The game involves buying and selling of stocks on a simulated stock market made up of thirty stocks. The stocks are divided up into six areas: computer, entertainment, oil, automotive, retail, and appliance. The names of real companies are used. For example the computer stocks are Apple, Tandy, IBM, DEC, and another of the gigantic computer mega corporations, CE Software.

Most traditional stock market games are built around buying on margin or on selling short. WALL STREET uses the latter approach. Selling short involves selling stock that you don’t own. They really do that on Wall Street folks! The trick in “selling short” is to sell the stock when it is high and deliver the stock when it is low. What the player is doing is trying to make money on a stock that he feels is going down in value. Another important element in the game is the buying of information. There are five levels of information gathering.

Each level is five times more expensive than the previous level and increases your chance of getting secret market information by 10%. The highest level gives a 50% chance of picking up information and costs $6,250 per week. The next lower level is 40% but the cost is only $1,250 per week.

Is the 10%, increase in chance of getting information worth a five fold increase in cost? Most of those with whom I have played the game think not. The 40% level is the most popular level. After playing the game several times I believe that the program sets up patterns for certain stocks. I am somewhat tentative in this statement exists, they because of the fact that if the pattern are subtle. For example, in a recent game we noted that one particular oil stock seemed to lag one day behind the others in type of action. If the other four changed from an up day to a down day the stock in question would make the same change only do it a day later. If you find any patterns in the game please drop a note to CGW. I’d like to read about it.

One of the best features of the game is the ability to list the day’s stock quotes on a printer. This has two advantages over viewing the quotes on a CRT. First, you must flip through several “pages” of the daily report to see all the stocks on a CRT. Second, hard copy allows you to get a history on a stock.

Wall Street made me feel very rich at times and I also had taken a lot of losses, it is a good game if your into all market investing topics, I will give this game 1.5 out of 5. It’s a technical and difficult game to understand for a fun loving gamer.

Play Jem Match online for free only on www.swfplay.co.uk

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If the prices of commodities, services and goods increase over an extended period of time, it’s called inflation. Consequently, currency declines and purchasing power deteriorates, essentially meaning that the currency cannot buy as many goods and services. This is an indication of the loss of value in exchange units of a currency. The loss or gain through inflation is calculated by the Consumer Price Index, which is an annual change in percentage of the general price index.

There are two important theories on the causes of inflation: quality theory of inflation and quantity theory of inflation. The former is based on the expectation of the acceptability of a currency, which can later be exchanged for other goods deemed profitable to the buyer. The latter is related to the aspect of currency, which takes into account its supply and demand and, importantly, the nominal values of exchange.

There are many effects of inflation, both positive and negative. It can affect the economy as a whole, or hurt specific industries, enterprises or individuals. This is because inflation is not spread uniformly in an economy. Consequently, several hidden costs emerge out of this reduction in buying power, which can hurt some or give an added advantage to others. High or erratic inflation rates are considered damaging to the overall economy. They append inadequacies in the market and make it tough for businesses to budget or strategize for the long-term. Inflation can also appear as a hindrance to productivity, as businesses are required to move resources away from products and services in order to regain a stable footing and return to gaining profits.

High inflation can also pressure workforces to ask for pay increases to keep up with market conditions and increased consumer prices. This puts increased pressure on companies to increase their net profits, and because of the economic constraint, they are forced to lay off employees and increase the prices of products, further exacerbating the economic turmoil.

A group of economists called Keynesians believe that nominal wages, slow and difficult to adjust, are present because of the loss of jobs during inflation and thus a downward disequilibrium. This, they argue, is the positive side of inflation because by keeping the wages constant, equilibrium in the labor market can be reached faster. Inflation gives banks room to maneuver and control their supply of money and capability to set discount rates at which they can borrow from other central banks. This is because if the nominal interest rates are already low or even zero, the banks cannot decrease them further, and thus remains stuck in a ‘liquidity trap’.

In the end, inflation is a very complex issue that can hurt some and benefit others. While it changes the value of currency and alters the economic landscape of industries and the international market, it is important to look at it holistically. In order to use current inflation as a future learning curve, it is essential to look at its origins and learn from them.

Robin Williams works for CashOne, a company whose services include Online Payday Loans and Instant Payday Loans. He has extensive knowledge about payday loans and an understanding of urgency of clients & how they use payday loans for. His work at CashOne includes providing seamless loan transaction into customer account.

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Researching is vital in order to make the best, smartest financial management decisions. Make sure that you research your stock purchase before even making a move to buy it. It’s not that hard to research about these stocks. Companies themselves provide investors all the information you may need, and they give it way in advance. Some are contented with going with their gut feeling, or their instincts. But it is always safer and better if you have a research to back up your decision.

Here are a few factors to consider when choosing stocks to invest in:

1. The company’s history and foundation. Of course, the company that shows a history of growth and has good numbers will always be a safe choice. The thing is, companies like this usually have a higher stock price, although they are obviously more beneficial.
2. Look at the P/E Ration. The P/E ratio or the Price to Earnings ratio is the most common and most popularly used ratio in evaluating stocks. This will easily let you know how other investors are willing to purchase the stock. The most optimal buys will have a ratio between 10 and 30.
3. Take a look at a company’s cash glow. Naturally, if the flow is positive, then this means that the company is earning money. Check also how much of a profit a company is making and take a peek for as to whether or not their excess cash is wisely invested. You should take a look at this closely because sometimes, this is an indication of whether or not the company is likely to be bankrupt.
4. Think dividends. If you see that the stocks pay dividends, then this means the company gives some of its profits to the stockholders when they have a profitable year. Make sure that you know whether or not a company’s stocks pay dividends and know how much exactly they pay.

A good financial investment includes quite a list of factors to consider. Among these factors is the volatility of the stock and as well as market cap or market capitalization. Most stock investors check to see who is running the company they are investing in. Knowing who this person is usually tells them the management techniques they use and lets them know if the company have skills that will grow profits.

Without researching, it is not an automatic result to lose money. What will happen most probably is you get to miss out on a good choice which was available specifically to you. Make sure that all your information is accurate and that your source is dependable. Make sure your research is well done because this will dictate your place and success in managing financial investments.

Another investment option is a new home. If you are considering renting vs. buying, the internet is the best place to look for Atlanta apartments or Anaheim Hills apartments. The bottom line is to find a smart investment.

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Let’s face it. Many stock traders are looking for cheap stocks to buy which have excellent potential. If you are one of those kind of people, then I really encourage you to give penny stocks a try. I know they don’t get the kind of publicity that the big name stocks get on CNBC, but the truth is you can’t beat their potential.

There is also not a better investment for the new trader who doesn’t have a lot of money to start trading with. These are the kind of traders that will open a brokerage account for a couple thousand, not a couple HUNDRED thousand. But the great thing about penny stocks is that you can build a pretty decent portfolio of small cap stocks with that couple thousand dollars that you opened the brokerage account with.

The toughest part really comes down to which cheap stocks are you going to buy. But that scenario even if you are going to buy stocks from the Dow Jones. It still comes down to learning about technical analysis and fundamental analysis. That doesn’t change with the size of the company. You can find this information on almost any financial website.

There is one quick way to spot a cheap stock that is ready to take off. It comes down to whether the market has enough liquidity or not. If it does, then it’s got enough “gas” to push the stock to mid-cap stratosphere. Start by accumulation a big list of penny stocks that you want to keep an eye on.

Want to know where to buy penny stocks? Check out penny stock watch.

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An option spread strategy is usually employed by professional traders. There are also various types of strategies when it comes to options trading and one of them is the credit spread. A credit spread is a form of trading strategy, wherein a trader buys an option for a specific strike price and sells the same at a different cost within the same month. The so called credit sets in by the time such options are sold at a higher strike price.

Generally, there are two ways of trading options by means of credit spreads. We have the low capital risk trade and high probability trade. Low capital risk trades comprise of transactions using either an ATM (at-the-money) or ITM (in-the-money) options. This option spread strategy is then used to manipulate earnings while trading options.

Example:

An option is valued at $45 and you feel that this stock is bearish and will decrease in $40. You can try having a credit spread by selling an ITM $40 call for $5.50 and buying an ATM $45 call for $2, resulting to a $3.50 credit.

Others see this trade as low capital risk since your options should be valued below $40. In addition, success in this trade is very minimal as your stocks need to stay in the same 40-dollar range. In this, assessments are crucial and doing so proves to be harder.

A high probability trade is said to be a good example of an option spread strategy. This trade makes use of OTM or out of the money options to create credit. By using the same example, we can see how this trade differs from low capital risks.

Example:

Given that your 45-dollar stocks are bearish at $40. To create a credit of $.60, you can sell an OTM $55 call for $2.20 and buy an OTM $60 call for $1.60. This is said to be more ideal since the stocks have to be valued below 60 dollars, and since it is already below said range, the credit has a more probability of success.

Low capital risks provide minimal success for beginning traders while higher capital risks somewhat benefits old-timers. These two can be chosen as part of your option spread strategy, provided that you know yourself and has a system that works in trades. Low capital risks may be ideal for those who want to stay in business but not actively participate in it. While the high capital risks trades are done by those who love to gamble and risk more to earn huge profits.

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In our fast advancing technological world, you may discover that just about any and everything can be done electronically. You can do several things electronically and over the internet like pay your bills, do your shopping, book flights and make hotel reservations; also, you could also invest and trade securities on the etrade stock market. Imagine you could be able to make lots of money on the etrade stock market very easily by buying and selling securities so as to increase your profitability. In case you are not too familiar with the etrade stock market, let’s take a look at it in further details.

What is The Etrade Stock Market?

The etrade stock market is simply concerned with electronic trading of securities such as bonds, stocks, foreign exchange and other exchange traded derivatives that can improve your overall portfolio’s profitability. Unlike your regular stock market, the stocks and other financial instruments are traded electronically and can be referred to as etrading.

A Suitable Place To Trade Securities

The truth is technology has somehow brought several buyers and sellers together through the virtual world and consequently created a virtual market place where trading can take place, but real money is earned. This market is widely considered by many to be a reliable, reputable and stable place to trade securities in comparison to older means and methods of trading. Some of the most popular electronic markets are Globex, Arca, NYSE and NASDAQ, which are reputable places where a lot of people earn lots of cash. There are several important implications of the etrade stock market, let’s look at a few of these, so we can know the impact this market has on investors, traders and other agents of trade.

The Etrade Stock Market Lowers Transactions Costs

First and foremost, the etrade stock market has allowed for the reduction of high transactions costs. This is as a result of reducing manual inputs and increasing the automation of the trading process lowering incremental costs of each trade and therefore causing a drastic reduction in the costs to investors.

Greater Liquidity

Trading electronically has also impacted positively on several different companies allowing them to easily trade with other large companies, regardless of where they are located. This simplification of the trading process has lead to more buyers and sellers on the market, as well as greater liquidity, which will ultimately increase the efficiency and potency of the trading markets.

Greater Competition on the Market

Due to the electronic trading of securities, what you may realize that competition has increased, mainly because there has been a removal of all the traditional barriers in the market. As a result of the barriers being removed many investors can now trade and compete in a globalized manner. Etrade stock market is a fantastic way to do your trading, additionally, you will realize too that trading electronically has reduced vagueness of finding out the prices of securities increasing the transparency of the market and opening up the possibilities to make lots of money. You will also stand to benefit from tighter spreads on different financial instruments.

For information about finding and comparing the best online Stock Brokers, visit http://www.yourbrokerguide.com

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