Is the Stock Market crashing?In recent days and weeks we have seen indices around the world start to slide. The FTSE 100 hit 6,904 on 4 September, but stood at 6,211 t close on 15 October, a drop of 10% in only 6 weeks. The Dow Jones peaked at 17,350 during trading on 19 September. but closed at 16,141 on 15 October, 7% down. It fell down to 15,855 during the day on 15 October, bouncing back slightly and closing at 16,141, 7% down on the September peak. What is going on?
What is causing the stock market to fall?
A Penny stock is a share that trades for pennies rather than pounds or dollars. The term is most commonly used in the USA, but is also applied to smaller companies on the LSE, particularly those listed on the Alternative Investment Market (AIM). Click the image to the right to find out more.
Love them or hate them the ETF is here to stay. Exchange Traded Funds are becoming more popular with private investors, offering an easy and cost efficient way to widen and diversify a portfolio. For more experienced investors ETFs can offer more complex and leveraged opportunities.
Gold has long been treated as a secure and safe hiding place for world weary investors trying to protect their assets. The relationship between gold price and other trading instruments has now created a maze of investment products ready to bamboozle the investor.
The AIM is the UK small cap market. Stocks on the AIM are traded through Market Makers or auction. These shares are far less active than on the main market. AIM is the nearest thing the UK has to the US OTC market (handling penny shares), but on the AIM market transactions are reported on-exchange and between exchange participants. Where as the OTC is decentralised.
Stock charts are very useful analytical tools for traders, but which style and type of chart should you use? There are so many different types of chart and approaches to trading. Sometimes it can be difficult to tell if looking at a chart is helping or hindering your trading. Getting your chart analysis to match your style of trading can make the difference between success and failure.
Red hot penny shares
Red hot penny stocks are great in theory - just don't get burnt! "Undervalued stock ready to sky rocket" - this is the sort of statement that can be found all over the internet. A "red hot stock" implies that you have to act quickly before it cools down. The question is, are you striking while the iron is hot, or rushing in without due care and attention?
A bitcoin is the internet answer to money. A virtual currency, bitcoins use cryptography where institutions use collateral and transactional verification where banks use a credit check. The bitcoin is what you get if you ask a computer programmer to invent money. The question is, are they worth investing in?