Important Penny Stock Info

By Rashel Dan

Penny shares work like an auction. It starts with an asking price set at the lowest value and then when the bidding starts, the price rises. If you're the seller, you check your starting price and compare it with the current bid. If your selling price is met, you trade and then the transaction is closed. The difference with an auction is that the price doesn't go down. Stock prices do. Today there a number of techniques being developed to monitor your penny stock info and bidding.

Researching - Any active stock investor would tell you that you have to do your own research. While penny stock advisors and brokerage firms help in facilitating your sale, it is always helpful to have your penny stock info ready when needed. The more you know, the better your opportunity to gain profit. The more you understand the trade, the lesser your chances of falling into the pit.

But sometimes, because of the availability of free information in the internet, it can be a bit difficult to make decisions. Especially if you are new to the business, experience is your better half. Be attentive and be very alert about fabricated information. This is a trading business and it involves money. You have to be able to know which penny stock info is reliable for your use.

Softwares are being developed to help small cap investors and stock brokers monitor the stocks. The moment your stocks are pegged, it can be a roller coaster ride. Thus you need to stay close to the facts and observe your investment in the penny stock market. Here are some tips and information about how the transactions are made:

- Buying Penny Stocks - Set your funds ready and be sure you'll be able to pay the shares and your stock broker's commission.

- Symbols - These are initials or abbreviations of companies that are selling their shares to the public stock exchange. This is standardized for easy management, inventory, and recall.

- Stock Exchange - The more dependable stocks are being traded in major stock exchange. Examples are NASDAQ, NYSE, and AMEX.

- The Volume of Shares - Of course, you must be clear on your penny stock info sheets how much of the shares you want to buy or sell. But beware and don't fall into extra commissions being charged to you.

- Opening and Closing Dates. These are dates that you set your stock to be available for sale. This must also include active dates (dates when your shares are still open for bid) and the date when you hope to close your stocks.

- Selling Penny Stocks - It is important to take note of the above mentioned - the volume of shares to sell, ticker symbol, names of the stock and the stock exchange.

- The Share Price and the Dates - Again it is important not to miss out the selling price and the time span to which your stocks are active and open for bidding.

This isn't all. But this article doesn't intend to give you any penny stock info overload. Too much technical knowledge may not be a good practice. Take this investment carefully. Your penny stocks are good money and therefore delicate. Make haste slowly. - 32163

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Penny Stocks Trading - How It Works And How Someone Can Make Big Profit Buying And Selling

By Eric Stein

Most of us know someone who has told us about that big stock winner. Many of these tales involve penny stocks. Penny stocks trading is ubiquitous on the Internet today. Gurus, website and even a stock picking robot claim to know the secrets to trading low priced stocks.

Prior to following an expert's advice, you should always perform your own research on penny stocks. Penny stocks can be defined as stocks that trade for less than $5.00 per share, or below $3.00. Some experts consider penny stocks to only be those that trade below $1.00 per share.

Why are these low priced stocks so popular with traders. It is due to their low price and the small amount of capital required to enter into a trade. The possibility for high percentage gains are greater. If you buy a stock for $100 and it goes up $2.00, you have a 2% gain. If you buy a stock for $2.00 and it goes up only $1.00, you have a 50% gain.

You can find hundreds of websites and experts offering penny stock picks for a fee. There are some who will send you free picks. You can also find a local trader or possibly a friend who trades these cheaper stocks to help you learn ways to trade. If you decide to subscribe to a service, see if you can get a free trial first as this allow you to see the picks in action and to see if they are any good!

Researching past performance and understanding the trader's philosophy is important before you use someone's picks. Penny shares can be a roller coaster ride, and you need to be able to follow them consistently and closely to make money. Getting in at the right time, watching them go up, and then selling them for a profit is exhilarating.

Most online brokers permit low priced stocks to be traded. However, watch out for extra fees on low prices shares. Some brokers do not like to deal with these cheap stocks and they may charge you for trading over 1000 shares or 10,000 shares. With low priced stocks, you will often trade large lots and these fees can subtract from your profits.

Buying and selling low priced stocks is an affordable way to enter the stock market. Penny stocks trading can also be quite lucrative and profitable. You can start with a small amount of capital and minimize the risk on each trade. Huge gains are possible with penny stocks! - 32163

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Transfer Your 401k To A IRA When You Lose Your Job

By Sam Pink

You are given the option of a 401k rollover or taking it out. When you choose rollover, you can transfer it into an IRA plan which is more flexible and more accessible for you. On top of that, you get to enjoy tax deferral until your retirement. On the other hand, you can choose to withdraw your 401k account, you can get it in a single lump sum or spread the amount over a period of time. Other options for reimbursement are also available, depending on your retirement plan.

Take note that when you are under 55 years old decide to leave your job and just take out your 401k, you will be charged with 10% for taking out your money early. However, if you are at your retiring age (55 and above), you will have the privilege of withdrawing your money in lump sum and some tax benefits. See your accountant to make use of these benefits.

When you lose your job, the need for money may be more important than planning for the future until you can get a secure job position. However, if you have found a new job, your option to roll your 401k distribution into an IRA has some real hard savings of monies because of the tax situation in taking out a cash settlement of your 401k distribution monies.

The only time you can truly benefit from withdrawing a lump sum cash as far as income taxes are concerned is if you are at your retiring age when you decide to leave your job or got fired, for that matter. Under 55 years of age, you are immediately charged with 10% early withdrawal penalty, not to mention the income taxes you have to pay since your withdrawal will be declared as your income for that year.

It only makes sense to rollover your 401k into an IRA directly from one fund into another if you find another job. Until you find another job, you should leave your 401k distribution in your old account, earning interest and keeping tabs on the managers of your 401k plan.

If your take your 401k distribution directly from your fund and then redeposit it into a new job's IRA, you will save on the early withdrawal penalty but will have to pay 20% in tax withholding. That money for your taxes will come out of your distribution before you get a cash pay out into your new IRA plan.

The question of rolling over 401k plans is basically one of how much money do you want to lose by handling you plans distribution before retirement age? That question and many others can best be answered by a tax consultant, an accountant, or some other financial advisor. One thing is for sure, when you lose your job, you shouldn't just jump at the chance of spending monies that you took years to accumulate in your 401k plan. - 32163

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Day Trading Penny Stocks - Here's How People Make Money

By Sam Lockwood

Since the 19th century, penny stocks have been part of the American investment world. This is where the stocks got their names, since modern penny stocks almost never cost a penny. They're usually more like ten cents to five dollars. Now, let's look at the risks of working with penny stocks, then the opportunities they can provide.

Penny stocks are share offerings to investors made by companies either too new or too small to be listed in major stock exchange listings. There's a big potential for growth for relatively small investments initially, but pump and dump schemes are a real risk in this area. Just like anything else that has to do with the OTC (over-the-counter) market, buyers should remember to beware.

Choosing penny stocks reasonably means that you need to have an independent appraisal of the company's business model. Much like buying shares of any other kind of publicly traded company, it's necessary to understand everything about the company. That means knowing what they do, what they make, what products are offered, how their business model works and who their major competitors are.

One of the most appealing things about penny stocks is that the majority of businesses offering them are quite simply put together. One typical type is that of a mining company, which will only be profitable when the price of the material it mines reaches a certain level. There are also some oil exploration stocks which use this kind of valuation.

Penny stocks are rated as a high risk vehicle by the Securities and Exchange commission. Some of the risks you'll encounter when dealing with these stocks include incomplete and indirect financial reporting, limited liquidity and even complete fraud. People who are playing with a day trading strategy will find that sudden demands for penny stock creates enormous volatility. Penny stocks are hard to short sell for this reason.

The financial reporting guidelines on penny stocks are actually pretty loose. Unlike the national exchanges, not much is required of companies that list this way - in fact, sometimes these stocks will just de list for a few days! In the investment type called Pink Sheets, penny stocks have nearly no regulatory requirements at all, including few to no minimum accounting standards or reporting guidelines.

Because there are no generally accepted standards or standardization for penny stocks, they're an area that's extremely vulnerable to fraud and manipulation. People can pose as independent observers, then run up the price of penny stocks. All they have to do then is de list it, leaving buyer with nothing in what's classically called a pump and dump scheme.

Of course, that doesn't mean you should never invest in penny stocks. There are lots of real, legitimate startup companies out there, and they need to have a good place to get up and running. If you're able to pick a winner, you'll get an impressive return.

If you're able to spot a company with lots of promise, you could get an enormous payday. Even if you lose four out of five of your picks, the single winner you get will give you enough to forget about the other losses. - 32163

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Tips For Identifying The Best Stock Picking Software

By Peter Skonctue

Knowing a bit about the ins and outs of stock picking software can be important for those who are contemplating getting into the stock market or are already in but may not have the time to work on identifying the most likely stocks for success. Also, software can help when one doesn't want to entrust one's entire portfolio to a broker who may or may not be engaging in "churning."

Churning is the actions taken by some brokers who are more interested in making money off of commissions rather than helping their clients make money off of timely buying and selling or trading of stocks. Some brokers will execute endless orders and their money comes from the commission charged on each order. Stock picking software is one way of eliminating this problem.

How stock picking software works is that it automates the process of selecting stocks that have a high probability for positive gain, meaning that it will help a person by a stock when it is low and then sell it when it is high, which is the basic meaning of positive gain. Most software synchronizes itself to real-time data and performance benchmarks to ensure it is as accurate as possible.

Generally speaking, there are several different types of software available, with each offering a number of benefits and features that set each apart from the other. For those who just don't have much time to sit down and then evaluate the best times to buy and sell a stock, stock picking software can almost completely automate the entire process efficiently and with little fuss.

How it works is that it will scan stocks that have been placed onto a user's target list or an industry sector that the user has identified (i. E. Automobile companies) and will then engage in constant analysis and is aimed at presenting the best performing stocks. It will look at current stock market exchange reports, collate the data and then lay it out for the traitor who needs to come to a decision.

A type of stock picking software known as functional software also synchronizes itself to the daily ups and downs of a given stock market. It works to review performance behaviors in the market and then examines volumes of stocks bought and sold and the prices that they are bought and sold at to come to a decision on which stocks are the most valuable. This software is also customizable.

As far as general features that may be common to many different software programs, most come equipped with stock tickers and international quote generators. Additionally, many are able to track portfolios and deliver customized alerts to their users. There are also charting and graphing tools and a way to have the software notify its user via e-mail for anything the user deems important.

Keep in mind that stock picking software can make the process involved in analyzing and then picking a stock much easier, no software or promoter of software can guarantee successful results or any kind of result, for that matter. All software programs are very skilled at collecting and then analyzing data but never forget that the final output might not necessarily be completely accurate. - 32163

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The Best Stock Trading Software Make Money Online Trading

By Mark Roberts

Stock market trading software is a tool every stock investor should have when trading online. At some point you may have had an account or two with various online brokers and have used their software tools to make money trading online. Its a good ideal to have several tools some independent of the online brokerage houses to help make money trading online.

The best penny stock trading software will do chart analysis to help pick good cheap stocks. Basic stock trading advice tells us to chose a stock with a PE ratio of 10 or better and a company that is stable and in an expanding industry. To be successful in picking penny stocks you need to have all tools available including software, newsletters and up to date news. Professional penny stock traders use all available resources when picking penny stocks.

Many have opted to go for the major stock, small cap or penny stocks to buy good cheap stocks. You may be learning to trade stocks online and would like to have the best stock trading software that can analyze charts and detect patterns to create maximum profit. Some software can analyze charts and see patterns that the typical professional may miss especially when trying to many stocks at once this is why computer analysis of stocks is best.

Day traders are in it for the profit but are very active looking to take quick profit and make trades hourly, daily taking profit quickly. The stock investor is in it for the long term and is happy just to go with a few picks and trade stocks every so often. Either way if you have a large portfolio or want to get serious then you need some good tools to help make decisions quick and keep risk to a minimum.

If your after hours or day trading it is crucial you have penny stock analysis software you can rely on. Successful penny stock trading strategies and systems helps you narrow down the picks that other free tools from big online discount brokers miss. Successful penny stock trading systems should make your picks more profitable, easier and there should be less risk and more profit.

With Internet and WiFi access available in hotels and in internet cafes on the road it is not unusual for your typical successful penny stock trader to take their laptop computer on the road to make sure they have no surprises when they return home. Just make sure you have Internet access that is secure.

Stock trading software gives you the power of a professional trader even if you have little knowledge of chart trading and analysis. You can also back up stock picks form other free tools and save countless hours doing the research manually with you own strategies and systems providing you have some. You could also learn how to find good cheap stocks.

Even if your new or a novice and you are wanting more control of your stock investments picks and want the power of the professional trading online, using the best stock trading software is the way to go. We all want to create wealth and have financial freedom and to make money trading online is a very viable opportunity for someone who wants to learn how to trade stocks. No matter what you skill level is you should always be reading to increase you knowledge and ability to pick profitable stocks. - 32163

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5 Steps To Financial Freedom Through Forex Trading

By Todd Joyner

With the amazing growth of the forex market, you are going to see an astounding amount of traders lose all their money. Unfortunately, they haven't followed the simple steps I have laid out for you. Go through these steps and give yourself the greatest opportunity to achieve your goals.

1. Have Faith In Yourself

To reach the top level forex trader you must trust in your education. You must be willing to make all your trading decisions, instead of relying on someone else's thoughts or ability (or lack of). Of course, you will prepare yourself fully before every risking any money.

2. Accept Your Learning Curve

Unless you are a veteran trader, you will lose money trading the Forex market. This is a near certainty. I don't say this to talk you out of trading. In fact, quite the opposite. You will be trading against others that fall to this reality day in and day out. You, however, will not risk a dime until you have learned the skills you need to make money trading the forex.

3. Decide What Type of Trader You Are

There have been many ways to trade with forex. They range from unequivocally active to unequivocally patient. You must decide which suits you best. Trading with a demo account. allows your learning curve to cost you very little money.

4. Get Educated

Education is the shortest trail to forex trading success. Regardless of your goals, you can reach them quicker with the proper forex trading education. Take the time to review the different forex trading education options

5. Continue to Get Educated

In order to achieve and retain elite forex trading skills, you must constantly be adding to you knowledge base. Your education should never end. It's One of the key points to look for in an elite forex trading course is an ongoing education.

What separates successful forex businessman from all others is their ability to be independent. Many traders have been inclined to follow signals, systems, strategies, or anything else you may call them. By using this approach, however, these traders have only been as good as the people they follow.

Most successful forex traders lead. Their decisions will be analyzed to precisely and almost to perfection. They will make decisions with no hesitation. One way to take your your forex education to the next level is with a automatd forex trading robot like Ivybot . - 32163

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Making Money with Momentum

By Chris Blanchet

When it comes to security price momentum, many people will look at the general trend of a security without fully understanding the technical basis of the term. What Momentum really tells us, however, is whether the trend will continue or reverse. Without technical analysis and events like Momentum, many investors would buy high and sell low.

Understanding Momentum In some ways, Momentum is very similar to the MACD oscillator as it measures how much change a security's price has seen over a predetermined period of time. Understanding how technical analysis works on an unbiased, statistical level as well as using Momentum will allow investors to determine whether a systemic change in price is part of the normal up-and-down of the market, or if it is instead a strong bearish or bullish signal. Essentially, Momentum tells us whether a given price trend will continue or reverse.

Put another way, Momentum gives investors insight into the underlying price trend. When using technical analysis tools in this manner, investors should be able to better identify whether a particular security is overbought or oversold and make changes to their positions accordingly. Decisions like these are impossible to make when based entirely on security prices.

Calculating Momentum One of the downfalls with technical analysis is that there is a heavy mathematical component to many of the events. While this not entirely true for Momentum, investors will need to understand the basic formula required to obtain a Momentum reading. Simply, Momentum is calculated by dividing the Closing Price by the Closing price ten periods ago, and multiplying it by 100. [Close/(Close 10 time-periods ago) * 100].

Trading on Momentum When it comes to executing trades based on Momentum, the reading is quite simple to understand. Values above 0 are bullish and values below 0 are bearish. A word of caution however is that extremely higher low values might suggest a continuation of the existing trend. In the case of a sell, investors are urged to trade only if prices peak and then begin to fall and not trade before they begin to fall.

When it comes to trading on technical analysis events, investors should always use other events to confirm or refute positions they are currently considering. Never make a trade based on one technical signal. Momentum can often serve to confirm or refute other events or even the underlying price trend in a particular security.

Since Momentum and many other events triggered by technical analysis rely heavily on mathematical calculations, trading software is recommended for the individual investor. Such software can monitor many different technical trends and some of the more advanced system will make buy and sell recommendations. - 32163

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Online Trading

By Brandon Ernest

Based on the product traded, online trading styles include stock trading, options trading, futures trading, commodity trading, currency exchange trading for example. Stock traders trade equities or shares from firms. Option traders trade options, which enable one to buy or sell a right at precise time periods under specific market conditions. Online futures traders and online commodity traders trade contracts ; contracts for products like crude oil and natural gas or contracts for treasury notes and bonds. Online currency exchange traders trade currency pairs, they buy one currency and sell another one according to exchange rate changes. According to the interval between buying and selling of products on the web traders can be broadly classified in to short-term traders and long-term financiers.

Usually traders with trading interval less than one year are known as short term trader and those with trading interval more than one year are referred to as long term investors. Short term investors, forms the bulk of active traders, trade products according to short-term trends. They trade products often according to its merits. Long-term speculators trade with long-term goals ; they are usually company / industry consultants desire to speculate in growing fields.

Advantages of online trading include, totally automated trading process which is broker independent, considered decision making and access to complicated trading tools, traders have direct control of their trading portfolio, capability to trade multiple markets and / or products, real-time market data, quicker trade execution which is vital in day trading and swing trading, discount commission rates, choice of routing orders to different market makers or consultants, low capital necessities, high leverage offered by brokers for trading on margin, easy to open account and straightforward to control account, and no geographical limits. Online trading favors active traders, who want to make quick and frequent trades, who demand lesser commission rates and who trade in bulk on leverage. But online trading is not here for all traders.

The downsides of internet trading include, need to meet specific activity and account minimums as asked by the broker, greater risk if trades are done extensively on margin, monthly software usage fees, chances of trading loss due to mechanical / platform screw ups and need of active fast web connection. Online traders are fully answerable for their trading choices and there'll be regularly no one to help them in this process. The charges involved in trading alter significantly with broker, market, ECN and kind of trading account and software.

Some online brokers might also charge inactivity fees on traders. The first thing you must know when you choose to trade shares by joining an online trading of stocks system is to visit the sites of the best online trading brokers available. These companies offer a wide variety of market flow previsions and developments in the web trading of stock futures. When you make a decision to apply for an account, you must know that this is generally free of charge, but you have to pay every time you engage in a stock or security bonds exchange. After completing this process, you must choose between one or two available broker-services specialized in online trading.

The least expensive answer to your problem is an execution broker. This kind of online trading service provides only an electronic exchange option consisting in purchasing or selling shares or stocks, without any stock futures prevision, counselling or any other advisory support in finding practical market trends. Like all the partakers in the stock exchange, you can only decide between three sorts of operations. The 1st one is buying, while the others are selling and holding. The single time when you require a broker is when you decide to sell or purchase. You do not need the assistance of a web trading broker to hold your personal stocks or already established stock futures.

The most vital advantage in having a web trading account is the enhanced speed with which you can either purchase or sell stocks. Of course, you could have a limited period of time to transact your stocks or stock futures, but after you get used to the web trading market, you can start earning serious coin. - 32163

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Tips in Making an Informed Penny Stock Pick

By Malcolm Torren

Making the right penny stock pick is the goal of every investor in the penny stock trade. However, it is not an easy thing to do, especially for the new investor. You may enter the stock trade with high hopes, but get discouraged at the hurdles you encounter. But if you manage to overcome the first few obstacles, you can consider yourself mentally prepared for what is yet to come.

No matter how good your choices may seem, they can only be sound if you have selected them upon a rational basis. This means that you must research and consider all the solid facts before you form a generalization.

But even with these not-so-encouraging comments, penny stock trading can be worth your investment. That is no myth and there are people who can tell you that it's even fun. So where do you start? Know the basics first. Here are five tips that are most important to get your excited.

- Do not buy shares from ambiguous claims. Of course you wouldn't buy a product in a grocery store if the label doesn't say much about its content, would you? There may be phone calls and emails you'll be getting saying stuff about penny shares that are up for grabs. Verify this claim first. Verify the source of the information too. It is important in your penny stock pick to have track records and an accurate stock price before you buy a penny share. The point is, don't buy if the information you need is not given completely.

-Familiarize yourself with the PE ratio. This pertains to the price to earnings ratio, and is the value set by the stock market itself for every dollar per share of the annual earnings of a company. This might sound a little too technical if this is your first time to invest, but do not let this scare you off. The PE ratio principle is one of the basics of the stock market that you would like to understand better. You will not regret it, because it will provide a sturdy foundation in making a penny stock pick.

-Be wary of hypes. Press release articles, emails, and many other channels can sensationalize a certain penny stock pick, and most of these turn out to be scams. Be especially suspicious if vague sources flood and pester you aggressively to choose a particular stock. It may be part of the notorious pump and dump scheme. If you have already made an informed decision on what penny stock to pick, do not allow this hype to make you suddenly change camps. Although you can refer to other stock brokers and make newsletters part of your research, tread carefully.

- Advice is always helpful but only if there is credibility in it. You decided to throw in your investments in your penny stock pick because it is your personal decision to. That means whatever risk you have, loss or gain is all yours for the taking. If someone else gives you an advice, make sure that they have traded their own money and have a good track record of successful transactions.

- Wherever you may seek assistance with your investment, remember that these are just sources of support. Statistics, research, brokerage firms, and friends in the trade can all give you pointers, but these should just be the foundations for your decision, not your actual choice. The final say on the penny stock pick should be yours. - 32163

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The Best Stock Tips And Advice

By Michael Swanson

Learn stock tips and ideas in order to earn a big profit. Stock market investing can be a wonderful opportunity but it's also full of risks. To minimize the risk you should take your time to learn about trading stocks for profit. As a beginner you should be very careful and learn from stock market history. First of all you must learn when it's good to buy stocks and when to sell them.

Don't try to guess where you should invest your money. Even if you have luck once this will not last for ever. You must invest only in the companies you are sure that will bring you a profit. Keep it as simple as possible. Some people are trying to invest very often even if they are not very sure about their choices.

Avoid making very big hopes. Some people are hoping to get rich over night. This is not possible unless you take some very big risks. The best you can do is try to earn a steady income from stock trading. This way you can increase your income after you get more experience.

Keep in mind that you can't guess what will happen with the stocks in the short term. The stocks tend to be volatile. That why you should wait for a long time until you can sell them again. You should analyze the market and the company.

When you buy stocks in a company it's like you become the owner too. This is why you should get informed about the company and products. It will help you decide when to sell again. Read business news and join relevant forums.

Buy when the price is low and sell them when they are high. This looks like a simple rule but a lot of people are not respecting it. Usually they tend to buy when the price is getting up. This is a mistake because you can lose money. - 32163

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Technical Analysis Defined

By Michael Swanson

If you want a definition of technical analysis think of patterns that forecast market by the direction and study of earlier market performances. It mainly keeps track of volume and prices. This done by watching what happens in various markets for long period of time.

The Dow Theory has inspired the development of a modern technical analysis from the end of the 19th century. This is done by watching a particular item for a while on the market. A price pattern will emerge.

Once the price pattern has been established one can then exploit that pattern to earn more money. Understanding and using the information will result in an increase in revenue. This is used mainly with traders and financial professional.

The stock market items from the past will tell us what the future is going to do. People follow this to learn what they need so they can decided what to buy and sell. This is a good method to use for most people.

When people know when the stocks are going to rise and fall they can sell off so they don't go broke. But this is not an exact method and can still lose money if relied upon as a sole source for the stock market.

A wide variety of charts is used to watch what has been taking place. There are long-term view charts and short-term view charts that the analysts use. Once they watch them long enough they use the information to trade or invest in an item.

There are experts on this theory, books and classes to teach people this way of investment. However some people think that this theory is not sound enough to use on a regular basis. The approach that is used is called a top-down approach. The information that is gathered can be complex or can be simple. There is a method that is followed by all that use this theory. - 32163

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Stock Market: The Land of Greed and Fear

By Leyla Maker

The major players in the stock market emotions are greed and fear. They are the forces that drives all market participants - Stockbrokers, institutional managers, traders, investors and yourself.

Perhaps you believe that you will not let fear and greed would never be in your way of trading, but I can assure you that they will be. It is not something that should cause shame. It is something you have to face it, recognize it and deal with it, if you plan to be a successful trader or investor

How do greed and fear look in the stock market trading stage?

You have been watching a particular stock for some time now. It has set up perfectly, so you pull the trigger. You bought it at the perfect price and now it is moving higher just as you thought it would.

Now your greed pops up to the scene and convince you that this security is heading up like a rocket. So you are motivated to buy more of the stock, another possibility is that your stock is advancing higher and reaches beyond the selling price that you have planned to sell for. Now greed makes you believe that the stock will continue in an uptrend till the next day and so you hold on to it.

When stocks make strong moves to the upside greed from all the cumulative market participants joins the move.

Stock prices in most situations drop faster than moving up and when this takes place, fear shows up.

Let us analyze the example above, where your stock moved beyond your exit price and you held on because you were on the side of greed. The next morning the stock price went down. The stock is being under heavy selling pressure, but you would not sell because greed is convincing you that higher prices would come back. While you are holding on, the price keep going down and now fear is popping up, but it is too late, now you have looses not profits.

Everyone who trades will suffer through this until these two emotions: fear and greed, are under control. Once these two emotions are under control, you are on your way to successful trading. - 32163

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Best Forex Signal: Use Buy And Sell Indicators To Trade Successfully

By Patrick Winters

The best Forex signal may vary from trade to trade and from currency pair to currency pair. The purpose of the signal is to help the trader determine whether it is the right time to buy or sell a particular currency pair. A signal affects just one pair. It is up to you to decide whether the market will move up or down. Forex trading is the largest single financial market in the world and is open six days each week and 24 hours per day.

Although there are many currency pairs that could be traded, novice traders should begin with one of the most common pairs. Watch the charts as they form with trades during the trading period. Since major pairs have more trades, you can seen opportunities much more quickly.

Forex signals must be available as far in advance of the market move as possible. It is impossible to always make the correct buy or sell move in the market. Signals don't forecast, they only use history to show what typically happens when there is a particular chart pattern. The trader who learns how to recognize and apply chart patterns can often pull regular profits from Forex trades.

Even if you place a trade that isn't working, you can use a signal to stop the trade so that you don't lose any more money. You can also set a profit point so that you will close out the trade when market prices reach a specific level. You can take profit in dollars or in pips.

An important feature that should be part of the trading platform you use is customer support. The technical support staff should be available when the markets are open. This will ensure that orders are filled quickly and accurately.

Picking the best Forex signal is best done by trading with a platform you understand. Try out the platform in virtual mode before risking any real funds. Find the style of trading that works best for you. Repeated short term and small profit trades can get you to the same point as a single wise trade that requires longer to mature. - 32163

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Comparing ETFs to Mutual Funds

By Jeffrey Jackson

Being traded on an exchange, ETFs are required to pay brokerage commissions. Adversely, mutual funds directly purchased from the original company don't charge any sort of brokerage fees. ETF brokerage commissions are anywhere from $10 to 20 but online discount brokers offer as low as $3 trades.

When compared to mutual funds, ETFs have much lower expense ratios. Share-holder related expenses are much lower. They also hold an advantage not being required to invest cash contributions, fund cash redemptions nor maintain a cash reserve for redemptions. Their costs hover around 0.1% - 1% in comparison to mutual funds which charge 1% - 3%. As these costs compound they can become very significant in the long run. Mutual funds charge either a front or back end load and when compared to and ETF, which charges no load, an ETF holds a substantial advantage.

The way ETFs are structured in the U.S. creates much more attractive tax efficiency than that of mutual funds. Mutual funds must distribute capital gains to its investors whenever a mutual fund realizes a capital gain not balanced out by a realized loss. Whenever a mutual fund sells portfolio securities this can happen, whether it's for the purpose of reallocating its investments or to fund shareholder redemptions. Even those who invest those gains in more shares of the same fund are responsible for the capital gains tax.

ETFs behave in a total contrary manner. Instead of being redeemed by shareholders, its shares are sold on the stock market as any other stock. Investors generally only realize a capital gain when they sell shares of stock or when their trades reflect changes in the original index. ETFs are generally much more tax efficient than conventional mutual funds.

ETFs have great capital gains benefits in the U.K. By placing them in a self-invested pension or an individual savings account as they would do with other shares can be protected from capital gains.

Trading ETFs have some of the great advantages in that they have the ability to perform and function like a traditional share of stock. Short selling, options (puts and calls) can be written against them, buying on margin, stop-loss orders, limit orders all apply as well. None of the previous applies with mutual funds.

Mutual funds, unlike ETFs, only permit their investors to purchase or sell at the end or a trading day at the fund's closing price. This rule removes any benefit to be had from a stop-loss order. Investors are able to trade ETFs during regular trading hours throughout the day because of their stock-like liquidity that comes from its continual pricing throughout the day. - 32163

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The History of Exchange Traded Funds

By Jeffrey Jackson

Exchange Traded Funds (ETFs) have an interesting history here in the US and around the world. Beginning in 1989 as Index Participation Shares, a proxy of the S&P 500, they were traded on the American Stock Exchange and the Philadelphia Stock Exchange. After inception, the Chicago Mercantile Exchange filed a successful lawsuit stopping all sales in the US.

Trading on the Toronto Stock Exchange, a new product called the Toronto Index Participation was launched in 1990. Initially tracking the TSE 35 then soon after the TSE 100 these shares quickly grew popular. Around the same time the American Stock Exchange created a product to fit SEC regulations and began trading in the United States.

In January of 1993 Nathan Most, an executive with the exchange, created Standard & Poor's Depositary Receipts. Widely know as SPDRs or "Spiders," the fund became the largest in the world. MidCap SPDRS were introduced to the market shortly after in May of 1995.

In 1996 Barclays Global Investors which is a subsidiary of Barclays pls entered the game with World Equity Benchmark Shares, or WEBS which was later renamed iShares MSCI Index Funds Shares. These indexes were very innovative simply because they gave your every day investors easy access to invest in the foreign marketplace. As a first of their kind, WEBS were set up as a mutual fund while SPDRS were set up as unit investment trusts.

"Sector Spiders" were introduced to the market in 1998 by State Street Global Advisors. The "Sector Spiders" were built to track the nine sectors of the S&P 500. "Dow Diamonds" as they were introduced in 1998, tracked the Dow Jones Industrial Average.

Since then ETFs have multiplied and reached a variety of sectors, commodities, regions, bonds, futures and several other asset groups. Over 680 ETFs existed by May of 2008 in the U.S. Assets of these 680 ETFs were at $610 billion and had a $125 billion increase above the previous 12 months. - 32163

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Frequently Asked Questions about ETFs

By Jeffrey Jackson

Q: Can ETFs be guaranteed or insured?

The government agency, The Depository Trust Clearing Corporation, which ensures stock certificates are delivered to the person who bought them also, makes sure all ETF certificates in a trade are assigned correctly. Furthermore the SEC examines all applications to create an ETF. Risk of abuse is very low.

Q: Are ETFs only good for stocks?

No, they are very innovative and versatile. In fact, any liquid asset with a published index can be an ETF. There are ETFs for Bonds, Commodities, Emerging Market, Japanese Futures, Latin Top 50, Precious Metals, Basic Materials, Real Estate and a long list of others.

Q: Do other countries also have ETFs?

There are many international ETFs. From Europe to the Pacific Rim, most developed countries have them. Countries around the globe will adopt ETFs as their countries gain economic and political stability.

Q: Do any ETFs try to beat the market?

A fund that currently beat the market by 2 or 3xs is an actively managed fund. These funds operationally are much more difficult to manage. However it is much simpler when all players in building an ETF know the details of stock investments. Actively managed funds are traditionally more secretive, mainly to shield themselves from eager parasitical resellers.

Q: Are there ETFs for the Dow Jones
Industrials or S & P 500?

Yes, several funds track these indexes. Remember the Dow Jones and S&P 500 stay in tact as their own indexes, but more than just one single fund can track an index by securing the appropriate group license. Open up an account with a broker and begin trading.

Q: Could ETFs possibly be a fly-by-the-night trend or fad?

This is highly unlikely. At years end 2009 assets of exchange traded funds totaled $656.91 billion. In fact year over year during the past several years they have had steady growth with no decline. Much faster than traditional mutual funds. - 32163

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Learn Stock Market Investing Techniques Through Technical Analysis

By Christopher Fitch

Beginning investors who want to learn stock market investing techniques will gain a competitive edge by digging into the different types of technical analysis patterns and indicators. While technical analysis is never enough as on its own, it can certainly give investors an indication as to whether they should buy or sell stock.

In terms of the strongest and most popular technical analysis measurements, the following are three of the greatest technical formations that you will want to understand as you learn stock market investing techniques. While these three are not comprehensive by any stretch of the imagination, they provide a solid starting point:

Head and Shoulders. Considered one of the most reliable technical indicators, this type of formation gives investors an extremely reliable indication as to where the stock is headed -- up or down -- over a specified period -- short, medium, and long-term. A head-and-shoulders formation has three sharp points. In a bottom formation, there are three low points with the second point (the head) being lower than the first and third points. This pattern gives a strong and reliable indication to buy the stock. As well, it is easy to spot, particularly for investors who are just starting to learn stock market investing techniques. In terms of volume, the first point (the left shoulder) will come with higher volume than the last point (the right shoulder).

Gaps. Arguably the easiest indicator to see, a gap occurs when a low for one day is higher than the high of the previous day. Gaps provide resistance and support levels for stock and while people beginning to learn stock market investing techniques are drawn to such patterns, they should be traded cautiously. When an ongoing trend crosses over a previously formed gap, it normally signals a strong price movement is occurring or about to occur.

Bollinger Bands. Used as a tool, Bollinger Bands are not stock price patterns. Instead, they are an oscillator, which tells investors about the probability of a stock trend. For people who want to learn stock market investing techniques, Bollinger Bands are a must. They give a buy or sell signal based on a stock's volatility as it moves two or three standard deviations from its mean. When the stock price closes at or above the upper band, it triggers a sell signal (vice versa for the lower band).

For investors looking to learn about stock market investing techniques, much of the information on the topic of technical analysis can be found on-line. Likewise, theoretical textbooks can become costly. As an alternative, investors can purchase trading software that makes recommendations based on the very same data that technical analysts use when making their recommendations. - 32163

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Foundational Investment Theory - The Rule Of 72

By Zigfred Maceren

"The most powerful force in the universe is compound interest," said Albert Einstein. It is expressed in a mathematical formula called the Rule of 72.

Some people go as far as saying that Albert Einstein's greatest discovery was the Rule of 72, not the theory of relativity. Others say that the rule had been in existence even before Einstein was born. But most people agree that Einstein popularized it.

What is the Rule of 72 and why is it called the foundation of all investment?

You will appreciate the importance of the Rule of 72 as you use it to arrive at the following:

1.) What interest rate will quickly double your money? 2.) How many years does it take to double your money?

For the answer, divide 72 by a certain interest rate. The result is the number of years it will take to double your money. Expressed mathematically, the Rule of 72 is: n = 72 / I, where n is the number of years it will take to double your money while i is the interest rate.

For easier understanding, let us take this example: if you put your P100,000.00 in the bank, which gives only 1% interest rate, it will take 72 years for your money to become P200,000.00. (72 / 1 = 72).

So, you're thinking of putting it into a time deposit account because savings deposit earn at a very low interest rate. Time deposits in Philippine banks earn about 4% interest per annum. But even then, it will still take 18 years for your time deposit of P100,000.00 to become P200,000.00. (72 / 4 = 18).

Consider investing your P100,000.00 in a business that earns at 10% interest rate. In 6 years you would have doubled your money to P200,000.00! (72 / 12 = 6).

To determine how long it will take to triple your money, use the cousin of the Rule of 72 - the Rule of 115. Using the same formula, just replace 72 with 115. - 32163

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Debt Collection - How Much Time Do Collection Agencies Have To Collect?

By Mallory McGuinness-Hickey

Many people are made painfully aware that they owe a debt that is being pursued by a collections agency, yet few know exactly how long creditors can go after that debt. Debt Collectors are guided by what is called the Statute of Limitations.

This means that after a certain length of time creditors can no longer collect from debtors. The length of the Statute of Limitations vary from state to state, the type of debt, if there is a signed contract or not among many other factors.

For example, the state of New Hampshire has the time alloted to collect a debt is 3 years. If it was a foreign judgement, the Statute of Limitations is as high as 20 years; on a domestic one it is also 20 years. For goods the Statute of Limitations is four years but with a written, legitimate and signed contract is is three years.

Debtors that do not believe that they owe the money, they can fight the creditors claim may actually withold information regarding invoices or balances due and request proof demonstrating the validity of the debt.At this point, collection agencies must present backup documentation to support their claim.

For more information regarding the Statute of Limitations, it is wise to speak to a legal advisor in your own state. While there are many collections agencies out there that use unreputable practices, there is also a number of legitimate agencies who are willing to help out. Agencies such as Rapid Recovery Solution are always willing to help out. For more information, consult rapidrecoverysolution.com. In this trying time of economic hardship don't be bullied by illegal tactics by illegitimate collection agencies. There are laws out there to protect debtors and everyone should know their rights. - 32163

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Why Most People Like Investing With Options

By Johnny M Junior

When someone is looking for a great turnout with their investment, it is important that they know about how to do their investing with options. After learning about this technique and the best ways of earning a profit, they can either opt for puts or calls. This should only be done after the basics have been studied and the options are weighed. Options are very complex, so make sure you study before trading them.

If the stock that is being eyed is headed low, it is best to buy puts. Puts make money when the underlying asset drops in price. The way to find the direction of the investment would be to look up the price chart of the index or stock. The investor can use technical indicators and draw support and resistance lines to forecast a direction. The direction of the stock's value is the determining factor in whether the investor will use calls or puts.

Investment options are contracts with a strike and expiry date. Call options can become the right choice in the future if the stock goes up. If you own a call option, then you can purchase some stock at a defined, lower price which is the strike price.

With the expiration date of the options investment contract, you are purchasing what we call time premium. Each option has a certain amount of time before it expires. You can easily make money while investing with options if you learn advanced strategies, but you can lose too, so be careful and paper trade for a long time. If you are planning to buy Google's stock, then you might consider on buying Google calls instead. There are many choices on the option chain, but if you want the options to be similar to stock, then you can buy what we call "In The Money" contracts. These contracts won't lose as much time premium and will behave a little more like stock than some other options you can buy.

You can buy call or put options if you really believe that stock or any other security will go up or down before the expiry date. By using the conventional methods of investment, you can make more money with trading options. Most of the stocks do not have options exceeding than 2 years. Options that last that long are called Leaps.

Another valuable thing is leverage. Buying a put option can be safer than selling short a stock. This is because the put contract will have limited risk. For each seller of an option there is a buyer. The market maker makes the spread between the bid and ask. Options Clearing Corporation has a watch over the option contracts and all rules and regulations should be followed as per their norms. - 32163

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The Stock Market: Top Tips And Guidelines

By Jimmy Villaruel

Two well known traders discuss entry and exit points and stock market tips are discussed. They also answer a question about how to find good momentum trades.

David: We have been asked a question concerning entry points. 'Every entry I make, the trade seems to go against me. I've tried every indicator known to man and different timeframes. I've tried other people's systems and they don't work either.'

Stuart: It's often not the entry that's at fault. Often it's the exit that's at fault. We may be using an inappropriate exit and not allowing the conditions that got us into the trade work their magic and do what we want them to do for us in the trade.

Probably the entry is too complicated and perhaps they were changing it or shifting it because it was too complicated. Ditch the indicators. They'll work for some people and that's fine. My personal opinion is to ditch them because they don't provide much for me. Keep things simple, and it may be worth looking at the exits more than the entries.

David: The next question is: out of the thousands of stocks that are out there, how do I pick a few that have moved with a chance of high probability each day every day without scrolling through each one.

Stuart: You have got to have a way to narrow them down. I remember this when I started out. There are two thousand stocks on the ASX and I only want four or five to get going. How do I narrow it down to four or five? I think the easiest way, and one of the best stock market tips, is to get software that allows you to input you own entry criteria, the conditions you want to see in stocks. Software and PCs now does it within minutes or seconds and presents you with a small list for you to then assess yourself each chart by itself.

Software is needed which allows you not just to bring up the chart, but to go through data, perform calculations and identify your own criteria.

David: If you can't have access to charting software, come up with a trading method that is calculated, based on some data you might find in newspapers. Some newspapers will mark which stocks are making new six month highs or fifty-two week highs. That might be a way to thin the thousands of stocks to a few. But get yourself a charting package.

Stuart and I use Metastock, but there are plenty out there, and one can start with that.

The next question is how to find good momentum trades.

Stuart: Find stocks that are already in well established trends. I do that all the time. I just buy things that have gone through that period of consolidation and have now started to move up. Look for higher peaks, higher troughs, sitting above their medium term moving average whether it be 30, 50, 60 day moving average and showing the capacity and the potential to keep moving higher. With a fifty week high, clearly this stock has an upside, because with a fifty two week high there must be great demand for this stock. This is the simpler way of doing that.

David: The next question is entry and exits - what is a good stop? For entry, have a methodology to identify what's going up. Exit points - choose an appropriate one. For good stops, you can use percentage, ATR or technical and the lowest low.

Find the appropriate entry and exit points and buy some software to sort out the best stocks to buy. These are the best stock market tips for any beginner trader. - 32163

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Financial Bandits Need Not Apply

By Myer Thompson

The death of the stock market, contrary to popular opinion, has been wildly exaggerated. The market is still firmly entrenched and despite horrendous losses, still maintains a fair amount of the nation's invested wealth. Volatility in the marketplace has become an acceptable risk. The Las Vegas mentality is now an investment mainstay and you either know how to legally game the system or you don't.

The players who face the greatest amount of risk are the day traders. These investment mavericks have flaunted the cumbersome need for brokers and brokerage houses. These financial do-it-yourselfers want tangible control of their hard-earned cash. That is understandable. The logic of losing money you invested yourself is far more palatable than being informed via a statement of telephone call that someone else has lost your money.

Any qualified online stock trading professional can tell you that day trading is a big mistake. In most cases, they are spot on. Day traders experience a disproportionate amount of losses when compared to professional services. This is undoubtedly due to the fact that professional traders undergo a rigorous training regimen. Moreover, the gravity of buying and selling stocks with other people's money is never lost a dutiful trader.

The training is necessarily complicated. Though much is made about the endless string of financial terms -- they are very real terms and are, indeed, very complicated. It's easy to pigeonhole bankers and brokers and Wall Street -- and for good reason -- but it's important to remember that these institutions create real wealth for real people. Yes, bankers do indeed profit, but so do shareholders. Say what you will about Trickle Down economics, but wealth can indeed beget more wealth.

Day traders are the salt of the earth. But if you're going to take a stab at it, you have to know the pitfalls and perils. Yes, you are in more control of your money -- but unless you are a professional, you won't enjoy some of the fail-safes and protective measures meant to protect larger financial institutions. The Federal Trade Commission can ensure your stocks are recorded and rewarded correctly, but they can do little if you happen to be defrauded or scammed. Stick with the professionals. They're not the bandits the media would have you think they are. - 32163

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A Mini Forex Trading Account Is For Training

By Bart Icles

The fast paced, never ending, ever changing world of Foreign Exchange, or Forex, can be very exhausting, intimidating, even pocket poking at first but in time it'll be easier. That's where the mini forex accounts come in. Mini forex accounts are usually offered by brokers to help an interested individual be trained in the field of foreign exchange. Just like any other forex accounts, the mini forex account works the same way. The only difference is that investors only has to put small amounts of money as capital, as low as $100 or $200 since regular accounts usually cost $1000 or more.

The advantage of having a mini forex account is that it gives you a feel of what the market is like. With this, you can actually experience having an account without really putting that much money at risk, just a couple of hundreds, which is small compared to the actual accounts. Like the regular accounts, you will also experience taking risks with a mini account.

Also, there are psychological benefits attached to having mini forex accounts. Some people lose money in the market because they hang on to losing prospects hoping that the trend would suddenly, magically turn around. If the trend doesn't turn, then that's goodbye to their money, but with a little stroke of luck and the trend actually does turn, well, that'll be big money for you. Still, a lot of people lose a lot of money n the market because of emotional attachments.

Mini forex may sound like its still going to be a big risk for now, but when you've mastered this, you'll soon realize that they're only training wheels that you will eventually take off for bigger fish. You're not actually losing that much in a mini account. It's more of a practice area for you to, as stated above, get the feel of the market. In order for you to have good preparation in the real world of forex trading, the mini account was made.

An additional benefit of mini forex trading is that it can be used by people who only want to get that kind of excitement in their skin. Ideally, the mini forex trading platform was made originally for training and for preparation, but if you are comfortable with having to stay with a mini account, then that's fine. It can be used by traders who can't really see themselves in the big market rather they can only stay in the small market. - 32163

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Tips For Beginners: ETF Trend Trading

By Patrick Deaton

When first beginning ETF trading a person will find that there are many websites that offer services and programs that provide the technical analysis required to be effective with ETF Trend Trading. However, before deciding on a service or program, it will be important to learn how trend trading works and decide how much of an investment in tools and resources will be needed.

When doing an accurate technical analysis a person will need an analytical tool. There are many available that will give the detailed information that will help to identify trends and patterns in a sector. The programs usually are broken into short term, intermediate, and long term trends within a sector. Some of the programs offer other charts and graphs that provide information on the trends that are occurring within trends.

When a person uses one of these tools, it is important to remember that without other indicators, the information shown on the trend may not be providing all of the information that one will need to make successful trades. A trend may show a significant drop, for instance, if there is a major executive level change in a major business within a sector during a short term trend. When this occurs the trend may show a downward flow for up to two years.

When a significant event occurs with a major business within a sector, it often impacts the trend for that sector. This event may be a one-time occurrence that happens to fall during a rise in the stock that makes a great enough impact to disrupt the entire trend line for that sector.

The idea of ETF trend trading is to jump in when a stock is on the rise or fall with the idea that is going to continue in that direction for a period of time. When the stock is rising a person takes a long position. When it is dropping a person takes a short position. In either case, when the trend begins to reverse, a trade is made. The most closely that the beginning and end of a trend can be predicted, the better the gains will be on the trade.

When an individual is going to begin doing the necessary analytical work to make effective trades they will want to take a holistic approach. Including historical data, current market climates in that sector, and any anticipated significant changes to that sector will all act to make trades more successful.

When first beginning, it is a good idea to set buy and sell limits so that an opportunity does not slip past. When trend lines indicate a reverse in a trend, a person needs to act on that indicator if they feel that the trend is getting ready to reverse.

There is a lot to learn when one wants to delve into ETF trend trading. It is very helpful to visit websites and forums run by successful traders to use different types of trading, methods, and strategies to widen the base of knowledge that one has about trading. By getting information from people who are successful, it is much easier to develop a technique and strategy that will be most effective in making the successful gains that are possible with ETF trading. - 32163

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