Russell 2000 Index

The Frank Russell Co developed the Russell 2000 index to track the performance of a much broader number of companies than the more famous S&P 500. It launched this index with many of its others in 1984. It's a small cap index. It's comprised of the lower 2000 companies in the Russell 3000 index, which tracks the largest 3000 companies in the entire U.S. market.

Although this small-cap index has two out of three companies in the Russell 3000, their combined market caps are only 8% of the total of the parent index.

Its median market cap is $397,000,000. The largest company's market cap is $5,959,000,000.

Therefore, this index will perform well during stock markets that favor small cap companies over the large cap. Its ticker symbol is ^RUT.

You can also trade futures contracts on the Russell 2000. E-mini futures are available and popular with day traders. These e-mini contracts went from 1,000 contracts a day in 2002 to over 42,000 daily by March 2004.

This index measure small cap companies in two categories -- growth and value. The average market cap is about 1/20 of the S&P 500 company average.

This index is now the second most-commonly used equity index in the United States. It's by far the most commonly used small-cap stock index.

A full-sized futures contract of this index is priced at $500 per point. The e-mini futures are priced at $100 per point.

By comparison, the S&P 500 full-sized futures contract is priced at $250 per point. The S&P 500 e-mini futures is priced at $50 per point.

The top ten companies in this index are: Human Genome Sciences, Tupperware, 3Com, E*Trade Financial, Assured Guaranty, Solera Holdings, Skyworks Solutions, Highwoods Properties, DOMTAR, and Informatica.

You can invest using this index by purchasing one of the exchange traded funds devoted to it, which are managed by iShares, ProShares, Direxionshares and RydexShares.

This index is a weighted average. That means that it's compiled by multiplying each company's current market price per share times the number of outstanding shares. Therefore, the bigger companies -- which have many more shares outstanding than the smaller companies -- have a much bigger impact on the index's total value than the smaller companies. All major indexes, except the Dow Jones Industrial Average, are weighted.

Therefore, the Russell 2000 should be better known to investors than it is, because it represents an important growth area of the overall economy. Every large-cap stock was once a small-cap stock.

Autor: Richard Stooker

Profit from the secrets of investors who make money from bull markets and bear markets. See up for free report on income investing by clicking the link. Learn more about equity real estate investment trusts right now.

Added: February 9, 2010
Source: http://ezinearticles.com/

Options Trading Systems Exposed - 3 Things a Decent Options Trading System Must Have?

Options trading systems can be found all over the web, and for very good reason. I am a firm believer that options trading is the best way to make some extra money every month, replace your income or make you seriously rich.

Whether you are a novice trader or a pro, if you want to trade properly then you will need to have an options trading system. Simply buying an option and hoping for the best is not going to cut it in this world. The Chicago Options Board of Exchange that looks after all things options related states that over 80% of options expire worthless!

That is huge number and so if you want to make a money with options trading then you are going to need to employ a system.

However be warned. There are loads of rubbish options trading system out there. When you choose a system you must choose one a system which can answer yes to the following three questions:

1. Does it have a proven track record? Many options trading systems do not prove their results. Anyone can create a winning system on historical data, once they know what the markets have done. So where you see a system which show you pretty charts with arrows on when they entered the trades, you need to make sure that these trades were in fact actually placed and the arrows were not added after they saw the market move!

2. Is it a system which can be fully automated so you don't need to be at your computer the whole time? A system which does not allow you to live your life (or work at your job!) whilst you are trading is no good. If you have to stare at the screen all the time, then you are not trading an options system, but day trading. A good system should be something which you can trade automatically.

3. Does the system have as few as trades as possible in a month to make the maximum returns? Again if you are making lots of trades in a week or month then commissions are going to kill you and you are day trading.

Autor: Jack Berkley

As I said before, having an options trading system is a must if you want to make money trading options.

If you want to see an example of good options system then go to http://www.this-one-works.com.

In this system you can make consistent monthly returns even if you have never traded in your life as the whole system can be automated including having the trades placed for you.

Go to: http://www.this-one-works.com to learn more.

Added: February 6, 2010
Source: http://ezinearticles.com/

Investing in Penny Stocks

Penny stocks are defined differently by people, but usually, it is considered any stock whose shares sell for under $5 through over-the-counter services like the OTC Bulletin Board or Pink Sheets. Some consider cheap stocks sold on normal securities exchanges to be penny stocks while others do not consider a stock to be a penny stock unless it can be purchased for less than $1. These are equity shares of small companies that trade in low volumes. Since these are traded in smaller volumes than large company stocks, it can be tough to sell its shares.

Risks Involved

Penny stocks are high-risk investments; thus, they are considered risky, where brokerage firms are required to send documents to prospective buyers listing out the risks of them. Since, these are equity shares of small, often unproven companies, thus, their stock prices can fluctuate. Thus, smaller firms are less transparent, and finding out information on small firms can be tough. Another concern arises from the fact that penny stock prices are so low that if a stock sells for just 10 cents a share, even a decline of 1 cent per share amounts to a 10 percent fall in value. Similarly, it can offer high potential gains but usually smaller firms fail than become successful.

Penny Stocks are Susceptible to Market Tampering

Another concern is that investors should be aware of is the potential for fraud and price inflation in the market. Prices of stocks are decided by the supply and demand for stock. For larger shares, with large share volumes, one person usually doesn't have a huge impact on share prices (with the exception being extremely rich or influential investors like Warren Buffet). A single person with sizable resources can artificially hike share prices by buying shares. The subsequent increase in the price is likely to attract attention from the market and spur more buying, by which time, the original investor takes out money and posts a large profit, while latecomers stand to lose a large portion of investment. Due to poor information, an investor might attempt to spread favorable rumors, misinformation and hype to prop up share prices before a sale.

Autor: Johny Wilson

The website - http://wepickpennystocks.com is a leading informational resource on Stock market which provides daily stock alerts on NASDAQ Penny Stocks and other Hot stocks of the day.

Added: February 5, 2010
Source: http://ezinearticles.com/

How to Stop Stock Losses and Wastage Through Choosing the Right Stock Control Software

Stock Control Software

So often you talk to retailers who are struggling to manage and control their retail stock. The problems they are having with inventory are generally

Damage
Theft
Inability to find where the stock is in the store or warehouse
Unreliable stock level data

So what is the solution?

The solution is the right stock control software combined with disciplined procedures.

Recently I was working with some stores who complained about their new inventory software not allowing negative stock levels and requiring them to receive product before they could sell it. Their previous system had allowed them to sell product even if the stock control software was saying there was no inventory or the stock level was negative.

The point is, if you want to control your product levels then you need to have stock control software that forces you and your staff to follow the rules. The moment a system allows negative stock levels then you can no longer trust the system. A good stock/inventory control software ensures you have the tools to accurately manage your stock.

What are the key components of a good stock control software system?

A. Easy to use comprehensive product management tools

This includes flexible pricing, category/department classification, support for customer specific pricing and powerful re-pricing tools to make the management of your margins as simple as possible

B. Purchase order generation and management tools

Whether you have a small or large product range tools that show inventory that has hit re-order levels and other stock level and purchase order integration tools are vital in a good stock control software solution.

C. Incoming goods

Ability to select the linked purchase order, support for back orders and purchase order adjustments are all important. Another great feature in the PBSAPOS inventory control software solution was the ability to adjust the fixed retail price via the incoming goods screen. There also needs to be support for supplier returns.

D. Stock take and stock adjustments

As inventory is lost or damaged or moved between locations you need tools to make the stock adjustments to ensure your system remains accurate. In addition a simple to use stock take module is imperative in any good stock control software solution.

E. Stock Reports

It is imperative that you have reports on stock movement, stock sales margins, stock that needs re-ordering, stock take reports, stock that is expiring (vital for fresh produce stores) and stock that is not moving

These are just some of the important features you need to consider when you look at stock control software.

The other aspect is that no matter how good the stock management software it is the user who has to manage the system. This requires discipline. The software should not allow negative stock levels but it still requires the users to input stock adjustments, to input movement of stock between locations and incoming goods procedures to ensure that what was ordered actually arrived. This is your responsibility.

I wish you all the bets of success with managing your inventory through using the above details to evaluate your stock control software.

Autor: Darren Templar

Darren is an experienced presenter to small business across Australia and speaks on the topics of customer service, customer loyalty, customer profiling, data base segmentation and the power of targeted marketing campaigns to boost sales. If you want to boost sales and manage your business then Darren has a great deal of experience and recommends PBSA POS as a powerful customer loyalty and marketing point of sale system. For more details go to http://www.pbsapos.com.au/stockcontrolsoftware.aspx or email darren@pbsa.com.au

Added: February 4, 2010
Source: http://ezinearticles.com/

Why Should I Invest in The Stock Market?

I have often observed that some people are afraid of investing their money due to either fear of losing it or some remain confused about where to invest it. So I decided to give some basic idea about investing your money and where should you invest as according to your requirements. While keeping you money in savings account is quite good to make fortune but it is not good for long term.

You can invest money in basically following five types of assets:

• Cash (e.g.: savings account in bank).
• Bonds (e.g.: a loan to a company or government).
• Property (e.g.: residential or commercial properties).
• Equities (e.g.: shares in companies).
• Commodities (e.g.: base metals, oil, soybeans etc.).

If we talk about returns by these assets then the general rule of thumb in investing is that the riskier the asset the greater the return. For example if we talk about cash i.e., bank deposits then it has the lowest risk but at the same time has lowest returns, bonds are quite riskier and has more or same returns, property seems to be more promising and has stable returns and if we talk about stocks and commodities then they are risky but have good returns. So, while planning to invest you must keep in mind the amount of risk involved, the amount of money you can invest and the time frame for which you can invest your money.

When to invest

If you are a salaried individual and got the job recently then first of all you should invest in cash i.e. you should save some money first then you can think of investing in insurance. To invest in stock market or shares you must put at-least three to six months of your salary in it.

While investment in property seems to be promising but it has some drawback like it is good for long term for example if you purchase a piece of land then you can expect increase in value almost after 3-5 years. Secondly, it is quite difficult to calculate return on investment in property as there is lots of stuff involved in it like rent, maintenance cost etc. and transactions takes months to complete.

Investment in share market is preferred by most because of its ease of use and for the amount of money you can invest in shares, as you can invest any amount. One more advantage is that you can break the number of shares you purchased and sell them according to your need whereas if you talk about property then you cannot sell one room of a flat or house.

So if you are planning to invest for short term and looking for good return on investment then you should start thinking about investing in the stock market.

Autor: Aditya Todawal

Aditya Todawal
e-Marketing Executive at CapitalVia Global Research Ltd. which provides equity tips and commodity tips in India.

Added: February 2, 2010
Source: http://ezinearticles.com/

A Reliable Way to Triple Your Investments Overnight on Cheap Stocks Online

In today's stock market, we are nearing the end of recession meaning that there are a large number of profitable investments to be made if you can find them. This article will explain what you can do to find the best cheap stocks online today's market and triple your investments in the short-term without necessarily having the time or experience to devote to the analytical process yourself.

Many traders are embracing the analytical stock program or that which does all the number crunching for you and trend comparisons to find profitable cheap stocks online in today's current market so that you can invest accordingly. Because of the nature of these programs, it is the most guaranteed and reliable way to trade with the lowest risk because the process used here is the same used by the large trading firms.

The specific process can be referred to as stock pattern analysis. Individual stocks behave in patterns which repeat themselves and are cyclical all throughout the market. For example, if you have a stock which subsequently went on to a profitable trend in the past and you have a current stock exhibiting similar behavior as the origins of that original stock, you have evidence which tells you exactly how that current stock is likely going to perform in the current market.

Some programs only target cheap stocks online which is a major benefit considering a greater profit potential because these cheaper stocks are more likely to go on huge upswings in value because their cheaper prices leave them vulnerable to it.

For example, the first penny stock of the cheap stocks online I invested in and which I received from a penny stock specific analytical program was valued at $.15 initially. I received this tip Sunday evening and bought 1000 shares once the market opened Monday morning. Checking in on the performance of that stock at the end of that first trading day, I was more than surprised to find it had already climbed up to $.31.

I like to reference that first pick of the cheap stocks online I invested in from it because it serves as a good example of what these stocks are truly capable of on a daily basis. I hadn't had a great deal of experience with cheap stocks at that point, so I was more than floored to find it had appreciated to that level in that short amount of time.

I continued to check on that stock regularly next day of course as it continued to climb. It's a great feeling to watch cheap stocks online which you're invested in as it is climbing in front of your eyes knowing that that profit is all yours. Ultimately it finally leveled out at $.48 each share the next day or more than tripling in value over the course of about two trading days.

Autor: Jonathan Langley

For information on what is likely the best cheap stocks online picker on the market today, click on this link for cheap stocks online and begin your path to financial independence today.

Added: January 31, 2010
Source: http://ezinearticles.com/

What Do Casinos, Bookies and Market Makers Have in Common?

Of casinos, bookies and market makers.

For the past 25 years I have been avid supporter of all three businesses - casinos, bookies and market makers. And by supporter, I mean my hard earned money has gone to support these businesses.

At some point it occurred to me that these business models are connected and that connection became the access to a breakthrough in my performance and profitability.

Let's look at these business models:

CASINOS
Casinos make money because every game they offer has a built in statistical advantage for the casino. That edge can be very small (lower than two percent), but over time and the millions of bets placed by casino patrons, that edge earns the casino enough money to build elaborate hotels, fountains, giant pyramids, towers and replicas of famous landmarks.

BOOKIES
Generally, a bookie is an expert in the field in which he or she offers bets. Bookies have to be extremely knowledgeable, or they will not be able to turn a profit.

The goal of a bookie is to set up a point spread which allows him or her to profit no matter what the outcome of an event is. This requires a constant adjustment of the odds, and in some cases a bookie may even buy bets from another bookie to create a desired spread.

MARKET MAKERS:
Ever think about how you can just call your broker (or go online) and in a moment's notice sell 1,000 shares of Cisco? I mean, who is buying those shares? How does that really work?

Well, a market maker is to thank for this. There are people, market makers, that are willing to be there, standing by at all times, to buy or promise to sell any given stock. They will buy whatever you are selling, or they will go out and get whatever you want to buy. They are the grease in the wheels of the market.

What is interesting, from our perspective, is HOW MARKET MAKERS MAKE THEIR MONEY!

Look, they are taking a risk with every trade. Suppose they buy your 1,000 shares of Cisco that you want to dump and before they can sell it the price drops? They are risking their assets with every trade they facilitate.

How they counter this, how they profit, is they add a little something to every trade. They buy for a little less than the current price and the sell for a few cents more than the going rate. They don't need a lot of mark up. Just a few pennies on either side - but given the volume of what they do, they wind up ahead.

Not only is their risk mitigated, but the amount they add puts the odds on their side. They are not playing for the stock to rise or fall at all. They just want there to be volume!

THE MILLION DOLLAR CONNECTION

Can you see it? All three make their money by guaranteeing that THEY have the statistical advantage at all times.

None of them need to (or look to) win big. No, their money comes from the EDGE that they establish BEFORE any bets are placed. In fact, they are the ones
TAKING the bets, not MAKING the bets.

All they need is a small edge and they know, mathematically that they are going to come out ahead.
So what of it? Good for them. What does that have to do with us?

Well, what if I told you there was a way to gain the same statistical advantage that casinos, bookies and market makers have? What if I told you that there was a way for you to stop MAKING trades and start TAKING trades (just like a casino, bookie and market maker)?

I want you to know that there is. You can trade like a bookie. You can trade like a casino. You can use market makers to be a market maker.

Autor: Winston Dogwood

Well, what if I told you there was a way to gain the same statistical advantage that casinos, bookies and market makers have? What if I told you that there was a way for you to stop MAKING trades and start TAKING trades (just like a casino, bookie and market maker)?

Check out how you can gain a statistical edge in all your stock market investing here: http://www.stockmarketbookie.com

Added: January 21, 2010
Source: http://ezinearticles.com/