BONDSONLINE.COM
Figure 1: BONDSONLINE.COM
With the stock markets plunging, and widely expected to continue on down, perhaps it's not a bad time to think about putting your investments in safer, more conservative instruments such as fixed-income securities. The returns - however grim - are a lot better than the negative double- or triple-digit returns you may be faced with if you remain invested in stocks. But before making that switch, there are certain nuances about the bond market you need to become familiar with. For that, a visit to www.BondsOnline.com may be worth your time. Although the site focuses on marketing subscription-based newsletters and the company's brokerage services, there is also a lot of general information that anyone learning to trade fixed-income securities would benefit from.
A look at the homepage gives you an idea of how much information is available on this site. One section worth mentioning is the daily bond market feature, which gives you a commentary on the day's economic activity affecting the bond markets. Another feature is the Treasury yield curve, the shape of which holds important information. If you are not quite sure just what the yield curve is, there's a Comment-Disclosure tab that will display an explanation. In addition to the yield curve, you can see the composite bond yields and bond spreads, which is handy when it comes to deciding which bonds to trade.
Not only that, several well-written articles explain different types of bonds, such as zero coupons, strips, and unit investment trusts (UITS). The reasons that bond prices move opposite to bond yields are explained, and a description of the difference between funds and individual bonds is also included. You will find several articles on the basics of bond investing, and Faqs on different types of bonds. A handy bond calculator is available for $24.95 (standard version) or $29.95 (professional version). You can also find links to various other sites containing resources for fixed-income investors, such as credit agencies, SEC Edgar databases, government information services, and associations.
If you wish to trade bonds with BondsOnline.com, there are additional features available on the site. These can be seen on the right-hand side of the homepage, but you need to sign up for an account before you can access them.
Overall, BondsOnline.com is an informative site. For those who want to take advantage of the services it offers, this can prove to be a one-stop site for information on fixed-income securities.
-Jayanthi Gopalakrishnan, Editor
TMITCHELL.COM
Figure 1: TMITCHELL.COM
"Learn to read the markets like a newspaper," Todd Mitchell of Trading Concepts likes to say to his students. How does he teach them to do this? You can find out through his home study course and live, one-on-one trading/training session. The course focuses on trading the Standard & Poor's 500, e-mini, Nasdaq, and Dow Jones contracts, although Mitchell claims that the strategies you learn from his course can be applied to any market and time frame. The course - unlike most other home study courses - includes a manual, audiotapes, and videotapes.
Mitchell's website discusses the course syllabus extensively, much more than other trading course promotional websites. After going through the site, you will have an understanding of what the course offers. Most other trading courses give you this kind of information after you have already made your payment. There's a definite advantage to having the information available on the website, because you can go through it at your leisure before making the decision to enroll. Don't forget to visit the frequently asked questions (FAQ) section if you have questions. Personally, I feel most comfortable doing as much research as I can before making a call.
There isn't much in the way of educational material on the site, except the "Introduction to Commodities" section. This contains a short writeup on why commodities play an integral part in our lives, but says nothing about how to trade them.
Todd Mitchell's course costs $995, which is less than most other trading courses. However, this is still a substantial investment, and it's always difficult to say if any course will help you become a better trader. It's best to find out how others who have taken the course have fared. Although testimonials are provided on the site, it never hurts to talk to a few people who have taken the course.
-Jayanthi Gopalakrishnan, Editor
Originally published in the January 2003 issue of Technical Analysis of STOCKS & COMMODITIES magazine. All rights reserved. © Copyright 2002, Technical Analysis, Inc.