Bonds, James Bonds!
Markets Bonds

0 Like 0 Dislike 12 Replies
2 years ago

Bullet Bonds , Zero-coupon’s and Convertible's.

These are some of the bonds offered in todaysmarkets. But are they as exciting as their names ? Certainly not - says Dr. Evil .

The truth about bonds is that they are there to help the company or the government raise money , for whatever purpose they need it (Usually to try and take over the world – Corporate Style)

So the government decides that they want to create a Space-Based Weapon System made out of Diamonds but lacks the money to do so, What do they do ? They ask people like you and me to give them money with a low yielding interest rate and in return they give you your money back when Mr. Bond matures...

That’s smart,you say ? thats right...

Well what about you? How much can you make from a bond ?

Usually about the 5% mark (obviously depending on how risky the investment is.)... ONLY 5% ?!

If its so low, why would anyone buy bonds you ask?

Well, the easy answer is that Investors who have savings would purchase these bonds to secure a stable income, especially when the interest rates drop below the offered bond interest rates.

This is a very good solution for the casual investor, who has more money than time to invest. Unless you have a lot of money and nothing to do with it or are looking to turn your thousands into millions,  I suggest that you stick with Trading or Gooooold... And live to trade another day.

Over and out.

Mr. Bonds

Posted 2 years ago 0 Likes   0 Dislikes

@Sidekick, you are right, it really is about "big players" or at least about people with a lot of cash. Still it is a great instrument to trade if you get the opportunity... 

Posted 2 years ago 0 Likes   0 Dislikes

the T Bond seems to be going down before bouncing back again ! 

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Posted 2 years ago 0 Likes   0 Dislikes

Isnt it all about the  big players ?

For people who are just starting the trading world, i think that Bonds arent the best option , especially if you have a limited money supply.

Happy Trading,

Posted 2 years ago 0 Likes   0 Dislikes

I look at bonds like any other instrument.  However, I have only really traded T notes for some reason, just clearer set ups with better timing.  I trade technically so for me its not necessary to know what happening

Posted 2 years ago 0 Likes   0 Dislikes

Im not into bonds, but why not, I might switch someday :)

Posted 2 years ago 0 Likes   0 Dislikes

me too @ winning007 - the more you know the better, more opportunities to make money

Posted 2 years ago 0 Likes   0 Dislikes

Im not trading bonds but Im always open for learning