The UK Mail on Sunday has five top share tips for British investors.

Pointing out that 2006 was a much better year than predicted, the runes say that the coming 12 months will be “rocky”. However, we’re assured that the following stocks will perform well whatever the state of the markets :

1. Barclays : This is one of the world’s top banks with a strong High Street network of retail branches, as well a top flight investment bank. It also boasts a very successful fund management division with fast-growing international business interests. Its shares are rising because it has become the subject of a number of takeover attempts in recent times.

2. Biffa : This company collects, treats and recycles rubbish (garbage) for 80,000 customers worldwide. Biffa has been quoted on the London Stock Exchange since October 2006. Prior to its IPO it was part of Severn Trent Water company. The sector is a buoyant one and, it’s believed, Biffa’s management team will make the most of it.

3. Halfords : While the retail sector is expected to be flaky for most businesses, Halfords may well be the exception. It’s the largest seller of car and bycycle parts in the UK and has benefited from a raft of safety legislation in recent years. Analysts expect it to perform well in 2007.

4. CONCATENO : This company is involved in testing for drugs and alcohol — a growing service across the board — advising companies from building to shipping. It works with a number of public sector bodies. It is expected to come into its own this year and trades on the AIM (Alternative Investment Market).

5. Afren : Afren is an oil and gas exploration company run by a former head of OPEC. Its mission is in Africa and is seen as helping rather than exploiting local resources. Many experts think its time has come and it should rise well above its 57p share price in the year ahead.

American interest rates have risen again as the Federal Reserve last night lifted rates by a quarter point to 5pc. This is the sixteenth time in succession it has raised interest rates.

The decision was unanimous, but a hint at a pause was given, depending on the economic outlook.

Mervyn King, Governor of the Bank of England also made noises ruling out a fall in UK interest rates this year, though at 4.5pc they are likely to remain below American levels.

King also warned that the inflationary protection from cheap Chinese goods may be coming to an end.

Knowing about FOREX, or the foreign exchange markets is another string to the bow of anyone interested in financial dealings. Here Jimmy Cox explains how the markets work:

FOREX, also known as the FX market or the foreign exchange market, is largest and oldest financial market in the world. It is also the biggest and most liquid market in the world, a market that runs 24/5, circling the globe with financial transactions.

There has been some sort of foreign exchange for as long as people have needed to exchange currencies to do business. Technically, if you are a tourist travelling in a foreign country and you use a traveler`s check to pay for a transaction, you are engaging in foreign exchange. However, traders are not interested in that type of foreign exchange. They are concerned with trading foreign exchange, which occurs when one currency is traded for another on the market purely to make a profit.

In the past, foreign exchange trading was limited to banks, major currency dealers and occasionally to very large speculators. Only these groups were able to take advantage of the currency market`s fantastic liquidity and the strong trending nature of many of the world`s primary currency exchange rates. However, recent technological advancements and the development of various online trading platforms have made it possible for small traders to take advantage of the many benefits of FOREX trading.

Foreign exchange market brokers are now able to break down the larger sized inter-bank units and offer individual traders the opportunity to buy or sell any number of these smaller units. These brokers give any size trader, including individual speculators or smaller companies, the option to trade at the same rates and price movements as the big players who once dominated the market.

Transactions on the FOREX market are performed continuously by dealers at major banks or at FOREX brokerage companies around the world. FOREX is a part of a worldwide market, and it is active 24 hours a day. Dealers at major institutions work 24/5 in three different shifts. Traders may place orders with brokers for overnight execution, without waiting for the opening of any market.

Because of this continuous activity, price movements on the FOREX market are very smooth, without the gaps that occur on the stock market. The daily turnover on the FOREX market is somewhere around $1.2 trillion, so there is never any danger of an investor being unable to enter and exit positions whenever they want to. The fact is that the FOREX market never stops. Even on September 11, 2001, you could still get your hands on two-side quotes on currencies.

These currencies are on a floating exchange rate, and they are always traded in pairs such as Euro/Dollar, or Dollar/Yen. About 85% of all daily transactions involve trading of the major currencies. Four major currency pairs are usually used for investment purposes. They are: Euro against US dollar, US dollar against Japanese yen, British pound against US dollar, and US dollar against Swiss franc. They appear on the market in this form: EUR/USD, USD/JPY, GBP/USD, and USD/CHF. As a note, you should know that no dividends are paid on currencies.

If you feel one of the currencies in the pair you are trading in is undervalued, you can buy more of that currency (by selling the other). If everything goes as you expect, you later sell back the currency you bought (buying the currency you sold in the beginning) for a profit. Trading on FOREX utilizes margin in such a way that an individual trader is able to profit well from trades such as these. The market is one where high profits are accessible to all types of traders, and the market is also big enough to ensure that there will almost always be a good trading opportunity.

When you compare them, you will see that the currency futures market is only one per cent as big as FOREX. In addition, currency trading is not centered on an exchange, unlike the futures and stock markets. Trading moves from major banking centers of the U.S. to Australia and New Zealand, to the Far East, to Europe and finally back to the U.S. it is truly a full circle trading game. As you can see, the foreign exchange market has come a long way. Being successful at it can be intimidating and difficult when you are new to the game. However, once you understand the market, you will be able to realize your potential to be a highly profitable trader.

About the Author

Jimmy Cox writes: Who Else Wants To Learn A Simple, Step-By-Step System For Generating Quick & Easy Profits, Trading Forex?
http://www.forextradingstrategies.org

Note: The Money Blog has no financial links with Jimmy Cox, nor any knowledge of his businesses.