stock market growth

Online Stock Market Trading Company

2007-10-12T21:15:00.000-07:00

How does an average Joe trade these days? Can he afford a broker or a financial advisor? Trading through Online stock trading company is the only way to go when it comes to trading stocks. The advent of online stock trading has brought trading to the regular masses and made online brokerage company a lasting institution of the financial world. There are plenty such online stock brokers available. These brokers are doing aggressive marketing these days to capture new investors.

Stock trading online is undoubtedly a beautiful way of automating the entire trading process without any human intervention. But dont forget, it is very much like any other business. You do need initial capital, actionable plan to work upon, risk appetite to bear losses and not to mention your dedicated time and resources. A businessman does require educational qualification and thorough knowledge of his field of business. Similarly a trader is expected to have educational enhancement ability which can aid him in his research on underlying company stock trading.

There are plenty of online brokerage firms available in market. Four important criteria to be kept in mind while selecting your online broker are as follows-

Brokerage fees / Commissions.
Initial deposit
Newsletter

Brokerage Fees - Broker usually charges some percentage amount of each transaction (be it buy or sell). So more transactions you make, more money you have to pay to the broker. So essentially brokerage is dependent on number of transactions and amount of transaction. Phone orders is also one option available to investors but brokerage fees for phone orders would be higher as it requires human intervention.

Initial Deposit Even best stock trading company would require a minimum initial deposit in order to trade stocks on their site. A minimum initial deposit can start at $500 and go all the way up to $10,000 or more. If an investors account balance go below this deposit amount, penalty fee of $10-20 (or more) will be charged to them every month.

Tools / Newsletter - Investing in stock can be facilitated by brokers if they could provide their investors with streamers which allow an investor to see current prices of stocks. Not only that, online brokers facilitate investors with Trading Newsletter which includes all that you need to trade in stocks. It is very comprehensive and has information on new trading picks, stop loss points, daily targets, short and long term strategies and some other educational tips on stock trading online!

When online stock trading was not in place, each investor used to have a broker who not only did the transaction but served as an advisor also. Now in online trading era, individual investors make most of their decisions on a gut feel without doing any research exercise. But the irony is these investors usually dont have any trade plan into place. They dont approach this financial market in a planned and disciplined manner. Result is they get exposed to high risks!

Online stock broking is one of the best medium available for investors to do stock trading if they use this tool in an efficient manner.

I wrote this article to share my views about online stock market trading companies and stock market trading online

Rental Real Estate

2007-10-12T19:48:00.000-07:00

Understanding Your Rental Property

Adding real estate to your portfolio can be a smart thing to do. Many do this by converting their first home into a rental when they can afford to acquire another principal residence. As I have discussed before, every portfolio should have 20% invested in the alpha rim (see Do What the Hell I Tell You-Guide to Portfolio Building). The alpha rim is the part of a portfolio that is not invested in stock market products. Therefore, it is not subject to market fluctuations and provides some risk protection to a given portfolio. When adding any new investment to our portfolio, we should take time to learn the basics so that we can make informed decisions over time. Adding real estate to a portfolio definitely requires an understanding of the fundamentals.

Lets begin by taking our first town home. It was purchased right after we were married with the intent that we would one day live in a larger home. Because we were so good at saving, we did not need to sell the first home to get into the new place. We have made contributions to retirement plans and have savings on the outside of the retirement plans. The decision has been made to keep this town house and convert it to a rental property in order to begin investing in the alpha rim. It becomes necessary at this point to understand how a rental property works from its beginning, during its operation, and when a decision is made at the ending its existence in the portfolio.

Putting the Property in Service

If the property is being converted from personal use, as it is in this situation, we must take the lower of cost or market value in placing this property into service as a rental. If we purchased the home originally for $200,000 and its fair market value is $300,000 when we are ready to make the conversion, we will use the $200,000 original cost as our basis. If the fair market value was $150,000 at the conversion date, then this would become the basis for the rental property. Placing a property in service in this case means establishing how much will be available for depreciation and how much will be allocated to land. Lets assume that $200,000 is our basis. We will need to allocate this basis to determine what can be depreciated and what must be land (not depreciated). I like to use the property bill assessment as it normally breaks down the property into what is building and what is land. After reviewing the property assessment, it is determined that 80% of the propertys value is building with the remaining 20% representing land value. This means that we will depreciate $160,000 over a 27.5 year life, or $5,818 per year. If we were to purchase this rental property as opposed to converting, our basis would be calculated based on cost plus settlement charges. Remember, each year that we take depreciation, we are reducing our tax basis in the property. This is important to know as we consider disposition of the property.

Operations of the Rental Property

As one might imagine, everything that relates to the property becomes a tax deduction. Mortgage interest, real estate taxes, repairs and maintenance, insurance, property management fees, and the like become ordinary and necessary expenses for the rental property. It should be noted here that the ideal situation is to have the rents charged to tenants equal not only debt service on the mortgage, but some built-in factor for repairs and upkeep. This of course, will be subject to fair market value rents in the neighborhood, but the goal should be to cover these expenses. In the event that the property operates at a loss, this loss will be able to offset other income on a tax return to the extent that adjusted gross income is $100,000 or less and the loss itself is not greater than $25,000. If adjusted gross income is $150,000 or more, the $25,000 loss limitation is reduced to zero which would make suspended any losses realized. Suspended losses are then carried forward to offset passive income in future years or to be recognized upon termination of the property. When starting a rental property, it is important to know the rules of the game as one might not get the tax benefits expected. If your adjusted gross income exceeds $150,000, you will not currently get any tax benefit from losses unless you have passive income from other sources. If you have a series of suspended loss carry-overs, you might consider adding a passive income generator to your portfolio (see my article, The Most Complete Real Estate Article on the Internet).

Disposition of the Rental Property

Now we are considering the disposition of our rental property. At the time, it is believed that we can get $400,000 for our investment. Do we have exposure to income taxes due to the gain of this property? Of course we do, dont be silly. Lets first calculate what our gain will be. We know our selling price, so we need to calculate our adjusted in the property. If the property has been depreciated for 10 years, our accumulated depreciation will be $58,180 ($5,818x10 years). This would bring a depreciable basis of $160,000 down to $101,820. We will add $40,000 to this for un-depreciated land basis bringing the adjusted basis up to $141,820. The gain exposure for this property is then calculated to be $258,180. This gain is section 1231 gain which will likely mean that it is long-term capital gain. However, this gain will have two tiers of tax. Because of the depreciation taken in prior years, the accumulated depreciation of $58,180 will have a 25% tax rate application. The balance of the gain, $200,000, will be taxed at the long-term capital gains rate of $15%. There is the potential to do a 1031 (like-kind) exchange on this property which would allow for the postponement of the gain providing that a property of greater or equal value is acquired. There is also the potential for netting the capital gain of this transaction with capital losses that might be in the portfolio. Does it make sense to sell outright or do a 1031 exchange? It depends on the facts and circumstances of this particular portfolio. If the alpha rim is well above the 20% mark, and with long-term capital gains at just 15%, it might make sense to just recognize the gain and pay the taxes (see my article on netting capital gains and losses). If we need to buy another property to maintain 20% in the alpha rim, the 1031 exchange could be the right solution. See what I mean when I say one must understand the fundamentals of owning real estate? My way is better.

Ron Piner, CPA
Host of Better Business
Saturday Mornings at 10ET
On WBIS AM 1190
http://www.wbis1190.com
http://www.mwibonline.com
taxguy9@hotmail.com

The ABCs of the Stock Market

2007-10-12T18:20:00.000-07:00

A recent study indicates that Americans are saving less these days than they were 10 years ago, except for entrepreneurs and corporate executive and in one particular segment young middle-managers who are about six to 10 years into their careers and only beginning to make headway into the higher echelons of their particular industry.

Are you one of these people? If you are, then chances are that you are currently in the process of planning or expanding your base of investments. You have probably given real estate a good look and determined that, although attractive, it is more ideal for a full-time real estate investor because it demands a lot of effort and time. You also probably have a tidy little sum invested in various banking tools like savings and time deposits as well as common trust bonds and government securities. Thats all well and good and your money is safe right there. But now you want to shoot for the moon, mainly by investing in the kind of company and industry that you may be familiar with. You are eager to try the stock market.

Here are a few basics about the stock market business.

The stock market is mainly a place where you sell or trade a companys stock. These stocks are small shares in the company which it sells to the public in order to raise capital to finance its other ventures. Of course, you already know that capital is the money that a company spends for producing, improving, expanding, distributing and promoting its products and services. If you buy a companys stocks, you are one of its shareholders.

The use of the term stock market also applies in reference to all the stocks that are available for trading (as well as other securities) as in the statement "the stock market performed well today."

You can also trade bonds on the stock market. Bonds are a business IOU that indicate that the bond issuer holds the bond holder a debt. Bonds are traded directly between two parties over the counter.

You may opt to trade commodities on the stock market. The term commodities refers to agricultural products (coffee, sugar, wheat, maize, barley, cocoa, milk products) and other raw materials (pork bellies, oil, metals). For example, if you feel that the price of coffee will increase next month, you buy the coffee commodity now and reap the benefits of the price increase next month when you sell.

Jonathon Hardcastle writes articles on many topics including Investing, Business, and Finance

The Right To Be Rich

2007-10-12T16:54:00.000-07:00

To be rich is our birthright. It is the fool who praises poverty. The whole crux of the issue is the connotation of the words richness and poverty. It is naive to think that richness means a bank balance or glittering gold coins that robbers can steal. The currency value of cash might rise and fall until a time will come when a whole truck full of printed notes will be required to buy a pair of shoes. So richness does not relate to the clink of metal or rustle of paper.

The right to be rich is inherent in us. Life is to be enjoyed. To do so it is necessary to know what riches and enjoyment mean. The concept of poverty must also be understood. Without the contrast of rain and shine we would never savor the monsoons. As the newborn calf has the right to the milk flowing from its mothers teat so too Man, at the moment of birth, inherits and has a right to the riches of this world air, water, fire, earth and space. A country with a balanced plenty of these five is said to be rich. So too are the people of the land.

The right to be rich is entwined with the right to enjoy. The native of the land suckles on the bounty of Nature and enjoys it. Here comes the catch. Each of us has a zone, or a bank account from which we can dip in and enjoy. The deer has the grassland. The tiger has the deer. Man rules over all. But if the man finishes off the tiger and the deer does not allow the grass to replenish, the stock markets of Man will fall. Man will become poor. So the enjoyment of one is linked to another with a strict code of balance.

The Selfish Giant was very rich and bombastic about his rights. But could he enjoy until the children were allowed into his garden? King Midas had an agonizing experience and begged the god to take back his golden touch. The unthinking glutton gorging on food ultimately suffers digestion.

So the secret of enjoyment is carefully nourishing and multiplying the riches we are born with, which is our birthright and then sharing it in one big happy party on planet earth inviting all creation plants, animals and man.

CW Teo is an expert in personal development. His Team Blog: http://1912GettingRichScience.com. Click here to download a rebrandable Free Report: Bob Proctor On Science of Getting Rich.

The Reality of Foreclosure Investing

2007-10-12T15:27:00.000-07:00

The reality of foreclosure investing is very different from what people have been led to believe through late night infomercials and the hundreds of books written on the subject. Always remember these two key facts when dealing in foreclosures.

Every active foreclosure investor works a lot more than people working 9-5 jobs.

Serious foreclosure investors either have large sums of money of their own or have another investor backing them up.

Finding a solid foreclosure property to purchase is not a matter of choosing what you want, it is a matter of finding something that works economically, keeping track of it, researching it, and then beating out all the other investors who are interested in it.

People treating this business seriously invest a lot of time and energy into finding and following leads. So, is it possible to make money in this business?

Absolutely, but you must know your strengths and weaknesses.

One of the major problems most beginning investors have, is knowing the market value of a property they are interested in. Experienced investors will have their properties valued to within a 3% variance all the time. All decisions regarding a property are based on the price it will receive. In other words Know The Market Value. Experienced foreclosure investors will use The Multiple Listing Service, Title Companies and their own experience to arrive at that value.

The second problem is the law. You dont want to run into legal issues because youve structured a deal that is illegal in your state. States do have laws regarding what you can and cannot do with owners who are defaulting on their home loans. So again, do your research.

The third problem is the problem of money. If youve got a good amount to back your purchases, thats great. But even if you dont, it is still possible to do the deals. However, you do need enough to be able to find properties, keep track of them and cover your on going expenses.

The fourth problem is that of knowledge. Federal tax liens, partial interests, leased land, incorrect property information, unpaid property taxes and wrong common descriptions are all things that hurt investors. If you dont know how to check for these things, you should not be investing in foreclosures. If you dont know how to follow up on real property information, you need to spend some time acquiring the knowledge necessary to complete these tasks. Take a course, read, make contacts and talk to people involved in the business. You can easily find them at local Trustee or Sheriffs sales.

Successful Creative Real Estate Financing, as in life, depends not on what happens, but on what you do. The key to your future is what you do with what you have, because life gets better not by chance but by change. It only gets better for you, when you get better.

Many people are impressed with the many creative ways there are to make money in real estate, but dont have any money to get started. It really is simpler than you might think. Notice, that I said simpler, not easier. Ideas dont work unless you do.

Learn one creative financing formula very, very well and keep using it. Do what you do best. Find one formula that you understand, are comfortable with and like to work with. Get good at it. Then, get better. Remember this: perfect practice makes perfect. When you have one success, reinforce it with another. When you miss, analyze and correct your mistake and do better the next time. Keep refining your formula until no one else can implement it as well as you do. Success is no accident: it takes commitment.

Until next time, I wish you much success.

If you think you can win, you can win.

-- William Hazlitt

Rodney Brooks is CEO of Brooks Global Financial Network. Brooks Global Financial Network is located in Bridgeton, New Jersey

Rodney can be reached by email at: brooksglobal@yahoo.com

To get a free comprehensive Creative Real Estate Financing Course, visit http://goaddr.com/33

For more information on the Brooks Global Financial Network including links to personal and business financial information and services, free courses and information on home business, affiliate marketing, credit repair, bankruptcies, divorce, taxes, real estate, home and business telecommunications, VOIP, and much, much more, visit http://brooksglobal.blogspot.com

No Good Thing Lasts Forever - Except, Perhaps, Immediate Annuities

2007-10-12T14:01:00.000-07:00

Most people will agree that nothing lasts forever, but a careful look at various investment options might yield an exception or two. Rising health-care costs, inflation, and consumer prices are just a few of the variables that cause people to struggle to make ends meet these days. Unusually low interest rates only exacerbate the problem, forcing countless retirees to tighten their belts. If this outlook matches what youre currently facing, dont abandon hope; an immediate annuity might be the solution for you.

Recently, we were asked for advice by an 86-year-old former executive assistant who well call Jacqueline. She came to one of our seminars at a local library. Afterward, Jackie approached us and started to talk about her situation. She never married and has no children. Shes been retired for about 20 years, and recently sold her home so she could move into a comfortable assisted-living residence. Jackies primary concern was to have enough income to supplement her Social Security and pension benefits so as to maintain the standard of living to which she had become accustomed factoring in inflation, rising housing costs, personal health-care costs, and taxes. Her will would donate the remainder of her estate to a few charities of her choice.

To meet these goals, Jackie needed more income than her principal would allow under traditional conservative investments. Like many of her contemporaries, she did not have the physical stamina to re-enter the work force. This meant that she could not afford risks associated with the stock market. What she wanted, in her own words, was a guaranteed, preferably tax-favored income stream for the rest of her life, an income that would remain perfectly stable despite fluctuations in the stock market. After a thorough investigation of many options and detailed conversations with Jackies accountant and attorney, we narrowed the possibilities to one investment vehicle: the single-premium immediate annuity.

An annuity is a tax-deferred investment vehicle that gives you a fixed or variable annual income. The amount of that income is based on the initial value of the principal and the type of annuity the owner chooses to invest in. There are many different types of annuities, all of which are designed to meet various needs. Annuities can be fixed, variable, immediate, deferred, medically underwritten, etc. As with any purchase, investors must weigh the benefits that an annuity may offer against the costs, management fees, liquidity, and the price of added benefits. The key to remember is that annuities come in different shapes, colors, and sizes. There are literally hundreds of different ways they can be purchased, but one way needs to be found. When looking to buy, you should always evaluate how the benefits match up with your own needs. It is for this reason that we always recommend that investors have a meeting with their accountant and attorney, along with the person who is selling the annuity, so that nothing gets lost in the translation. At this time, a detailed discussion of all the pluses and drawbacks can take place and an informed decision can be made taking into account factors the investor originally may not have thought about.

Although New York State is a highly regulated market that maintains a close eye on the types of products sold to investors, you should always be fully aware of the ins and outs of the product youre dealing with. Often, certain types of annuities pay a high commission to the people selling them. Because of this, and the complexities discussed earlier, it is not uncommon for the seller to place his or her interests above those of the (typically less savvy) investor. Contrary to popular belief, annuities are not only sold by insurance agents, but by brokers, CPAs, CFPs, tax preparers, local banks, and many other people and institutions as well. As always, its important to know who youre dealing with and dont be afraid to ask questions! Whether you live in NYC, the east coast, west coast, or some place in between, it is best to be prudent and always do the required due diligence. The type of annuity Jackie did her due diligence on was an immediate annuity.

With immediate annuities, the investor or investors (ownership can be single-life or joint-life) puts up an initial principal in exchange for a stream of payments. An insurance company is typically the seller of the annuity and will be the one that sends you the monthly, quarterly, semi-annual, or annual checks. Why would an insurance company be willing to take on this tremendous responsibility of lifetime payouts? Well, it is all based on life-expectancy statistics, which are derived from actuarial tables.

Immediate annuities have various payout options. Some of the more common are lifetime income-only, lifetime period-certain, lifetime income-with-cash (lump sum) refund, lifetime income-with-installment refund, and period-certain. Simply said, you have several choices about how you receive your money. Keep in mind, however, that different types of annuities are sold through different insurance companies, with various credit ratings. Because so many factors play into a decision about which type of annuity to purchase, it is essential to consult a financial professional before making your final decision.

The payout amount of an immediate annuity is determined strictly by age and gender, unless it is a medically underwritten policy, in which case the health status of the annuity owner also plays an important role. (The insurance company will often pay more when your life expectancy is altered because of poor health.) What made this investment appropriate for Jackie was largely the fact that she had no heirs, because when you set up an immediate annuity you forfeit all rights to ownership of your initial investment principal. If you have heirs who are dependent on an inheritance they assume theyll receive, a conversation about the consequences of going through with this kind of an investment should definitely occur. Still, the benefits associated with an immediate annuity are impressive; the insurance company will guarantee your income payments for the remainder of your life, even if you live to be 120.

Jackies Social Security, pensions, and bond income did not generate enough cash to meet her high monthly expenses, which meant that she had no choice but to dip into her principal every year. Had she stayed on that path, Jackies entire principal would have been depleted in about six years. We were tempted to recommended tax-free municipal bonds because of their liquidity, income security, and tax-free status. But current interest rates and Jackies high income needs would again have forced her to invade and ultimately deplete her principal within those same six years. Knowing that the national life-expectancy average of a woman Jackies age is currently around six years, and taking into consideration her superb health and strong genetic background, investing in municipal bonds created a risk we did not feel at all comfortable with.

In Jackies case, we chose a lifetime income-only annuity because the alternatives were too risky, and also because not being able to afford to live where she wants, with the people she cares about, was unacceptable to her. If, like Jackie, you are looking for consistency, guarantees, or just peace of mind that you wont run out of money during the final stage of your life, an immediate annuity could be the solution for you.

Don Conrad is president of Conrad Capital Management, an independent registered investment advisor, in Melville, New York. Can be reached by phone: (631) 439-7878 or email: don@conradcapital.com

Don started his career in the late 1970s at a nationally recognized mutual fund company and was recruited after three years by E.F. Hutton Company to work in the consumer retail division. During his thirteen-year tenure there, he spent two years specializing in and trading the 30-year treasury bond. For the last five years, he served as a senior vice president focusing his efforts in the Consulting Services division, maintaining offices in both Long Island and Manhattan.

In 1993, he was recruited by PaineWebber as a Senior Vice President in the consumer retail division. In addition to managing his clients assets, he was asked by senior management to conduct a nationwide tour to train financial consultants in the Consulting Services division. Don also made a video on the use of advanced technology in the financial services industry. This video was distributed to PaineWebber offices internationally.

After almost five years at PaineWebber, Don decided to pursue his dream by starting Conrad Capital Management in order to offer his clients more choices and flexibility.

Time of Day To Day Trade

2007-10-12T13:31:00.000-07:00

Day traders are a special breed of animals from the investors and swing or position traders. To them, there is a routine throughout the day they notice and take advantage of them. Each segment of the trading hours has special meaning. When it comes trading, these traders know when they are at their best and when they will not make a dime.

Floor traders are the best at knowing the routine of the market. The same human nature shows up in the everyday life. Humans love routine, even the people who are never do the same things twice or abhor normalcy and ordinary, they do have their own routine in another aspect of their life. So even in trading, the stocks and exchanges show their similarities day after day, even in a chaotic world in financial markets, there are subtleties that help these traders profit from the markets.

Here are some of the known facts about markets in general:

1. Volume - Most of the participation are around the opening and the closing hours of the day's session, especially on days where there are economic or company news pending. The more important the economic news, the more the volume, such as Federal Reserve meetings. Volume and volatility increases exponentially.

2. Price - There are certain prices where traders will participate in large numbers such as new highs or new lows. These areas come to be support or resistance, driving more traders into the fray. When these prices are near, expect this action to become routine.

3. Time - Different times of the trading hours bring different types of volatility and traders. Opening and closings see many day traders entering and exiting the markets while half way in the session will see less day traders as lunch time brings quiet time. The day is usually divided into 60 minute increments (hence the popular use of the 60-minute charts by day and swing traders). These time slots mark an important routine of the day. For example, the first 60 minutes show high volume with many emotional buying and selling to due market imbalance caused by news before the market opening. The second 60-minutes usually see the volume decreasing. This time slot also determines the direction of the market for the day ''either continuing the direction set by the first 60 minutes or reversing the direction. The last hour also give clues to the following day. But due to news interrupting overnight momentum, it's more difficult to use it as an indicator.

4. Day of the week - Depending on the day of the week where swing traders may initiate their positions at the beginning of the week and exit at the end of the week. For others, watching the beginning of the week to see the tone of the markets that may play out the rest of the week. In doing so, the day traders may observe and trade according the week. Mondays tends to be low in volume as the weekend slowly fades bringing traders back to their work. Wednesdays tend to find the tone for the rest of the week with a trending day. Fridays tend to reverse on the entire week's direction. Many swing and day traders will usually exit their positions, taking profits made from the week's gains.

5. Month - The beginning and end of the month provides more volatility than in between. Why? Accounting purposes, perhaps, where institutions maneuver their assets. There is tendency for volume to appear greater at the first few days of the month as well as the last few days of the month with more conviction in the direction. September and October lately have become the turning point of the markets, changing directions, especially from downtrend to uptrend. The crashes in recent history have taken place in these two months and tend to be the lows of the year.

6. Season - In general, the summer provides the least liquidity due to people in general going on vacation. During the rest of the year, there healthy volume sustains the trend. During the fall just up until Christmas will see a rise in volume and bullish trends.

These are routines that should not be taken lightly. They do exist and finding them can be a long arduous process. Once found, the trader will have an edge in profiting from the inefficiency of the markets.

Larry Swing
CEO & Head Swing Trader
swing trading with mrswing.com
theboss@mrswing.com
+1 (281) 968-2718
Yahoo & Skype ID: larry_swing

How To Tell When You Guilty of Over Trading

2007-10-12T00:35:00.000-07:00

How To Tell When You Guilty of Over trading.

The essential feature of overtrading is not the number of actual trades but your reasons and motivation behind each trade.

Confused? I shall explain further.

Overtrading becomes more apparent when in a Bull Market as the share trader is frightened of missing out or will rush into every reasonable trading opportunity that shows itself or that they can afford.

These trades involved are no longer based on money management or any risk control. Here are four main questions that you can ask yourself if you think you are overtrading.

1. Is each trade based on sound research and financial analysis?

2. Is each trade part of an overall management plan that is based on matching the trade with the risk involved?

3. Does each trade have clear financial objectives which determine your exit position?

4. Does each trade only use capital allocated from your previous trades?

If the answer is yes then the trade is being made for the right reasons and the right criteria.

If two or more questions are answered in the negative, then this suggests that your are overtrading and your emotions are in charge . Can You Guarantee Success Every Time You Trade?

The answer is a resounding NO! But you can maximize your chances of success.

Firstly have a look in the mirror. It will reflect your worst trading enemy, ourselves. But most of us will blame other circumstances for our failure in the market. When in reality it is our in ability to take losses over trading.

What Steps Can We Take to Complete a Successful Trade?

1. Identify trading opportunities.

How do you do this? Usually it is done by three ways. You have the option of using a database scan using a software program or by using eyeball verification of bar charts and using indication verification using the Macd, Rsi or your own favorite indicators.

2. Analysis of opportunities.

A. Check for bias.

B. Assess stop loss conditions.

C. Assess profit targets.

D. Rank by time / risk.

3. Trade Management of our Portfolios.

A. Watch the depth of the market on your entry. B. Place and execute the order. C. Enter details in order log. Print out chart with summary trading plan.

D. With your open positions (trades) each day you verify the original trading conditions arc intact.

E. Enter details into trading record and file contract notes.

Christopher Strudwick is a keen amateur investor on the Australian Stock Market. Visit his weblog for more free articles and useful information at http://www.asxnewbie.com

High Flying Stock: L International Computers, Inc. The Next DELL?

2007-10-11T22:46:00.000-07:00

L International Computers, Inc. is a publicly traded company on the pink sheets under stock symbol LITL. According to a recent press release, the company designs, manufactures, markets and distributes high-performance, opulent PC/Windows© laptop, desktop, workstation and server computers.

Further, the company states it also produces the largest and most spectacular personal & professional visual displays as well as ultra-high performance software, peripherals, and personal electronics technologies.

They claim to be the "absolute and no-contest highest performance/upper-class hardware solutions

provider, at any given price point". Could they could be the next Dell?

On August 10th, 2006 the stock of L International Computers, Inc. closed at $0.29 with no volume. On August 31st, 2006 the stock traded as high as $1.85 and closed at $1.40 on more than 10 million shares.

Why all the investor excitement?

a) A press release issued on September 1, 2006 announces its next-generation PuRam-Go™/PuRaid™ Ultra-Portable High-Speed Solid State Drive Technology.

b) A press release issued on August 30, 2006 announces the Metropolis as the World's First 19 Laptop Computer Featuring Nvidia's Quad-SLI Technology; High-End Graphics, Gaming and Professional Visual Computing to Be Freed from the Desktop Box.

c) A press release issued on August 23, 2006 announced that L International Signs $45m European Distribution Agreement; Breakthrough Deal Solidifies Corporate Global Marketing and Sales Strategies.

Great press releases, but is there any substance? Perhaps investors should be focused on the following items:

a) According to various trade journals and articles, the company originally launched its technologies in 2003. We have been unable to find any financial statements indicating their sales, profits or losses since that time. The company states it will release financial statements sometime during the next few months. As a pink sheet company, they are under no obligation to provide investors with updated or accurate information.

b) In an article published on October 14, 2004, the company was quoted as saying: "We are no longer in a position, from a financial standpoint, to continue doing business and are regrettably forced to suspend our operations and liquidate our assets in support of our financial responsibilities."

c) In a call made to the company earlier today, the company acknowledged that it had shut marketing down about eight months ago due to technology upgrades and plans to re-open in about three to four months.

d) Who is Microscan International? They allegedly placed a $45 million order to buy product from L International. However, a quick google.com search yields absolutely nothing about them, not even a website.

e) While the company states that it manufactures its own technologies with employees working from its corporate headquarters, it seems that the address of record is in fact a mail box at The UPS Store in Santa Barbara, California.

f) The stock of L International Computers, Inc is traded on the Pink Sheets and has been actively promoted via stock spam. Interestingly, a message posted by Pink Sheets LLC on PinkSheets.com indicates that they have removed stock quotes from their website until the company makes current information available to the investing community. Furthermore, they suggest that investors use care and due diligence in their investment decisions as companies that engage in promotional activities without supplying adequate current information are often the subject of fraudulent activity.

The company reports there are approximately 100 million shares outstanding. Is this company worth $150 million? Investors beware.

Joel Arberman is the Editor of StockPublication.com We publish a free investment research and analysis newsletter. Learn more at http://www.StockPublication.com

Foreign Currency Trading - How To Make Money With Forex Trading

2007-10-11T21:23:00.000-07:00

These days the word Forex is being thrown around quite loosely. In fact you are likely to come across it quite often online with a common topic on how to make money with Forex trading. FOREX stands for FOReign Exchange market and it refers to the international currency market where currencies are purchased and sold.

Forex is one of the most promising and rewarding investments around and learning how to make money with Forex trading is easy. Of course there is risk and because you can trade marginally it is how to make money with Forex trading with the potential of making huge profits. One benefit is the inability of investors to influence the market for their own gain. As a short term investor you will need some patience and diligence. Technical analysis and strategies should be part of your investment plan.

When you learn how to make money with Forex trading in foreign currency you can trade 24 hours a day in just about every part of the world because you will find a dealer ready to quote on a currency. After you decide what currency you want to invest in you buy online either through a dealer or through your own Forex trading account and thats how to make money with Forex trading.

Marginal trading is used for trading with borrowed capital which is common practice when learning how to make money with Forex trading. Thats one of the reasons for its appeal. You can invest without having the real money to back it. That means you can make much bigger investments quicker and cheaper.

Make sure that you have some investment strategies under your belt and by then youll know how to make money with Forex trading. You should understand both fundamental analysis and technical analysis. The investor doesnt try to outsmart the market instead they learn how to make money with Forex trading.

Fundamental analysis analyzes the country where the currency is from, the economy, political stability, and other related issues. These are all contributing factors that are used to analyze the currency and fluctuations that might occur.

Now that you have the basics on how to make money with Forex trading youre ready to take the next step. If you still arent comfortable enough to invest there are plenty of online courses to help improve your skills. What are you waiting for now is the time to start making your wealth.

Joel Teo is the owner/webmaster of http://www.GlobalProsperity.info/ the free financial article directory. When you submit articles for free, your articles may be picked up by ezine publishers who might reprint your articles and give you links and send traffic to your website.

Great Reasons To Invest In Costa Del Sol

2007-10-11T20:09:00.001-07:00

There are a few things in life that will make your heart truly happy. One of those things is to invest in Costa Del Sol. Boasting of 320 days of pure sunshine; it is easy to see why you should invest in Costa Del Sol. It is not only a great place to visit but an ideal location to buy some real estate, either for investment or for residence.

Great return on investment: It is a good decision to invest in Costa Del Sol. It is reported that most investors secure a 40% hike in value. Those who invested in property back in 2001 reaped a tremendous return on their investment. Several years have gone by since then but the value of property in only on the increase. In comparison you will not find a better place to live than picturesque Costa Del Sol.

Great infrastructure: Earlier, many Europeans did not want to invest in Costa Del Sol due to its poor infrastructure. However, things have changed for the better. The location is easily accessible by road and air. Extensive motorways and an international airport add to the attraction.

Great facilities: To invest in Costa Del Sol is not a risky venture. You will find very good schools and colleges. The public hospitals and clinics are efficiently run. The quality of medical care is above average and you will have no difficulty in finding quality medical services.

Great economy and employment: The opportunities are endless so you can safely go ahead and invest in Costa Del Sol. The economy has been flourishing and you will find ample avenues to find good employment. The markets are filled with foreign imports so you can be assured of living a high standard of life.

Great entertainment: If you are planning to invest in Costa Del Sol, you will be glad to know that this location has several hot spots where you can enjoy your time. If you are a golf enthusiast you will enjoy the forty golf courses. For those who love to shop there are several malls that can keep you busy. If sport is to your liking then there are several activities that you can indulge which include boating and gaming. The leisure industry in Costa Del Sol is one of the finest anywhere. Experiences include yachting, sailing, runs along the beach and of course, a beautiful sunset. It also boasts of some of the finest nightlife on the planet. So do not hesitate to invest in Costa Del Sol.

Great retirement destination: A lot of people invest in Costa Del Sol not only because it is a wise investment decision but because it is a great place to retire. Blue skies and sunshine are property rights that everyone in Costa Del Sol gets free.

Great options: From townhouses and plots to apartments and villas, you have many options to choose from. To invest in Costa Del Sol, you just need to decide which is more suitable and lucrative for you. You can even invest in the second hand market. Be sure to get some expert advice before you take a final investment decision.

Steve Magill is the right source for more information on the Spanish mortgage market. He is a partner in http://www.buyspain.co.uk and a Fellow in the British Association of Entrepreneurs (FBAE). He holds international renown for having hands-on experience in this field.

Learn Forex With Forex Training Videos

2007-10-11T19:59:00.000-07:00

I came across a brand new forex video course, this one is not like many others since it includes videos, in addition to ebooks. Actually this course includes video tutorials, ebooks, softwares, mentoring from a professional trader, free signals and more. Doesn't that sound good ? I am going to tell you what you will get when you purchase the package.

You will get access to a members area to download the full package. Concerning the forex video courses, there are 28 online videos. You can see a sample on the website. It shows a trade strategy that brings 973 pips in about a week. Of course you don't make this kind of profit every week but this is easy to see how powerful is the strategy.

There are 5 full proven and profitable strategies in this package. Not just one.

You don't only get the video courses. There are much more informations about the strategies and the forex market in downloadable ebooks. You will find tools to help you analyze the market. You will learn the basics, the fundamental analysis, the technical analysis, the trading psychology and the most advanced strategies to pull in big profits in your account.

I have always been convinced that there are traders that know more than others. Of course their day job is forex trading, they do it all day. But there are also people that simply know good systems and make profit every day just following a plan. Their strategies are kept for themselves, the author decided to reveal some of them. And he does it well, and more than revealing his techniques, he and his professional team will mentor you, for free.

Having a mentor for free is the real deal of this package. Imagine all your questions being answered, you will never get stuck and always have a follow up after your purchase.

The creator also offers an additional members with more content. When you will have. New informations, new charts, new strategies, new tools. The package is regularly updated and updates are free ! You are even added to a VIP list and be able to see live examples of trades.

But my favorite bonus is a "one free month of Forex signals". If you already know how to execute a trade this is simply amazing. You know, signals tell you exact entry and exit point of a trade, for a specific pair. You know what pair to trade, when to enter a trade and where you take your profit. Just follow the signals.

This course is really new and I feel not so many people know about it. Anyway this is a perfect package for beginners there is so much information that you can't really go wrong. Plus, the free mentoring, and the free month of forex signals are worth enough the price ($97).

Learn Forex at ForexBo.com and find more about the Forex training videos.

Why Should I Invest In Gold?

2007-10-11T18:43:00.001-07:00

Of all the items man has used as currency, gold has far been the most prominent. It doesn't matter if it is the most valuable, or the rarest. What does matter is that man has chosen this commodity to be a standard as a world yardstick for wealth. As a matter of fact, gold is one of the few metals that is so cherished by so many.

Today it's easy to find the latest price of gold, from the Internet, the financial section in the morning paper, market news on TV, and even as a text message on your cell phone. But it wasn't always like that. For decades the price of an ounce of gold was quite steady - so investors didn't see the value in following the price changes.

But recently, the price gold has been changing, and a lot of interest has kindled for the precious metal. What once was under a hundred dollars in the 1940's is now over 600 dollars. This has brought investors around in great numbers.

The price of gold is linked to how strong the US dollar is. Because of the great increase of gold over the last ten years, many investors believe it is a good time to buy and speculate. But remember that gold is a commodity, and doesn't sit and earn interest like a bond in the bank. Your profit will be based on if the selling price is higher than the price you purchased it for, less any brokerage fees.

So when the price of gold goes up, you should be concerned about the value of the US dollar. This is because gold increases as the value of the dollar goes down. Since we are at the 600 dollar per ounce levels, you can be sure the value of the US dollar is fairly low. This is called a lack of confidence.

Should you invest in gold today? We believe it is a pretty safe bet. Given current world conditions, and the time now before the US elections in 2008, gold will be only increasing in value.

Gold Investments is authored by Dave Jackson who bought gold back in 1985. He writes about gold and silver profits and how you can cash in on them.

Forex Trading Myths - Why Buying Low Selling High Will Lose You Money!

2007-10-11T17:17:00.001-07:00

This may seem odd as its an accepted wisdom, but if you try and apply it in your forex trading strategy you will lose money.

If you dont realise why this is - read on and we will explain why.

Of course, the aim of all traders is to buy in at the bottom of trends and sell out at peaks but its impossible to do and the way most forex traders do it means they lose.

The key to understanding why you cant do it, is to realize that you have to predict in advance where prices will go or buy into a low or sell into a high and hope the levels hold.

Fact is you cant predict where forex prices are likely to go and if you rely on hope then you shouldnt be trading forex.

What you have to do is not predict but get confirmation of price momentum changes, above the level of support - BEFORE executing your forex trading signals.

A simple example will show you how to do this.

Many Forex traders watch a support level such as, Fibonacci level, pivot point etc, and as prices come to perceived support; they simply buy into it just above the level.

There logic is, they are in at a low if the level holds of course the important word here is if.

Support lines, Fibonacci levels, pivot points break frequently, so if you try and buy into them just hoping they will hold you will buy the low will see you lose.

A better way to trade:

Is to use price momentum to check that support and resistance will hold - and then trade on confirmation.

Trading on confirmation gets the odds on your side trying to predict will see you lose its as simple as that.

So how do spot changes in price momentum?

Great indicators to use are the stochastic and relative Strength Index (RSI)

You simply watch for prices to move to support and then turn up supported by RSI or stochastic.

You wont buy the bottom you will miss a good bit of the move, but by trading in this way you will get stopped out less and always trade with the odds this means bigger forex profits longer term.

Buy low sell high is an accepted investment and many traders accept it at face value trade and lose.

Over 90% of forex traders lose and buying low selling high without confirmation will see you join them, dont fall into this trap.

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On all aspects of becoming a profitable trader including features, downloads and some critical FREE Trader PDF's and more FREE Forex Education visit our website at http://www.net-planet.org/index.html

Royal Memorabilia - Smart Trading and Fake Dodging

2007-10-11T15:51:00.001-07:00

This is my second article about trading royal memorabilia on eBay and other online auctions. Were going to explore just what items are really tradable, how and where to find your stock and mention some definite pitfalls to avoid.

As you already know, a vast range of products has been produced to commemorate royalty. You could decide to specialise in silver, plates, dolls, stamps, books, coins, jewellery, postcards, mugs, tea towels, glass, tins / boxes for confectionery, photographs, T-shirts, paintings, newspapers, videos, royal trading cards and Im sure you can also think of other categories. The list is extensive.

The more popular items have been produced in great numbers, so theyre often easy to find and moderately priced. This means that you can quickly create a varied assortment of collectibles without having to spend too much. But in the long run, the most desirable and highest appreciating items have tended to be pottery/china, tins/boxes and glassware.

You need to be selective about what you trade. Items decorated with a royal portrait are more likely to attract good buyer interest than those without. If there is also an inscription, giving the name, date, special occasion etc, then this will also improve its saleability.

Remember too that the more substantial and permanent the item, the better chance it has of selling. Generally, items of pottery, china, glass are more sought after then say cloth or paper items such as photographs and autographs.

If you can, try to deal with memorabilia that already has a second chance profit factor. For example, a Wedgwood or Royal Worcester commemorative plate or mug is already valuable purely from a manufacturers viewpoint. The royal connection can simply add that extra icing on the profit cake!

So, where do we source our royal memorabilia?

For a start, have a good look around your own home. You might get a pleasant surprise at just what you can find. Charles and Diana items from 1981 are now beginning to rise in value and most of us bought something to commemorate this royal event. So check your cupboards, attic and garden shed.

Also, ask your friends and relatives if they have any items they want to sell. You could buy them for resale or consider selling them on their behalf through your online auction account. If nothing else, you can gain some valuable selling experience and a feel for this market.

Its also a good idea to have a search around eBay itself and other auction sites for items. You can buy on one site, hopefully at a bargain price, and then relist on another and make a quick profit.

Ive found that British royal items tend to sell better on eBay.com but for slightly less on eBay.co.uk. Using the other national sites tends to produce a poor response with very few bids.

If you have decided to trade in the more expensive, quality items (fine china, food boxes, glass etc) then offline auctions and antique shops can be a good source for stock. Offline auctions would be my preference as you have more chance of a bargain. A good antique dealer tends to know the value of his stock so the opportunity for buying at the right price is more limited.

The saying Knowledge is Power is definitely true in your stock hunting. Its always preferable to specialise, so that when an item appears in an offline auction, you have a realistic idea of what its worth. You can then use your in depth knowledge to buy at the best price and then make a good profit from your online sale.

Of course, dont forget your local junk shops, jumble sales, car boot sales, garage sales and charity shops in your search for stock. Bargains can still be found especially items relating to the present British Queen and the late Princess Diana. I recently bought a biscuit tin with a lid portrait of Prince Philip for just a 1 in a charity shop. It dated from around 1955 and I sold it for a very nice profit. Bargains are still to be found out there.

And a good tip when trading royal collectibles is to choose an area that is interesting and appeals to you. You can very quickly become an expert in your own field and easily spot potential when trawling the junk and second hand shops. If you buy interesting items in good condition then a profitable sale is almost guaranteed.

Are there items you should definitely watch out for?

Memorabilia associated with King George III and the early reign of Queen Victoria are valuable if you can find them. Only a few items were produced to commemorate Victorias coronation and the royal births. Not many have survived so prices can be high. A Queen Victoria coronation mug can easily demand 800 plus depending upon condition. So keep your eyes open!

Is there a down side in dealing in royal memorabilia?

Well, if you decide to get involved, you must be aware that there are many fakes and reproductions. This is especially true of the more impermanent items such as letters, cards, photographs and autographs. Items related to Princess Diana are a particular favourite of the unscrupulous forger and she is reported to be the most faked royal ever with large quantities of bogus letters, autographs and signed photographs in existence.

So how can you safeguard against being duped?

Knowledge, research and common sense are your best defence. In the case of autographs, you can easily compare signatures and similar items with each other. Printed signatures are easily spotted, as they are sharp and distinct. Real signatures will often bleed the ink runs slightly from the stroke of the pen. This certainly helps you to check whether that royal signature is genuine or just a facsimile.

As a general rule, take care when you buy and do your homework if you intend to spend a lot of money. And the legal maxim Buyer Beware just about sums up the attitude you should adopt when searching for your royal items.

In my final article about royal memorabilia, I will be discussing the importance of selecting the right category for your listing so that you get the best prices for your items. And Ill also mention several useful websites to help you become more effective as a royal memorabilia trader.

Until then, wishing you every success.

With some 30 years business experience, I now have a passion for eBay and other online auctions using them to satisfy my interest in antiques, books and art.

I also spend a lot of time searching for those genuine online opportunities that I can share with family and friends. Hopefully, we can then all make a little bit of extra money!

Heres one worth serious consideration.

Are you looking for the best way to start your own eBay business but find yourself tied down with family commitments? Are you put off from even making a start by a lack of business experience or no capital to speak of. Well this could be the answer.

It's a proven system, making an average of $10,000 per month (working part time hours) and it was created by a hardworking mother who just refused to quit!!

For her full story please visit: http://ebayprofits.salesplease.com

A Guide to Global FOREX trading

2007-10-11T09:09:00.001-07:00

It's probably hard for some people to believe, but the global FOREX trading market dwarfs that of equities, even though the former gets little attention and the latter is talked about incessantly on the news.

The daily volume of global FOREX trading now exceeds $2 trillion dollars! To be sure, it is the leader in the competitive field of market exchange. Currently, London holds the title for the worlds largest foreign exchange center, accumulating 30% of the currency business.

Global FOREX trading is exciting for many reasons.

First, the markets are almost always open. One can trade 24/7 as currencies fluctuate all day and night. Compare that to equities where one can only effectively trade during market hours when the stock exchanges are open.

Second, the potential leverage in global FOREX trading is astounding.

In stock trading, one either trades with money they have or, at best, can open a margin account and trade with double leverage. A margin account funded with, for example, $25,000 can control $50,000 dollars worth of equity positions.

Now contrast that with global FOREX trading in which one can often obtain leverage of 20 times, 50 times, and even 100 times one's original capital.

For example, it's not uncommon to be able to open an account at an online FOREX brokerage with $5,000 and be able to control position sizes of $200,000 or more. (In FOREX, trading is realized in lots. 1 Lot = 100,000).

Think about that! If you funded an account with a mere $10,000 dollars you could control $500,000 worth of positions (10 lots). If your positions moved favorably giving you only a 5% gain you would be in profit $25,000 dollars. From an only $10,000 dollar initial capital!

Clearly the immense leverage in global FOREX trading is what lures a lot of players into the game. However, leverage can cut both ways and it's possible to get wiped out just as fast as one can make a veritable fortune.

Because such large sums of money can be made playing the FOREX markets, hobbyists and full time currency traders are quickly increasing in numbers.

For both amateur and pro alike, getting quality FOREX analysis of the markets -- both fundamental and techical -- is extremely important.

And for people who have yet to learn how to FOREX trade, taking an online course is paramount to get them off to a proper start.

Indeed, it can make the difference between being successful and getting wiped out, although there is no guarantee that even the best newsletter analysis service or FOREX training course will guarantee you profits or guard you against losses.

That's why global FOREX trading is considered a highly speculative endeavor.

The people who do best at it will be methodical, have strong control over their impulses and emotions, are analytical to a fault, and are all around disciplined individuals.

Ever since the speculator George Soros of the Quantum Hedge Fund realized a profit of over $1 billion dollars in a few short days by shorting the British pound in 1992, market players have become more and more drawn to the exciting game of global FOREX trading.

Make no mistake about it, FOREX trading will continue to grow over the years, especially with the advent of online FOREX brokerages that allow people to trade from the comfort of their own home office all night.

Dan Ho is an investor, trader, and speculator who enjoys studying economics, technical analysis and the markets. He has traded equities, options, and currencies.

To learn more about global FOREX trading and to discover cutting edge educational FOREX training programs and insightful FOREX newsletters, visit: http://www.forex-trading-reference.com

Trading Futures Contracts - How It Works

2007-10-10T13:21:00.000-07:00

Trading is a simple process. Connect to the Internet and log onto your brokers web site. Choose the contract you wish to trade and display its details on your screen.

You are presented with two buttons - Buy and Sell. There are actually different ways to enter Buy/Sell orders, but we keep it simple here.

To bet that the price will go up, press the Buy button to enter a Long trade. The trade is ended by pressing the Sell button.

To bet that the price will go down, press the Sell button first to enter a Short trade. The trade is ended by pressing the Buy button.

As an example, one of the Dow Jones futures contracts trades at $5 per point.

The market is moving up and the trader decides to take a Long trade, pressing the Buy button when the index is at 11,600. 20 minutes later the index is at 11,640. The trader presses the Sell button, making $200 profit - the index went up 40 points at $5 per point.

Suppose that, after 5 minutes, the index has dropped to 11,580. The trader could press the Sell button to close the trade with a $100 loss - the index dropped 20 points losing $5 per point.

In a weak market, the trader might decide to take a Short trade, pressing the Sell button with the index at, say, 11,600. If half an hour later the index has dropped 100 points to 11,500, the trader could press the Buy button to close the trade, and book $500 profit - a 100 point drop at $5 per point.

If the assumption of weakness turns out to be wrong and 20 minutes after the start of the trade the market is up 30 points, the trade might be closed by pressing the Buy button and taking the 30 point loss - $150 - the index gained 30 points losing $5 per point.

In summary, Long trades make money if the price rises and lose money if the price falls. The opposite applies for Short trades.

Before trading, there must be a minimum amount of money deposited in your trading account. This is called the margin. It is not the same for different contracts. For example, the day trading margin for a soybeans contract is currently $675 at my broker, but it is $1,406 for the Dow Jones contract which is perceived as more risky.

If you are losing on a trade you may reach a point where your balance no longer covers the required margin for the position you are in. If this occurs, your broker may either close your position without consulting you, or contact you requesting that you immediately deposit more money to cover the margin. That is a margin call.

The broker charges you a fee every time you press the Buy or Sell button. That is the brokerage fee. My broker charges $2.40.

David Bennett trades US commodity futures from his home on the Gold Coast in Australia. He provides coaching and mentoring services for people wanting to start trading for themselves. Visit http://www.12oclocktrades.com to read more futures trading articles.

Moving Averages - Simple Tips On Using Them For Bigger Consistent Profits

2007-10-10T00:16:00.000-07:00

Moving averages are popular and if used in the right way can help you make profits however most forex traders make 2 critical errors which sees them lose. Lets look at moving averages and how to use them correctly for bigger profits.

Moving averages (regardless of the period used) all have the same aim:

They identify trends over specific periods and they smooth out the day-to-day price fluctuations that are a consequence of short term volatility to help you see the longer term trend.

The equation is:

The closing price is added up and divided by the period the moving average is calculated over.

Popular Periods

200 Day moving averages are popular ( particularly in the stock market) for tracking longer term trends and 20, 40 and 60 Day moving averages are used to spot and identify the intermediate trends on forex charts. Shorter Periods are used and many forex traders will calculate moving averages within a day.

Moving averages are one of the simplest and most popular used by traders interested in technical analysis and are a great trend identification tool.

The problem most traders have is using them correctly and they normally make to fatal errors.

1. They are NOT a leading Indicator

Many forex traders use moving averages to execute forex trading signals without any other confirming indicator and this is a huge mistake. They fail to understand that:

Moving averages are a lagging NOT a leading indicator.

They are like a trend line and simply give the direction of the trend in the time period that they are calculated over.

Many currency traders like to buy dips to a moving average to initiate a trade that the level holds but this simply leads to loses. If you hope in any investment market you will lose your equity quickly. Moving averages should not be used as a leading indicator and you should time entry with a momentum indicator such as the stochastic or Releative strength Index to Confirm the level should hold and get the odds on your Side

Moving averages are great for showing you layers of support and the trend but cannot be used to enter forex signals they need to be combined with other indicators - If you do not do this you will lose.

2. Short time periods indicate nothing

The shortest moving average we would use would be 18 days, however we have seen traders using moving averages within a day and plotting them hourly!

Volatility in short time frames is random and there is no trend - day traders who use moving averages lose, not becuase moving averages area bad indicator but simply it is impossibkle to calcualte a trend in short time periods.

Moving averages are a great tool for indicating support or resistance in the market and can add a valuable extra tool to your trading armoury, if you use them correctly:

To identify the trend, support and resistance levels and then combine them with a momentum indicator to enter your trade and finally use periods of a least a week and nothing shorter! It's an easy and profitable tool if used in the right way.

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Private Annuity Trusts - Supercharge Your Retirement

2007-10-09T22:26:00.000-07:00

You have made some great investments in Real Estate or in a Stock Portfolio. Congratulations! Now you are ready to retire on your gains. But wait. To benefit from your investment appreciation, you're going to have to sell some or all of those assets.

If you sell your investment property, you will need to pay capital gains tax to the Federal Government, State, and you will also pay recaptured depreciation. If you're in California, add another 3 1/3% in withholding. That's a huge chunk of change, and a big blow to your savings.

If you sell your stocks, you'll be giving up at least 15% to capital gains. There is also no guarantee that the long term capital gains rate will remain at 15% forever. It could increase down the road.

How can you start receiving income but not get hit with huge amounts of tax?

For real property, there is a 1031 exchange into a tenant in common property. This works well for investors that don't want to manage property anymore, but still enjoy the benefits of real estate ownership. This is a subject covered in many of my previous articles.

There is another powerful concept. It's called a Private Annuity Trust. These trusts have been around since 1939, but until the last few years have primarily been used for Estate Planning purposes. The Private Annuity Trust also works extremely well for Retirement Planning. It is fairly complex to set up and administrate, so many financial planners, real estate brokers, CPAs and Attorneys still don't know much about them.

The procedure is basically this.

1. A Private Annuity Trust is established. You, the seller become the annuitant.

2. A fair market appraisal is done to determine property value.

3. The seller can negotiate a sale price at the appraised value.

4. The property is transferred to the trust and the trust is now the seller of the property and retains the proceeds.

5. The proceeds are invested by trustees (not the annuitant) and an arrangement is made to pay the annuitant (and perhaps their spouse) in monthly payments for the remainder of their lives. The capital gains tax is spread out over the course of your lifetime. If you pass away before your estimated average calculated life span, the remainder of the assets pass to the beneficiaries. The balance will be passed free of Estate Tax, Gift Tax, Generation skipping tax, and Transfer tax. Any capital gains tax still due will be paid before disbursement.

6. Other properties or stocks can be added to the trust at a later time, and recieve the same benefits.

As an example, let's say you have a million dollar gain on a property. You might very well owe 350K in taxes. With a Private Annuity Trust, all one million goes to work for you, and you can receive montyly income for the rest of your life. The exact amount is determined by your age and the time you choose to begin receiving your payments. You have the option to defer receiving payments until the age of 70 1/2. This allows the assets to grow compounding and tax deferred, and allows for greater income in the future.

The trust removes the assets from your estate, as the trust now owns them and the annuitant relinquishes control over how they are invested.

Setting up a Private Annuity Trust can definitely give a turbo boost to your retirement bottom line. Ask yourself, would you rather give a "gift" to the government in a big lump sum, or would you like to pay in small chunks and have the bulk of your profits working for you and earning compounded interest for years to come?

Paula Straub will guide you through the process of keeping your Capital Gains working for you and generating passive income. To receive your invitation to her free teleconference, visit Save Capital Gains Tax

Understanding the Accelerated Depreciation of Assets

2007-10-09T21:36:00.000-07:00

Depreciation is a way of deducting the purchase cost of a major capital asset, like the land and buildings of your commercial real estate, from your taxes over a fixed period of time, usually five years. This prevents some interesting accounting bobbles that would otherwise happen for example, if you could deduct the entirety of a building's purchase in the year of acquisition, you'd be underreporting the revenue generated by the property on the year of acquisition, and over reporting its income over the remainder of the time you held it. (This would also create an incredible incentive for owners to churn properties over.)

In an ideal world, businesses with major capital assets would do an annual assessment of what percentage of the asset had depreciated in value and deduct that from their taxes. In practice, this is nearly impossible to do in a cost effective manner, particularly for commercial real estate ventures. As a result, there are several ways to calculate depreciation, ranging from the very simple (straight line depreciation) to the complex (Modified Accelerated Cost Recovery System). We'll cover each in turn.

Straight Line Depreciation takes an end term for depreciation (five years is typical), and divides the purchase cost by that number of years. Thus, if you spent $250,000 on a property, you'd be able to deduct $50,000 of that purchase price each year from your taxes for the next five years.

Straight Line Depreciation is a useful (and simple) approximation, but it's not always the optimum case. Accelerated Cost Recovery is a more complex form of depreciation allowed by the IRS, with numerous advantages. Most accelerated depreciation techniques use one of two methods of calculating depreciation; the aim is to front load more of the depreciation into the first year of ownership than into the latter years. This is an excellent tool if the item is exposed to the weather (as buildings are), or has routine rough use (as construction equipment gets). The two methods are Double Declining Balance (DDB) or Sum Of Years Digits (SOYD).

Double Declining Balance applies double the straight line depreciation percentage as a deduction to the remaining balance for each year of ownership. Thus, for a five year depreciation cycle, the first year would have (20*2) * 100% = 40%. Year two would have (20*2) * (100%-40%), or 24 %. Year three would depreciate at (20*2)*(100%-40%-24%) or 14.4%, year four would have 8.64% and year five, the last year of deduction, would have 5.18% deductions.

Sum Of Years Digits is a Ramanujan function, and uses the series of 1+2+3+4+5+(N+1) and so on., where the numbers in the sequence are the number of years allowed in the depreciation schedule. Thus, for a 4 year deduction schedule, it would get 1+2+3+4=10, and for a 5 year structure, 1+2+3+4+5=15, and for 6, 1+2+3+4+5+6=21. This is treated as the denominator (bottom half) of a fraction, where the numerator (top half) is a decrementing amount that starts with the number of years on the depreciation schedule, minus one per year. Thus, the first year of a 5 year schedule has 5/15=33% depreciation, the second year has (5-1)/15 = 26.67% depreciation, the third year has (5-2)/15=20% depreciation, with year four getting 13.33% and the final year getting 6.67%.

Both of these formats for calculating depreciation give you an extensive boost in your initial year's depreciation, and slowly taper off towards lower depreciation values towards the end of the term. However, to use accelerated depreciation of property values, you need to have an engineering study performed on the property that segregates the costs into four categories: Personal property, land improvements, building components and the actual land itself. These four categorizations allow separate depreciation schedules to be tracked. The typical schedules for the categorizations are:

Personal property is depreciated using a five or ten year recovery period, and the double declining balance methodology. Within reasonable bounds, there is a huge benefit to valuing the personal property as high as possible. This category mostly covers furniture, carpeting, fixtures and window treatments.

Land improvements typically have a useful life of fifteen to twenty years. They can use a declining balance method, but use a schedule of 150%, rather than 200% for determining the rate. This, like the first category, gives a benefit for declaring the value as high as possible. Typical examples of this sort of depreciated items include external decks and sidewalks, concrete pilings and docks.

The building itself should be broken down into individual components (roof, cellar, structural members, siding, interior walls, wiring) and depreciated individually by component. As always, maximizing the value on the initial purchase provides the most significant benefits. One side effect of component level itemization here is that any component that becomes worthless can be written off immediately, for a large cash flow influx.

Anything not accounted for in the first three categories is accrued as the value of the land. Land valued in this fashion may have a very low or insignificant value.

When cost segregation is begun, it's best to decide to do it at the time of purchase. Your accounting service will advise that you get an engineering report to annotate the depreciation schedules.

Tony Seruga, Yolanda Seruga and Yolanda Bishop of http://www.maverickrei.com specialize in commercial and investment real estate. As of May, 2006, they and their partners are managing over $600 million dollars worth of new projects

Buying Florida Investment Properties and Where It's Hot

2007-10-09T20:47:00.000-07:00

Relaxing in Style: Florida Investment Properties

In Florida, relaxing in the sun and sand is a way of life. Theres no better way to experience a slice of Florida living than buying your own space. Florida Investment Property provide just thata place that you can return to year after year for the perfect vacation. One of the pleasures of living and vacationing in this peninsula state is that no matter where you go, the warm, inviting beach is nearby. Floridas attractions can also be in your neighborhood when you decide on a Florida Investment Property.

Inland, youll find Florida Investment Properties in every city and vacation destination. From tiny beachfront flats to grand sky-scraping apartment homes, youll find a range of choices and prices to consider. Florida Investment Properties can be just about any property with a Florida style that becomes your home away from home.

A condominium gives you and your family easy access to Floridas unparalleled beaches and attractions. A comfortable space where you can come and go as you please, Florida Investment Properties offer a way for visitors to get a taste of Florida living. Many of the most affordable condos lie near attractions such as Walt Disney World and Universal Studios. Florida Investment Properties allow families to split their time between the excitement of theme parks and the relaxing calm of the waves.

Finding Florida Investment Property

There are plenty of perfect locations for Florida Investment Properties. From the historic sands of St. Augustine to the urban shores of Miami Beach, the beautiful Gulf of Mexico to the roaring surf of the Atlantic in Daytona. At any of these spots you can find a wealth of properties for sale in central Florida. Below are the hot spots for Florida investment property. In these locations, Florida Investment Properties describe a certain way of living and can be right beside the waves or a few miles inland. In Orlando Florida, a condo near the attractions is still a short car ride away from the beach. As the saying goes, what matters is location, location, location.

Properties for sale in Central Florida

Orlandos central location makes it a perfect fit for vacationers who want it all. In the midst of attractions, beaches and the arts, Orlando is more of an area than just a city. Youll find luxury Caribbean inspired condos central to Disney and the renewed Cypress Gardens. These villas offer families a place to settle near exciting theme parks with a relaxing residence to call home.

Families can find a diverse spread of activities to suit teens and toddlers. Apart from the theme parks, Orlando is home to upscale malls and outlets, museums and clubs. Because Orlando is smack in the middle of Florida, it is an easy place to launch a day or weekend trip. Kennedy Space Center is only an hour away, as well as Tampa Florida and Daytona Beach. When you decide to make Orlando your spot for a Florida Investment Property purchase, there are plenty of choices for your home away from home. Properties located close to the theme parks are a great choice because of their centralized location. One property close to Walt Disney World in Davenport Florida, called the Bimini Bay Resort, gives owners a cool, Caribbean style bungalow complete with all the comforts of home.

Florida Investment Properties like the Bimini Bay Resort are unique in the quiet retreat they offer. Unlike hotels near the theme parks that are often crowded with other visitors, your own Florida Investment Property lets your family relax in a comfortable place thats all your own. Davenport is also minutes from Cypress Gardens, a newly constructed adventure park.

Kissimmee, another Central Florida town close to the theme parks is home to family resorts at discount rates. Kids and parents can both find fun in the Kissimmee area. In the middle of outlet malls, amusement parks and exciting dining experiences like Medieval Times, this is one of Central Floridas best vacation deals.

If you decide on a beachside condominium, New Smyrna, Daytona and Cocoa Beach are Orlandos hotspots. These Florida Investment Properties will still keep you close to Orlandos attractions. A home beside the Atlantic Ocean gives families a true taste of the Florida lifestyle.

4. South Florida Investment Property Purchases

Apart from Orlando, there are plenty of beachside towns to house your perfect Florida Investment Property. Below youll find a snapshot of beautiful beachside cities spread throughout the state. Consider what your family needs in a Florida Investment Property ;a place to get away in a quiet corner of the state or a thriving town with plenty of activities for everyone.

One beach destination in Florida is Sarasota. Located on the Gulf of Mexico, Sarasota is an artsy town home to a lot of condominiums owned by retired men and women. These Florida Investment Properies tend to be in high price ranges though they are beautiful. Sarasota is home to quaint shopping areas by the beach as well as cozy marinas and restaurants. Along the Gulf of Mexico is a saint of a beach perfect for a condominium purchase. St. Petersburg, just below Tampa is another quiet place to own a Florida Investment Property. St. Pete is a relaxed beach town dotted with bed and breakfasts, family owned restaurants and ritzy hotels.

If a spicier place is where you want your Florida Investment Property, then cruise on down to Miami. This non-stop town is the place for a jet set young couple ready to party. Just on the tip of the sunshine state, Miami is a Latin hub filled with nightlife and hot beaches.

5. North Florida Investment Property Purchases

On the opposite tip of the state than Miami is Destin beach. Located in what Floridians call the panhandle, Destin is known for snow-white beaches and quiet vacation destinations near the capital of Tallahassee. Here, Florida Investment Properties are close to the border states of Alabama and Georgia; perfect for border hopping if you so choose. Destin also offers places where you can camp right on the Gulf (that is, if you want to leave your comfy condominium for a night).

St. Augustine is also an exciting place to vacation in a Florida Investment Property. For history buffs, this is the place to find the oldest settlements in Florida. From the Spanish fort made of shells to the oldest schoolhouse, St. Augustine surrounds visitors with nostalgia. There are also plenty of opportunities for golf and tennis at the nearby resort town of Ponte Vedra Beach.

Where to Start Shopping for Florida Investment Property

According to Floridas official website for visitors, www.flausa.com, Florida welcomed 74.5 million visitors from around the world in 2003. Once you decide on Florida as the place for your vacation, the daunting task of finding the right condominium purchase lies before you. Flausa.com is a good starting ground for learning more about everything Florida has to offer. The official website for visiting the state, you can contact the Florida tourism bureau directly with questions. From the site you can also access booking calendars and even keep a list of your familys reservations. Here, industry leaders also keep up with the latest vacation specials. There are many sites which provide a detailed list of Florida Investment Properties with lists of virtually every city available. There are other sites to check out for lists of Florida Investment Properties or you can contact your realtor.

Florida Investment Properties are a unique and relaxing way to spend your vacations. Florida Investment Properties are unlike any other homes in their embrace of carefree Florida living. Whether you breathe in the ocean from your balcony or take in the sun on an inland patio, a condominium gives you a chance to make Florida your home for as long as you and your family can. Florida investment properties are one way to participate in the growing tourism and real estate prices.

Lisa Carson
Florida investment Properties expert
www.biminibayresortinvestment.com
Lcarson@biminibayresortinvestment.com

Investment Advice - Why you should start investing in Exchange Traded Funds today

2007-10-09T20:11:00.001-07:00

Exchange Traded Funds (ETFs) are the rage today with many investors flocking to purchase them as opposed to the usual mutual funds. ETFs work in this way. The fund manager decides that he wants to mimick the returns of the NASDAQ so he just buys all the stocks that make up the index and then he sells shares in this fund to investors. This means that you have effectively diversified your risk when compared to another investor who buys and individual share. There are three related reasons why there has been an upsurge in recent years in the number of fund managers setting up these funds.

Low Cost

The first reason would be the relative low cost that works both ways. Since we are not stock picking, the fund manager needs just to set up software to ensure that the fund accurately mimics the stock holdings of the index. Some shares have a greater representation in the index than others by virtue of their large clout and number of shares issued in the market and the fund has to respond to that.

The other way the cost factor kicks in is that many investors today are happy and delighted to find an investment options that is cheap in terms of fees. Since the fund manager does very little monitoring or research for this fund, its really cheap to purchase this monthly and this makes a very good investment for the retail investor.

Defensive Investing

Benjamin Graham the value investing guru advocated the concept of defensive investing in an Exchange Traded Fund in his book The Intelligent Investor. In that book he did back calculations back to the days of the Great Depression and if you invested monthly since then, your average return would be 33% on average and its not bad considering the fact that you did not have to spend time wondering whether the index was up or down or whether your latest stock pick was in the money or not. Just buy a small amount monthly whether the stock market is up or down and use it as a rainy day fund that you can rapidly liquidate for ready cash. The reason why this is called defensive investing is that you do not have to spend time actively picking and most investors whether professional or retail lose money actively picking stocks and ETFs remedy this problem by sure probability and mathematical statistics.

Plurality of options

ETFs today are flooding the market with each of the top fund houses in New York setting up new and more fanciful financial baskets each day. Today there is a great plurality of funds that you can purchase from Tech ETFs to Banking ETFs to Energy ETFs and so you have no shortage of options. If you are optimistic on a certain sector and do not want to waste you energy and time picking the right company actively, ETFs with their current plurality of options is the great key to diversified investing in a particular sector. The time saved scrutinising financial data which is often padded up is not worth the effort some times when there is great intrinsic fraud like Enron and WorldComm.

In conclusion, ETFs today represent a cheap, effective way for you to do defensive investing and with that part of your money relatively secured, you can then spend some of your money doing active stock picking if you are so inclined. Take some effort this week to research into this financial instrument and you may find the returns better then your fund manager in the longer term (when averaged over time by virtue of statistical probability).

Joel Teo writes on various financial topics relating to Ahwatukee Real Estate Investment. Signup for his free online Real Estate Investing newsletter today and gain access to the Six Day Real Estate Investment Profits Course now at www.realestateinvestment101.info/Ahwatukee.html

How to Select a Forex Broker

2007-10-09T19:58:00.000-07:00

Selecting a forex broker is not an easy process. You need to think about what kind of trader your are and select the best forex broker for your style of trading. If you're a day trader and like to execute many trades each day, you may want to find a forex broker that offers low spreads. We pay spreads for exvery trade we execute and the larger the spread, the more commission you will pay to your broker for your trades.

A good forex broker will explain various forex trading systems and strategies to their clients and will assist in their process of putting these strategies to workThe advice from forex brokers will basically. The advice you receive from your broker will basically include technical analysis approaches and research methods followed by experienced traders and brokers that boost the client trader's performance as a forex trader.

In the earlier days of forex trading, the banks and large financial institutions had sole access to the forex market, but now with the advent of the internet technology, things have changed. As more novice traders have taken up forex trading as a home based business, the forex brokers are also realizing the importance of this trend and moving away from the conventional banks. More and more forex brokers hrough internet based businesses and offer their clients a complete suite of services based online. Today's forex brokers recognize that their customers are no longer the rich individuals or large institutions and have tailored their forex trading strategies to conform with the needs of their new, home based, middle class client. They know that the stakes for this type of client are lower and that they wish to maximize their profit but have a different appetite for risk. Also, in terms of certification, it is useful to work with an NFA (National Futures Association) member broking house.

Forex brokers that offer sound advice and have well recognized and verified credentials are, of course, the ones that you should be looking for. Additionally, don't rely blindly on the advice of a forex broker. If it sounds too good to be true, it probably isn't. Learn to trust your own judgment and ask your forex broker lots of questions. A reliable broker won't be bothered by this.

Let your needs guide you and your trading level help you choose the right broker for you. It will typically depend on whether you are a novice or an experienced forex trader. There are many forex trading brokerage firms that are targeted towards the beginner in forex trading. These will generally offer detailed research material and plenty of advice for the newbie trader. Additionally, these types of firms will provide access to forex trading software that will simulate the real trading environment and help to make the forex trader accustomed to using the tools of the trade.

For experienced forex traders, these types of detailed instructions may not actually be required, since these individuals will know their way around the forex market. For them, there are different forex brokerage firms that will offer advice with a greater emphasis on the logic behind the forex trading strategy and will go into greater depth on this matter. To find the best fit, read about various forex brokers, ask friends, ask about the forex broker's package offering and take the trials offered by a few of the online forex trading firms.

Andrew Daigle is the owner, creator and author of many successful websites including a free forex training web site ForexBoost and CashCurve, a resource for making money online.

Why Fall In Love With Your Stocks

2007-10-09T19:08:00.000-07:00

Falling in love is easy, but breaking up is so hard to do. After spending hours pouring over numerous trading opportunities, you've found the perfect stock that meets your criteria and place your trade. During the day, you check out the share price, either smiling when it moves up, or losing that grin when it moves lower.

While we can never admit it, sometimes buying a stock is just like falling in love. We spend a long time looking for that one special someone, we get excited with every call, and sad when we can't be with them. Our heart moves on an emotional roller coaster depending on how things went on our last date. Amazing how emotion controls us.

The problem is, when we fall in love, we overlook some of the things that would normally make us avoid either that person, or, in the case of stock market investing, a company. Before long, we're wondering how to get out without causing too much pain.

Don't fall in love with your stocks. Fall in love with your kids, your spouse and other aspects of your life, but do not fall in love with your stocks. If you want to be a successful investor, you need to remove the emotion from your trading. When you have exited your position, do a happy dance or pout if you must, but don't let any emotions cloud your ability to make decisions.

Your mind will follow your heart. It will tell you that you should hold when you should sell, and tell you to sell when you should be holding. Don't fall in love with your stocks.

Where 90% of traders get it wrong is that they convince themselves that if they are down 40% already, there will be a bounce soon. Naturally, there is a small bounce as the shorts cover their positions. This provides a small pop and now our investor is down only 30%. Now emotion sets in, and convinces our trader that the worst is behind them since the trend is moving higher. Problem is, after the bounce, there is often no buying pressure, and the share price tests recent lows, and heads lower, turning a bad situation into an even worse one.

Be smart. Don't fall in love with your stocks. Execute your plan, and then celebrate (either because you made some money, or because you avoided taking a larger loss).

Looking for an online otc financial newsletter? You'll find some great OTCBB listed profiles of up and coming companies. Learn more today at http://www.1source4stocks.com

Futures for a Bright Future

2007-10-09T19:05:00.001-07:00

Futures contract refers to a type of financial contract or a derivative instrument, wherein two parties deal in a set of financial instruments or commodities scheduled for delivery on a predetermined date in future at a set price. This means, when you buy a futures contract, you are willing to buy something at a set price in future, which the seller has not yet produced.

Future contracts incorporate all the details pertaining to the underlying assets quality and quality. They are standardized so that they can be traded on a futures exchange and necessitate the assets physical delivery; some of the suture contracts, are however, settled in cash. An investor uses futures contracts specifically to speculate and hedge.

Speculation:

When you are speculative, you do not make profits only when the market is buoyant, but also when it is down. Speculation enables you to track the direction in which the stock is moving and determine the movements timing and magnitude. Consequently, you get a fair idea about how much is the stocks price likely to change and within what time frame. Hence, there are a lit of chances of your predictions being right and you make really big bucks.

When you are a large institution and control as large as a hundred shares with one contract, you are bound to book substantial profits with the slightest upward movement in process.

Hedging:

In financial terms, hedge refers to an investment that is made to minimize the potential risks in another investment. Hedging means a strategy that is specifically designed to limit a stocks exposure to any sort of business risk, while allowing the business to continue to reap benefits from the investment.

A hedger may invest in a security that, according to him, is under-priced in relation with its fair value, and then combine it with a short sale of one or more related securities. The hedger, therefore, is concerned only with under-priced security and its appreciation in relation with the market.

Some risks are inherent for specific businesses and are inevitable. For instance, fluctuations in oil prices are inevitable for oil companies, as they prices of crude is benchmarked to international prices. However, other risks are unwanted and must be hedged; for instance, inventory in a shop must be hedged against fire or any other disaster through a fire insurance or other suitable contracts.

The actual delivery rate of goods under the future contracts is very low because investors avail of speculating and hedging benefits even when they do not hold these contracts until their expiry period and delivery of goods. For instance, if the investor is long on such a contract, he can go short on a similar contract to exit. This is similar to selling a stock in the equity markets closing the trade.

Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

Business Owners all across the country are joining "The Community of Small Business Owners to receive and provide strategies, insight, tips, support and more on starting, managing, growing, and selling their businesses. As a member, you will have access to true Millionaire Business Owners who will provide strategies and tips from their real-life experiences.

The Easy Forex Platform

2007-10-09T18:19:00.000-07:00

If you're just looking in to the world of forex trading, the number of available choices can be daunting. The Easy Forex Trading Platform is a good place to start because the volume of free information available there is staggering! What follows is a brief description of some of the features you'll find.

Home Page

When you get there, click on the About tab, which gives you some background about the company behind the site. The minimum trade amount is $25, which is lower than a lot of other services. Of course, if you're just starting, executing a trade is the last thing you should do on your first visit. Do your research and gain a basic understanding of all the risks and rewards before you commit any of your money. Easy Forex doesn't require you to download any software to your computer and makes the set up very easy.

Glossary

If you're not an expert, spend a little time browsing through the Glossary. You'll find the Glossary button at the top of the left side menu. Give it a click and read for a while. Do you, for example, know what "GTC" stands for? It's in the Glossary.

Financial Calendar

Right near the Glossary button there is a financial calendar tool. It lists the upcoming announcements and reports that are issued on a regular basis and that can be used as indicators for the currency exchange market. It's very important to get familiar with this schedule and have a general idea of what the report contents mean.

Forex Outlook

The Forex Outlook button displays a high-level summary of the current state of the major world currencies and is posted daily. It covers the USD, Yen, Euro, and others.

Guided Tour

Take the tour. It's an invaluable learning tool. It walks you through a straightforward example of a trade (USD against the Euro) and shows you all the steps involved in placing the deal. This is just an example, but you can learn a lot from just walking through the steps. The second example takes you through a futures deal - a little more complicated but again, a good learning experience. By the way, at the end of each example, there is an analysis of the possible outcomes, explaining how you would have gained or lost, depending on rate fluctuations.

The Info Center

Be sure to browse through the items in the Info Center part of the menu on the left side of the screen. There's a Market Overview, a Market History section, and a selection that discusses strategies and risks. You can get a mini-course in the Forex markets in that one section alone.

In summary, the Easy Forex site offers a lot - read and learn, and don't trade until you know what you're risking.

Pete Cullen runs Forex-Trading-Basics.com where Forex products are reviewed and relevant articles are posted. For furrther details please visit: http://www.Forex-Trading-Basics.com/easyforex1.html

How To Make Money Trading Forex

2007-10-09T17:59:00.001-07:00

To make money trading forex requires a forex broker to have discipline in following the rules of the game. If you can stay focused and follow a system regardless of the market conditions, then you can make money trading forex.

Forex trading as with other types of financial investing is risky. Since the FX market is volatile, it can be difficult to predict whether the market is going down or up. That is why proper financial practices is important specifically your money management skills.

In my opinion, many new traders often fail to make money trading forex because they are lured by the easy prospects of making millions of dollars and are confused over the hundreds of indicators and forex financial terms. With tons of data and indicators constantly changing, it can be difficult for new traders to grasp the underlying trends and that will lead to poor trading decisions.

In general, the forex market is easier to predict in the long term than in the short term. However, most new traders often lose sight of the big picture and instead concentrate on recent upward and downward trends. They get too caught up with the latest news and focus on the 1 hour and 4 hours charts believing easy money is made by seizing the right opportunity. That in my view is more like gambling and not investing.

Though the forex market is volatile, very rarely do currencies devalue to the point it becomes worthless, therefore if you have deep financial standing, you can easily wait for the currency to rebounce and make a profit. Sometimes, it may take weeks, months and even years. That is why savvy traders often make a large part of your money liquid rather than tied down by anyone currency.

Another mistake some new traders make is believing there are insider secrets or information that can make them rich. Due to the nature of the forex market which is liquid and having such huge transactions (trillions of dollars are transacted each day), it is almost impossible to have any kind of insider information. Plus, with rapidly changing data and indicators updated almost instanteously, there is no chance of even an insider secret.

If you want to make money trading forex, start to take a long term view of forex trading instead of being the opportunistic investor.

Ricky is the owner of learn-forextrading.net where he teaches new traders how to make money trading forex.

Michael Vick - My Game Went To the Dogs - How One Choice Brought An Unexpected Consequence

2007-10-09T17:30:00.000-07:00

Most everywhere you turn when looking at sports these days youll see and hear stories about the prosecution of Michael Vick, the Atlanta Falcons football star quarterback. Expecting to be prepared to advance his career, Vick is now considering his options as to whether to accept the governments plea deal.

As stated in the White Collar Crime Prof Blog, A best-case scenario for Vick that the defense lawyers may be seeking is a "Martha Stewart" double-nickel sentence: five months in prison, five months of home confinement. The government's offer would most likely call for a term of a year-and-a-day, which under the Bureau of Prisons guidelines would allow Vick to receive a 15% good time credit, reducing his sentence by 54 days to a bit over ten months. Any sentence under a year that his attorneys are trying to negotiate would have to come in under ten months for it to be an advantage because there is no good time credit if the sentence is a year or less. http://www.chuckgallagher.com

Not only does it look difficult for Vick, but others who were charged in this Federal dog fighting conspiracy accepted plea agreements and decided to cooperate with the government. So, at this writing, it would seem that Vick is in the proverbial dog house. His actions have had multiple and far reaching consequences.

It seems that Nike and Reebok have given Vick the boot. According to ESPN.com news services, Nike suspended its lucrative contract with Michael Vick on Friday, while Reebok took the unprecedented step of stopping sales of his No. 7 jersey. Likewise, Donruss, a major trading card company pulled Vick from future releases and Upper Deck removed autographed material from its on-line stores. And finally, Rawlings decided to end its relationship with Vick due to the conspiracy charges. All of these changes have huge financial implications.

All of the above consequences came directly as a result of Vick seeming to enjoy a non-football passion dog fighting. Now the question that is worth reviewing is did Vick at any time give any serious consideration to the consequences of his illegal actions? I can imagine that he saw this as a sport (perhaps one that isnt recognized), but to him a testosterone filled pastime. After all what harm can come from fighting pit bulls? Apparently a lot!

Once you look past the surface abuse of animals (a big issue for PETA), the fact its an illegal activity, etc., youll find that Vick rationalized his behavior just like any of us who have been convicted of an illegal action. I am convinced that Martha Stewart, for example, had no clue that her choice to sell stock on a tip from her broker was going to end in a prison sentence. The fact is that many an unsuspecting person may make choices that can have immediate or prolonged consequences in unexpected ways. The consequences of actions are not limited to activities that folks even understand are illegal. Take for example, Genarlow Wilson, a young man who is incarcerated for 10 years for his sexual activity with a minor. His case has received national attention, yet, even after the law that convicted him was changed, he remains in prison. Whether the consequence is fair isnt always relevant. What is a fact is EVERY CHOICE HAS A CONSEQUENCE.

The Choices Foundation, a non-profit organization, is dedicated to teaching young people the relationship between choices and consequences. If we can impress on the mind of our youth the direct correlation between what we choose and the consequences that follow, perhaps we can help them avoid consequences like those Michael Vick are facing, stated Choices Foundation founder Chuck Gallagher.

In a presentation to a youth group not long ago, one young man stated, Well, its not dishonest if you dont get caught. Attitudes like that are what empowers people to make unethical decisions and expect no direct consequence. From my personal experience, I know that one can rationalize a choice all day long and it doesnt color the action or change the consequence. My actions left me incarcerated in Federal prison, an experience I will never forget., stated Gallagher.

As a motivational speaker and ethics keynote speaker, Chuck Gallagher shares his experience in a way that connects with his audience, whether a business executive group or a youth group from a university. http://www.chuckgallagher.com Understanding the effect of Choices and Consequences from one who directly knows can be powerful and an influence for ethical behavior. Perhaps, when the smoke clears, Vick can see the effect clearly from the choices he made. And maybe, just maybe, Vick will use his powerful influence for good, helping those who have looked up to him understand that Every Choice Has A Consequence!

Chuck Gallagher is an international speaker and author who shares his life experience in a way that is meaningful for his audiences. For information on Chucks presentations or how to subscribe to his free ezine...visit http://www.chuckgallagher.com

My Experiences Trading U.S. Bonds and Interest Rate Commodity Futures Contracts and Options

2007-10-09T16:54:00.001-07:00

U.S. Bonds are the king of interest rate futures and a great trading market! Here's some valuable hints and kinks taken from actual trading experiences.

When it comes to trading interest rate futures, there's no market like US Bonds! It's the most liquid and has the best price swings of the interest rates group. US Bond futures contracts are also called the "long bond" or the "30-year bond, James Bond." Trailing behind are the ten year and five year note futures, though these have gained some popularity due to the real estate bubble.

The full-size US Bonds future contract contains $100,000 of bonds (par value) and is controlled with about $1300 of trading account margin money. Each full point move is equal to $1,000. The mini-contract is one-half the full-size contract and is better suited for the beginning trader. Trading is on the Chicago Board of Trade, a large and reputable commodity exchange. The liquidity is excellent and the volatility makes day trading popular for both advanced and novice traders alike. Because of this deep liquidity, "at the market" stop loss orders are usually triggered with a very little slippage.

A broker friend of mine swears by US Bond option strangle strategies. This is a popular technique selling (writing) both a put and call option outside a price range, looking for them to expire worthless. Option writers look to collect the option premiums from the option buyers. The option writers want the market to stay within a range of prices while the option buyers are speculating on a large move outside this range.

A one-day US Bond contract move of three full points is probably the maximum that you will see. ($3,000 move per contract) This is a rare event usually caused by a big surprise from the Fed, the release of a government financial report or an unforeseen event. Since US T-Bond futures become most volatile around scheduled major reports, it's often wise to take your profits beforehand. Many reversals occur around these times.

The old trading adage, "first way, wrong way" means the first price reaction to a report is usually wrong. For example, a long awaited report comes out and the market immediately runs up. A few minutes later the professionals sell heavily into this rally and the market sells off sharply. This spells opportunity for sharp traders and potential losses to others.

US Treasury bond futures are presently traded electronically through the CBOT. This means you can get order fills almost instantaneously. The days of the screaming commodity pits may be limited.

Fed Fund futures trade the reverse of rates. For example, March Fed Funds futures at 95.00 would equate to traders expecting Fed fund rates to be 5% in March. (100%-95% = 5%)

The 30-year bond is one of the best indications of general interest rate direction. The trend of the fed fund rates is also key. Be sure to consider both US Bonds and Fed Funds trends in your general rates forecasts.

Treasury bonds tend to make double tops. Sell against double and triple tops when they present themselves. These long term tops dont happen very often, so keep your eyes open. Triangles are also popular as well as head and shoulders formations. The bond market often trends well for long periods. Major multi-year government policies put these trends in motion. Fortunes can be made by accurately trading the bond market.

Here's how I look for opportunities in the U.S. Bond market: First I generate a TimeLine forecast that shows a strong move up or down. The TimeLine is based on time cycles and other preprogrammed patterns. I then determine if the move is expected to be choppy, trending, and for how long. This helps us focus on possible directional futures/option positions or writing options in a range, or even writing options with the trend.

Next I use automated option software to search for the best of 1600 strategies based on the expected market move. I compare these option to option combinations against futures to options combinations. At some point I will find a compromise between risk, profit and simplicity in one or two strategies. In hindsight there's always a best strategy we could have used. Keep this is mind when narrowing down the choices. When finished, we want to have one or two potential trades to work with. We call the selected few, "high probability, low risk trades."

Remember there is more to planning a trade than just coming up with a forecast. The market may move as predicted but we can still lose by choosing the wrong trading vehicles. Pick the right vehicles and strategies that will allow us to stay in the market without excessive fear, but still carrying calculated risk.

We NEED to take on calculated risk or the market will not pay us for our services. In addition, the vehicle has to move far enough to make a profit without letting the expense of protection eat us up. Excessive protection (risk avoidance) can come in the form of option premiums, too close-in stop loss orders - and overdone, complex spread strategies. Matching a forecast to a strategy is an important skill to succeed in commodity trading.

Good Trading!

There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.

Thomas Cathey - 27-year trading veteran heads the managed futures division of Thomas Capital Management, LLC. View his market forecast TimeLine Trading charts and get his complete 44+ lesson, "Thomas Commodity Trading Course - all free." http://www.thomascapitalmanagement.com/commodity/welcome.htm Main site: http://www.ThomasCapitalManagement.com

How Long Should I Backtest An Online Daytrading System?

2007-10-09T16:40:00.000-07:00

I am frequently asked how long one should backtest a online daytrading system. Though there's no easy answer, I will provide you with some guidelines. There are a few factors that you need to consider when determining the period for backtesting your online daytrading system:

Trade frequency

How many trades per day does your daytrading system generate? It's not important how long you backtest a daytrading system; it's important that you receive enough trades to make statistically valid assumptions*: If your online daytrading system generates three trades per day, i.e. 600 trades per year, then a year of testing gives you enough data to make reliable assumptions*. But if your trading system generates only three trades per month, i.e. 36 trades per year, then you should backtest a couple of years to receive reliable data.

Underlying contract

You must consider the characteristics of the underlying contract. The chart below shows the average daily volume of the e-mini S&P:

It doesn't make sense to backtest a trading system for the e-mini S&P before 1999, because the contract simply didn't exist! In my opinion it doesn't make sense to backtest an e-mini trading system before 2002 because at that time the market was completely different; less liquidity and different market participants. I believe that a reliable testing period for the e-mini S&P are the years 2002 - 2004.

The problem is that many traders over-use the functions provided by the different backtesting software packages and think more is better. Many so-called system developers try to imply that the longer you backtest the better and more robust your system will be. That's not always true.

Conclusion

When backtesting you need to know these things. It's not enough to just run a system on as much data as possible; it's important to know the underlying market conditions. In non-trending markets like the e-mini S&P you need to use trend-fading systems, and in trending markets like commodities you should use trend-following methods.

Markus Heitkoetter is a 19 year veteran of the markets and the CEO of Rockwell Trading. For more free information and tips and trick how to make consistent profits with online daytrading, visit his website http://www.rockwelltrading.com

Be Cautious of Forex Trading Systems

2007-10-09T15:50:00.000-07:00

A forex trading system is a set of rules to follow, calculations to make, decision guidelines and other instructions to create and, supposedly profit from, your forex trading portfolio. They usually feature a process of minimal effort and consistent profits. Be warned, although you CAN find good systems out there for sale, 95 percent of them dont work.

The reason they dont work is not always because the author didnt know his business or was a scam artist. The strategy may very well have worked once. But once many people know a strategy, it ceases to be effective in the forex market.

There are two primary methods of forex trading swing trades and day trades. Most experts will advise you to stay away from day trading. The volatility within a day is mostly random and cant be predicted. Therefore if you spend your money on a day trading system, youll probably end up with an empty account - especially if youre a novice. Even with a swing trading system, there are certain precautions it is wise to take.

For example, always ask for a real time track record. This shows the success or failure of their system as consistently and accurately applied to a portfolio(s) over time. If they, instead, give you a hypothetical track record, ignore it and ask again for the real time track record. The hypothetical track record is a sales gimmick that shows the results that could have been achieved over a certain period. But it was prepared after the fact, knowing what both the buy and sell prices were and picking these entrance and exit points from past known data. This is useless to you. Hindsight is, after all, 20-20. Ill bet you could have this kind of success after the fact, too!

The fact is, many systems cant give you a real time track record, because they dont have one. Ask yourself, do you really want to buy a system that the creator doesnt use himself? If he/she doesnt trade it, why should you? If they do give you one, youd like to see at least two years, it should be audited documentation and the fees should be disclosed or, preferably, for the results to be expressed net of fees.

Look for the biggest peak to valley drop in the real time track record. Be honest with yourself as to whether you would throw in the towel if it had happened to you. Know that many systems can create great gains over time, but their short-term volatility can be discouraging. If you cant tolerate a 50% draw down, you probably arent ready for this kind of risk.

Make sure you understand the forex trading systems logic. If you dont completely understand this, chances are youll lose interest and not work the system as required when you run into a period of losses, which all traders and all systems do. From knowledge of the logic comes confidence. With confidence is discipline.

Check out the systems guarantees and support. If youre having trouble understanding something or need further advice, are they there for you? Try asking the vendor a question about the system? Did he/she get back to you with a reasonable response? What if you try the forex trading system for a short time and decide its not for you? Is there a money back guarantee for the cost of the system? How long does it run? All these things should influence your buying decision.

Pick through the advertising copy and get the facts about any forex trading system. Dont forget the key decider the real time track record. Do your homework and find a real forex trading system that delivers the profits it promises.

Michael Russell
Your Independent guide to Forex Trading

Forex Technical Analysis - 4 Costly Mistakes to Avoid

2007-10-09T15:48:00.001-07:00

If used correctly, forex technical analysis can make you huge trading profits. Look at any forex chart youll see trends that repeat themselves. These trends can be traded for profit. However, its not as easy as it seems which is why 95% of forex traders lose money.

Here are the four most common mistakes that cause the majority of traders to lose money:

1. Forex Charts cant Predict the Future

Many traders believe that technical analysis can predict the future but theyre wrong. Think about it - if technical analysis could predict the future, then wed all know tomorrows price today - and thered be no market. Currency prices move due to a difference of opinion - and of course, if we all had the same opinion, prices wouldnt move!

There are several theories, and currency trading systems, that claim they can predict prices with scientific accuracy when forex trading. These include: Elliot wave theory, and trading systems based on the Fibonacci number sequence. Dont fall for them - they dont work!

2. Using Time Spans that are Too Short

Trading is not scientific its an odds game. The aim of technical analysis is to get the odds on your side - and for this you need to work with valid data. This means having enough data to calculate the odds. Generally, you need at least a few weeks data - preferably several months data.

The biggest mistake you can make, is to fall for the myth of forex day trading. To think that its possible to calculate the odds in a day, or less, is laughable. Yet, more novice forex traders try day trading, than any other method - and they get wiped out. If you think that you can make money executing trading signals in day trading, try to find a day trader whos made money in the market. Real money - not a hypothetical track record good luck on your search, I doubt youll find even one.

If you base your forex trading strategy on day trading, say goodbye to your money!

3. Not Using Confirming Indicators

Many traders, when using technical analysis, like to buy into support, or sell into resistance levels - and hope they hold. Do this and youll lose money. Why? Because youre trying to predict prices, by hoping and guessing - and the market will wipe you out.

If you want to trade the odds, use momentum signals to time entry to your trades - so you trade with price momentum. For example, if you were selling into resistance, youd only do so if price momentum turned down below support. This way youre not hoping youre trading confirmation of price weakness - and the odds.

If you dont use momentum indicators in your forex strategy, you wont have the odds on your side.

4. Using Too Many Indicators

Many forex traders assume that the more indicators a forex trading system has, the better it must be - after all, 10 indicators must be better than 4 wrong!

Its a fact that simple systems work best in currency trading - as there are fewer elements to break. All you really need is technical analysis - to help you determine the price trend, support and resistance - and a few momentum indicators.

You dont get rewarded in forex trading for being clever - you get rewarded for being right with your trading signal - and the best way to do this, is to keep your forex trading system simple.

The above technical analysis mistakes, are commonly made by the majority of forex traders. If you want to enjoy currency-trading success, avoid making these mistakes - and youll be on your way to making bigger FX profits by using technical analysis correctly.

Grab 5 FREE Trader PDF's and get the support you need to trade like a pro with our user-friendly multi-lingual learn forex trading. Get up to date financial news, real-time market prices, tight pip spreads, built-in risk management system, and 24-hour professional support.

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Forex Trading Strategies in Forex Market

2007-10-09T15:00:00.000-07:00

In order to succeed in forex market, one can follow certain strategies like technical analysis, fundamental and economic analysis, combination of these two, different currency pair relationships etc.

Other more advanced techniques are SAR, CCI, Stochastics, MACD, Liner Regression, Bollinger Bands etc.

One should not be scared of the terminology involved. One should follow a strategy which one can understand and follow well.

The two most important strategies of technical and fundamental analysis are also used in stock markets. It may be advisable to use both of them while some people may use either one.

Fundamental analysis covers economic and financial factors like GDP, inflation, employment figures, devaluation, trade statistics, capital movements etc. In technical analysis one takes help of charts, graphs, bars, trends etc.

Whatever the strategy one adopts, one should learn to be a disciplined trader. For this, one should consider the following:
Always use stop losses of some kind
Dont use all of your balances, but keep some separately available for special situations.
Start with small lot sizes
Always have a win / loss limit
Adjust margin according to market conditions
Always get new training and education

Some people also use intra day strategy. With this, one can use multiple time frames for analysis like one minute, 15 minutes. 30 minutes and 60 minutes frames.

One noteworthy element of forex trading is risk management. This consists of stop losses and trailing stops. One needs to learn how to establish stops, fix initial stops and experiment with trading plans at the margin. One has also to learn trailing, breakeven and time stops.

Risk management seems to have become easier with more flexibility in forex trading rules. There is full transparency now in this, better ability to put bids and offers within narrow spreads and less cost per ticket. Some forex trading platforms automatically close all positions if an account declines 60%. This provides some added safety.

FX trading like commodity trading is always conducted on margin. The general ratio is 50:1 and can go up to 100:1 in some cases. This means that against every margin of $1000, one can hold a position of up to $50,000. In currency trading what one can lose at the most is just the amount of margin while as the potential for profits is substantial.

For more information and for a Free Online Forex Trading Report, please follow the following link:

http://www.businesses-jobs-careers.com/Forex/ForexSystems.html

The author has background in business, economics and finance. He is presently researching in finding ways to make money and working on the following website and blogs:

http://www.businesses-jobs-careers.com

http://www.IWant2MakeMoneyOnline.blogspot.com

Stock Brokers

2007-10-09T14:42:00.001-07:00

Oh! So you have heard about online trading. But are you aware of the online experience of online brokerage. Well its not your fault if it sounds only faintly familiar. Technology has ensured that one is well acquaint and familiar with traditions of increasing technology while other may be left totally ignorant over the scene. Let me clear this concept.

Online brokerage is the amount charged from online traders to trade online in return of better assistance to deal in stocks. This brokerage is paid to brokers who act as facilitators of trading in stock exchange. Unlike, traditional way of trading, here a trader may trade directly but the firm or individual he is associated with has to be paid off. Obviously not every investor can afford the heavy duty direct licenses to trade in stocks.

Hence, these brokers are mediators to sort out that trading. They are not only mediators but they act as supporters for traders. They guide day trading concepts to add up to better understanding and get optimized profits. They are experienced and provide their expertise to beginners and experts too.

Now the question arises from where these stock brokers can be contacted from. The answer lies in the laps of technology. Yes, they are available online. Most of todays share brokerage firm posses their websites from where the details regarding their brokerage terms and past records are available.

Being a competitive brokerage, the situation gets biased to the investors. The brokerages offered are as low as $3 for each transaction. Deep discount brokerages serve a decent opportunity to grab to. A low as $1 and so is charged per trade that allows investor to cut off the brokerage expenses. These opportunities tend to increase the trading in stock market at low bites from the investments made.

Apart being acting as catalyst, these firms provide useful tips to trade in stocks. These tips may include the forecasted mood of share markets and the expected fluctuation in the price of a share, hence, catering to the need of clearing the cloudy environment while investments.

For all these benefits, all you have to do is to go to the chosen firms website and get an account opened there. With in few clicks you can open your account to trade as enjoy the services provided by online brokers. Opening an account with a firm provides you to access the stock exchange on your PC as the relative software is uploaded by the members of those firm. For beginners, they generally provide guidelines on how to trade and how to use trade persisting softwares. The benefits of online brokers lies in the fact that the useful tips are received sitting at your laptop trading from home.

However, few cautions have to be considered before opening an account with any firm. The past records and the brokerage rates are the most important to be analyzed. The amount of brokerage has to be paid with each transaction; hence, lower brokerage favors the traders. Moreover, the facilities and mode of transferring payments should also be checked so as to avoid any confusion in relative future.

As such, discount brokerages provided by the firm act as sheer combination of meaningful trade at low rates, however, these are generally offered to people with large turnovers, but no more grievance to this clause as increasing competition is letting the brokerage rates fall every time and letting even small investors enjoy the benefits of low commission rate online brokerages.

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Staying In Stocks - Is It Worth The Risk?

2007-10-09T14:09:00.000-07:00

You have discovered a rich alluvial gold bearing creek that no-one else knows about. By patiently panning in the river bed, you can extract $1,000 worth of gold a day. There is at least a year's supply there. That's $365,000 worth. Not bad money?

Only problem is theres a dam upstream that has a crack in the wall. This dam spills over into the river when it overflows. And it happens to have been built right on an earthquake fault line. The crack appears to be getting worse, but only very slowly. And there have been tremors in the area. Everyone knows about it, but strangely, each tremor only seems to make the locals even more complacent about the inevitable big one that is coming. There is no doubt the dam will collapse and flood the river in minutes if (when) there is a serious earthquake. And everyone knows it is coming. But when? Nobody knows. And the longer it takes the further away it seems.

If you are in the creek bed when the dam breaks, you will have no chance at all. You will be swept to your death. And you will have little or no warning, except the frequent tremors.

How long have you got? It could be one day. It could be a year. No-one knows. All you have is the tremors for signs and the knowledge of the risk.

Will you risk it? Only you can answer that.

Thats exactly what it is like being in the share market at the moment. Because the walls of these markets have not burst yet, despite the evidence of many cracks, complacency reigns supreme. Unsustainable debt threatens to cause collapse all over, but the solution is to just stick more Band Aids over it and keep the blinkers on.

The longer time goes on and the big one still doesnt arrive, the more we are tempted to go back and buy shares (pan for more gold). Yet now there is even less time until the big one.

Should you do it? Only you can decide. But I will try and re-paint the picture for you so that you know the pitfalls as well as the opportunities. You need to make the decision with the front part of your brain called the neo-cortex, which is the conscious, rational, logical thinking part. But when it comes to investment decisions, the neo-cortex is powerfully overridden by the larger limbic system of the brain, which is driven by impulse and emotion, not logic or common sense. You are not even aware of the unconscious urge you have to herd with others, to follow the crowd. Without even realizing it, most times you buy or sell shares or property because thats what everyone else is doing. And although purveyors of investment products, with a gun held to their head by regulators, pay lip service to the mantra past performance is no guarantee of future results, the reality is that that is totally ignored, by both clients and their advisers, so powerful is the limbic system of the brain. People tend to invest in whatever was hot yesterday.

Heres another way of looking at it: If you are in a herd of lemmings rushing to jump over a cliff to your death, should you leave it until the last minute to separate yourself from the herd, or should you get out when you first realize what lies ahead? And should you be tempted to go back?

But your challenge as an investor is nowhere near as difficult as the gold prospectors dilemma. You have a fantastic aid to help you in your decision. Even if you do not understand socioeconomics or Elliott waves, you have one simple rule that anyone can follow. When in doubt, always fall back on this one: Buy when prices are low, sell when prices are high.

http://www.grahamdyer.com The Graham Dyer Newsletter has not missed a month's publication since July 1983. His track record for forecasting is the envy of many, including the 1987 stock market crash, the demise of the Japanese economy and stock and real estate markets in the 1990s, the bull market for bonds from 1989, and the real estate boom this decade. His book is entitled: How to Profit from the Coming Great Depression. If you want to know the pitfalls of investing as well as the opportunities, Graham Dyer's world class work is a must read. For more of Graham's work you can visit http://www.grahamdyer.com

Hollywood Stock Exchange - The First And Biggest Stock Simulator Is Looking Pretty Shabby

2007-10-09T13:36:00.001-07:00

Back in 1993 on a movie tracking newsgroup, a group of guys started a predicting game. They set up a system where they could bid on upcoming films, and then figured out math formulas based on the buzz and the activity of those films in regards to the newsgroup to see if the price would rise or fall. It soon began to expand enough to become a website with an actual program running on it and thus the HSX or Hollywood Stock Exchange was born.

The HSX has gone through a lot of changes since those early beginnings, back in the dot.com boom of 2001, HSX went public and raised a good chunk of capital that it used to finance a TV channel, radio spots, and a whole slew of other market ideas, almost all of which have fallen through now.

Hollywood Stock Exchange is protected by US patents due to the specific formulas and processes they use and they have successfully protected themselves against software pirates who have attempted to nab the code for their own use. The HSX runs on a java platform with active server pages helping to keep the actual process hidden behind a shielded server wall.

When somebody decides to play the Movie market, they open a free account with HSX and are given 2 million Hollywood Dollars or H$. This is the online currency of the market, and is the only way to play the game. Players then buy and sell shares in the market and if they pick the right shares at the right time, their funds increase. I have been playing the HSX for about 18 months and have achieved more than H$43 million so far, which is not too bad.

Some of the biggest gains can come from predicting how much cash a movie will take on it's opening weekend. Because that is applied with a multiplier to the actual stock price, and if it is higher, then the stock price can jump up or down significantly. A big gain I managed to do was put some H$ onto Spiderman 3 before it released to theatres. That stock jumped more than H$43 on the strength of the box office, meaning every share held increased by that amount.

The HSX is a very good example of a prediction market, and the software that runs it is always being adjusted and tweaked by the operators to keep the system running at it's best performance. Thus we come to the big problem with HSX, downtime.

In the 18 months that this site has been monitored, not a week goes by that the site is not down for at least a couple of hours, or sometimes a full day. Quite often it will simply go down and nobody will say anything, then it recovers and people keep playing. Other times, the server will error or the database will fail, or any number of other excuses may occur that will cause the system to stop working, leaving the game's 10,000+ active players out of luck until the game is reset.

Now, even though the site is currently owned by an investment capital firm, I would imagine they would make it a priority to ensure their game, which is known around the world for what it is, would be kept up and stable. But it appears that they don't want to put too much into it. Even though HSX is ranked at 14,731 on Alexa's top 100,000 websites, which means it gets well over 10,000 hits a day if not more. HSX is also associated with the movie speculation site the numbers.com as they share information daily and have cross-links.

I find that quite sad as this type of site has a strong potential and it seems to be being squandered by the owners who seem to have no idea what to do with a concept like this, other than to let it sit without much improvement and let it die a slow death through neglect.

Tim Morrison is the designer of TV Stocks Online, the world's first fully developed television stock market simulator totally functional with live data from Nielson figures and user interactions. Join the growing fantasy market, share your opinions on current TV and see if you can pick the winners and losers out of the current Primetime television lineups.

How To Guarantee A Lifetime Of Long Term Care Benefits For Half The Cost

2007-10-09T13:20:00.000-07:00

Heres how to make sure your long term care is taken care of for the rest of your life, guarantee that you will never run out of money and not disinherit your kids.

A tall order, you say. Yes, but in certain situations all three of these can have a happy ending. Heres a more than typical scenario

Ruth is 88. She has been diagnosed with moderate Alzheimers. Other than that, she is in pretty good health for an 88 year old. Her doctor tells her shell live to 100.

Ruth has two children. Ben is an attorney and lives way across the country. Ruth has been living with Karen, her daughter, and Karens husband and three grandchildren.

Ben has already set up the paperwork and has power of attorney over his moms affairs. He has been handling her finances for the last couple of years from afar and that has worked out fine.

Ruth has become more forgetful recently and that has become more of a concern for Karen. On top of that, Karen just got a promotion that will entail her traveling out of town one or two days a week. She doesnt feel it is right to shift the rising care needs of her mom to her husband while she is gone.

Bottom line: Everyone feels it would be better to move Ruth into a health care facility where she can be effectively cared for. Even Ruth agrees as the last thing she wants to do is be a burden on her family.

So Ben puts a pencil to Ruths financial situation. Heres what he comes up with

Ruth has about $450,000 of assets. Most of it came from the sale of her home which she lived in for 45 years. She has $800 a month coming in from Social Security and $1,200 a month from the telephone company pension where she was an operator for 35 years.

Karen has found the ideal care facility for her mom. It is close to their home and it provides all the care Ruth would ever need for the rest of her life. The problem is that it cost $5,000 a month. So she is short to the tune of $3,000 a month. But the problem goes deeper than that.

Even though Ruth has assets totally $450,000, its possible that she could eventually exhaust these funds. After all, other than Alzheimers, she has no major problems. What if her doctor is right and she does live to 100?

Karen and Ben love their mother and hope she lives to be 120, but these are simply the economic realities. However, there is another problem. Ruths life-long goal has been to be the one that educates her three grandchildren. Its pretty easy for her to see that dipping into her estate at the rate of $36,000 a year is not only flirting with her ability to educate the grandchildren, but it is affecting her other goal of leaving her estate to Karen and Ben.

Ben schedules an appointment with his personal financial advisor and explains the dilemma. The first thing they look at is an immediate annuity. Ruths age would give her a good rate of return. The best quote to provide the $3,000 a month short fall for as long as Ruth lives comes back at $215,000.

The good news is that Ruth could live to be as old as Methuselah and the insurance company would send her a check for three grand a month. And $36,000 a year on a $215,000 investment is a 16.7% return on the money. Second, this preserves the balance of Ruths estate for her wishes. $450,000 less $215,000 is $235,000. That should educate the grandchildren and leave a little left over for Ben and Karen.

The bad news is that is quite a chunk out of the total estate. And if Ruth falls and breaks a hip and dies next year, the insurance company keeps the $215,000. Bens financial advisor tells him there are ways to set up different types of refund arrangements with the insurance company so the whole $215,000 doesnt go down the drain, but these options cost more.

Is there a more efficient way? Maybe, read on

Insurance companies issue what are called medically underwritten annuities. Generally there is no physical exam required, but the insurance company does take a look at the persons medical history. The theory here is that people with health impairments have a life expectancy lower than the average for the entire population of people the same age. So providing the same monthly benefit can be provided with less money.

Thats exactly what happened when Bens financial advisor put in an inquiry on Ruths situation. $3,000 a month for life would take only $130,000.

So the shortage of $3,000 a month was taken care of. Ruth wont ever run out of money. Now there is $320,000 to educate the grand kids and leave the rest to Karen and Ben. Nobody gets disinherited and Karen and Ben heave a sigh of relief knowing they will never have to use their own money to provide for Ruth if she lives as long as they hope.

Robert D. Cavanaugh, CLU is a 36 year financial and estate planning veteran and author of the free newsletter, The Estate Preservation Advisor. To subscribe and get a free video of one little known planning concept, go to http://theestatepreservationadvisor.com/freevideo.htm

How to Not DayTrade

2007-10-09T12:30:00.001-07:00

So you'd like to earn your living DayTrading?

You have all heard the stories of losing DayTraders running down the streets shooting people?

During the heady .com days prior to 2001, (when Bush became president,) there were stocks, 3 or 4 times a week that went up from 30 to 200% a day.

It was possible, if you knew what you were doing, to check before the market opened to see which stocks were running in real time and why.

And, if you then had a fast electronic brokerage system you could dive into the market, buy a bunch and sell them the same day.

About 1% of people doing this consistently made money.

You could see one private individual make a million in one day shorting Corel. And then there was somebody who lost a bunch hanging on too long to the WWWF IPO.

As a matter of fact the bottom line is that if you take inflation into account you'd have been better off putting your money in an old sock since 2001.

So what to do?

Give up on the Stock Market let alone give up on DayTrading?

Don't give up on the Stock Market, if you use the right system which is a simple set of formulas you can still make 30% or more on your money annually.

Using this simple system $11,000 left in the market for 17 years would be worth more than one million dollars today.

But it is not DayTrading and you still would need a strong stomach to sit out these 17 years, because some of those years would give you negative returns.

The bottom line is this; if you want to DayTrade there is only one way to do this today.

And that is with MINDBLOWING News.

MINDBLOWING News along the lines of:

XYZ corporation finds cure for cancer. ABC Inc invents Eternal Life Pill DreamCar Corp invents car that runs on water.

You get the idea.

And then you should use another qualifier:

You should get this news BEFORE most other people get it.

How to do this:

For about $10 a month you can get a subscription to real-time market news.

Get your Real Time Market News at about 6 AM Eastern Standard Time.

Say you find the real time news that a company has invented a car that runs on water.

Check the time the news was first released, making sure that news item was not available yesterday.

Buy the stock now with money that you can afford to burn ALWAYS USING A STOP LOSS.

Most electronic brokerage firms today allow you to buy stocks on NASDAQ only as early as 6 AM EST.

Sell the stock at 9.28 AM EST to all the traders that are waking up.

You could conceivably double your money.

So would you then trade again in this stock after the market opens officially?

No,you should not.

Too many mindgames will be played by market makers during the first day with the stock that produced the mindblowing news.

Remember the statement above:

"There have been very few days since 2001 that any stocks actually went up more than 30% in one day, the oomph has disappeared from both the Nasdaq and the Dow."

Never hold the mind blowing news stock overnight, because people in most cases will dump it on the second day.

One more tip:

Never buy IPO's on the first day.

The most touted IPO(meaning almost all large brokerage houses were praising this IPO to the sky) cost people the most in decreased value on the second day after the IPO came out.

Who were the winners? The brokerage houses.

So, if you have money to burn, have a cast iron stomach and want to watch market news from 6 AM to 9.28 AM EST, DayTrading may be for you.

J Shipper likes DayTrading. Check out these Sites: http://www.lazytrader.com http://www.stock-trading-now.info

Mortgage Market Meltdown

2007-10-09T11:58:00.001-07:00

There is no doubt that what we are experiencing today is unprecedented in real estate and mortgage lending. My name is Darren Meade, and I am a the President of Victory Mortgage.

The purpose of my article is to give you a brief overview of what is taking place within mortgage lending at this time and to offer you insights that you can share with both your sellers and buyers. This information will allow you not only to profit in todays market, but it will help you advise your clients so that they can make educated decisions about buying and selling property.

Have you ever seen on the news, the satellite photo of a hurricane? It looks rather ominous, doesnt it? And, while it certainly seems like its going to be a bad day here, anyone whos been through a hurricane knows that there is a world of difference between a Category 1 bad day and a Category 5 bad day. And, based on this image alone, we cant really say for sure what were dealing with. To adequately prepare for this storm, we need more information, dont we?

What Im going to do for you today is similar to what a pilot of a hurricane-hunter airplane does. Im going to take you right into the eye of this hurricane, so that you can prepare for the kind of storm thats about to come ashore. And, from what I can tell, the storm we are about to be hit with is major, even catastrophic.

The mortgage meltdown of 2007 is one those storms. If you were to try and compare the economic damage of this financial storm to that of the storm in this picture, dont even try. In the past few weeks alone, over $2 trillion was lost in global markets, and I dont think we are anywhere near the worst of it yet. And, to add salt to the wound, we are seeing signs that whats taking place here in the United States is starting to infect other countries as well. Within the global economy, not only are other countries dealing with their own subprime woes, other financial companies in these countries have invested in our mortgage-backed securities as well.

To get an idea of what it is that brought us here, we have to wrap our arms around whats happened. We have to understand the key determining factors. As with anything this major, there wasnt just one thing that brought this situation to light. No, quite the contrary. There were a number of factors that, once aligned, produced the laser-like heat that ignited and culminated in the meltdown we have today.

First of all, we have what is known as Subprime and Alt-A lending. Subprime lending is for people who would like to get a mortgage but havent done a good job of paying their bills. However, as were in the days when tracking ones FICO score has become a hobby for some, lows scores even in conjunction with no late pays can force someone into a subprime mortgage. Other factors mandating the necessity of a subprime loan could be little-to-no down-payment, the inability to validate income with tax returns, or the inability to source funds for a down-payment. Or, it could just be a combination of all of the items mentioned here.

Alt-A lending is a lot like subprime lending, except that the borrower will predominantly have good credit. With Alt-A loans, borrowers are unable or unwilling to provide documentation for income and/or assets. These types of loans are commonly referred to as Stated- or Reduced-documentation type loans, or the infamous No Doc or no-documentation-required loan.

All told, including some A Paper type loans, in which little to no docs were required, these loan types accounted for anywhere between 40%-70% of the mortgage business in the last few years. Folks, these accounted for a lot of the loans that were getting done.

During the time of the real estate boom, rampant appreciation was seen in the housing market. Investors clamoring for ever-higher returns turned to the real estate market and credit markets to take advantage of the boom. This insatiable appetite for new profits led to some pretty wild and loose underwriting guidelines.

To give you an idea of how loose things had become, we were able to provide someone with 100% financing for a $685K purchase this person was recently self-employed, had two foreclosures, and a bankruptcy within two years, all on stated income and stated assets. I dont think you personally would have extended money to this person, but the financial markets were willing to. The person was granted a mortgage based on perfection within the markets, both housing and investment. Today, this borrower would not be granted anything even remotely close. If this person were to slip on a banana peel, do you think he might miss a mortgage payment or lose his house? In short, yes.

I cant tell you whether or not the individual in question is still paying his mortgage on time, but others clearly were not. Consumers started showing problems in the third and fourth quarters of last year, and mortgage delinquencies started to mount. As such, bond investors started pulling back and companies started to fall.

We started to see weakness in the mortgage market last December, when the first of several large companies was set to take a fall. Own-It Mortgage, a subprime company that was set to close over $20 billion in loans in 2007 was hit with a lack of desire by investors to buy the loans they had funded. Unable to fund the loans themselves, Own-It was forced to close their doors, becoming one of the first ten companies to go down the tubes and be featured on the Mortgage Implodes website, which now lists 114 companies that have gone away.

Lets take a brief look into the world of mortgages. Few mortgages are held by the bank or the investor that funds them. Over the past ten to fifteen years, the securities markets have grown markedly as the appetite for higher yield products has grown immeasurably. With this appetite grew a desire for riskier loans that companies package and sell in pools known as mortgage-backed securities. Mortgage-backed securities are sold on the open market and are traded much like any other bond, with the expectation that people with mortgages will pay monthly on their obligations, netting an expected yield for the end investor.

What happens is that a company may package a group of $100 million in loans and sell them on the open market for anywhere from $100-101 million. As investors realized these loans were not performing, they were now willing to pay only $95 million for the same batch of loans. And, in some cases, even less. In addition, as many of these investors used the loans as leverage for other investments, they were used on margin, similar to what you might do in an investment account. As the value of the funds was decreasing, the mortgage companies were also forced to pay into the investment to make their margin calls, forcing additional pressure and cash drains. In a sense, this was the perfect storm for mortgage companies, and they are paying for it with their companys life. This was seen with the recent demise of American Home Mortgage and other companies, as investors decided they didnt want these loans, forcing the companies out.

What happened next is we saw the slowdown in the real estate market, as home prices started to deteriorate in 2006. However, weve never seen a real estate market on a national scale where home prices fell. The investment and underwriting models for which these loans were originated were, in part, based on this.

As home prices started to stagnate, many people who obtained loans based on the premise of continually escalating home prices were caught in a trap, as they were unable to sell and unable to refinance their loan. The homeowner who had been living a lifestyle based on their equity was now maxed out, having spent way beyond their normal means. With no more equity to pull out to consolidate or lower their payments, they were now in trouble.

As a result of these problems, we now have loans in the investment markets where even if a lender were willing to approve them, they wouldnt be able to sell them, effectively turning them into Officer and a Gentleman loans, screaming, I got nowhere else to go!

Whats next for real estate? Lets think about this. With changes to credit tightening, a huge number of people will now be unable to purchase a home. On a percentage basis, were talking about a minimum of 15% of borrowers will be impacted by processing styles and loan availability alone. In a U.S. market where six million people buy homes, you just took 900,000 buyers off the market. It doesnt mean that people wont still need to sell though. Consequently, were seeing increasing inventories and increasing marketing times. I dont think that 12 months of inventory is an unreasonable estimate, as many areas of the country are already experiencing well in excess of 18-24 months. Accompanying this will be more foreclosures. Foreclosure activity in July was double what it was for the same time last year.

Its estimated that in the next 12-18 months, over 2 million people will be faced with their Adjustable Rate Mortgages resetting, resulting in an increase in their minimum payments of anywhere from 30-100%. While this one action will not push people over the top, what it does do is add additional strain to an already over-leveraged consumer. Add in any life events such as injury, loss of job, or increasing payments due to rising interest rates in the consumer arena and you have a recipe for financial disaster.

If I am a seller, I need to be aware of this in light of a slowing housing market. For anyone who has seen rapidly appreciating property values the past few years, it could be difficult to accept the fact that their home is now worth less than before. However, to use a stock market analogy, if you need to sell stock that yesterday warranted $10,000 and today was worth $8,500, would you decide not to sell, even if you were now losing money? Of course not, provided you had the means to absorb the loss. Well, the same beliefs should apply here.

The borrowers who will be caught up in this mess are the ones who were looking to obtain minimal-to-no documentation type loans. This includes those with great, good, and poor credit alike. Some have estimated that these types of loans account for nearly 40%-70% of all the loans originated in 2005-2006. What this means for real estate moving forward is that there will be far fewer buyers who are able to qualify under the terms of their last mortgage. While this wont necessarily take all of these people off the market, obtaining financing going forward will be a much more difficult process for them.

Not everyone is caught up in this mess. For the plain vanilla type of borrower, someone who has a job, savings, and the ability to provide documentation as used to be required these borrowers are still fine. And, with some products, there will still be some stated income opportunities without exorbitant rates. In addition, government loans will pick up a lot of the slack for those individuals with credit issues and minimal down payments.

However, as this situation continues to evolve, things are subject to change. So its important not to get too comfortable.

Let me ask you a question. What would your business look like if you were to close 50% fewer deals over the next 12 months? All of the factors mentioned here so far could very well have that kind of impact on many in our business.

However, it doesnt have to be this way. There are opportunities for everyone in our business. There are opportunities with sellers and with buyers, but we have to act fast, act decisively, and get started now.

For sellers, its important that they get real about their price, and quickly. They cannot afford to wait as pressures will build rapidly, and, when they do, money will be lost. The lowest price that they may be willing to accept today could very well become an unrealistic wish six to twelve months from now. And, if they dont reduce their price, their home may never even get shown. Also, as lenders have now pulled back on second mortgages, sellers may need to consider holding a second in some cases.

Absolutely do not accept an offer from a buyer who has not been pre-approved by a reputable lender under any circumstances. And make sure that the approval is recent. With buyers becoming few and far between, sellers dont want to take their home off the market, only to have the deal blow up six weeks from now.

Finally, get sellers pre-approved. You dont want to have a deal blow up because the seller cant buy later.

What about buyers? For buyers who are seeking 100% financing, where it is available, it will be more expensive either in the form of higher rates or non-available seconds. This doesnt mean that for some programs, as in community homebuyer, etc., that it isnt available. But, for more expensive homes, its going to be difficult in many cases.

With second mortgages cutting back, its time to start thinking about getting PMI again. For many people, its become tax deductible this year.

Before a buyer gets too busy shopping, they need to take a look at their credit. In many cases, improvements to FICO scores can be had through just some minor changes to their profile.

Finally, borrowers should go ahead and start collecting their paperwork. This includes all the traditional information like tax returns, bank statements, and pay stubs. This will always help someone to achieve the best possible rate.

The reason checking credit is essential is that FICO scores are very important. There are some hard, fast lines in the sand when it comes to certain approvals, and the numbers were looking at are 720, 680, and 620. Depending on the loan program, a certain score is needed and, without it, you can forget it. Exceptions are now basically non-existent.

Proper credit repair and maintenance can be the difference between a homeowner and a tire kicker today. When you have control over the buyer, try to get them started on this process 3-6 months in advance. The difference this could make to them and to you is a home priced tens of thousands of dollars higher.

In order to obtain the best-priced loan, let your clients know that they need to get their documentation together. Once we have it in hand, we no longer have to make estimates on what people can afford and qualify for. It will save them money and help them to buy more home.

Now is not the time to go it alone. And its not the time to refer three lenders. Partnerships are critical to your success. Unfortunately, too many people became comfortable with the idea that everyone could get a loan and it wasnt important who a buyer got their loan from. Not today. You need one go to lender who not only has product, but whos also an expert in underwriting and credit analysis, has a great credit repair partner, and is local and accountable. A loan officer from Quicken Loans, or an out-of-the-area lender, doesnt stand to lose much reputation-wise if your deal goes south. I do.

The news isnt all bad though, and there are future possibilities. Instead of focusing on what the media is harping on each day, think about the fact that subprime only accounted for a little over 12% of mortgage production last year. There is still massive opportunity. But Im going to need you to keep your head up and do things a little differently from now on. Whether you work with me or another lender, you need to have them involved from the very beginning with both buyers and sellers. We can present facts together that may be more compelling and also keep the fire under them.

For those who follow the steps Im suggesting here, theres definitely profit for you ahead. However, you need a plan. Part of that plan includes educating your sellers regarding whats taking place today, not just in real estate, but in mortgages as well. Let them know whats on the horizon, and obtain significant reductions. Make sure any buyer, while desirable, is properly scrutinized. By positioning the property appropriately, you can get it off the market and save marketing dollars. And, by all means, make sure your sellers get pre-approved. We dont want them to be the reason why theyre unable to move.

For buyers, many of the same rules apply. First and foremost, dont spend time showing them a home without checking them out first. This will benefit both you and the buyer. Even the best of candidates may have issues we dont know about. Also, keep in mind that investors are more important now than they were during the boom. Cultivate these relationships, they will be important.

What I want you to leave here with is a plan to meet with not only your sellers, but also any buyers you may be working with as well. Have action meetings with them. Inform them of the current crisis, and educate them in order to get them to act. When it comes to sellers, use me to find out what they are really willing to do under a worst case scenario. When you find their dollar amount, market the heck out of it to other agents, letting them know you have someone who is hot to sell, I mean REALLY HOT!

Start to think of buyers as almost the same as listings today. Once you let them know that they may not be able to qualify in the future, they should be more motivated to act today. Get them pre-approved and keep them pre-approved based on current conditions. Once you have them, direct them towards your realistic sellers. Also, be sure to communicate with other listing agents and make them aware that you have a real buyer. Theyll let you know who it is that theyre working with whos hot to sell.

Together, we can work through this and position ourselves to really succeed when this cloud lifts, ensuring great years ahead.

My name is Darren Meade with Victory Mortgage Lenders, and I look forward to working with you.

http://darrenmeade.zaadz.com http://www.victorylenders.net

Darren Meade is a national and local real estate financing expert. He is available for speaking engagements, personal coaching and consultations. He may be reached at (949) 499-1785

Options For An Online Business - A Beginner's Guide

2007-10-09T11:25:00.001-07:00

Theres more than one way to skin a cat, and theres more than one way to make money online. In fact, there are tons of ways! Ill list a few here.

Information or "Content" Sites

Basically this is just what it sounds likea website with lots of good information on a particular topic.

How do you make money?

There are several ways sites like this can make money. They can be monetized with Google AdSense ads. You can recommend affiliate products (basically selling other peoples stuff for a commission) on content sites. You can sell advertising on a busy site.

Product Sales Sites

This is a site that sells products, whether physical or digital. Physical products would include things that need to be shipped like your lavender boo-boo salve that everyone raves about or your soy candles that dont pollute the air.

Digital products would be things like an ebook that shares all your home school or discipline tips or an audio or video that teaches someone how to do something faster, easier or better.

There are thousands of people online every day looking to buy cool stuff. Someones gotta sell it to them!

Even if you dont make the product yourself, you can find companies that do drop shipping. For instance, World Wide Brands is a drop shipping company endorsed by eBay itself.

Service Businesses

A service site would market some valuable service that you provide. For instance, parenting coaching or marriage counseling. With this kind of business youre trading your time for dollars, but you can also learn to earn more money passively by incorporating affiliate products into your business.

Affiliate Marketing

Affiliate marketing is basically selling other peoples products or services for a commission. This kind of business has several advantages:

1) Its inexpensive to start- affiliate programs are free to join.

2) There is no inventory to clutter up your home

3) You can start an affiliate site and earn passive income. Once it is set up and getting steady traffic, you can go into maintenance mode and only update it rarely, yet still receive regular income from it.

Direct Sales

Direct sales can be a great choice for someone who wants a built in product, business plan and support wrapped up in one package. Plus the market research has been done already and there are people interested in the product.

To find a direct sales company, you may want to visit the Direct Sales Association You can search there for companies that market all sorts of products. If youre already building a direct sales business why not take it to the web so the world can be your customer or business prospect? Tons of people search online for business opportunities. There are a lot of advantages to taking your existing direct sales business to the web.

EBay business

You were wondering when I was going to get around to this, werent you? Online auctions have made it possible for thousands of people to earn a full time living on the Internet.

If you make your own product (whether a physical product or a digital one), you would be smart to do eBay at least part time. EBay is the second busiest site on the web. It would be wise of you to take advantage of their traffic to increase exposure to your business! You can do eBay exclusively or combine it with your other business idea to increase your earnings and exposure.

Internet Talk Radio/Podcasting

This is a relatively new concept- Internet talk radio available on demand 24/7 by anyone who has a computer! It sounds complicated but really isnt. Publishing audio on your website is as easy as signing up for an Audio Acrobat account, lifting your phone and dialing a number, and talking! Imagine getting paid to talk about your favorite topics!

As Im writing this, there is Healthy Family Talk Radio, Natural Moms Talk Radio, Homeschooling Talk Radio, Baby Talk Radio, Army Wife Talk Radio, Work at Home Mom Talk Radio and there is plenty of room for more shows.

How do you make money?

You earn money from advertising, as well as from affiliate sales. For instance, lets say you interview a popular author on your show. You put a link to their products on Amazon.com on your site. People listen to the show and want to learn more, so they buy the book and you get a commission. You can also sell advertising space on your shows site, as well as on air ad spots. You can even monetize the site with Google AdSense if you like.

As you can see, there are many ways you can earn income on the Internet. Pick a business model that suits you and get started!

Carrie Lauth is the author of the Natural Moms Business Guide, a complete tutorial for Moms new to Internet business who want to start and market an online business. Get her free ecourse with getting started tips at: http://www. NaturalMomBusinessGuide.com/

Give Me Egg Yellows

2007-10-09T11:08:00.001-07:00

There once lived a man fixated on contrarianism. If a clear sky blessed his town, he pointed to the distant storm clouds over the horizon. When the hometown team played its rival, he cheered diligently for the opponent. And as the stock market posted tremendous gains, he preached of a bear market seduction.

Dont be lured by the recent gains, you will eventually face misfortune and lose everything!

The entire town knew him as the inconsiderate contrarian and avoided him at all costs. It was his place in the community to doubt and his viewpoints proved unpopular to everyone. He disrupted their jubilant ways of life and distracted them from their daily routines. But, it was his explosive display of antagonism one particular morning that encouraged the town people to rethink their complacency.

On the morning in question, he paid a visit to the neighborhood health diner. The diner advertised itself as an alternative to fast food restaurants. As he sat patiently to place his breakfast order, he became disgruntled with the consistency of orders requesting egg whites. It seemed every patron ordered the same. Egg whites egg whites egg whites.

Stop with the egg whites! he told himself.

The contrarian, however, was an educated man and he knew the benefits of egg whites. The yolk contained a lot of unhealthy fat and cholesterol, but not egg whites. The high protein from egg whites provided the benefits of muscle building and weight loss. Remember though, he was the town contrarian and it was his obligation to propose a second opinion. As he contemplated the best way to introduce salmonella to the diners most popular topic of conversation, he had a revelation.

Give me egg yellows! he shouted rebelliously to the waitress. Every fork, spoon, coffee cup, and orange juice glass dropped. Silence breached the busy diner and the contrarian smiled with satisfaction. As the contrarian, he rejected the healthier egg white option.

With one statement of defiance, he disregarded all medical advice to limit egg yolks, he argued popular opinion, and he glorified the alternative. His personal entertainment relied solely on the responses of those he confronted and he laughed at the shocked expressions. Although the diner spoke about the ridiculous incident for years to come, some patrons began to deviate from the diet and ate the entire egg from time to time.

Most people find embracing the contrarian a difficult proposition because it goes against the tide of popular belief. Yet, there are times when one must consider alternatives.

Contrarianism has its benefits and disadvantages in the areas of investing and saving. It takes a delicate mixture of confidence, education, and control to make the theory successful. The contrarian investor often sells when the herd is fervently buying and buys when the herd is frantically selling. The contrarian recognizes the extremes of hysterical selling and overly optimistic buying. And to the contrarian, the genesis of a great investment opportunity occurs during intolerant and erratic market episodes.

Capitulation is an important concept for the contrarian to understand. It refers to sellers theoretically selling all positions as the market abandons its belief of an upward bias. In an effort to reduce further losses, investors sell positions at unreasonable prices and the market reaches oversold extremes. Some signs of a market capitulation include above average volume, negative mornings resulting in positive closures, and dramatic increases in mutual fund cash positions. For the market contrarian, exorbitant pessimism is an ally.

Arguably, the most popular capitulation event occurred in October of 1987, also known as Black Monday. In one day, the Dow Jones Industrial Average lost nearly 23% of its market price and devastated investment accounts worldwide. What a nice way to begin the work week. And although the United States avoided a recession and depression, the plunge resulted in widespread emotional commentaries. Potential reasons for the crash included programmed computer selling, unreasonably bullish investor sentiment, high stock valuations, and the weakened U.S. dollar.

Just as the town contrarian disrupted the diner, in October of 1987 the stock market temporarily swayed investor confidence. Yet, the next day, the Dow Jones Industrial Average rose almost 6% from its prior day close. By the end of 1987, the index posted an increase of about 11.5% from its October 19th lows, and on the one year anniversary, a gain of approximately 23% from the lows. Today, the Dow Jones Industrial Average price is nearly six times Black Mondays closing amount.

To be a contrarian investor does not mean acting foolishly and blindly. It is important to realize every person has unique investment policies. A thorough review of your risk tolerances, time horizons, and financial goals must be factored into your overall plan. Consult your financial advisor for appropriate direction.

Contrarian investing takes into consideration crisis driven market moves. A contrarian watches for overabundant emotions of greed and fear. Yet, acting on the irrational theories of others is not enough. Review current market conditions and the reasons behind such moves. Fundamental analysis of your positions is another key component to a well diversified portfolio. A contrarian must understand the market place in full.

The market has a curious way of introducing doubt into the minds of its investors when many seem content with the current direction. It is important to stay alert of changes and consider alternatives. Setting realistic goals, adapting to changes, and remaining focused will also aid you in developing an appropriate strategy.

And when the market menu reads just one meal, remember you may have other choices to fill your investment plate. Choices that may assist you in understanding market volatility and thus create a healthier outlook for the future. Contrarianism is not a rule to enforce at all times, however it is an approach that deserves some skeptical attention.

As an investor, you should be aware of all your options and make logical choices. Then, one day you may order egg yellows for my portfolio, please.

Wardlaw's belief is that familiar life elements best illustrate practical investment strategies; not typical investment jargon. With that philosophy, the author assists financial planners/advisors, brokerage firms, periodicals, and other investment information syndicates create informative and entertaining articles. For comments and questions, please contact the author at http://www.tools2invest.com or tools2invest@yahoo.com.

SEC Filings & Forms (EDGAR)

2007-10-09T10:18:00.003-07:00

Some of the most important information to the investor can be found on EDGAR, a free web site run by the Securities and Exchange Commission (SEC). Every publicly traded company is required by law to file detailed financial statements to the SEC including annual financial statements (form 10-K), quarterly financial statements (form 10-Q), and other forms dealing with the inside transactions of a companys management.

All of these statements are freely available on EDGAR. A quick tutorial on using EDGAR is available on the home page. Ill go through a quick overview in finding the most recent annual report for Disney. From the EDGAR home page, click on the Search for Company Filings link. From this page you can see there is a lot of information available for company filers. One could go about several ways to find Disneys latest yearly financial statement; Im going to click on Companies & Other Filers. In this entry box we could search by Company name, CIK (ticker symbol), file number, state, or SIC (Standard Industrial Classification). As you can see, a lot of information is available here at the click of a button. You could find all the financial statements filed from companies incorporated in the state of Arkansas by typing AR in the State/Country box. But I digress; lets get back to finding Disneys yearly statement. Ill type Disney in the Company name: box and click Find Companies.

In the results page there are several returns under the name Disney. I can see that there are two listings for Disney Enterprises Inc. I click on the CIK link next to the first one and find that it deals with older filings before 1996. Im interested in the most recent 10-K filing so Ill go back to the results page and click on the CIK link next to the second Disney Enterprises Inc. listing.

Finally, Ive arrived at the results page. Another search form is available to further drill down the results. Im looking for form 10-K, so Ill type that in the box and click Retrieve Filings. Now I have only the results I desire form 10-K from 2006 and years prior. Disneys fiscal year ends 9/30 so theyll be due to file another 10-K within 60 days of that date.

Uncover the insiders tips to successful stock market trading and tutorials on edgar sec filings when you visit http://www.tradingsphere.com, the online resources on stock market reviews and tutorials.

Asset Allocation: Critical to Your Investment Success

2007-10-09T10:18:00.001-07:00

Asset allocation is a critical component of investing success. Both research and academic studies show asset allocation to be single most significant factor in determining your financial goals. Allocation influences both the total long-term return and risk of your investment portfolio. Other factors such as security selection and market timing account for a very small percentage of your investment returns. Unfortunately, the most important decision to achieving financial success is also the least understood.

What is asset allocation? Most people confuse asset allocation with diversification. They believe it has something to do with making multiple investments among groups of similar assets. Ask investors to list the assets in which they would consider investing. Typical answers include "growth stocks", "bonds", "large caps", and sometimes "international stocks." But their diversification is limited to selection within one asset. For example, someone choosing to purchase technology stocks may invest in five or six companies but all within the technology industry. This reduces risk if one of the companies should fail, but is useless when the technology industry (or entire stock market) slumps.

Asset allocation goes beyond diversification to reduce risk across all type of financial assets (cash, stocks, bonds, commodities, real estate, and even venture capital or hedge funds). Investments and risk can be divided further into subcategories of stocks including large-cap, mid-cap, small-cap, value vs. growth, and international vs. domestic. Similarly, bonds can be divided into subcategories of short-term, and long-term, tax-free, high yield, convertible, emerging markets, floating rate, and international vs. domestic. Multiple combinations allow investors to allocate their portfolios into a number of asset classes and categories.

Adding high risk asset classes and investments to a portfolio may seem risky. But combining assets that behave differently, or even opposite to each other, both increases the return and lowers the risk of an entire portfolio. For example, international stocks are considered riskier than domestic stocks. Yet, we often see the prices of U.S. stocks go up on the same day prices of international stocks go down -- and vice versa. We call this negative correlation. Profits from one asset balance the losses from another. Combining international and U.S. stocks actually lowers investment risk by reducing daily price swings of our entire portfolio.

History demonstrates many markets exhibit similar negative price correlation. In a slumping economy, bonds vastly outperform stocks as interest rates drop. In an overheating economy, inflation helps generate stellar returns in the commodities market. But timing such events is unpredictable, and the variability of returns represents risk to any investor. Choosing to purchase only stocks, only bonds, or any single asset class increases the risk of losing money if that market underperforms.

The power of asset allocation comes from reducing risk while increasing returns. Reducing risk by combining multiple asset classes, however, is not a simple process. While each asset has its own unique measure of risk, many assets share similar price behavior (their prices go up and down together in any market). Combining such complimentary investments increase the risk of wild changes in price. Trade-offs between asset risk and expected return must also be considered. High yield assets typically experience high volatility, or large changes in price. These assets must be balanced by investments with lower rates of return to protect against large declines in value.

Successful asset allocation requires finding the proper mix of assets to balance reward with an acceptable level of risk. Proper allocation planning requires asset research and investment analysis. Fortunately, tools are available to assist the independent investor. Popular financial websites offers independent investors help with educational links and software to build portfolio allocations based on a survey of financial questions. For advanced investors, many books have been written to painstakingly explain the theory and practice of asset allocation also called MPT (Modern Portfolio Theory). Casual investors can purchase mutual funds specifically designed to automate asset allocation based on an expected retirement date. Pragmatic investors can explore the many financial planners and advisory services that offer asset allocation portfolios specific to their needs.

Consider your options carefully. Each solution offers its own set of advantages and disadvantages. Pick a style that closely reflects your own. Just how important is asset allocation? Its the single largest determinant of your long-term financial success.

Tim Olson

TheAssetAdvisor.com
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Mr. Olson is the editor of The Asset Advisor, a financial investment service providing proven strategies for no-load mutual fund investors. He brings 26 years of education and experience from Stanford University, Ernst & Young, personal wealth management, and venture capital investing.

Speed Freaks of Britain Unite

2007-10-09T09:28:00.001-07:00

Ever since the car was invented, people have sought to see who is the fastest. From unsanctioned tracks such as public roads through to the use of dry lake beds in California, then disused military runways after the wars, and eventually custom built tracks; drag racing has gradually evolved into the sport it is today. With today's amateurs taking their own customized or stock factory built cars onto the track at 'race what you bring' days, through to the spectacle of professionally driven all-out custom made vehicles, drag racing has ultimately transformed itself into one of the world's most popular motorsports.

It is not difficult to see why. In today's extreme sports world there can be few things more thrilling than the exhibition of all out power that is drag racing. The roar of the engine, the smell of the fumes, the extreme noise terror as the dragster fully opens up to begin its quarter mile blast, and thats just the excitement that can be gained by the spectators as they watch someone else strapped to a jet or rocket engine pass by at speeds well in excess of 200mph.

The current crop of top fuel dragsters can attain terminal speeds of over 330 mph at the end of their quarter mile run, covering the distance in a blistering 4.5 seconds, making them faster than even catapult assisted jet fighters. The fastest of these pure adrenalin machines though are the hydrogen peroxide powered rocket vehicles. One of these extreme bad boys piloted by former stuntwoman, Kitty O'Neil, was recorded in 1977 covering the quarter mile in a mind blowing 3.235 seconds with a terminal speed in excess of 412 mph.

With the first organized drag race recognized as being held in 1949 at the Goleta Air Base north of Santa Barbara, California, and the main growth of the sport seeming to come from the States, it is often seen by many as principally an American sport. However, this thrilling spectacle has now spread around the world, with 325 drag strips currently in operation, including the Santa Pod raceway track in the UK, and now specialist petrol head websites beginning to list drag racing in their upcoming motoring events.

These days it is even possible to get in on the action as well, with special 'race what you bring' days, so that seasoned speed freaks can drive up to the track, and then race head to head against other street car drivers, on a quarter mile of the finest black stuff.

Adam Singleton is an online, freelance journalist and keen amateur photographer from Scotland. His interests include travelling and hiking.

Surviving The Commodity Markets, PART 2 - Trading Guidelines For Different Account Sizes

2007-10-09T09:13:00.001-07:00

Of all the important skills in trading, survival is number one. For unless we make it through the inevitable bad times, we won't be around to capitalize on the good. I've laid out some trading account guidelines that specify the account size required to conduct various commodity futures and option trading activities. Stick within these guidelines and you will have an edge on most of the commodity trading public.

When buying commodity options, I usually think in terms of them expiring worthless. This is the worst-case situation and will keep us honest about the real risk. With a $10,000 account buying a $500 option, this would permit us to make 20 losing trades in a row. The chances of trading this poorly are remote, but its still possible.

Just think of how much better our chances for survival and success are compared to someone risking everything - like the whole $10,000 on two trades. Many traders do just that, believe me. At 5% risk a trade we are trading more within our means and essentially have much deeper pockets to survive than the other guy. Whos going to be around after the commodity market acts badly? And whos going to be gone in a heartbeat?

A trader with a $50,000 commodity trading account has much more flexibility. He can risk 5% ($2500) on each futures or options trade to have the staying power to take 20 losers in a row. A more conservative trader might even risk only $1250 per trade (2.5%) and be able to take 40 losers in a row before being wiped out. Now there is a survivor!

See the point? We are focusing on the worst-case scenario to give us every edge possible for survival. When the big profitable commodity trades come along that go a long way in our favor, we want to be ready and able to take full advantage. Normally, we only want to take high probability trades in the first place. A few good trades that are handled well can make up for the losses and make your whole year profitable! You must be present and liquid when they come along.

The commodity market will not always accommodate our opinion of a low risk, high probability trade. So by splitting the account into many parts we let probability favor us by permitting us to trade longer than the average guy before being wiped out by a long string of losers.

Most commodity traders take on positions that are much too large for their account equity. This is a universal problem with the public. This causes emotional decisions and early exits when the market should have been given more time and space to fluctuate. Some accounts are simply wiped out after a few bad trades. Certainly there are times to get out of a trade that does not work out early in the game. Every commodity trade is different and must be handled as such.

Once we understand these concepts we will find it hard to trade any other way. Ive observed many traders who had tremendous raw trading skills that set them apart from the crowd. These people made serious money for a short period of time. But making money consistently over a long period time is the hard part.

Every one Ive known whos pushed the commodity market too hard has failed in the end. They make money until they start breaking the 5-10% rule. Its easy to say you will follow this rule, but its another thing to stick to it when you are making serious money and want to ramp it up.

The guidelines Im about to lay out will apply to buying commodity options, buying commodity futures on margin and selling commodity options. In my examples, the risk of buying options refers to the options expiring worthless.

The risk of a futures contract is usually where the stop loss order is placed, but not always. It could mean a bigger loss if the stop loss gets triggered by an overnight gap through it. Commodity option writing is similar in risk to commodity futures, since they are sold on the same margin requirements and can go in-the-money lock-step with the futures contract.

Bear in mind these guidelines are for YOUR survival and success. You will be committing yourself to proper money management. If used, your broker will make fewer commissions and at a slower pace as a result. But over time he will have a happier client with better chances of success for a longer-term trading relationship. He should happy to have informed commodity clients who make an effort to keep their emotions and risk in check.

There is nothing wrong with losing money if you have followed your rules and given yourself the best chance possible. The anguish is in losing after you correctly predicted the market direction and took the right position, only to ruin it by over-leveraging yourself.

Taking on a small position that goes a long way is the key. You know its the right size when you dont really care if THIS particular commodity trade works out or not. Its all about being around for a long series of trades to let probability favor you.

Enough said. Now let's look at specific account sizes and recommended trading for each.

Part Three of Six Parts - Next!

There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.

Thomas Cathey - 27-year trading veteran heads the managed futures division of Thomas Capital Management, LLC. View his TimeLine Trading market predictions and get his complete, free 44+ lesson, "Thomas Commodity Trading Course".
http://www.thomascapitalmanagement.com/commodity/welcome.htm

Main site: http://www.ThomasCapitalManagement.com

Value Investing

2007-10-08T23:40:00.000-07:00

By definition, value investing is the process of selecting stocks that trade for less than their intrinsic value. A value investor typically selects stocks with lower than average price-to-book or price-to-earning ratios. Of course, it is not nearly this simple. Value investing is the corner stone of long-term growth. Those who practice it survive the ups and downs of the market and are more likely to emerge wealthy than those who ride the market, in principle, due to the higher quality of the companies falling under the prerequisites of the value investor. Value investing is essentially concerned with getting the most profit at the lowest cost. The basis of value is profit. Value investing is an investment style which favors good stocks at great prices over great stocks at good prices. Value investor extraordinaire Warren Buffett has used this style to become a billionaire.

It's important to keep in mind that value investing is not concerned with how much the price of a stock has risen or fallen necessarily, but rather what is the "intrinsic" or inherent value of the stock, and is it currently trading below that price, i.e. at a discount to it's intrinsic value. The important point here is that when looking at stocks that are trading at or above their intrinsic value, the only hope for gaining value is based on future events, since the stock price already represents what the company is worth. However, when dealing with stocks that are undervalued, or available at a discount, unforeseen events are unimportant in that without any new earnings or additional profits, the shares are already "poised" to return to that inherent value which they have.

The question now, of course, is "why would stock prices not always reflect the true value of the company and the intrinsic value of its shares?" In short, value investors believe that share prices are frequently wrong as indicators of the underlying value of the company and its shares. The efficient market theory suggests that share prices always reflect all available information about a company, and value investors refute this with the idea that investment opportunities are created by disagreements between the actual stock prices, and the calculated intrinsic value of those stocks.

Finding Value Stocks

Value investing is based on the answers to two simple questions:

1. What is the actual value of this company?

2. Can its shares be purchased for less than the actual (intrinsic) value?

Clearly, the important point here is, "how is the intrinsic value accurately determined?" An important point is that companies may be undervalued and overvalued regardless of what the overall markets are doing. Every investor should be aware of and prepared for the inherent market volatility, and the simple fact that stock prices will fluctuate, sometimes quite significantly. Benjamin Graham has often said that if investors cannot be prepared to accept a 50% decline in value without becoming riddled with panic, then investing may not be for them...or rather, successful investing, as it often takes significant losses in a particular security before gains are made, due to the idea that value investors do not try to time the market, and are focused on the underlying fundamentals of the companies. Furthermore, the quality of the companies targeted by the value investors' screening methods should be, over the long term, less volatile and susceptible to market "panic" than the average stock.

This is also a two way road of sorts. On one hand, there is no sense in worrying about depressions, upturns, and recoveries due to the underlying quality of the value investments. On the other hand, investments should only be made in companies which can flourish and do well in any market environment. Doing solid investment research and making equally solid investment decisions will take investors much further than trying to forecast the markets.

How Many Different Stocks?

In terms of diversification, there are many discrepancies over exactly how many different stocks a solid portfolio should be made up of. My personal view is that there should not be as many stock as normally make up a mutual fund. Many will disagree with this, but what it's worth, I think that owning a portfolio of 100, 200, or even more companies not only serves to limit risk, but it really limits the possibility for reward as well. Also, as Warren Buffett has said many times, the more companies you own, the less you know about each one.

As I write this, there are 42 stocks in our recommended portfolio. This number may very well grow in the coming months, as it may decrease in number, but one thing to keep in mind is, out of the thousands of companies available for purchase, only a very small percentage meet the stringent requirements of the diligent value investor. This is both a blessing and a curse. Very often, there is simply nothing to buy, and this is fine. The trap to avoid falling into is to lower your requirements for a stock when there simply isn't anything meeting the normal requirements. This is how many an investor has fallen into making poor investment decisions, putting money into companies not really adequate for their respective portfolio, and it will certainly have a long term effect on gains.

David Pakman has been writing about politics and investing for years now, and runs the websites http://www.heartheissues.com and http://pakman.thevividedge.com

The 16th Century Entrepreneur Who Created the Concept of the Taxi

2007-10-08T22:50:00.000-07:00

The 16th century was a time of amazing transformation in Europe. The Dark Ages were gone, the Black Plague had run it course and Middle Age fears and superstitions were slowly disappearing. The printing press had been invented and it was completely revamping the way people communicated. Columbus had discovered the Americas and the great age of exploration was in full swing. Medical advances, the Reformation, the creation of the great Italian banking houses and the Dutch trading companies had completely changed the way people thought, worked and worshipped.

And yet, there was one area in which there had been virtually no advance since the time of Christ: transportation. Horse or mule, horse drawn carts and boat were the methods of travel utilized to convey people, goods and foodstuffs. Travel was slow. It was uncomfortable. And, it was often very dangerous. Brigands and pirates faced little in the way of organized policing. A bandit pretty much had a field day during the period.

Of all the difficulties a traveler faced, the most frustrating by far was speed: or the lack thereof. As the great Florentine, Venetian and Genoan merchant banks financed warfare, fleets, crops, expeditions and colonization, they had to continually factor a risk premium into their risk/reward computations before settling on the interest to be charged on each loan. The slowness of receiving news of progress, success or failure on the status of an investment vehicle was agonizing to all parties participating in an enterprise. Did the fleet sink, or is it close to home with a valuable cargo? Has the battle been engaged, and who won? Was a new land discovered, and what did it offer in minerals or trade goods as materials for profit?

Knowledge is power, and speed provides the edge that makes this power so important. If I know today, what my enemy or rival will not know for several days, I have a decided advantage on strategizing to my advantage and profit. In the 16th century an industrious Belgian family developed the first international service to address the ages old problem of slow communication.

The Tassis family had obtained the rights to handle a rudimentary postal service in several Duchies in what is now Belgium. The service promised a decent living for the Tassis family by the standards of the time. However, they wanted to do more, expand and create a service that could become the international standard.

The Tassis family divided the work responsibilities between family members and had them disperse throughout Europe. The key to their success was a cohesive, standardized system of fleet horses, experienced, responsible riders, a network of terminals to change horse, rider and re-route mail and packages, and scheduled delivery times. Spain, France, Italy and Germany were little more than a polyglot of feudal city states during this time. There was no central government to handle a service like mail delivery that we consider routine today. The opportunity for a private company to organize and manage an international operation of this import and scale was a wonder.

The Tassis received contracts to handle the delivery of mail throughout most of continental Europe. From Naples to the Danube, and Gibraltar to Copenhagen, the family built a delivery network that managers at DHL, UPS, or FedEx would admire and recognize today. A treaty, legal contract or purchase order that took five weeks to reach Genoa from Madrid, could now be delivered in seven to 10 days. As the loads increased the price was lowered and this only accelerated the use of the service.

The family became rich, powerful and across Europe became members of the aristocracy. The name Tassis in the German language is spelled taxis. Today, everywhere in the world, people call for a taxicab when they need to transport themselves for a fare. The taxi service created by the Tassis was an important part of the development of the Renaissance.

The Tassis are responsible for one of the most elemental and important service enhancements in history. The ability to accelerate the movement of important commercial, legal and governmental communications enabled decisions to be made more quickly and on a grander scale. The entrepreneurial innovation that the Tassis family introduced enriched their family, business, government and, most importantly, the working class that benefited so much from the rapid expansion of capital and trade. Even today, we can still learn from the historical record that the ability to offer a novel new benefit pays off in so many ways.

Geoff Ficke has been a serial entrepreneur for almost 50 years. As a small boy, earning his spending money doing odd jobs in the neighborhood, he learned the value of selling himself, offering service and value for money.

After putting himself through the University of Kentucky (B.A. Broadcast Journalism, 1969) and serving in the United States Marine Corp, Mr. Ficke commenced a career in the cosmetic industry. After rising to National Sales Manager for Vidal Sassoon Hair Care at age 28, he then launched a number of ventures, including Rubigo Cosmetics, Parfums Pierre Wulff Paris, Le Bain Couture and Fashion Fragrance.

Mr. Ficke and his consulting firm, Duquesa Marketing, Inc. (http://www.duquesamarketing.com) has assisted businesses large and small, domestic and international, entrepreneurs, inventors and students in new product development, capital formation, licensing, marketing, sales and business plans and successful implementation of his customized strategies. He is a Senior Fellow at the Page Center for Entrepreneurial Studies, Business School, Miami University, Oxford, Ohio.

Best Investment Opportunities: How to Spot One

2007-10-08T22:01:00.000-07:00

Maybe youre new to the world of investment and youre doing your best to find opportunities which will pay off well, or perhaps you have tried investing in different ways along the years, and youd like to expand your existing portfolio with some new investments.

On the other hand, maybe youre simply interested in finding out more information on investing, so that you can decide whether it suits you.

No matter your reasons for wanting to know more about the best investment opportunities, youre likely to succeed in your quest if you learn how to spot them.

Go to Reliable Sources

Once you decide to look for an investment opportunity, you must know where exactly to look for the information you need. In general, try to avoid sources which dont look professional or which claim to have infallible investment tips or secret information. Besides the fact that the respective information is surely questionable, those websites or magazines also face legal risks regarding the diffusion of information which is not meant to be available publicly. Instead, you will find the best investments opportunities by looking at reputable and trusted financial publications or websites. You will find out what you need from the financial sections of online portals such as MSN or Yahoo!, or newspapers such as The Financial Times. You can also check the websites of brokerage firms and financial institutions which deal with the type of investment you intend to make.

Track the Stocks

The majority of financial sites provide their users with free investment and stock tracking services, which will allow you to stay up to date with the most recent fluctuations in stock or other investments. This way not only will you be informed on the current prices of the investments, but this will also enable you to consult the track record of the stock or investment for a certain period of time, from the past month to even five years or more. Moreover, once you sign up with an investment and stock tracking service, you can also receive the latest changes in the stocks youre interested in by means of e-mail or through your PDA, which means that you will be able to keep track of the best investment opportunities on the market.

Research, Research, Research

Only through constant research you will develop the skill to spot best investment opportunities. So before making a decision you should take the time and research the investments that caught your eye. This way you will be able to spot which investments or stocks are about to drop in value, as well as those which have increased their value over the last period of time.

This sort of information will guide you when choosing stocks or investments which are worth your money, as well as those which might cause you losses by sudden drops in value. Once you have successfully tracked your potential investments for some time, you may go ahead and make the actual move. There are plenty of investment firms on the market, so once again, make sure you choose one which is known for its good reputation. Copyright 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)

Joel Teo writes on various financial topics including Investment Properties in Las Vegas. Learn more about Investment Properties in Las Vegas in our Real Estate Investment Resource Site today.

Currency Forex Trading - Betting The Ups And Downs

2007-10-08T17:34:00.000-07:00

Total the amount of money involved in a days trading on the US stock and Treasury Bills markets by three, and youll still have less than a third of the amount of money which exchanges hands on the currency Forex--foreign exchange--market. The currency Forex market is where the money of one country--US dollars, for instanceis exchanged for that of another, like Japanese yen.

But unlike the worlds other economic markets, currency Forex trading is not centralized. There is no Wall Street or Throgmorton Street with an historic exchange building; Currency Forex trading exists only over telephone wires and Internet connections.

But exist it does; and it involve a global network of financial institutions, individuals, and banks all working around the clock and unhampered by international borders. Time and physical distance have no meaning in the currency Forex market.

At one time currency Forex trading was the domain of banks that held large amounts of money in various currencies so that they could participate in global investment and business opportunities. Individuals could participate in currency Forex trading only by going through their banks. But when exchange rates became unregulated the volume of currency Forex trading began to mushroom.

What Is Currency Forex Trading?

When either a private corporation or government wishes to either buy or sell products or services in another country, it has to engage in bartering its national currency against the currency of the country where it wishes to do business. There are also large numbers of investment firms who trade the currency Forex market as a more speculative part of their portfolios.

And even individuals can participate in trading the currency Forex market, provided they have sufficient risk capital and are willing to do the homework necessary to master the art of currency Forex trading, which can be extremely complicated.

Currency Forex Trading At Home

Many individuals are drawn to the currency Forex market because they see it as a lucrative business which can be run from the convenience of their homes. All that is required is a personal computer with an Internet connection and a workstation organized with to create a minimum of distractions. They see the currency Forex market as both inflation and deflation proof, and a way to make money regardless of the worldwide economic situation.

Investors make or lose money when trading the currency Forex market depending on the fluctuations of the currency exchange rates. All currencies are constantly appreciating or depreciating in value when compared to one another, and it is up to the individual investor to understand how conditions around the globe will increase of decrease currency values before risking his or her money trading those currencies.

You can also find more info on Currency Forex and Forex Brokers. e-forextradingsystem.com is a comprehensive resource to know about e-Forex Trading System.

Never Lose Money in the Stock Market

2007-10-08T16:10:00.000-07:00

If you are under 50 years of age and have not lost money in the stock market I dont think you will find this article interesting. Why? Because you still think you can make a killing in the market. Until you have lost a lot more this method of investment will not interest you.

Dad and Mom can try to get the kids to pay attention, but it is doubtful that they will. Each will have to learn on his own, but maybe a few will see the wisdom of slow but sure.

Every professional trader I know (I was an exchange member and floor trader for 17 years) will tell that you must have a plan for both buying and selling. Any plan must minimize risk for the professional and for the nonprofessional it must be so simple that even a retired widow with no market knowledge can execute.

Wall Street prefers to keep investors confused with financial terms so they will have to go to a broker or financial planner for advice. Advice from a broker is a eulogy for your money. They have been taught by the big brokerage companies and they have been taught wrong. They do not make you rich; they get rich off of you.

Now lets go through the steps to make money and protect your investments. This very simple method is as foolproof as any I have ever seen. It is one you can do by yourself with no help from any broker. In fact, most of them will not want you to do this as there is no commission and very little trading.

Turn on your computer; make the connection to the Internet. In the address box type in www.bigcharts.com . In the white box type in JAVLX. That is the symbol for a mutual fund. Click on the red box. On the left is a blue column. Under Time frame select the down arrow and click on 1 decade. Scroll down. Click on indicators. Scroll down a little more. Click the down arrow for Moving Averages. Select SMA. In the box to the right type in 200. Go back to the top and click on Draw Chart.

Note when the 200-day line turned down (November 2000) it was a sell signal and time to put your cash in a money market account. Wait. Collect interest. When the line turned up (April 2003) it gave a buy signal. Buy your no-load fund back. (Only buy no-load, no commission funds.) This buy/sell 200-day line will work for almost ANY mutual fund. Follow the little red line to wealth.

Go back. Check this out for any mutual fund or index fund you might have owned in 2000. Being in cash from 2000 to 2003 would have saved your retirement account; a money market account had a greater return than being invested.

Never lose money in the stock market again.

Al Thomas' best selling book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter and receive his market letter for 3 months at no charge at http://www.mutualfundmagic.com. Discover why he's the man that Wall Street does not want you to know. Copyright 2006 All rights reserved.

Investers Cautious As Release Nears

2007-10-08T14:45:00.000-07:00

Since Apple's initial announcement of the iPhone in early January, Apple Inc. shares have gone up in price by roughly 40 percent, peaking recently at an all-time high of $127. But with all the buzz surrounding the iPhone, surprisingly, many investors are leaning away from Apple stock.

You may wonder how the ubiquitous buzz surrounding the device can be a deterrent for investors. One would tend to think that any form of media and consumer attention for a product would do nothing but good for a product. However, in this case, the buzz may be TOO good. With expectations for the device higher than any consumer electronics device in recent memory (save perhaps the Playstation 3, and we all know how that went over), some major investors are left to speculate that Apple cannot possibly live up to them.

Hedge fund manager Jay Somaney is just one of a bevy of such investors. Its time to take some money off the table, said Somaney, who plans to sell as much as half of his shares prior to the June 29 release date. Somaneys reasoning also echoed concerns from stock traders nationwide, "There's just no way reality is going match the hype."

Past incidents of super-hyped disappointment include Microsofts Xbox System which continues to lose money for the company despite its widespread popularity, leaving Microsoft to garner much of the revenue from the system through licensing agreements and software titles. Last years Christmas season release of the PS3 left purchasers upset as the system was plagued with bugs and lacked significant software titles.

While the iPhone will certainly have its kinks to work out, initial sales forecasts for the device are strong. However, it is the long-term feasibility of the product that has investors concerned for Apples overall stock growth. If Apple is able to provide superior service when addressing potential issues and continue to develop improvements on subsequent generations, stock analysts see Apples stock with a potential of reaching as much as $160 before June of next year.

Perhaps, the key to Apples long-term iPhone success is the integration of business enterprising software; specifically, the need for Microsoft Exchange Server capability. While Steve Jobs maintains that the iPhone is the all-in-one super device, it will necessitate the advantages of a Windows Mobile device before it can truly eliminate the working business persons Pocket PC or Blackberry.

Apple may need to take a page out of its own book. When users were first allowed to run windows simultaneously with OS X on the companys consumer computers, Apple was praised for opening its doors to an endless amount of software titles and usability. If the iPhone is able to run a virtual version of the new and improved Windows Mobile 6, it will have a fighting chance at achieving long-term stability in the smartphone market. Until then, many sentiments will be aligned with Jay Somaney: sell , sell, sell!

Jordan Corning is a mobile enterprise solutions enthusiast. An analyst with Minneapolis based consulting firm ITR Group, Jordan enjoys exploring new ways in which mobile technology can offer significant contributions to the business, educational, and consumer worlds. For more info, visit the ITR Group website @ http://www.itrgroupinc.com or visit his blog @ http://www.iphailure.com

Introduction To Financial Derivatives

2007-10-08T13:21:00.000-07:00

"By far the most significant event in finance during the past decade has been the extraordinary development and expansion of financial derivatives. These instruments enhance the ability to differentiate risk and allocate it to those investors most able and willing to take it - a process that has undoubtedly improved national productivity growth and standards of living." -Alan Greenspan

Are financial instruments that "derive" value from an underlying item such as an asset or index. The use of derivatives provides exposure to the linked underlying item without necessitating the trade or exchange of the item itself. This allows specific risks, such as commodity or equity price fluctuations, to be traded in financial markets. Derivatives may be traded on exchanges such as the New York Stock Exchange(NYSE) and Chicago Mercantile Exchange(CME). Every derivative has unique features and provisions, and each derivative is used for a special financial purpose.

Derivative Uses
The main purposes of derivatives are hedging or providing risk reduction, arbitrage, and speculation. Derivatives allow risk of the underlying asset or index to be transferred between entities. This permits intermediary financial institutions and other entities that are more capable or knowledgeable about the specific risk to manage these risks.

For example, a corn farmer may enter into a derivative contract (normally a futures contract) to reduce risk from corn price fluctuation. If the farmer fears the price will fall below a hypothetical production price of $2 per bushel, the farmer may enter into a derivative contract with a merchant that agrees to purchase the corn at a specific price when the crop is harvested in a specific amount of time. In this case, assume the merchant agrees in the derivative contract to purchase corn at $2.5 per bushel. By utilizing derivatives, the farmer has guaranteed a corn sale price of $2.5 per bushel. If the price of corn decreases in the future, the value of the derivative contract increases as the farmer is able to sell corn above the market price. The use of the derivative allows the farmer to hedge the risk of a corn price decrease, and the speculator accepts this risk because of the possibility of a large reward if the price of the corn rises above $2.5 per bushel.

Derivatives are also used for arbitrage and speculation. Arbitrage is the practice of taking advantage of differences in price in two or more markets. For example, if a commodity was being sold for a lower price in a rural area than in a city, the arbitrageur could purchase the lower cost commodity in the rural area and sell it at a higher price in the city. This example excludes extra costs, such as transportation costs, that are not present in "true" arbitrage that requires no additional risk. Derivative traders engaging in arbitrage may seek opportunities between different derivatives of identical or related securities. For example, if the price of a stock listed on the NYSE is different than the corresponding futures contract on the (CME) an arbitrageur could purchase the less expensive item and sell the more expensive item.

Enhanced exposure and reward potential are the primary reasons why derivatives are used for speculation. The use of options, for example allows for greater returns than the actual price movement of the underlying asset or index. For example, if a trader purchased a stock for $20 per share and the price increased to $40 per share, the trader would have a 100% return. If the same trader instead paid a $1 option premium to purchase the stock at $21 per share, the trader would have earned an 1800% return ((40-21-1)*100%). The use of derivatives allows for greater reward potential. In addition, derivatives allow traders or investors to gain exposure to underlying assets or indexes when the direct ownership of these underlying items is difficult.

Main Derivative Contract Types Swaps - Two entities exchange cash flows Options - Contracts give holder the right but not the obligation to buy or sell an asset as a specific future date Futures - Contracts buy buy or sell an asset at a specific future date.

About the Author:
Matt Goldberg is an undergraduate finance major attending a well regarded business school. He is pursing a career in investment banking, sales and trading, or asset management. Goldberg started investing at age 13 and has attempted to learn more about the field every day. The Sharpe Investing Blog provides a way for him to learn more about a variety of areas of finance by researching, posting, and organizing important information.
Please continue to check the http://investingandfinanceinformation.blogspot.com for future new posts about these specific derivative contract types.

Risks To Consider Whenever You Trade Penny Stocks

2007-10-08T09:31:00.001-07:00

The world of penny stock trading has been touted as the gateway to riches beyond your wildest dreams. Fortunes, it has been claimed, can be made in a single trading session. Those with a few hundred or thousands of dollars can become millionaires almost overnight, and all of those who have do not hesitate to tell the world about it.

But what those who have succeeded in the penny stock market invariably fail to mention is that for everyone on the winning side of a trade there someone who is either risking or losing money on the other side. Whoever decides to trade penny stocks should realize that his or her chances of losing big are at least as great as the chances of winning big. What are the precise risks to be faced by anyone wanting to trade penny stocks?

The penny stock market is far and way the most volatile of all the stock markets. Anyone wanting to trade penny stocks need to perform extreme due diligence before investing in a company, because the price penny stock can change direction in a minute, and for no discernible reason. If you arent watching closely, you will not only miss your chance to lock in a profit, you may be on your way to a serious loss.

While the phrase penny stocks may make you think you can trade penny stocks like you play penny ante poker, the phrase is misleading. Even if a single share of a companys stock is less than a dollar, most of those who trade penny stocks trade them in lots of a thousand or more. When you trade penny stocks in those amounts, the amount of money at stake is not trivial.

Another risk faced by those who trade penny stocks is that the penny stock market is home to many a bogus company established simply to print and hype its own shares. There have been unscrupulous individuals who set up fake corporations simply to sell the IPO shares and walk away.

Many penny stocks have their price supported by nothing except fluff press releases and ads paid for by stock promoters. Often these efforts will lure people into a stock, and when they come in, the stock promoters get out and the stock promotion ends. Because the company itself has no substantial value, and there are no more new buyers being enticed by hype, those in the stock will have a very time selling their shares, and the stock price will collapse.

Anyone who wants to trade penny stocks needs to be able to tell the difference between a company supported by hype and one which has real substance.

The safest way to trade penny stocks is to have a game plan and stick too it. Pill you capital out of a stock as soon as you can, and either let your profits ride, or used them to invest elsewhere. That way you are always risking someone elses money, and the stress that normally comes when people trade penny stocks will pass you by.

You can also find more info on Penny Stocks and Investing In Penny Stocks Pick-pennystocks.com is a comprehensive resource to get information about Penny Stocks.

Business Investing Retirement Planning-Achieve Your Retirement Goals With The Right Investing Plan

2007-10-07T23:57:00.000-07:00

So you want some business investing for retirement planning tips? Unfortunately, in todays day and age, many get to the end of their working years completely broke, and are forced to continue working long into what was supposed to be retirement.

You dont want this to happen to you. Retirement should be a time to experience the things you never had a chance to while you were working; dont let a lack of finances rob you of these experiences, especially when they are so easy to obtain.

First of all, in order to achieve your retirement objectives (and therefore know which business investing avenues are best) you need to know what you want to do after you retire. Do you want to own a beach house in California? Travel 10-15 times per year? Just stay around the home and relax?

Knowing this info is critical. Without this, how will you ever know if you are closing in on achieving your goals?

Once you have your goals planned out, now its time to figure out how much they will cost. This is where a retirement planning calculator comes in. often times, you can find a free one online.

Many companies give these tools out hoping that you will decide to go with them to receive retirement planning advice. Whether you do or not, at least use the tools to figure out the money you will need to retire on.

Now that you know this, figure out how much money you make now, and how much you will need to earn between now and retirement to accomplish your objectives. Only now should you begin looking for an investment vehicle that will get this for you.

For instance, if you have loftier ambitions, and want to travel 15 times a year, then you will obviously need more money than if you were just planning to relax around the home. If this is the case, and depending on when you are beginning investing for retirement, you will want to invest in a more aggressive investment vehicle (of course, this varies depending on whether you are starting at a young or older age).

Once youve found one that provides a sufficient rate of return and will continue to do so until retirement, stick your money in there, and then keep close tabs on it. Remember, nobody else is responsible for your financial state; its only you.

If you dont know enough about business investing for retirement planning to spot a good opportunity, then either learn yourself or hire a financial planner to figure this part out for you. The most important thing is that you have a plan, and stick to it. This way, you will achieve your retirement goals faster and more easily than you ever imagined possible.

For more great retirement planning investment advice, check out http://www.online-retirement-planning.com, and get some great retirement planning help

The Definition Of Forex Is Not "Easy Money"

2007-10-07T23:16:00.000-07:00

The definition of Forex is: whenever one form of currency is traded in exchange of another. As with most things online the Forex market has become an opportunistic battlefield for small time people to make big bucks in selling hype. If you do a search for Forex online, you will likely find thousands if not millions of sites dedicated to showing you how to make money in the Forex Market. Most of them always claim the same thing, Ill show you how to make 7 figures a year!

If youre like me, youve grown so tired of seeing that headline, that you immediately hit the X button when you see that title on a site. Personally I thank them for believing people are so gullible because its the only reason I have the job that I have. All day long I receive request for reviews of e-books, memberships, online opportunities and too many other things to name. Most of the time Im bored out of my mind but the sheer repetition of the same re-canned junk.

So you can imagine my delight when something that Im reviewing is able to hold my childishly short attention span. By no means is trading on the Forex market an easy venture to understand, nor garner a seven figure income with ease (if it were that easy do you think theyd give it away for a few bucks?). But there are a handful of programs that truly teach you exactly how to go from newbie to earner in fairly short order.

The latest program that came across my desk is called Forex Trading Machine and was developed by a guy named Avi Frister. Hes been a successful Forex trader for over 11 years and his system backs his expertise up. Most of the programs that are successful have found ways to maximize earnings while minimizing risk, and as far as Ive seen, this is probably one of the most unique and profitable Forex systems available online.

Jordan Drew is and expert reviewer on all things things in the Clickbank network, as well as hundreds of other products opportunities offered online. Know before you buy!

http://www.beforeyoubuyonline.com

http://www.beforeyoubuyonline.blogspot.com

Welcome to the BIG Buy Low

2007-10-07T22:32:00.000-07:00

Every correction is the same, a normal downturn in one of the Markets where we invest. There has never been a correction that has not proven to be an investment opportunity. You can be confident that the Federal Reserve, as hypnotized as it is with keeping inflation under control, is not going to cause either a financial panic or a prolonged recession with tight money and high interest rate policies. While everything is down in price, as it is now, there is little to worry about. When the going gets tough, the tough go shopping.

Every correction is different, the result of various economic and/or political circumstances that create the need for adjustments in the financial markets. In this case, an overheated real estate market has finally taken a breather; an overdose of bad judgment among lending institutions is producing a major hangover; and an overheated Stock Market, propelled by demand for speculative derivative securities (ETFs), and Hedge Funds, is finally falling back to more earthly levels.

The reality of corrections is one of the few certainties of the financial markets, a reality that separates the men from the boys, if you will. If you fixate on your portfolio Market Value during a correction, you will just give yourself a headache, or worse. None of the fundamental qualities that made your securities "Investment Grade" just three months ago---when your Market Value was at an All Time High---have changed. No interest payments or dividends have been cut. Only the prices have changed, to preserve the reality of things---and in both of our markets. Welcome to the Big Buy Low!

Corrections are beautiful things, but having two of them going on at the same time is like a trip to Fantasy Land. Theoretically, even technically I'm told, corrections adjust prices to their actual value or "support levels". In reality, it's much easier than that. Prices go down because of speculator reactions to expectations of news, speculator reactions to actual news, and investor profit taking. The two former "becauses" are more potent than ever before because there is more self-directed money out there than ever before. And therein lies the core of correctional beauty! Mutual Fund unit holders rarely take profits but often take losses. Additionally, the new breed of Index Fund Speculators is ready for a reality smack up alongside the head. Thus, new investment opportunities are abundant!

Here's a list of ten things to think about or to do during corrections:

1. First of all, don't beat yourself up by looking at your account Market Value. You don't live in a vacuum and you are not immune to market price variations. That is why we only buy the highest quality securities in the first place and stick with a well-defined Asset Allocation plan. Look for ways to add to your portfolios---that's what the smart guys are doing.

2. Take a look at the past. There has never been a correction that has not proven to be a buying opportunity, in spite of the media hype that this one is special. When they are broad, fast, and deep, the rally that follows is normally broad, fast and steep. Get ready to party.

3. The "Smart Cash" that was accumulating during the last rally---the one that ended abruptly in May, should be put back to work, and probably will be too soon. That's also normal. There are no crystal balls, and no place for hindsight in an investment strategy. Buying too soon, in the right portfolio percentage, is nearly as important to long-term investment success as selling too soon is during rallies.

4. Take a look at the future. Nope, you can't tell when the rally will come or how long it will last. If you are buying quality securities now (as you certainly should be) you will be able to love the rally even more than you did the last time---as you take yet another round of profits. Smiles broaden with each new realized gain, especially when most Wall Streeters are still just scratchin' their heads.

5. As (or if) the correction continues, buy more slowly as opposed to more quickly, and establish new positions incompletely. Hope for a short and steep decline, but prepare for a long one. There's more to "Shop at The Gap" than meets the eye, and you may run out of cash well before the new rally begins. Cash flow is king, so take smaller profits sooner than usual so long as there are abundant buying opportunities.

6. Your understanding and use of the Smart Cash concept has proven the wisdom of The Investor's Creed. You should be out of cash while the market is still correcting---it gets less scary each time. As long your cash flow continues unabated, the change in market value is merely a perceptual issue.

7. Note that your Working Capital is still growing, in spite of falling prices, and examine your holdings for opportunities to average down on cost per share or to increase your yield on fixed income securities. Examine both fundamentals and price, lean hard on your experience, and don't force the issue.

8. Identify new buying opportunities using a consistent set of rules, rally or correction. That way you will always know which of the two you are dealing with in spite of what the Wall Street propaganda mill spits out. Focus on value stocks; it's just easier, as well as being less risky, and better for your peace of mind.

9. Examine your portfolio's performance: with your asset allocation and investment objectives clearly in focus; in terms of market and interest rate cycles as opposed to calendar Quarters (never do that) and Years; and only with the use of the Working Capital Model, because it allows for your personal asset allocation. Remember, there is really no single index number to use for comparison purposes with a properly designed value portfolio.

10. So long as everything is down, there is nothing to worry about. Downgraded (or simply lazy) portfolio holdings should not be discarded during general or group specific weakness. Unless of course, you don't have the courage to get rid of them during rallies---also general or sector spefical (sic).

Corrections (of all types) will vary in depth and duration, and both characteristics are clearly visible only in institutional grade rear view mirrors. The short and deep ones are most lovable; the long and slow ones are more difficult to deal with. Most recent corrections have been short (August and September, '05; April though June, '06) and difficult to take advantage of with Mutual Funds. So if you over-think the environment or over-cook the research, you'll miss the party. Unlike many things in life, Stock Market realities need to be dealt with quickly, decisively, and with zero hindsight. Because amid all of the uncertainty, there is one indisputable fact that reads equally well in either market direction: there has never been a correction-rally that has not succumbed to the next rally-correction.

If you were head scratching on Smart Cash, Working Capital, or The Investor's Creed, it's time to order the newly revised edition of Brainwashing.

Steve Selengut
http://www.sancoservices.com
http://www.valuestockbuylistprogram.com
Professional Portfolio Management since 1979
Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"

Accountability - They Are Still Missing The Point

2007-10-07T00:10:00.000-07:00

Many in Government are talking about accountability in business as a result of the accounting and stock market scandals. President Bush signed the Corporate Fraud Law, which was supposed to make CEO's accountable. They are still missing the point about accountability. What they are really talking about is responsibility to the law, not accountability! In addition, they are talking about accountability as if it were something that can be legislated or directed - it cannot!

What then is accountability? Accountability is a combination of responsibility and standards (ACCOUNTABILITY = RESPONSIBILITY + STANDARDS). This implies a definable and measurable commitment to deliver a specified result. In other words, to paraphrase Harry Truman, it defines where the buck stops, which is at every level of responsibility. A great part of the confusion comes from a lack of distinction between responsibility and accountability. Responsibility refers to the duties to be performed, describing what should be done without specifying how well or how timely tasks should be performed. Responsibility is an action, accountability is a result (compared to standards).

The next logical question is: Who are we accountable to? Responsibility and accountability by their nature infer a relationship. The answer to the question is; our stakeholders. Stakeholders are individuals or organizations who are involved in or may be affected by the activities of the enterprise. There is a diversity of stakeholders within any enterprise or organization. Each stakeholder has a different and unique need that must be met by the organization. For example, an employee has a need for security, a paycheck, and a safe working environment. On the other hand, an investor has a need for a reasonable rate of return on their investment. A customer has a need for a quality product or service that provides value. The local government has a need for tax revenues and so on.

The business community has failed at the point of the stakeholder, because it has taken an unbalanced approach to meeting stakeholder needs. For business to be successful, it must be accountable at all levels to all of the various stakeholders. For many years, business has focused on meeting the needs of the investors rather than meeting the needs of all of the stakeholders. For example, a company decides to cut costs to drive up its perceived value to investors, and lays-off 1,700 employees. What is the impact on the stakeholders? Investors see improved cash flow and reduced liabilities, thereby making the perceived value of the company stock greater. The CEO realizes increased value to their assets (stock and stock options). The laid off worker is out of a job and realizes diminished value to their assets. The retained worker realizes greater demands on their time, decreased quality of work life and home life, greater stress, etc.

The impact on the organization is greater turnover (voluntarily and involuntarily) which drives costs up, increases waste, reduces effectiveness, and in many cases loses customers. The myopic view of stakeholders is threatening the long-term viability of the enterprise or organization.

Business needs a fresh look at how it is conducting itself in order to re-establish the trust of its stakeholders. A few arrests wont do, new laws wont do, and the words of our politicians wont do. We need to re-think our business structures in terms of true accountability to our stakeholders ALL of our STAKEHOLDERS! This requires reinvent our business in such a way that it is accountable at all levels. Accountability must be linked throughout the organization to its strategic purpose, its vision and values, and to all of the stakeholders.

Accountability requires a commitment from all parties. That commitment must be based upon an obligation to obtain predetermined results in a given activity. Such commitment will only come when both parties have a say in building the accountability. Such accountability does not just happen, it requires a system.

Any such system must take into account the obligations that all enterprises or organizations have to their stakeholders. Without an obligation, there can be no accountability. In business there are five fundamental obligations, they include:

Survival obligation

Essential work obligation

Principal markets obligation

Principal product obligation, and

Principal territory obligation.

These obligations exist at all levels of the organization, though they may be stated a bit differently at each level or from department to department. They drive the companys mission as well as its strategic purpose. The five fundamental obligations provide the basis for defining the work in terms of Continuing Vital Activities. These activities, which if not performed according to certain standards, could impair overall operating results.

Continuing Vital Activities (CVAs) are the framework within which realistic and achievable objectives are developed. They help focus the work so that objectives reflect what needs to be done (results based objectives), rather than what will ensure that bonuses are obtained (permissive objectives).

We need to change from the system of permissive objectives that many organizations have fallen victim to one that links concrete results to the obligations that the organization has to the stakeholders. These objectives require that standards be applied to ensure that the necessary results are obtained. The greatest barrier to effective results oriented objectives is a resistance by managers and subordinates alike to define appropriate standards. Standards development must be a part of any accountability system if it is to succeed.

There is a program available for building a true accountability system within an organization - it is called the Accountability Focused Management system provided by The ALERA Consulting Group, Inc. The Accountability Focused Management system provides a systematic structure built upon the five fundamental obligations. It creates an atmosphere of mutual commitment to those obligations by both management and personnel. It helps organizations analyze work to identify Continuing Vital Activities necessary for the success of their day-to-day operations. Once the CVAs have been identified for a position, the Accountability Focused Management system requires managers and subordinates to sit down and discuss the nature of the work in terms of the results the manager needs to get from the subordinate. The subordinate then defines the standards he is willing to, or capable of, achieving in the required time frame. The discussion between manager and subordinate produces a Results Commitment for each of the identified CVAs.

The Accountability Focused Management system changes the focus from responsibility to accountability.

Brice Alvord has over thirty years experience as an internal and external performance improvement consultant. He holds a BA in Sociology/Psychology from Central Washington University and an MBA degree from City University of Seattle. He is the author of over two dozen books on continuous improvement and training. http://www.AleraGroup.com

Commodity Investing Targeting 30-50% Annual Profits

2007-10-06T19:22:00.001-07:00

There are plenty of people who will manage a commodity investment for you, but you need to choose carefully as most lose!

This article is all about picking a manager or doing it yourself via a software program and targeting the big gains that make commodity investing so lucrative.

Risk & Reward

Commodity investing by its very nature is risky, however with risk goes reward. The real key is management of risk and this is what separates out the great performers from the losers.

Reducing risk and increasing returns

Commodity investing is popular as you are investing in a non correlated investment to stocks.

Within the commodity or futures markets you have great diversification and fantastic profit potential.

There are managers who target and make 30 50% gains per annum in commodity investing, so lets find out how we target them.

Lets look first at managers to avoid:

1. A broker

On the desk of commodity firm who will help you trade to make money. Keep in mind, he is a broker not a money manager and chances are he wont make you money.

If brokers could make money they wouldnt be brokers

2. Managers with hypothetical track records

These managers simply launch a performance graph that looks great in hindsight (lets face it we can all make money in hindsight) and then very often collapses in real time trading.

Forget this group.

3. Managers claiming real time track record but no audit

Not only do you want the track record verified, you want a statement that the account you are investing in is representative of all funds under management.

4. Drawdown

Watch out for highly volatile performance the bigger the drawdown the bigger the risk of ruin.

Generally, look for manager who has smooth equity curve.

Many managers have drawdowns of 50% or more avoid them. Look for drawdowns of around 30% max.

5. Conflict of interest

Check your manager does not earn a proportion of the dealing fees, as this sets up a conflict of interest. They may deal for commission, rather than profits.

Try and get managers who have confidence to be paid on performance only.

Keeping the above in mind you need to look for managers that are professional, or buy a software program follow the signals and do it yourself

This latter option is a great way, you are your own manager and of course dont pay fees!

Discretionary managers

Real time performance, audited figures and responsible money management, as mentioned above. You may also like to check the following:

Find out about how much money they have under management, their methodology and how long their track record is 3 5 years is enough. Beware of short track records as they could have been lucky!

Make sure your comfortable with them, their investment approach and money management.

Like all managers they will have losses, you should stick with them through these periods and confidence in them to get it right will help.

Software be your own manager

Most commodities trend and there are a lot of good software programs you can buy that, can target 30 50% in annual gains.

This means you dont have to pay a manager and have control over your investment.

With the internet and the power of computers and the recent developments in software, more and more investors are taking this route.

You need a simple system; you can understand, can apply with confidence, with real time track record and your all set.

Note: You may want to read our other article futures trading software for in depth way to pick a system to invest in commodities for big gains.

Commodity investing Which way is best?

Commodity investing in this way if you have the right trading system, can be very lucrative. You have the potential to out perform the bulk of managers and keep all the profits yourself.

You can give it to a broker to execute it for you, or place the signals yourself.

Read our other article on Futures trading software for more information.

More FREE information on targeting 30 - 50% annual profit potential via commodity investing and a system that has been producing outstanding results in realtime, from a company doing business for 25 years, visit our website =>http://www.gann.co.uk

Success Trading: Yet More Basic Terminology for New Traders

2007-10-06T17:17:00.001-07:00

In this day and age of online brokers for virtually every market out there, there are some very useful tools that will help protect your account and lock in profits when you have them. It is our recommendation that you use a good online broker and take advantage of not only the low commissions they offer, but also the automated tools that are available. These tools are virtually idiot proof if you use them. The number one reason that peoples accounts go belly up in the markets is because they lack the discipline to stick with their trading plans and let emotions drive their trading decisions. This approach is a guaranteed way to lose in the markets. Oh, you might get lucky on occasion, but eventually the market will take your money. Let discuss some of the trading tools were talking about.

Stop Loss Also called a stop, this is the price at which your position will be automatically closed. If you buy IBM at $50 per share, and then enter $45 as your stop level, then your position will be sold when the price hits $45. So this enables you to protect your account from a large loss. Bear in mind, however, that this stop level only triggers the closing of the position and doesnt guarantee youll get out at that price. A quick price drop might mean your order was executed at $42 instead of $45 because of market volatility but this would be an extreme case. Also, if you carry the position overnight and IBM opened at $40, then thats the price it would be sold. Keep in mind that if you had shorted IBM at $50, then your stop would be placed above $50 to protect your account. When the stop is triggered on a short position, you would be buying to cover the position.

Buy Stop The description above pertains to a sell stop, but there are also buy stops that can be very useful. These are used to enter a position at a certain point. Suppose youre using a trading system requires that you buy when a stock breaks above a certain price level. Lets say that you are waiting for IBM to break out of a channel and to do so, it would need to reach $51. In this case, you simply place a buy stop at $51 for the number of shares you desire and your online brokers system will buy that for you automatically whenever IBM hits $51. The only thing you would have to do and check back occasionally to see if the order has been filled.

These two tools, the sell stop and buy stop are invaluable to traders especially those who are just starting out. Make this a habit from day one in your trading ALWAYS place a stop loss immediately after getting an order filled. Obey this rule and the market will never hurt you very badly youll take a hard sting every now and then, but youll stay alive to come back another day!

Chuck Cox is a Technical Writer and Industrial Scientist by professional with a background in statistics. He has used mathematical and statistical methods to invest and trade in the stock, futures, and options markets. Chuck has owned various businesses and presently operates several websites. To learn more about trading the markets, visit his website, http://www.earncashathometoday.com/trading-stocks.htm

Currency Forex Trading - Betting The Ups And Downs

2007-10-06T17:13:00.001-07:00

What Is Currency Forex Trading?

Currency Forex Trading At Home

You can also find more info on Currency Forex and Forex Brokers. e-forextradingsystem.com is a comprehensive resource to know about e-Forex Trading System.

Texas Invests In Its Future - The Young See Hope For Retirement

2007-10-06T16:36:00.001-07:00

No wonder so many of us run from discussions on financial matters, ignore our bills, and spend too much money, as if in rebellion. It's scary out there.

Last year, the Employee Benefits Research Institute released the results of a study concluding that the majority of Americans are unprepared for retirement, are not saving enough for it, and have unrealistic expectations about how much they will need to live comfortably in their golden years. Texas is no exception. With its high poverty rate, and even higher rate of those going without health insurance, it's lucky many can get through day-to-day life.

Being one of the millions in debt myself, I can understand this. The rising cost of housing, food -- even clean drinking water -- can drive anyone with a limited income to distraction. I decided to stop changing the television channel with every new disastrous financial report, and to start researching, when an investment counselor said to me with matter-of-fact conviction, "You know, young adults now just may need a million to retire." After the initial (and expected) incredulous gasp, I decided gulping air wasn't going to do me much good. As usual, knowledge and simple planning gave me hope. Here are a few tips on digging yourself out of the panic.

Checking and Savings Accounts:
The first step in building a sound financial future is practicing money management skills with both checking and savings accounts. Most of us have at least one of them; keeping track of their balances is an entirely different matter.

Free checking accounts are fairly easy to procure. At one point, it was common for financial institutions to charge monthly fees for the privilege of stashing money with them, but the banking industry rakes in so much profit from successfully luring their customers into other investments that it's just not necessary anymore. The theory is that if one has a free account with a particular financial institution, there's a good chance that person will return to that institution for other investments as his or her income grows -- investments that will make both the customer and the bank happy.

By all means, take advantage of this. Texas abounds with students -- students needing any freebies they can get -- so it shouldn't be difficult to find a bank offering free checking and savings accounts, especially in cities like Dallas, Houston, and Austin. Look for a checking account without a minimum balance requirement, and one that doesn't, of course, charge monthly fees.

Free checking accounts are not usually interest-bearing, so put only enough money in it every month to cover your monthly bills, plus a little padding. Keep track of your balance; the greatest risk with these accounts is the astronomical overdraft fees most of them charge. Once all of your bills are paid at the end of each month, stash extra income in an interest-bearing savings account. The average APY (Annual Percentage Yield) on low-balance savings accounts hovers somewhere just around 0.5%, but at least it's something

Short to Middle-Term Investments:
Once you feel you've established a healthy pattern of money management -- no overdrafts, a properly balanced ledger, and all bills paid in full -- start looking into other investments. Most of the time, you'll need at least $500.00 to invest in other types of accounts, and, at least initially, look for those with better APYs than your current savings account, but will not inflict penalties for withdrawing funds whenever you need them.

Money Market Accounts:
Money market accounts are great investments at any age, but they're particularly advantageous for beginning investors simply because there are no penalties for withdrawing any amount at any time, no waiting period to continue investing (you can, likewise, deposit money at any time), and the funding is usually only a check away. There are several types of money market accounts, so be sure to investigate the minimum investment required, interest rates, and restrictions on each before making any commitments.

Money markets work by pooling investments from thousands of contributors into an assortment of (usually short-term) funds from municipal bonds, to stocks. The result is a fluctuating interest rate that is almost always at least a few percentage points higher than that of a standard, low-balance savings account. According to USA Today, non-bank money market funds are currently at about 5% APY.

Certificate of Deposit:
Certificates of Deposit, or "CDs" have been around longer than the replacement for the tape cassette. Interest rates are fixed, rather than fluctuating, are usually comparable to money market accounts and can be purchased at a bank or other financial institution, including many sites online, for terms as short as three months. Of course, the longer the term you lock in, the higher the rate you will obtain under most market conditions In other words, whatever interest rate you lock in at the beginning will remain the same throughout the course of the investment. Once you've invested in a CD, however, you cannot continue adding to the same one during the life of that investment, until renewal -- which is one reason you may want to go with a shorter term.

The primary disadvantage of CDs lies in the substantial penalties inflicted if the investor withdraws his or her money before the allotted time. The average APY for a six-month CD is currently 3.59%; for a one-year CD, 3.77%; for a five-year CD, 3.96%, although some banks may offer better deals. CDs are a good idea if their current APYs are higher than contemporary money market accounts, and you don't expect to -- or perhaps don't trust yourself to -- handle the money for a while.

Health Savings Account:
Health Savings Accounts, or HSAs were created by a 2003 Medicare bill, and are, without a doubt, worthy of consideration for many individuals and families. HSAs strive to address the growing problem of underinsured Americans (Texas knows this well, with over 25% of its population going without any insurance) by allowing investors to save for qualified medical expenses and future retirement health expenses, on a tax-free basis. These accounts are only made available to those with qualifying high-deductible health insurance policies, and are a great choice for many young, middle-class Americans. HSAs provide incentives for saving towards healthcare, and a bit of financial padding in case of disaster. The major disadvantage is that penalties are inflicted if the money is withdrawn for unqualified expenses prior to the age of 65.

Retirement Accounts:
The types of retirement accounts available to Americans are too numerous to mention, and are highly dependent on employers in most cases. Entire sections of libraries and many websites are dedicated to this subject. The first, and most important thing to do, is to check with your employer to see if, or what, retirement plans are offered. Some companies offer employee benefits, including flexible 401(k) plans and matching funds. Look seriously into these options.

However, rather than briefly attempting to delve into the plethora of accounts that may, possibly, be available to you, this article will focus on an account available to all, regardless of employer -- the Roth IRA account which has become increasingly popular since becoming law in 1997.

Now, IRAs have been around for some time, but traditional IRA accounts require funds going in, and coming out, to be taxed. This means that whatever dividends or proceeds an investor earns over the years will be taxed upon withdrawal. Considering that IRA interest rates are compounded, this could (and is intended to) add up to quite a bit over several decades.

Roth IRA accounts, on the other hand, do not tax funds upon withdrawal. Funds invested into the account are considered taxable income going in, but the compounded interest or proceeds can accumulate tax free, until the age of 59, at which point they can be withdrawn without penalty or taxes. A Traditional IRA, on the other hand, is not taxed going in, but is subject to tax coming out, at whatever rate of income will apply to you at that time -- the assumption being that you will withdraw most of this money during retirement, when you will not have other earned income driving up your tax rate,. This means that whatever your Roth IRA account balance statement is, is the amount you have for retirement, free and clear. No more taxes. If an investor begins an IRA account in his or her twenties, and contributes a modest amount every month (possibly matched by an employer), principle and compounded interest could conceivably yield a million or more dollars over four decades. The way to think of a Roth IRA, as opposed to a Traditional IRA, is that you are paying taxes on the seeds instead of on the crop.

Now, that's something to think about. Maybe retirement is possible...

See, that wasn't so hard. Respect yourself (and your anxiety levels) enough to seriously investigate financial opportunities. There's a good chance you're missing something you have the funding for -- right now, sitting in a no-, or low-, interest-bearing account. If you have any kind of steady income, financial security should be within your grasp. A comfortable retirement is in your future. Just take a deep breath, open your bills, and start acting like the adult you always dreaded you'd have to be someday.

Taking care of your financial responsibilities can have a positive effect on your anxiety levels, sense of security, and overall health. Being aware of your health, and what you can do to safeguard it, will certainly affect you as you age, and eventually your wallet as well. If youre a young individual who tries to keep informed and maintain a healthy condition and lifestyle, you should take a look at the revolutionary, comprehensive and highly-affordable individual health insurance solutions created by Precedent specifically for you. Visit our website, www.precedent.com, for more information. We offer a unique and innovative suite of individual health insurance solutions, including highly-competitive HSA-qualified plans, and an unparalleled "real time" application and acceptance experience.

Precedent puts a new spin on health insurance. Learn more at http://www.precedent.com

Forex Millionaire Reveals His 5 Most Secret Strategies!

2007-10-06T15:59:00.001-07:00

1. You should not execute trades, as a general rule, in between pivot points. That area is NO MAN'S LAND. Wait for price to make up its mind on direction at a support or resistance level, supplemented by other indications of price direction "reading bars," MACD divergence, reaction to pivot point, trendline breakouts.

2. Don't use MACD for anything other than divergence. Recently, MACD on the 15 was trending up, leading unsuspecting traders to believe that price was headed north. However, price did a u-e at the main pivot point, and headed south to find the other end of its range at S1. You wouldn't see this sudden shift in MACD, because it is a lagging indicator. So, to summarize, just use MACD for divergence and nothing else.

3. You should only take trades in and around pivot points not in between, as stated previously. When price action centers around a pivot point, then take a look at the five minute to see what's going on behind the scenes. Because, you should have been focused on only the 15 min up to the point of price interaction with the pivot point. Now, you want to pay attention to what price has up its sleeve. In the above example (40), price faked out unsuspecting trades when it trended up through the main pivot point, only to tank as it did a price rejection bar on the 15 min chart. Of course, you wouldn't have seen this coming if you were only looking at the 15 min. You would have seen the price reversal on the 5 min, and been ready to head south with price.

4. The absence of divergence between MACD and price simply suggests that MACD is confirming that the price trend is intact. But, don't be fooled by this synergy. Please review strategy number 40 to see what I mean.

5. Resistance levels (M3, R1, M4, and R2) are levels (or sell zones) where sellers can be expected to outnumber buyers, and push price lower. Correspondingly, support levels (S2, M1, S1, and M2) are levels (or buy zones) where buyers can be expected to outnumber sellers, and push price higher. These expectations are based on my program's interpretation of buyer/seller interaction in the last session. I think you will agree, after close inspection of the results of my pivot point calculations, that price hesitates, pauses, and decides on its course of action in and around pivot points. That's why you should never enter trades in between pivot points, while price is in transit, and in a state of transition.

Learn More About This Forex Millionaire By Going To: http://www.ForexAIM.com

Please check out http://www.ForexAIM.com for more free Forex tips & secrets.

Sense And Sensex

2007-10-06T15:21:00.001-07:00

Sensex is the name coined for the Bombay stock exchange sensitive index. Sensitive index abbreviated as Sensex, is the yardstick index for stock markets in India. The sensex is designed scientifically based on a particular universally accepted methodology. It was first put together in the year 1986 and with 30 ingredient stocks. These 30 stocks symbolized gigantic and rich organisations. 1978-1979 was taken as the base year and the base value was taken as 100. The same method continues till date. It is in face, very popular globally.

Whenever we express the state of the market, we look for the sensex reading. It is the most comprehensive indicator of the market. The Sensex echoes the price movements of various stocks and also indicates market soundness. Sensex rises and falls in a market. In case the sensex rises the investors or traders in the market can look forward to booking profits. While a sensex on the downside may lead to a loss for investors. Therefore if the corporations listed on the stock market are financially and managerially sound.

Sensex- Ingredient companies.

The sensex in India is made up of 30 companies which have a direct bearing on the economy. These 30 companies are selected by a group of academicians, fund managers, financial journalists and many other stock market participants. They form the index committee.

Parameters for selection of the 30 companies.
-The stock of a company must be traded all through out the financial year to be amongst the 30.
-The particular stock must be amongst 10 top companies whose stocks have been traded every day in the financial year on the BSE.
-On the Bombay stock exchange listings the particular stock must have its listing since a year.
- The company must have a good and sound record in the eyes of the committee.

SENSEX calculation strategy and method.

"Free-float Market Capitalization" method is used to calculate the sensitive index. According to this method, the sensex valuation mirrors the free float market value of the 30 stock ingredients relative to the (1978-79) base year. When we multiply the number of shares the company has issued by the price value of the stock of the same company we arrive at the Market Capitalization of the particular company. Later on we multiply it further with free float factor to come up with free-float market capitalization. The Free float market capitalization of the 30 key corporations is further divided by the Index Divisor, a number. The index number is the sole link to the first and base price of the sensitive index.

The sensex journey

The sensex has been on the increase ever since early history. From 1000 points on July 25thg, 1990 to historic 10000 mark on February 7 th, 2006 after which it rose to 14000+ on December 5th 2006.However it has been fluctuating between 13000 to 14000 since then. But there have been several downfalls due to high volatility. In such cases the government adapts policies that are friendly to investors and curbs down panic.

Written by Charles Smithston. Wondering which form of financial asset will provide you maximum income to achieve financial freedom? At The Team Wealth Builder Forums you can learn about the best investment to make sustainable money that will work for rest of your life. Log on to TeamWealthBuilder for expert tips regarding wise investments to get out of the rat race and become financially free.

Trading Stuff For Free Vs. Free Stuff

2007-10-06T14:44:00.001-07:00

Swaptree
Swaptree is a great service that I came across recently. It lets you trade books, music, movies, and games with others for free. You tell the system what you have, and it figures out what you can get in exchange. Note that it supports one-for-one item trades only, but allows for three-way trades.

How Swaptree works
Swaptree does a good job laying out the ground rules simply and clearly. There is also a wonderful walkthrough here. Ebay users will find a similar buyer/seller rating system that they are accustomed to.

The site has been out of public beta since July 4th (so its no longer invite only) and seems to be gaining steam. Way to go, guys!

Freecycle
Freecycle would be a good alternative if you were looking for an item outside of books, music, movies, and games - such as apparel, computers, and furniture. The concept is that someone wants to get rid of something, while another person want s the same item. Rather than throwing the item away or trying to sell for a minimal amount, the item is given away, provided that a local person comes to pick it up.

The Freecycle website - http://www.freecycle.org contains a short animation of how Freecycling works as well.

At the time of this posting, there are a total of 4,041 Freecycle communities throughout the world. Chances are, you are either in or near one of them.

See this article's original posting at:
http://nowsourcing.wordpress.com/2007/07/10/trading-stuff-for-free-vs-free-stuff

Another quality article by NowSourcing.

To see more of my articles, please visit http://nowsourcing.wordpress.com

Trendline Forex Entry Signal - Two High Probability Setups

2007-10-06T14:07:00.001-07:00

A reliable Forex entry signal usually involves a combination of factors which all come together at the same time.

No single indicator can provide the ideal entry level and the new Forex trader has to grapple with this stark reality. Many find this hard to accept and spend countless weeks and months and hard earned cash in search of what could be termed the 'holy grail.'

Learning to trade the Forex is hard work and needs to be treated like a business, the same as any other business. It requires a large investment of time, energy, mental discipline, and a cautious investment of cash until the necessary skills are acquired.

Trendlines are just one of the tools seasoned traders use along with other indicators to provide a reliable Forex entry signal.

Here we spell out two distinct ways in which trendlines can be used safely. Using a higher time frame candlestick chart such as a 60 minute, 4 hour, or even daily chart, a trendline is drawn along the most significant lows in an uptrend or across the most significant highs in a downtrend.

1. Momentum Combo

As price moves upward in an uptrend or downward in a downtrend, it will retrace and bounce off the trendline at certain times. However, using a trendline bounce by itself as a Forex entry signal is too risky. There have to be other factors.

Once you have drawn the trendline you now have a graphical representation of price movement and you will be able to see where price has to retrace to test the trendline once again.

Now use other indicators to see if that level where price would need to retrace to test the trendline combines with other factors.

Calculate your daily pivot points and draw horizontal lines on your chart to mark them.

Run your eyes left on the chart and note if there were any significant highs or lows that formed support or resistance within the last few days. Support and resistance on higher time frames usually provide more substantial reference points.

Use the Fibonacci tool on your charting software and mark retracement and/or extension levels on a variety of swing highs and lows and see if any intersect the trendline.

Also make sure you have the 200 EMA (Exponential Moving Average) line shown on your charts and note whether this also intersects near or at the trendline.

Now if you have a combination of two or three of the above indicators meeting at the same place you have now identified a Forex entry signal that can be regarded as high probability.

Put in your entry order to be take in long at this point where the trendline intersects with the other indicators and set a reasonable target limit for what probably will be a profitable trade.

For a downtrend, simply use the above indicators going the other way.

2. Break Combo

The second way to identify a reliable Forex entry signal using trendlines is to watch for a break of a trendline on a higher time frame such as the 60 minute, 4 hour, or daily chart.

Some traders sent an entry order to go long or short once price has broken the trendline by a few pips. That works for some.

There is however a safer way to trade a trendline break.

It will be observed that often (not always, nothing is absolutely certain when trading the Forex) once price has broken a trendline and moved 15-30 pips, it will come back, retrace, and test the backside of that trendline.

This is where again you use the combination of factors mentioned in the previous strategy.

Look to see if the point at which price may come back to test the backside of the trendline coincides or combines with factors such as:

Pivot points

Previous swing highs or lows marking support and resistance

Fibonacci retracement or extension levels

200 EMA

Now when you place an entry order to be taken in at that level you are doing so on the basis of a clearly defined Forex entry signal.

For a graphical example of the above, see the resource box below.

Be aware that trading trendline signals on lower time frames such as 30 minute, 15 minute, or even 5 minute charts are very high risk trades. Price will break these short term time frames frequently during the course of a day and catch a new trader frequently by luring them into a trade they later regret.

Be patient and wait for things to setup as described in the two methods above for high probability trades triggered by a combination Forex entry signal.

For an actual trading example using the trendline strategy above click here:

http://www.vitalstop.com/Forex/trendline.html

Click here to learn how to use another indicator, the 200 EMA, in a simple yet powerful way:

http://www.vitalstop.com/Forex/Advisor/200EMA-forex-strategy.htm

For the best free economic calendars plus a free pivot point calculator and Fibonacci calculator click here:

http://www.vitalstop.com/Forex/tools.html

Online FOREX Brokers A Brokers View Of Why Novice Clients Lose

2007-10-06T14:05:00.001-07:00

I write frequently on how to trade but my observations on the markets here I will go back to may days as a broker and give you the view from the dealing room on client behavior and the major reasons traders lost.

I dealt with several thousand traders over 8 years and here are my observations.

This was the late eighties and early nineties and online FOREX brokers of course did not exist, clients behave no differently today as they did then.

Here are the top reasons traders lose with any FOREX broker and that includes online FOREX brokers

1.Methods traded were illogical

The first reason was simply methods did not work as logic they were based upon was not relevant to market movement.

Today, day trading is more popular than ever with online FOREX brokers, but it was around 20 years ago and the same results were obtained which were:

A wipe out of equity in a short time.

Day trading did not work then and it doesnt work now- Volatility is random in short time frames.

Any support and resistance seen in a daily time frame therefore is useless for trading purposes.

Online FOREX traders just like we did must love day traders lots of commission generated!

As a broker your balance sheet is based upon commission to equity.

You generally assume all clients lose anyway, so if they pay lots of commission while losing all the better.

There were other methods that lost especially the ones that clients bought that promised regular money or an income from trading.

These methods were normally bought tested in hindsight and the trader threw in the towel after a few losses, or was wiped out.

Another group that lost were the ones with complicated methods.

They figured the more complicated a method was the more likely it was to succeed, this of course is totally wrong.

Simple systems work best as there are fewer elements to break.

We had one trader who bought a system which he proudly boasted was based on artificial intelligence and the same technology used by NASA to put a man on the moon

Unfortunately, it did not help him in the market!

2.Discipline

What always struck me was how few clients could trade in a disciplined fashion.

They had jobs where they had to be disciplined everyday, yet in the markets they simply behaved irrationally as soon as a few losses came along.

-They would chop and change methods looking for the perfect one. -They would revenge trade to catch up losses. -They would blame the markets and call them stupid

When money is on the line we all know its hard to be disciplined, but the emotions that we saw ranged from crying to total despair, including one suicide.

3.Money management

Many clients were good at picking market direction but could never make any money due to poor money management.

This was problem for them not only in cutting loses ( they very often removed stops or never placed them) of course, a small loss soon becomes a big loss, the trader cant take that, then he was handed a loss he had to take.

He would have been better of taking the small loss in the first place.

What surprised me was how few traders could accept big profits.

The bigger the profit became the more they wanted to take it even if their system indicated further gains.

The argument given was:

you dont go broke taking a profit

Of course you do, if profits dont exceed your inevitable losses.

This was perhaps more important than taking small losses.

Traders I saw could not allow trades run to $10,000 or more, a couple of thousand and they banked.

There are more reasons but they above are the ones that caused most losses and of all the traders I traded less than 1% made money longer term.

In part 2 of this article we will look at different personalities we traded, who won, who lost and the traits of the traders who won.

FREE ESSENTIAL TRADER PDF'S AND MUCH MORE

On all aspects of becoming a profitable trader including features, downloads and some great FREE Trading PDF's visit our website at http://www.net-planet.org/index.html

This System Will Help Those Forex Traders With Just A Few Trading Hours Available

2007-10-05T23:12:00.000-07:00

There are diverse systems and methods for Forex trading that will teach you pretty successful approaches to a profitable trading career. But many of them will ask you for a good chunk of your working day. And that may become a problem if you still have a full time job and besides you still have a family you must consider and take care of.

If this is your case then you should look for a forex trading system that will improve your trading with new strategies that will allow you to keep your fulltime job and mainly, keep your family happy.

In order to save time used on chart analysis and indicators reading you must use a trading strategy like the ones used in what is known as swing trading. This is a forex trading approach that relies on identifying winning trades on short time intervals (15 min, 30 min, 1 hrs charts). As you can see from the trading intervals this kind of system will naturally free you from spending the whole day watching how the markets evolve with time. You just need short bursts of profits from time localized trades.

With the correct swing trading system you will have good, solid and consistent profits resulting from clear entry orders, calculated exits and this without spending too much time watching the markets. A forex trading method with a high winning percentage will be rewarding psychologically, will keep your morale high (very important in this hard trading world) and will be enjoyable to trade. After all, a string of profits will build the confidence of anyone.

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FOREX Trading - 5 Common Novice Trading Mistakes

2007-10-05T22:05:00.000-07:00

In forex trading the odds are that 90% of traders lose. While forex trading looks simple it is not and if you want to join the winning minority dont make these common mistakes.

Here are your mistakes to avoid in no particular order of importance.

1. Trying to buy success

Its tempting to buy one of the courses or e-books sold on the net that promise you wealth for around $100.00, but common sense should tell you cant buy success in the manner.

If you really want to buy one - ask for the real time track record and see the profits the vendor has made. After all if he has made no money why should you trust his advice?

You will find in forex trading that most of these courses are sold by writers who have never traded in their lives, or failed brokers.

In most instances you wont get a real time track record. Dont fall for the hype.

2. Dont day trade

If you really want to lose money go ahead and day trade its the best way to wipe out your account equity quickly.

The odds are against you and the theory that you can tell where prices are going in such a short time period as a day is nonsense.

3. Understand and have confidence in your method

If you buy a method or do you own make sure you understand the logic it is based on or you will not be able to follow it with discipline.

If you dont have confidence in your method you wont have the discipline to follow it. If this occurs you dont have a method at all!

4. Choose a simple system

Its a fact in forex trading that simple systems work best and only contain a few indicators.

The more complicated a system is the more likely it is to break in the brutal world of trading.

Simple systems are easy to understand, easy to apply and have the best chance of making you money.

5. Work Smart Not Hard There is no correlation between how hard you work and how much money you make. You need to work smart not hard.

Get a simple system and once that is done and your trading should take an hour a day or less. Many traders are constantly chopping and changing systems looking for the holy grail but sadly it doesnt exist.

You can do it

The fact is everything about forex trading can be learned and anyone can learn the basics of good trading. To do this you must accept responsibility for your destiny.

No one else will give you success it comes from within.

All the information you need to start trading forex for success is on the net and its free. Get started by getting studying a technical breakout system and adding filters and you will see how easy it is.

To succeed you need to work smart, learn a method you have confidence in and then finally, have the discipline to trade it for long term success.

FREE TRADING PLAN PDF + OTHER ESSENTIAL TRADER INFO

On all aspects of becoming a profitable trader and for an exclusive forex basics PDF visit our website at http://www.net-planet.org/index.html

Stock Loans

2007-10-05T20:58:00.000-07:00

Hedge current portfolio positions and gain access to capital resources through loans against free trading, aged affiliate or aged non-affiliate securities. Make proper use of your assets while waiting for performance and hedge your position should the asset move against you.

Whether you need to borrow cash for personal or business purposes, these loans against stock can be funded in as few as five business days and are available to insiders, affiliates and common shareholders of publicly traded companies on U.S. exchanges, as well as other major foreign exchanges.

Big Board or Large Cap stockholders are usually elegible for high LTV's while Small to Mid-Cap stockholders can receive respectable LTV's based on exchange, price and liquidity. Furthermore, no expenses or upfront fees are charged for our loan programs.

Stock Loan is a loan. It is not a sale. For most of our borrowers, a Stock Loan does not trigger a capital gains tax event unless they default. And though the proceeds cannot be put into any marginable securities, they are available for other types of investments or purchases. Interest can accrue or be paid quarterly.

There are no margin calls. Enron stock investors with a Flagship Stock Loan would have received 90% loan to value out of their investment - and been free to walk away without a single margin or house call, even after the infamous fall in share price.

Yes, literally, walk away. These are "non-recourse" stock loans, so that if you wish, you may simply walk away and owe not a penny more to us as lender, with no negative consequence to your credit, forfeiting only the presumably devalued stock shares. Why? We've written private hedges on every share. And though you may have tax consequences in the event of default, you won't have to repay your loan to us.

In the market? Out? Why not both? So you want your stock investments to stay stock investments. You love your stock picks. And they aren't doing too badly, maybe have some great prospects next year too. You rightly don't want to sell (maybe capital gains taxes are looming?); you don't want to leave the market. But you need the cash. In... Out...Go.... Stay... What to do?

Consider a Stock Loan for Your Stock Investment. Put a floor on your potential loss, while keeping all of your potential gain. Stock Loan means you can do both. No need to sell your shares if you'd rather leave them in the market working for you... You can tap their value today ? safely ? so you can have the cash you require. You'll get 90% of the market value and no principle or interest payments, if you choose to let interest accrue.

But... if the share price increases, that increase belongs entirely to you. The upside (depending on the type of Stock Loan you choose) from the the stock portfolio is thus yours. You stay in the market, and out, at the same time. The best of both worlds!

Afra AmirSanjari is the Principal for Peacock Capital. Peacock Capital specializes in solving the cash flow challenges of Small/Medium Businesses, Government Vendors and Individuals with innovative financial solutions by providing a network for securing operating capital.

http://www.peacockcapital.com; info@peacockcapital.com

Why Doctors Are Poor And Computer Geeks are Rich

2007-10-05T20:25:00.001-07:00

In the old days, doctors were the rich ones who drove huge cars, had big houses and were well-respected. And the computer geeks, well, did not exist. Now the doctors are struggling with car loans and mortgage repayments, and Bill Gates is the richest man in the world. What happened ?

Here are some reasons given :

1. Rich Dad Poor Dad feels sorry for doctors. Many of them are woefully financially illiterate. He cannot understand why people who are supposed to be clever can be so inadequately informed in areas of managing their finances.

2. A Millionaire Next Door was kinder. They theorised that maybe doctors were very generous with their money since they are inclined to help people by nature, and not be too greedy or concerned about money. However, one doctor can only do so much to help a limited number of people. Bill Gates has a huge fund with which to bring AIDS medicine to the poor developing countries and much more.

3. Many doctors are over-consumers and under but having a very low net worth relative to their income. Net worth does not include the home that you live in. It is counted by assets that generate money such as property, stock portfolios and businesses. Many doctors only have their salaries as their primary source of income.

4. Doctors tend to spend a lot because they have an image to upkeep. Apparently people think that a doctor who comes to work in a Lexus must be a better doctor than one who took a bus to work. They also need to stay in better neighbourhoods where things generally cost more.

5. Doctors also spend very little time monitoring their finances because they are too busy doing other things like saving lives. Those who are millionaires spend at least 4 times more time reviewing and assessing their finances, and their investment portfolios. They are more likely to have a budget and know how much the family spends on things.

6. Doctors tend to be either employees or self-employed because they are perfectionists who want to be the best at what they are doing. Of course, one would appreciate that if one was going to see his doctor, he would hope the doctor was more inclined to be the best in his field. But the point is, the truely rich people are the business owners, who are not the best in their field. They know how to lead a team of the best people so they get the money !!

7. Doctors don't know much else other than being doctors cos they spent too long in medical school. Their long working hours also makes it difficult for them to explore other areas.

8. Oh, and because they spent so long in medical school running up huge debts in student loans, they couldn't start saving till about 10 years later than their classmates who dropped out after high school to start an internet business.

9. People think doctors are rich and so expect them to be nice and give them free medical treatment because it is deemed "essential". Nobody expects models to work for free or volunteer their time for charity.

10. I can't think of Number 10. It just seemed nice to have a number 10.

Karen Cheong believes we all have it in us to be rich - really ridiculously wealthy. We just need to learn to unleash the potential.

Find out what the rich know that the poor do not. Visit http://www.whymoneymatters.blogspot.com

Buyback Versus Dividend

2007-10-05T19:51:00.000-07:00

There are two ways company can give out its profit to shareholders. One is to give out dividends. The other is to buy back its own stocks. Which one is more appropriate? This article will explore the topic further.

The American tax law give a slight edge to stock buybacks. It is taxed once before the company decide to use its profit for stock buyback. (Every profit in a corporation is normally taxed). Dividend payment meanwhile is taxed twice. Once when the corporation reports a profit. Twice, when the shareholders receive it as an income. Most recently, investors receiving dividend income are taxed at rate of 15%.

So, does stock buy back is always advantageous to dividend payment? No, not really. It really depends on what price the company buys its own stock. If a company buys back its stock when the stock price is relatively overvalued, then it is better to distribute it as dividends. Shareholders can then appropriately invest it in undervalued investments.

So, at what point will dividend make much more sense? This all goes back to the fair value of the common stock itself. In a 4.5% interest rate environment, stock trading at a fair value is yielding 7.5% ( a Price Earning Ratio of 13.3 ). This assumes a 0% growth in earning. Therefore, it is desirable for companies to buy back its stock at a P/E of 13.3 or less.

But, wait. Since, dividend is taxed at a 15% rate, company that buys back its own stock at fair value will still saves shareholders 15%. Therefore, buyback still reward shareholder even when the common stock is 15 % overvalued. Based on this, company should continue buying back its stock only when the stock is trading at a P/E of (115% x 13.3) = 15.3. For a 0 % growth, it makes no sense for management to insist on buying back its stock that is trading at a P/E higher than 15.3.

One recent example is Intel Corporation (INTC) which initiates a $ 25 Billion intelligent stock buyback on Thursday Nov 10th 2005. At current price of $ 26.16 and $ 2.24 positive net cash on the balance sheet, Intel is buying back its stock at a forward P/E of 16.72. While this is a high P/E to buyback stock for a company that is not growing, Intel is not a 0% growth stock. Analysts generally expect Intel to grow its earning by 15.5% for the next five years.

Investing Idea is Free. Please visit our commentary section at http://www.noviceinvesting.com

Judging Whether You Can Profit From a Put Option, Part 3

2007-10-05T19:16:00.001-07:00

In this example, you would lose $300 by not following your own standard and bailing out at 4. Even if the stock did fall later on, time would work against you. The longer it takes for a turnaround in the price of the underlying stock, the more time value loss you need to overcome. The stock might fall a point or two over a three-month period, so that you merely trade time value for intrinsic value, with the net effect of zero; it is even likely that the overall premium value will decline if intrinsic value is not enough to offset the lost time value.

The problem of time value deterioration is the same problem experienced by call buyers. It does not matter whether price movement is required to go up (for call buyers) or down (for put buyers); time is the enemy, and price movement has to be adequate to offset time value as well as produce a profit through more intrinsic value. If you seek bargains several points away from the striking price, it is easy to overlook this reality. You need a substantial change in the stock's market value just to arrive at the price level where intrinsic value will begin to accumulate.

Example: Good Trend But Not Enough: You bought a LEAPS put for 5 with a striking price of 30, when the stock was at $32 per share. There were 22 months to go until expiration and the entire put premium was time value; you estimated that there was plenty of time for the price of the stock to fall, producing a profit. Between purchase date and expiration, the underlying stock falls to 27, which is 3 points in the money. At expiration, the put is worth 3, meaning you lose $200 upon sale of the put. Time value has evaporated. Even though you are 3 points in the money, it is not enough to match or beat your investment of $500.

The further out of the money, the cheaper the premium for the optionand the lower the potential to ever realize a profit. Even using LEAPS and depending on longer time spans, you have to accept the reality: The current time value premium reflects the time until expiration, so you will pay more time value premium for longer-term puts. That means you have to overcome more points to replace time value with intrinsic value.

If you buy an in-the-money put and the underlying stock increases in value, you lose one point for each dollar of increase in the stock's market valueas long as it remains in the moneyand for each dollar lost in the stock's market value, your put gains a point in premium value. Once the stock's market value rises above striking price, there remains no intrinsic value; your put is out of the money and the premium value becomes less responsive to price movement in the underlying stock. While all of this is going on, time value is evaporating as well.

Tip: For option buyers, profits are realized primarily when the option is in the money. Out-of-the-money options are poor candidates for appreciation, because time value rarely increases.

Whether you prefer lower-premium, out-of-the-money puts or higher-premium in-the-money puts, always be keenly aware of the point gap between the stock's current market value and striking price of the put. The further out of the money, the less likely it is that your put will produce a profit.

To minimize your exposure to risk, limit your speculation to options on stocks whose market value is within five points of the striking price. In other words, if you buy out-of-the-money puts, avoid those that are deep out of the money. What might seem like a relatively small price gap can become quite large when you consider that all of the out-of-the-money premium is time value, and that no intrinsic value can be accumulated until your put goes in the money.

Get your Momentum Stock Trading System and sign up for my free weekly online trading system newsletter here at: http://www.stressfreetrading.com

History - Beyond Historical Knowledge Into the Character of the People Behind Major Events

2007-10-05T18:45:00.000-07:00

Webster's Dictionary defines history as: "A branch of knowledge that records and explains past events" (Webster's 2001). Historically, history is studied for many reasons. One major reason is to acquire historical knowledge.

One must look at all the historical facts and events recorded from history, to acquire what may be penned as "historical knowledge." This is not just head knowledge and rote memorization, but an understanding of the facts, deaths, purchases, wars, business dealings, and most of all the understanding of the "character" of the people behind these major events.

Whether reading about Lincoln, our sixteenth president of the United States, who persevered as a president and abolished slavery with the Emancipation Proclamation, or the Louisiana Purchase whereby America obtained a huge acreage of land for about the price of a modem day hotel. Also the great depression of the 1920's affected many people mentally and physically--creating a tough decade for all our citizens. These and many other historical events are studied because of knowledge--and knowledge is the power of history.

In 1860 the political conflict was slavery, and Abraham Lincoln was elected as President of the United States. Lincoln's party, the Republicans, stood for the total abolition of slavery in America. "A house divided against itself cannot stand," Lincoln stated.

Furthermore, "This government cannot endure permanently, half slave and have free...I do not expect the house to fall.. .It will become all one thing or another" (Young Republic 25). In 1863, Lincoln issued the Emancipation Proclamation, declaring all slaves in the Confederacy free--by his authority as president and commander in chief.

History accelerated the size of our United States when our third president, Thomas Jefferson, made a deal to purchase the Louisiana Territory from France for fifteen million dollars. This enormous purchase almost doubled the size of our nation and we obtained some of the most excellent and fertile land in the whole world.

Many other U.S. lands were obtained only by blood, sacrifice, and wars. When a man fights for his lands, he often obtains victory. Today we read in our texts about the blood, sweat, and tears that our military leaders undertook to gain such victories. We owe a debt of gratitude to our government and military leaders.

Though it may not be discussed enough, our war hero's are truly the freedom fighters that captured the freedom we so easily enjoy today. Jefferson's "Rough Riders" should be praised for just such a wonderful effort to keep and sustain our freedom. This was a tough bunch of soldiers with a brave commander who was almost unstoppable.

America's economy took a huge dive downward during the Great Depression. The stock market crash of 1929 left citizens standing in line for bread and looking for work like never before in our history. History's records indicate that investors lost everything.

Thousands of banks, businesses, and schools had to close down. A ton of loans were unable to be repaid because of low crop prices. Many usually busy U.S. workers suddenly found themselves without work. Our economy has always impacted our society. The study of our economy is essential to the understanding of our history.

When we study history we learn a great deal about our country and ourselves. Abraham Lincoln continues to come to mind as a mirror to us, because he persevered as president, when others might have quit. Abraham Lincoln showed the American people young and old how to have faith when facing the challenges of life.

Lincoln also was an example of "balance" in his life, having been shot by John Wilkes Booth, at a theater, of all places. He wasn't too intelligent or strong-minded to stop enjoying his life. He took time for the things that were important, and that leaves a strong legacy for all Americans.

To conclude, one must look at all the historical facts and events recorded from history, to acquire what may be penned as "historical knowledge." This is not just head knowledge and rote memorization, but an understanding of the facts, deaths, purchases, wars, business dealings, and most of all the understanding of the "character" of the people behind these major events.

There are many Americans who are devoted to studying the textbooks, newspapers, and magazines of the past. To these brave ones we must give our respect, for they are a picture of the past, but more importantly, they are a picture of our hope for the future. Many great presidents lead this nation to become one of the greatest nations in the world today, and certainly the most powerful.

Abraham Lincoln led our nation out of slavery, and by doing so, he opened up social, political, and economic opportunity for all people and he truly led us back to the Declaration of Independence.

The events of the past have also made their way into the classroom with the almost one hundred year old pledge of allegiance. Our pledge is a constant reminder of the victories that our great leaders obtained from the past: "I pledge allegiance to the flag, of the United States of America, and to the republic, for which it stands, one nation under God, indivisible, with liberty and justice for all."

The United States of America is a free country today, because of sacrifice, and we owe a huge debt of gratitude to our forefathers who fought to make this country a republic, a free land, a land where anything is possible with the right amount of hard work and solid spiritual foundations.

Don Alexander is a writer and published poet and has two online missions: Sharing his writing and also helping "all to succeed" in online business. Don feels that online home business is the financial answer for the average American today.
http://www.leading-online-business.com
"Helping ALL to Succeed"

Understanding the Forex Trading System

2007-10-05T18:11:00.001-07:00

The forex trading system involves buying and selling foreign currencies, it is the biggest financial market in the world and on an average the trading ranges anywhere between united states dollar one and a half trillion to two trillion everyday. Trading goes on round the clock on all working days throughout the globe. If you plan to explore investing options in the forex trading system you must have at least a grand or a couple of grands however websites nowadays offer startup plans for as low as $200 as well.

Unlike the stock market there is no fixed market for the forex trading system. A good and effective forex trading system allows the traders to transact easily and provide more chances to increase the earnings. Forex, short for foreign exchange market, is just like any other market place, but here, currency of one country is sold for another countrys currency for some profit. Currencies are always traded in pares, some hot pairs are, USD (United States Dollar) and Japanese Yen or US Dollar and Euro.

Foreign exchange tradings are a great money making opportunity for those who know their way around, for newbie its a dream world where they either fall hard, sail well or fly high, its not easy to be a successful trader in the forex trading system., its a mix of luck and experience that must work to find success. There are a lot of companies and individuals over the internet and offline willing to help you earn money from the forex trading system but only a handful of these are true and can actually help.

Nowadays most of the calculations are done by easy to use software that need minimum input from the user. You will need help initially, and may take some time for you to get to know the forex trading system. The high degree off leverage can sweep you either way, in the forex trading system one has to assess the risk for self, think of the chance one may have individually or with the help of a broker and/ or signal provider one may have and the amount which one can safely risk without putting yourself into financial trouble. Its a law of nature, where theres potential to earn there potential to loose so just be prepared before you dive in.

Want To Learn more about Forex Trading?, feel free to visit us at: Forex Trading Info

Trend Trading or Counter Trend Trading - Which is Best?

2007-10-05T17:34:00.000-07:00

When I first starting designing and testing trading systems, back in the early days of personal computers and trading software, I immediately gravitated toward counter trend trading. I would put up a stochastic, before I even knew what it was measuring, and my eye went right to all the divergences. A divergence is a basic counter trend pattern, where the price makes a new high, for example, and the indicator makes a corresponding lower high, thus forming a divergence with the price. The idea is that the new price high was not confirmed by momentum, which in this case was losing strength. When this pattern is seen, it is thought the market might have put in a high for the move, and it might turn around and go in the other direction.

I liked the idea of picking tops and bottoms. I was getting really good at it, at least on paper. I thought I had found the Holy Grail of trading. It all looked so easy. Almost every new high or new low on the chart was accompanied by a very clear divergence pattern. These patterns just jumped off the charts, screaming at me. I thought I had found the key to my trading plan, and it was going to be to be able to pick the point of a trend change. In other words, I was going to become an expert at picking tops and bottoms.

Then I started trying to trade all these easy patterns with real money. For some reason, whenever I would take a trade on one of these patterns the market didn't know it was supposed to reverse. It would just keep going in the direction it had been going. I would get several divergences and the results would be the same. That is, of course, until I got so burned out trying to catch the reversal and I would give up. Then, like magic, the perfect divergence pattern would appear, but I would not be in the trade.

I would caution anyone who thinks that they can pick the spot, with any accuracy, of a top or bottom in the market. I know many gurus and market timers claim to be able to do it. It can be quite gratifying to pick the top of a market, especially when all the media and analyst are on one side of the market, and you go the other direction and win. It gives you a very brief sense of superiority. You could see something that nobody else could, and you made a profit with this knowledge. However, after engaging in this activity for any length of time, one should review the account statements to really see if this has been a profitable way to trade.

It is remarkable how the eye can pick out major highs and lows on a chart, and to see many reasons why the top or bottom was so obvious. Maybe there was a classic three drives to a high pattern, or a head and shoulders pattern, along with diverging momentum or volume. It makes picking tops and bottoms look so easy. But if you analyze the chart more carefully, youll probably find two or three times as many set-ups that fail. The mind somehow glosses over the failed set-ups and goes right to the successful patterns.

After many frustrating attempts unsuccessfully using the stochastic indicator, I decided to study with the person who developed the indicator. I flew to Chicago to study with George Lane. Here was the guy who developed the indicator that almost everyone at that time was using to spot divergence patterns, and he talked me out of trading divergences, except in rare case. He only used the stochastic as a confirmation if many other conditions of trend change were present. I still like that indicator, but I use it in an entirely different way now. The time spent studying with him probably saved me years of frustration and a lot of money avoiding losses.

When thinking about trend change there are some things to keep in mind. First, trends tend to persist; often longer than you think is logical. When trends are up they often climb that wall of worry. Worry that the market will collapse without warning and take away your profit. Worry that the fundamentals don't justify the prices being traded. Logic might dictate taking profits, but there is worry of leaving money on the table. Uptrends tend to end more leisurely, at least in the stock market. For the public, it is easier to decide to enter a market or take profits in the calm of rising prices, where only greed is the factor. In down markets, traders often panic, and margin calls with fears of losing your home are often a motivator that results in more urgency. Therefore, bottoms can form quickly and sharply. Futures markets seem to be a bit more even regarding uptrends and downtrends, due to the nature of the mix of traders involved. A sideways trending market, or a market with a perceived lack of trend, will often lull traders into complacency, and with attention elsewhere, breakouts into a trend can be missed.

To summarize, I find the best strategy is to find the main, confirmed trend, whatever indicator or method used to determine that trend. Then trade only in the direction of that confirmed trend. Trading pullbacks, such as flag patterns, will usually offer the safest entry points. Trends have smaller cycles within the larger cycle. There are usually pullbacks within the longer term trend. One can still trade turning points of these smaller cycles, as long as they are in the direction of the longer-term trend. I will accept kicking myself for the few times I see major tops or bottoms that I will most certainly miss. This is a small price to pay for missing many losing trades resulting from trying to buck the trend. There are always trends somewhere, and in some timeframe. Going against the trend is like jumping into a river flowing rapidly in one direction, and trying to swim in the opposite direction. It is difficult and exhausting to do. It's much easier to float down the river in the direction that the current wants to go. The ego is more gratified in going the opposite way. The ego is also one of the most difficult aspects of trading to overcome.

Doug Tucker has a blog with daily commentary on stock indexes, precious metals, and other markets. There are many articles on technical analysis and indicator design and interpretation. To visit go to: http://tuckerreport.com/

Avoiding Scam HYIP Sites

2007-10-05T16:52:00.001-07:00

Everyday about three dozen new HYIP sites come out offering to be the solution to your financial dreams and promise you a life fulled with riches and satisfaction. Ill tell you right off the back there lying. Yes, these HYIP sites are straight out lying to you. Studies show that %99 of HYIP sites are scam, and from my experience this statistic holds true.

HYIP stands for High Yield Investing Program. When we think of investing we think of Wall Street, Stocks, Bonds, and all that good stuff but on the internet HYIP is just a coverup scam sites use to take away your money.

Most HYIP sites are Ponzi Scams. The name Ponzi comes from the man Charles Ponzi who scammed millions of dollars from his Friends, Family, Coworkers, etc. Charles Ponzi paid out his original investors from the investment of others, the same type of scam happens today.

The basic setup for scams is that a new HYIP site comes up claiming they are backed up by Forex Trading. They say all these words to draw you in there trap and at first they probably do pay you, however a few weeks later the site will run away with all the money from investors and you will be left in the dirt. Hundreds of new HYIP sites are made every week and people still fall into their scams, I wouldnt be surprised if it was just a group of a small individuals just massively making new HYIPs due to the fact that people keep investing (and losing) money in them.

Now by reading the first couple of paragraphs, your probably now scared into investing anything online, which is okay, HYIPs are usually run as games and when the payout reaches a certain percentage they stop paying and start a new round. People usually get carried away because they see there making money so they invest all the money they make back into the same program, thats mistake number one. First thing you DO not want to do with HYIPs is reinvest your principal money, take that out ASAP and play only with your profits. There are many more common mistakes and I will discuss them in the upcoming paragraphs.

The 5 ways to avoid being scammed

1) Take back your principal investment

As mentioned above, when you invest in a program and receive your money back in addition with your profit, invest only the profits! When you do it this way you now have no risk in losing your money in HYIPs, youll just lose your profits and nothing else. What you may also want to do is instead of investing all of your profit, invest %75 of it and keep %25 of it. That way no matter what you come out a winner. Remember take up your principal deposit and play with profits!

2) Study the website

Studying a website does take some research, but it will help you in the long run. If you see a HYIP site claiming to be backed up by Forex ask them for some of there records to see if there telling you the truth or lying. Do a Whois lookup on their domain name to see if there around as long as they say, ask the admin questions, call them if a number is provided, email them and see if they respond. HYIP Scammers are always in a rush and want to get your money and leave ASAP, real HYIP admins wont lie to you and will take the time to answer your questions truthfully, do your homework and you will be awarded!

3) Check the Interest

If a program is offering more then %10 a day, it is off the back a Ponzi Scam. This does not mean do not invest with them, but it does mean that they are a ponzi and are probably running their HYIP in a game type format (when payout reaches X the next round will become) or they are relying on paying your investments with the investment of new investors. The reason I can say that if a program offers more then %10 that they are a Scam or a Game is because real professional traders cant possibly offer returns as high as %20-50 profit per day, that is unrealistic and if they DO offer those rates they are probably running a game HYIP or ponzi HYIP. Check the Interest, you can still make money if a program is a ponzi or game but if you want a reliable program you should settle for %2-5 daily.

-Note: The same goes with referral rates, if they are large and unrealistic such as receiving %30 the program is most likely scamming/tricking you in one way or another.-

4) Dont put all your eggs in one basket

Im sure you heard the expression Dont put all your eggs in one basket well this is true, especially for online investment. If you put $50 into a program, they could run off the next day, and now your left with $0. The smart thing to do is that if you have $50 is to invest $10 into 5 different programs, that way you are almost guaranteed to make some type of profit. The more diversifying the more monitoring and tracking you have to do, but the more money you make, dont be lazy, do some work!

5) Dont let your emotions run you over

Okay so you invested $100 and received %100 profit. You have $200 and confident that you can double that you immediately reinvest it. Happily, you receive your $400 and quickly reinvest that to make $800, however for some reason you dont get your $800, instead you get nothing, the program just ran away! Yes, that is right, dont let emotions control you, people do crazy things when they think they could be making a lot of money, dont invest to much money into HYIP as in the long run you will probably lose out, instead follow the rule number 1 and you should come out ahead.

From reading this article you learn 5 essential tips that will help you identifying if a HYIP is a scam or not, when and if you should invest, and how to minimize your risk of losing your money. If you follow these strategies you should be making money with HYIPs instead of losing them. Have fun and happy earning

Raiel Schwartz the admin of http://www.truemonitors.com has been in the HYIP game for several months and has learned how to make the most profit on online opportunities such as Autosurfs, Get Paid To, and HYIPs. If you want a complete guide of HYIP you should visit HYIP101

Staying In Stocks - Is It Worth The Risk?

2007-10-05T15:36:00.001-07:00

If you are in the creek bed when the dam breaks, you will have no chance at all. You will be swept to your death. And you will have little or no warning, except the frequent tremors.

How long have you got? It could be one day. It could be a year. No-one knows. All you have is the tremors for signs and the knowledge of the risk.

Will you risk it? Only you can answer that.

The longer time goes on and the big one still doesnt arrive, the more we are tempted to go back and buy shares (pan for more gold). Yet now there is even less time until the big one.

Baby Cade's Guide To Making Money With Your Blog Content

2007-10-05T14:30:00.000-07:00

Key Terms

EPC = Earnings Per Click
CTR = Click-Thru Ratio
CTC = Cut The Check (coined by Rasheed Wallace)

Passion is the essence of successful online content creation. With the advent of Blogger and other easy to use blogging platforms, even the unsavvy computer user is able to put content on the web for others to read and respond to. Its even more gratifying to be able to make money from communicating your passion to othersand it is so easy to do.

I believe that most readers of this article are at least adept enough to start a blog with Blogger and perhaps even place a Google Contextual Ad in the code. However, there are many other steps to take that can maximize your blogging ability to not only reach your audience but to make money from blog visitors.

Using a real example, I will give you a formula that you can easily follow, with little baby steps, that will allow you to start making money with your web content.

My Passion

You know what I like? Baseball!
Robert De Niro as Al Capone in The Untouchables

I am a fantasy sports junkie. To me, 14-6-8 arent just SERPS, they could also be Boris Diaws basketball stat line. Now that fantasy basketball season has ended (and I did win my league), I can focus full time on fantasy baseball.

During the course of this article, I am going to create and monetize a blog about one of my fantasy baseball teams (http://www.fantasybaseballmonster.com). I will use Blogger as my platform, though I will host the blog myself (and I strongly recommend that you do this as well). I will take you step by step through the creation and monetization process as well as give you my first post. I encourage you to copy my entire process when you create your blog...I think you will be happy with the results.

My Process

First, I set up my account and enter the pertinent FTP information. For this exercise, I will be working with the Sand Dollar Blogger template. It isnt the most aesthetically pleasing of the choices, but it will allow me to place my skyscraper ads down the left side of the page without changing the CSS in the code. Studies have shown that people viewing your website are more likely to notice content located on the left margin of the page (see the Google Eye Tracking Study for more detail). So in order to maximize monetization of my blog, my ads will be placed on the left.

Once I get into the Blogger interface, I click on the Settings tab to begin my customization. Many default settings should go unchangedI will only focus on those that should be altered.

(Basic Tab) Title: Your core keyword(s) should be in your title. Fantasy Baseball is minehence Tru Fantasy Wariors (the name of my team adapted from the Ron Artest rap record label) Fantasy Baseball Blog is a workable title for SEO purposes.

Description: Needs to contain your secondary keywords. In my case, they would be the members of my fantasy baseball team. I list each name here.

(Publishing Tab)

File Name, URL: The name of your file needs to be index.shtml instead of index.html. Note that if Blogger is hosting your blog, you cant do this.

Notify Weblogs.com: Click Yes

(Formatting Tab) Show: I tend to favor showing a lot of content on the home page. I would raise the number thats in the defaulthow much would depend on the amount of content that will be created.

Post Template: I would tag all my posts with the Technorati tag for fantasy baseball. I visit Technorati, click on the tag tab, and determine that I need to add the following code into the Post Template:

<a href="http://technorati.com/tag/fantasy+baseball" rel="tag">fantasy baseball</a>

(Archive Tab): Archive Frequency: Choose Daily

Getting Content

I will signup for Google News Alerts for each player on my team. Each day, I will receive an e-mail containing news stories about that playertheir actions on the field will drive the postings that I make.

Placing an RSS Feed on the Blog

Placing an RSS feed on the blog will not only provide my readers with relevant content about the targeted subject matter, but it will also aid any search engine optimization efforts.

Im going to create a simple RSS feed for my blog that will focus on some players on my fantasy baseball squad. Note that this wont work if Blogger is hosting your blog.

I go to Google News and click on Advanced Search.
I create my search and I see these results.
There are two primary feed types: RSS and Atom. Google News allows you to create either type of feed. I click on the Atom link.
I take the URL of the Atom Feed to Feedburner, a service which enables me to format my feed in a manner that allows me to include it on my blog. I place the feed in the Burn this feed right this instant box and follow the steps until my feed is live and I get a new Feed URL.
Moving right along, I now need to download some software that will allow me to display the feed on my blog. RSS2HTML is what I use. Note that this software will only work if my webhost supports PHP. Although Im sure that easy-to- implement ASP solutions exist as well, I havent used any of them.
I unzip the downloaded zip file and I see the two necessary files that I need to upload to my webserver: rss2html.php and sample-template.html. I open the latter file (if you dont have an HTML editor, use Notepad on your PC). At the top of the page, I delete everything between the title tags, the h1 tags, and the h2 tags.
I go back into Blogger and I open my template. I scroll down until I see
```
"div id="sideBar"
```
Remember how I generated a Feedburner URL (step #4 above)? I need it now. I place the following code directly below
"div id="sideBar"
< !--#INCLUDE VIRTUAL="rss2html.php?<br>XMLFILE=http://feeds.feedburner.com/Ichiro-suzukiOrBronson-arroyoOrTravis-afnerOrJason-marquis-GoogleNews&TEMPLATE=sample-template.html" -- >
When you do this yourself, just substitute your Feedburner URL for mine. I save the template and republish it to the web. I should see my feed on the sidebar of my blog.

The First Post

Each day, I will get a series of Google News Alerts e-mailed to me about the members of my fantasy team. My daily postings will be guided by my ideas and thoughts about my team. The sample post I included was driven by reading a news alert about Ichiros first good game of the year and how I traded Miguel Tejada for Ichiro, which was an incredibly stupid move. Since Ichiro is the focus of my post, I make sure to use his name in my post title. I then proceed with my mini-rant (making sure to include the names of all the players involved).

In addition to my Technorati tag for fantasy baseball, I also add tags for Ichiro Suzuki and Miguel Tejada which serves the purpose of getting my site into Technorati for people searching for those players. Technorati tags also increase the keyword density of those terms in the blog, aiding in the SEO effort.

If you are new to the blogosphere, youll ultimately develop your own posting stylejust always be sure to use your targeted keywords in each post.

Monetization

Google Ads / Affiliate Programs

One needs to develop a certain amount of content before you can apply and be accepted into the Google AdSense Program (Im leaving out Yahoos program because its still in beta). Since I already have an AdSense Account, I can skip this step.

Im going to give you a couple of very important rules that advanced AdSense Publishers already know and use to help increase their websites revenue generation.

Make the background of your ad the same color as the background of the page. On my fantasy baseball blog, I have decided to place my ads in the body of the blogthe color of which is #F6F6F6. I wish to customize my ads so they blend into the blog background. Within the AdSense interface, I click on Custom Palettes. I go to the White palette and replace the background and border colors with F6F6F6. I then save my custom palette for use in my blog.
The second cardinal rule of maximizing AdSense revenue is making your ads seem like they are part of your blog content. Given that I can only place a maximum of three ads on a page, I make the following selections:

I want to place a 728 x 90 Leaderboard Ad directly above my most recent post. Making sure Im using my custom palette, in my blog template, I drop my code just after
I take a 300 x 250 Medium Rectangle Ad and place it directly above my RSS Feed in my sidebar.
I withhold using my third ad for now. I will continue to experiment with different ad placement.

Given the ubiquitous nature of contextual advertising, many new publishers forget that they can become members of affiliate programs and make money through sales of affiliate products. For ease-of-use purposes, I recommend that newbie publishers simply join one of the bigger affiliate networks Commission Junction, Linkshare, and Shareasale are the most prominent).

When I choose an affiliate merchant for my blog, I know that I need a tight nexus between the merchant and the blog subject matter in order to make sales. I know that with some of my older, more established websites, I have done really well making sales with anti-aging products that have excellent payouts. However, I wouldnt consider placing those banners on this blog because my audience wont be interested. The sports merchandise merchant I choose here will be much more likely to make revenue for me even if the payouts are less.

Blog and Ping

Why do this step? To let the various blogging search engines know that I am continuing to update my blog with fresh content.

The easiest way for me to blog and ping is as follows: I surf over to Pingoat.com. I fill out the information requested, including my site feed URL (which is found in the Blogger Interface by clicking Settings / Site feed). I will come back to this site periodically to repeat the process.

Link-Building

Link-building is an essential part of search engine optimization, so I will need to build links into my blog in order to drive more traffic to it. Many articles have been written about how to build links. For purposes of this exercise, Im going to follow a beginners technique that will allow me to build some relevant links quickly and easily.

I go to Linkmarket.net and register my website. I upgrade to full membership.
I download and install the Google Toolbar.
I now have the ability to trade unlimited links with over 40,000 websites. I only want to trade links with sites relevant to mine. Trading links with pharmaceutical sites isnt going to help me with SEO for a fantasy baseball website, nor will it benefit my site visitors. I click through to the Sports Directory of Linkmarket.
I offer to trade links with each website in the Fantasy and Baseball Categories (and if Im feeling really aggressive, Ill trade links with the Basketball, Football, and Hockey websites, as well). Before I decide to trade links with a site, I visit the site in order to check its Google Page Rank. It matters not to me what the Page Rank is, so long as its not zero.
If the website accepts my offer to trade, I place their code in my Website Template in the sidebar beneath my links header.
I will most certainly get offers from other website offering to trade links with me, which Ill accept so long as linking to that website will be valuable to my blog visitors (and if their websites dont have a Google Page Rank of zero).

Note that to achieve long-term SEO success, youll need to earn inbound linksnot just trade for them.

Conclusion

When you are communicating your passion to the world, it doesnt feel like work. When you are communicating your passion to the world and earning money at the same time, its even better. If you havent participated in this most basic area of online commerce before, I invite you to take the plunge. Ive attempted to spoon-feed you a process that can easily be followed by someone with a minimal technical background. If you choose to embark on such a journey, it will be rewarding, educational, and a heck of a lot of fun.

Welcome To The World Cade David Mintz

Todd Mintz is the Director of Internet Marketing & Information Systems for S.R. Clarke Inc., a Real Estate Development and Residential / Commercial Construction Executive Search / Recruiting Firm headquartered in Fairfax, VA with offices nationwide. He is also a Director & Founding Member of SEMpdx: Portland, Oregon's Search Engine Marketing Association.

The Perks Of Online Stock Investing

2007-10-05T14:26:00.001-07:00

Getting into the stock market can be a fun and rewarding venture. For those who are unfamiliar with its ups and downs, the prospect can be a bit daunting though. Dealing with brokers can be a little frustrating. Some brokers are very easy to reach and will do a buyer's bidding no matter what.

Others, armed with more knowledge than the investors, will sometimes be a little less responsive. Thanks to online stock investing, brokers can be virtually taken out of the mix for those who aren't keen on dealing with a middleman directly.

Online stock investing is a fairly new concept that has opened a lot of doors for investors of all financial means. Everyone from retirees to schoolchildren have managed to get involved in online stock investing for a whole host of reasons.

There are some negatives to going this route to make investments, but there are a whole lot of perks that go with it, too. The cons for online investing involve the loss of a personal broker that can offer sound advice. When it comes to getting the best advice on what to buy, when to buy and when to sell, it's hard to replace the expert.

Beyond that, however, online stock investing does have a lot of perks that make it accessible to virtually anyone. Plus, many reputable online trading sites provide access to trained brokers and investment counselors when their help is needed.

The overall perks of online stock investing include:

Ease: Most online trading sites offer very simple interfaces that enable users to quickly and easily buy and sell stocks. All that's generally necessary is setting up a free account, sharing some information and inputting what's required to pay for stock purchases. Most sites offer a lot of help for decision making and even navigating through purchases and sales, too.

Cost: The costs associated with trading stocks online will vary from site to site, but in general they are much more affordable than using direct brokerage services. Rather than charge huge per trade fees, these sites enable very small purchases and sales for pennies. This is what makes online trading so attractive to small investors looking to turn their milk money into extra cash.

Control: Online stock investing tends to put a lot more control into the hands of the investor. With direct access to buy and sell commands, these services help ensure that what investors want done is truly carried out. This can present both pros and cons, however. With the ease for selling and buying, overzealous traders can sell prematurely or buy at bad times.

Freedom: Online stock investors tend to have a lot of freedom to make their own decisions. This falls under control, somewhat, but the fact is this is one of the best options for someone who wants the freedom to make all of their own decisions regarding their money and investments.

Online stock investing can be a great way for anyone to get involved in the market. Coming with fees that are more affordable to the masses, this trend is one that's more than likely to continue.

For more online stocks information please visit http://www.aboutonlinestocks.com - a popular online stocks website that provides tips and online stock resources. Don't forget to check out our page on online stock investing

The Big Lie About Social Security

2007-10-05T13:20:00.000-07:00

Do you ever dream about what your retirement will look like? Do you plan to visit certain places or volunteer for a certain organization? Maybe you look forward to just taking it easy and getting caught up on your hobbies.

Are you counting on Social Security for a large portion of your retirement income? If so, please read on. What I am going to tell you could help you get to retirement in good financial shape.

We have been led to believe that the Social Security Trust Fund will be there for us when we retire. Depending on your age, there may be some form of Social Security, but it will be nothing like what retirees have enjoyed the last 70 years or so. If you are under 50, chances are, Social Security will not be there for you at all.

This is not new information. In fact, congress was first made aware of the fact that the Social Security Trust Fund was unsustainable way back in 1955. Have they done anything with that knowledge? No, instead they added the Medicare and Medicaid plans to the mix, making the whole system even more unsustainable.

First, you need to realize that there is no real Social Security Trust Fund. The money is collected, checks are cut for current retirees, and the rest of the money is deposited in the general fund to be spent as the government sees fit. There is no investment of our money to help build our retirement funds, it has been spent. All of it.

Second, the demographics of the U.S. are showing a rapidly aging population. Between now and 2030 the number of Americans over the age of 65 will grow from 40 million to 78 million. During this same time, the number of workers supporting Social Security will drop until there are only two workers supporting every retiree.

In 1999, Peter G. Peterson, the chairman of the Council on Foreign Relations and chairman of the Blackstone Group, wrote a book titled, "Gray Dawn: How the Coming Age Wave Will Transform America-And The World." In it he estimates the total unfunded liabilities of the Social Security Trust Fund to be $10 trillion. That was 1999. Now that number is estimated to be in the range of $77 trillion. That's trillion with a "T."

What if the government were to wake up and try to fix the problem? Well, according to Peterson, in 1999 it would cost the government $750 billion per year for the next 30 years. Add to that Medicare and the annual amount jumps to $1.5 trillion per year. Now, the total U.S budge is expected to be around $2.7 trillion for 2008. That means the over 50% of the current budget would have to be used to fund these two systems and that is based on 1999 figures not the larger more recent number of $77 trillion.

If the government is not funding Social Security, Medicare and Medicaid then how will the government pay the recipients? There are only three ways: (1) collect more revenues; (2) borrow the money; (3) print the money. The results: (1) a tax revolt; (2) rising interest rates and a collapsing economy; (3) the destruction of purchasing power and also the lifestyle of anyone dependent on Social Security. Not a pretty picture no matter how old you are.

What this means is that most of us will have to continue working to make ends meet and we must set aside funds to sustain us when we can no longer work. If the government will not or cannot do it then we must.

Are you headed for a miserable retirement? Not if you act now. Learn more by visiting our website today: http://www.avoiding-bankruptcy.net/5things.html

Pros and Cons of Being a Limited Liability Company

2007-10-05T00:30:00.000-07:00

Limited liability companies are the popular new choice for business start-ups. The LLC has only been in existence for roughly 26 years and there are some definite pros and cons.

A limited liability company is a creature of state law. Prior to the late 1970s, it had never been a choice for businesses because it didnt exist. In the late 1970s, the State of Wyoming passed an act creating it. It took another ten years or so before other states caught on. Once they did, the mad rush was on to pass legislation allowing for the creation of LLCs in nearly all states. The world of business entities had been changed forever.

The LLC is a business entity designed to help small business. As a result, most of the positive reasons for using it are catered to such business. In a general view, the entity is heavily favored because it provides liability protection from lawsuit judgments and business debts just like a corporation. On the other hand, the entity does not carry the legal requirements for running it like a corporation. Few board meetings are required and the administration of minutes and such is extremely simple. For small businesses, this cannot be understated.

Another significant positive of the limited liability company has to do with taxes. The IRS made a landmark decision in the late 80s to allow the LLC to be taxed like a partnership. This means the business owners can elect to have the finances of the business pass through to their personal returns. Doing so avoids the double taxation situation corporations are often criticized for.

The LLC is a great vehicle for small businesses, but there are some important cons associated with it that you must understand. First and foremost is the lack of history in relation to the entity. While it is supposed to provide the protection of a corporation from liability, this has not entirely been flushed out in the courts. So far, the decisions seem to support the idea, but it will be another 20 years at least until we can all be sure. Courts have a history of interpreting laws differently than the legislature wrote them.

Another con is clearly the fact that an LLC cannot be taken public. If you start a business and it takes off, the company cannot be listed on any stock exchange for a basic reason. To trade stock on an exchange, there has to bewell, stock. A limited liability company does not have stock. Instead, the owners are called members and own membership interest like you would see in a partnership.

Finally, there are a certain number of states that limit the use of the limited liability company. States like California, for example, do not let professionals use the entity. Professionals can be defined surprisingly broadly. While doctors, lawyers and accounts seem obvious, certain states also will restrict real estate agents, consultants and other professions. Ironically, the states will usually approve the filing, so you dont know there is a problem till someone sues you.

At the end of the day, an LLC is often a great vehicle for small businesses. Just make sure you understand the limits.

Richard A. Chapo is a San Diego business lawyer providing services for limited liability company formation in California.

Forex Trading Advice Don't Take Any Forex Advice Until You Read This

2007-10-04T09:11:00.001-07:00

Would you take driving lessons from someone who had never driven in their lives?

Of course you wouldnt!

With forex trading advice people take advice from people who have never traded and never question it, lose their money and are surprised.

If you are taking forex advice via signals or a system there is only one criteria you need to judge the advice on:

A real time track record.

Thats real money, made in the market over a 3 year period or longer.

It does not guarantee you will make money of course, but if I follow advice I like to know the forex trading advice I have taken, has made money and the logic is soundly based.

Forget hypothetical track records.

Anyone can make a profit if they know what the prices did!

Ever seen a hypothetical back tested system that didnt?

My six year old boy could make a profit that way, but not sure I would trust him to trade for me!

I am a trader of 20 years and I see e-books and makings telling me I can easily make 90% accurate trades or 100 pips a day!

Please dont insult my intelligence.

I know making money is not easy in anything and that includes forex trading.

Use common sense!

If forex trading advice looks to good to be true it probably is.

Use common sense and dont get blinded by greed or an easy way to make money you will lose.

Only take forex trading advice from vendors who provide the following:

A real time track record and the comfort of a money back guarantee.

There are plenty out there giving good solid advice that can help you make forex profits, but take a bit of time to seek them out.

Dont fall for the scammers in forex trading advice offering you easy ways, or guaranteed profits. You will lose.

Only a small minority of traders make money and there not the above.

They will simply make money out of you from selling advice that will lose you money.

Accept this fact:

Forex markets can and do make money and there is good advice out there but forex trading makes few traders rich over night.

Forex trading is a long term solid way to make money and good profits.

Make sure you dont fall for the hype of the huge amount of forex advice sellers on the net who have never traded in their lives.

No real track record you know what to do now

In conclusion with forex advice to separate the scammers from the people who make money, get the real time track record.

Thats it - Enough said.

MORE FREE BETTER TRADING INFO

On all aspects of becoming a profitable trader including info about trader W D Gann who made a $50 million fortune trading go to our website for an exclusive Gann Trading Course visit our website at http://www.net-planet.org/index.html

Commodities Trading - Basic Risk Management - Hedging

2007-10-03T15:20:00.001-07:00

If you're a commodities trader or are looking to become one, you know that two elements motivate you: speculation and hedging. Although speculation and hedging are not mutually exclusive and you can do both at the same time, speculation is primarily profit oriented. Hedging is more about protecting your profits or minimizing a potential loss and is therefore a defensive strategy.

When you hedge, you essentially recognize a hard fact; that is, traders cannot predict prices correctly all of the time. If you want to be on the right side of the trade, you need to not just to predict what direction prices are going to go in, but you also need good timing.

Although it's important to guess correctly whether prices are going to move up or down, you also have to know when you should get in and when you should get out. You can improve your odds of doing so with some simple hedging strategies.

To begin with, let's talk about a few elementary concepts. Hedging is effective, in part, because prices for commodities in the cash -- i.e., spot -- markets tend to move together, whether up or down.

In a "spot" or cash market, physical commodities are bought and sold. This differs from the futures market, where contracts are traded for future delivery of the particular commodity.

Even so, spot prices don't move exactly together. The difference between the spot price and the current contract price is called the "basis." The basis equals the cash price minus the futures price.

When they hedge, investors have two basic alternatives, either going short or going long. However, these two strategies are not used only to the exclusion of each other. They can be used together in a mixture, tailored to an investor's needs. If you "go long," that means you're buying in order to sell later at a higher price. If you "go short," that means that you're going to sell before you buy, and expect that the particular commodity will have a future price decline.

In regard to going short, it might confuse you to think that you're actually going to sell something you haven't bought first and therefore don't own. However, when you go short, you borrow the commodity or contract from the broker, sell it, and then buy the equivalent later to "balance the books."

When you go long, you hedge based upon a weakening basis as the cash price falls in relation to the public futures contract. Going short gives you the advantage when the basis is increasing; that is, when the cash price rises relative to the futures contract price. It should be noted that a basis can rise or fall in opposition to price levels. What matters is the difference between the two.

To clarify, let's look at the following:

Let's say a heating oil seller wants to hedge 50% of the anticipated April production of three million gallons. The seller goes short by selling the April heating oil futures contracts at $1.98 per gallon on March 1. By the end of March, cash and futures prices both have fallen. This means that on April 1, when the seller delivers heating oil to the local terminal, the price has fallen to $1.85 per gallon. The seller then simultaneously hedges by purchasing April ethanol futures at $1.90 per gallon.

Because the standard heating oil contract covers 42,000 gallons, the speculator has to purchase 35.71 contracts at this scenario. However, partial contracts aren't traded. The following figures are approximate, to make demonstrating this scenario easier:

Date Spot Market Futures Market Basis

Mar 1, $1.88 per gal.Sell in April at $1.98 per gal.-$0.10

Apr 1, $1.85 per gal.Buy in April at $1.90 per gal.-$0.05

The hedge result is as follows:

The gain on the futures trades is $.08 per gallon, with the sell in April at $1.98 per gallon, and the buy in April at $1.90 per gallon. $1.90 minus $1.98 equals $.08 per gallon.

The net sales price is $1.93 per gallon, or $1.85 plus $.08.

This results in 50% being hedged at $1.93 per gallon, with an April income of $2,895,000, or $1.93 per gallon times 1.5 million gallons. The remaining 50% is unhedged, at $1.85 per gallon; April income is $2,775,000, or $1.85 per gallon times 1.5 million gallons.

The average April sales price is $1.89 per gallon, for an April income of $5,670,000.

Without hedging, what would have been with the result? The seller would have received $5,550,000, or $1.85 per gallon times three million gallons. By hedging between the spot and futures markets, there was a net increase in April heating oil income of $120,000. Therefore, hedging cannot only help to protect traders from losses, but it can also increase profits.

Visit 123OnlineTrading.com - Commodities, Stocks, Forex to find books, tips and advice about online commodity trading. Besides a large selection of free educational articles you can also find powerful books about online trading in general.

Other Resources: 123OnlineCommodityTrading.com - Commodity Trading Links

Forex Trading And Home Business

2007-10-03T11:06:00.001-07:00

Forex, ie foreign exchange market has become very popular due to its immense size, liquidity, currencies moving in strong trends plus, an easy online access, relatively low starting capital and a big leverage.

All this is very attractive to many sorts of investors, speculators and also amateur people, especially online success chasers who imagine easy and fast profits. BUT it has its pitfalls and the Internet hype sellers and scammers make the situation even more dangerous.

Forex has enormous profit potential but since there is a substantial leverage involved working both ways, the same is the loss potential - the higher the profits, the higher the risk involved. And that is exactly the core of success in forex which is hidden from people seeking fast online profits.

People lacking basic character streaks like discipline, risk evaluation ability, experience and even basic information and training fall prey to false promises and start trading their last money on forex expecting quick riches.

It is necessary to be aware of the fact that trading currencies is not easy. If it was, no one would lose money and everyone would already be a millionaire. Many traders with years of experience still incur periodic losses. Everyone interested in trading forex must realize that trading takes time to master and there are absolutely no shortcuts to this process.

Yes, of course, it is possible to make it a long-term, profitable and sustainable source of high income and even a proper home business BUT the following are the basic rules for success in forex trading:

1. Discipline: it seems easy but the lack of discipline is the profit killer no 1. It is important to set your own rules and goals and stick to them. Do not panic if not everything goes the way you imagine and strictly keep the rules. One of the basic situations is losses: If you know you can lose only $1000, the discipline will help you stop trading if it happens, and not borrow and go on and on... Also, it is the discipline which helps you avoid magic profit calculations.

2. Responsible risk-taking and risk-evaluation ability: forex trading is an investment method not a casino. It is not possible to invest properly if you are not able to take up a calculated risk, if you are not able to calculate an acceptable risk, and if you are not able to even recognize a risk. The good news is that you can develop this ability.

3. Spare money: never trade your last money, always invest either profit or a reasonable amount of money you can lose. Always behave responsibly and never borrow money to trade.

4. Thorough education and training, incl practical training: it is imperative that before you start trading live, you get proper education and training, that you acquire working knowledge and develop your own working system on which you can build your investment strategies, routines and practice.

5. Never trade in a live-or-die situation or under any stress: many gurus say that you can make instant riches from forex investing your last money. It is one of the biggest lies I ever heard. Unless you feel absolutely comfortable, knowing what you are doing and why, enjoying the trading, you cannot trade successfully. Any stressed, unbalanced or anxious mind and brain is not able to evaluate situations correctly, react competently, and it is a paved road to failure and losses.

6. Always do your homework: another hype you can hear around says that everyone can trade just following someone else's advice and instructions. I can tell you only one word as an answer: rubbish. You must realize that you must be able to evaluate every situation, every trend, every forecast, create all the analysis, follow necessary trends, incl, of course, hearing specialized analysts BUT the decision and the money is yours only, so the responsibility is yours. The better your homework, the higher and more reliable your profits.

7. Learn from your mistakes and remain flexible: you must know that you will make mistakes, you will even lose in some trades but you must be a great trader and you must know it. When you make a mistake you must analyze the situation, find out why it happened and see to it that you will not repeat the same mistake in the future. You must not despair and fall into depression. You must stay positive and simply do better next time.

Plus a little closing note to only make you aware of these important topics which, however, exceed the scope of this basic informational article:

- yet another risk is here: it is vital to choose the right market-maker, big enough to allow you to make full use of currency moves. I stress a market-maker and not a broker,

and also,

- avoid managed accounts.

In case you are interested in mastering forex trading and start with the above points seriously, you are on the right way to trading success.

Irena Whitfield is the webmistress of http://www.thecassiopeia.com/ - Internet Business Consultant you need to make your online home business a real success. Without any hype, she will help you to get where you want to get. Get her new ebook Package 'Your Success Master Keys' , containing: 'Success Tips And Tricks' , '7 Stars of Online Success' and 'The Success Seeds: the Entrepreneurial Bible', and make your business profitable this year!

http://www.thecassiopeia.com/ePublishing/SuccessMasterKeys.html

A Few Tips On Buying Underfloor Heating On the Net

2007-10-03T09:56:00.001-07:00

As one of the fastest growing sectors of the building trade electric underfloor heating is becoming more and more popular, but with that comes more and more companies to choose from, most of these being online companies.

If youre like me thinking how do i sort out the good from the bad? How do i know if Im buying from a company that will deliver once I have handed over my card details? & that can stand buy me if i have a problem? The answer is simple really if you follow some of the pointers bellow:

First thing to do is check that the company address is displayed somewhere on the site, usually on the contact us page, if you cant find it what are you going to do if you need to contact them? Check they have a "proper" land line telephone number you can phone, and they are not just "hiding" behind a "080" number as many companies do.

Check to see if the company is a member of any online trading scheme, like the ISIS Internet Shopping Is Safe scheme this ensures that online traders follow strict guidelines that protects you the customer should something go wrong and its a point of contact for you to use if you do have a problem.

Look out for things like ISO9001:2000 registered company, if you see this and its genuine then you know for certain that that company has a set quality management system in place.

When your selecting your underfloor heating products and your thinking "wow this is too good to be true" then it probably is, the company may be selling the goods so cheap because they dont know what there doing, it may be a secondary income for them they may not be bothered about selling something to make 20, but they certainly arent going to be about to help you out when you need them and more than likely will just pass you on to the manufacture.

Another thing to remember when the goods are so cheap is: were do the goods come from? Are they cheap because the quality is cheap? What happens if i have a problem?

The morel of the story is in todays world you usually get what you pay for and when it comes to underfloor heating its just not worth scrimping and trying to save 30 at the end of the day, for most consumers its a little touch of luxury and normally its a one off expense that needs to last as long as the floor, so those companies who charge that little bit extra have the staff, insurance and resources to stand by you at anytime in the future, plus they have a reputation to uphold. All of the above should help to give you a more pleasant experience of buying electric underfloor heating on the net.

There are a few really good companies out there as well as not so good companies just be aware.

Underfloor heating is one of the most efficient forms of domestic and commercial heating today. Most underfloor heating systems are aimed at the DIY market but if you dont fancy doing it your self then why not contact us for a free no obligation quotation.

Real Estate Investment 2005 - The Hottest Countries for Investment in 2005

2007-10-02T20:38:00.000-07:00

Whether you are a real estate investor looking for a steady and safe investment in a proven market or a real estate speculator willing to gamble on the unknown and undiscovered in the hopes of gaining a significant ROI (return on investment), this article covers the real estate investment hotspots for 2005.

A recent UK government report discovered that there was a 250% increase between 2000 and 2004 in the number of Britons buying property abroad solely for investment purposes, and this trend does not seem to be limited to the UK nor does it seem to be slowing down!

The global stock markets seem to be in decline, there is a worldwide pension crisis looming and we have uncertainty in the Middle East, in the UK the housing market is unaffordable, possibly over inflated and unlikely to bring significant returns for investors late in on the game and so more and more of us are looking further a field for our investment opportunities. This has led us to look around the world for the next big thing - the next real estate boom.

So whats hot for 2005?

The latest EU entrants are proving of continued interest to the property investor as are those countries in line for EU ascension in 2007.

The likes of Malta, Poland, the Czech Republic and Cyprus who joined the EU in 2004 were hot before they joined and have proved solid for investors already in the market and are looking like safe bets for 2005 as well. Growth is set to be steady, the economies of these countries are improving and investor confidence is strong.

Hungary, Slovakia, Bulgaria, Croatia, Turkey and even North Cyprus who are lining up for ascension consideration in 2007 have solid emerging real estate markets which are proving of interest to the property speculator. Clearly the risk involved in investing in countries not already in line with EU fiscal and legal legislation is greater, however, so are potential returns.

The attraction of such markets to property speculators is quite simple these countries are working hard to improve infrastructure, attract inward investment, stabilise their economies and promote tourism, and ultimately they are hoping for EU ascension as this brings with it vast potential for economic advancement. In the meantime these countries often have deflated real estate markets offering incredible property bargains and undiscovered and under exposed tourism potential all of which adds up to potentially significant returns for anyone in on the real estate investment game.

Eastern Europe is opening up thanks to the budget airlines carving swathes of routes into all corners from Ljubljana to Salzburg, from Krakow to Riga and also thanks to overseas property investment clubs. It is now possible to invest in overseas property funds meaning your money can go far further than you ever have to!

Its possible to invest in funds which purchase and manage real estate in Spain, Slovenia, Poland, Bulgaria, Croatia etc., etc. These funds work just like any other general investment fund. The investors money is pooled and the fund managers then purchase a range of investments in this case a range of properties in various locations and manage them.

Anyone looking to invest in such a property fund should expect a minimum investment of around $10,000 - $20,000 with a 1% upfront fee, a 1% management fee and a performance fee. Obviously charges and investment rates vary from fund to fund and returns are not guaranteed.

There is still room for expansion in the popular property hotspots of Spain, France, Italy and Portugal. The markets in these countries are proven, strong and ever popular, and if you head off the beaten track, away from the main tourist destinations and airports you are still likely to find significant real estate investment opportunities.

New flight routes and new areas of interest in these European destinations are attracting more real estate investors month on month and the word in the market is that if you are interested in these countries you should consider the northern parts of Costa Almeria or Costa Calida in Spain for example, the Costa de Prata in Portugal or Languedoc, the Cote dAzur and surprisingly, Paris in France.

Further a field Dubai and Florida are established, proven markets with room for growth, Bahrain and Canada are countries worth considering, as are New Zealand and South Africa. The latter is of particular interest to speculators as it is set to host the world cup in 2010, the Rand is weak, the political situation is stable, it is possible to buy yourself out of crime hotspots and the scenery is diverse, breath taking and stunning and the property market is definitely hot!

If you are considering real estate investment for the first time or are keen to increase your presence in the real estate investment market place, make sure you are comfortable with any investment before you go ahead and sign on the dotted line. Read around and do plenty of research - the internet is a great place to start research the country you are considering investing in, and any investment, real estate or legal company you are considering getting involved with. Seek independent advice and always keep in mind that the value of any investment can go down as well as up.

To your success cheers!

Rhiannon Williamson is an experienced publisher who has produced articles for leading travel and tourism guides and financial magazines. Her specialist knowledge about both travel and finance gives her site Shelter Offshore the unique ability to literally cover every single aspect of moving & living abroad - including the often less discussed offshore tax advantages that can be available when leaving our homeland.

Gold Stock Price Turned Back (Again)

2007-10-02T19:38:00.000-07:00

Gold Stock prices have been turned back again from major resistance. The 3rd time in a year! What does it mean? Are we entering another gut wrenching correction or will we reverse higher?

Can I be forgiven for asking if Gold shares will ever break out?

Chart 1- Gold Stock prices bouncing off major support for the 3rd time in a year

So whats really happening here?

Two theories:

1 Gold has been a relative underperformer versus the stock market for the last 6 months. Now that momentum is waning in the stock market, Gold Stocks are slowing down alongside.

2 Gold shares are schizophrenic and dont believe that Gold is going a lot higher and prefer to act like regular penny stock listings.

The establishment banks have been trying for months to sweep the sub prime problem under the carpet. It just wont go away. Fears of credit problems continue to spread. There are no bids out there for CDOs or CLOs. The latter being the instrument of choice for Private Equity capital raising's!

Credit spreads are widening and no matter the spin, this credit problem will continue to grow and chip away at market confidence. And thats when Gold will shine. Gold stocks are by nature counter-cyclical and Gold bullion is the ultimate safe haven. When confidence turns to fear, the HUI will take out 370 and move much higher. But for now the level of confidence is still high. Investors prefer to move to the safety of Bonds or Foreign Currencies. In time they will realize that these financial instruments will also suffer from credit problems. The whole globe is fuelled by debt and that debt is beginning to implode along with the level of confidence.

Visit me at gold stock price and oil stocks please visit me at: http://blog.goldandoilstocks.com

A Bear Reminder

2007-10-02T18:38:00.000-07:00

Every day I hear from the experts on CNBC-TV and the radio gurus that the way to buy stocks is find value. One man's Rembrandt is another man's connect-the-dots and fill in the spaces. Valuation is like beauty. It is in the mind of the beholder.

If valuation is the key to buying stocks then there should be some kind of a formula to determine what is undervalued and over-valued to know when to buy and sell. In every industry there are formulas for standards of performance. For cars we want to know the zero to 60 miles per hour in how many seconds. For soap we want it to be 99 and 44/100 percent pure. For alcoholic beverages it could be how long it has been aged. And on and on.

Yet in the stock market we have no hard and fast set of rules by which to judge a company performance. Ah, and theres the rub! No matter how good a company performance might be it may have no bearing on the price performance of the stock. Finding a good company within a sector that is doing poorly is difficult. Yet one company can be making huge profits and sales, but the stock price is going nowhere. There need not be any correlation.

When you are in a bull market almost every stock goes up even the dogs. When you are in a bear market almost every stock goes down even the best ones. We ended an 18 year bull market in 2000 and almost without exception every stock headed for the exit until 2003.

Bull and bear markets follow relatively standard patterns. If an investor owns stocks or especially index funds during the bear periods he will be lucky to have broken even at the end of the cycle. Cash in the mattress will outperform market returns while the bear is in charge. During bear times there will be periods when the market will have a nice advance that can last for many months leading investors to believe the bull has returned. These intermediate rises can ultimately bring many investors back into the market only to lose it when the rally is over and true valuation returns.

During any historical 10-year stock market period there has always been a bear market. Many of them have hurt investors with losses of 40% and more. No one knows when the next bear will come out of his cave to ravage stock investors. There can be many reasons for a sharp or sustained market break that may be apparent, but the market continues to advance. Logic does not give the answer.

Individual investors or their money managers must have an exit strategy. Without a solid plan they will lose again as they did in 2000. Investors must ask their money managers and financial planners what they will do when the next bear appears. If there is no solid strategy a different manager should be found immediately. Without it profits and principal will disappear.

No one knows exactly where the top or bottom of a market move will occur. Have an exit strategy in place at all times.

Al Thomas' best selling book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profitswith his simple 2-step method. Read the first chapter and receive his market letter at http://www.mutualfundmagic.com anddiscover why he's the man that Wall Street does not want you to know. Copyright 2007 All rights reserved