Thursday, October 4, 2007

Forex Trading Advice Don't Take Any Forex Advice Until You Read This

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

Wednesday, October 3, 2007

Commodities Trading - Basic Risk Management - Hedging

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

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

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.

Tuesday, October 2, 2007

Real Estate Investment 2005 - The Hottest Countries for Investment in 2005

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)

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

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

Malaysia: An Oriental Tourist's Haven and an Anthropologer's Delight!

Malaysia History:

Wikipedia, the encyclopedia says: the history of Malaysia is a relatively recent offshoot of the history of the wider Malay-Indonesian world. It is so because anthropologists and historians could see very little aspects culturally and linguistically, to distinguish todays Malaysian territories from the lands of the Malay Archipelago. According to their research, todays division of the Malay world into six different states-- Malaysia, Indonesia, Philippines, Singapore, Brunei and East Timor is largely the result of external influences, like the Hindu India, the Islamic Middle East and Christian Europe (west), China and Japan (north-east). Besides, the most direct shipping route passing through the Strait of Malacca, Malaysia has naturally been a melting pot of trade routes and cultures. Thus, it has been found out that the geographical position of Malaysia has literally made it difficult for the Malay people to resist foreign influence and domination.

If one analyses the history of Malaysia, he can see these successive phases before the final assertion of Malay independence.

The domination of Hindu culture imported from India reached its peak in the great Srivijaya civilisation in Sumatra (from the 7th to the 14th centuries).

The arrival of Islam in the 10th century, leading to the conversion of the Malay-Indonesian world, having a profound influence on the Malay people. The Srivijayan empire broke up into smaller sultanates, the most prominent one being Melaka (Malacca).

The intrusion of the European colonial powers and European domination: (i) Portuguese, (ii) Dutch and (iii) British, who established bases at Penang and Singapore. This triggered off the most revolutionary event in Malay history the Anglo-Dutch treaty of 1824, which drew a frontier between British Malaya and the Netherlands East Indies (now Indonesia). Thus, the division of the Malay world was established permanently.

The British had obvious economic intentions in establishing their empire in the Malay world. In colonizing the Malay world, they had forseen financial profit, banking on the obvious attractions of Malaya, the tin and gold mines. However, soon after, the British planters started exploring the tropical plantation crops including pepper and coffee. On the other hand, there was a mass immigration of Chinese and Indian workers to meet the needs of the colonial economy. To meet the needs of a large and disciplined work-force, plantation workers, mainly Tamil-speakers from South India as well as immigrant workers from southern China were imported to the land. Thus, the Malay society suffered the loss of political sovereignty to the British and of economic sovereignty to the Chinese.

However, after the outbreak of the Sino-Japanese War in the 1930s, Chinese emigration to Malaya stopped significantly, thereby stabilising the demographic situation. In 1957, Malay became an independent nation, with 55% Malay population, and with rich export industries, consisting of rubber, tin, palm oil, and iron ore.

1963 was a significant year for the Malay world, when Malaya became Malaysia with the acquisition of the British territories in North Borneo and Singapore. It was followed by various political onslaughts like confrontation with Indonesia, the race riots of 1969, the establishment of emergency rule and a curtailment of political life and civil liberties forever. However, after the New Economic Policy introduced by the government in 1971, the Malaysian economy improved significantly, with the elimination of rural poverty, and with the identification between race and economic function. The political culture of Malaysia, on the other hand, remains increasingly authoritarian till recent times, with a notable decline of democracy. The question of when and how Malaysia will acquire a multi-party democracy, a free press, an independent judiciary and the restoration of civil and political liberties remain unanswered, despite its economic maturity which has been quite a phenomenon in the Malaysian history.

Malaysia Economy:

With a small and a relatively open economy, Malaysia is a country on the move. Earlier what had been a country dependent on agriculture and primary commodities has today grown to be an export-driven nation, thriving on high technology, knowledge-based and capital-intensive industries.

This drastic structural transformation of Malaysia's economy which has been quite spectacular in these forty years, has been the result of pragmatism and a number of decisive steps taken by the Malaysian government. Largely depending on its wealth of mineral resources, fertile soils, agriculture and manufacturing, the Malaysian economy achieved average annual growth rates of about 7% during the last decade. And it has been possible because the government did not rest on its laurels, but took important steps instrumental to the countrys economic progress, like eradicating poverty with a controversial race-conscious program called New Economic Policy (NEP). First established in 1971, it was designed in particular to enhance the economic standing of ethnic Malays and other indigenous people, collectively known as bumiputras.

The results of such a revolutionary economic policy introduced by the government clearly shown, as the GDP doubled to reach an estimated RM219.4 billion (US$57.7 billion) in 2002. On the other hand, the country has shown tremendous potentials in its exports and imports which have almost quadrupled to reach RM349.6 billion (US$92.0 billion) and RM298.5 billion (US$78.6 billion) respectively. These highly contributed in placing Malaysia among the world's top 20 trading nations, for which today the country even boasts of being an important trading partner for the United States. With a manufacturing sector that now accounts for 30.4% of Malaysia's GDP, Malaysia today is considered one of the world's leading exporters of semiconductor devices, computer hard disk drives, audio and video products, and room air-conditioners.

Rapid industrialization became a boon for the country, after the government opened itself to foreign direct investments (FDI) in the 1960s. Currently, with its market-oriented economy, combined with an educated workforce and a well-developed infrastructure, Malaysia has been regarded as one of the largest recipients of FDI among developing countries. Though the Asian Financial crisis in 1997 saw Foreign direct investment in Malaysia falling at an alarming rate and Ringgit depreciating substantially from MYR 2.50 per USD to much levels lower (up to MYR 4.80 per USD at its bottom), the economy rejuvinated shortly afterwards as the country had a strong growth in exports, particularly that of electronics and electrical products to the Unites States. Today, the country enjoys faster economic recovery compared to the neighbouring South-East Asian countries, though it is true that the level of affluence that was before 1997 financial crisis has yet to be achieved.

Malaysia Culture/Religion:

A multi-ethnic, multi-cultural and multilingual society, housing 65% Malays, 25% Chinese and 7% Indians, Malaysia is also home to the largest indigenous tribe in terms of numbers, the Iban of Sarawak (over 600,000). As an interesting matter-of-fact, the largest community in Malaysia, the malays, are all Muslims since one has to be Muslim to be legally Malay under Malaysian law. However, there are also Christians and Hindus amongst them. Playing a dominant political role, the Muslims amongst the Malays are included in a group identified as bumiputera, speaking the native language Bahasa Melayu. However, despite Bahasa Melayu being the official language, when members of these different communities talk to each other, they generally speak English, recently reinstated as the language of instruction in higher education.

The Iban of Sarawak, interestingly, still live in traditional jungle villages in longhouses along the Rajang and Lupar rivers and their tributaries in Malaysia. Along with them, Malaysia also houses quite a large number of Orang Asli or aboriginal people, who comprise a number of different ethnic communities living in Peninsular Malaysia. Traditionally nomadic hunter-gatherers and agriculturists, many have been sedentarised and partially absorbed into modern Malaysia, though still remaining the poorest group in the country.

Apart from the original nomadic tribes, there are the Chinese comprising of about a quarter of the population and also Indians who account for about 7% of the population. While the Chinese are mostly Buddhists, Taoists or Christian, and speak a variety of Chinese dialects, the Indians are mainly south-indian Hindus, speaking Tamil, Telegu, Malayalam and Hindi. However, english as a first language is used by umpteen middle to upper-middle class Chinese as well as Indians in Malaysia.

The remaining population of Malaysia comprises of a sizeable Sikh community, of Eurasians (of mixed Portuguese and Malay descent as well as mixed Malay and Spanish descent), Cambodians, and Vietnamese. In most cases, the Cambodians and Vietnamese are Buddhists of the Theravada sect and Mahayana sect.

The Chinese forming a sizeable part of the population, Malaysian traditional music is heavily influenced by Chinese forms. Saying that, the Islamic forms also influence the music to a great extent. The music, based largely around the gendang (drum), also includes a number of interesting percussion instruments, and even flutes and trumpets. Infested with a strong tradition of dance and dance dramas, some of Thai, Indian and Portuguese origin, the malaysian culture also incorporates artistic forms like wayang kulit (shadow puppet theatre), silat (a stylised martial art) and crafts like batik, weaving, silver and brasswork.

In terms of religion, Malaysians usually tend to personally respect one another's religious beliefs. However, inter-religious problems arise mainly from the political sphere. Often non-muslims are said to experience restrictions in activities like construction of religious buildings. All Muslims here are obliged to follow the decisions of sharia courts, although when it comes to leaving/renouncing the Islam faith, the court of malaysia is said to have denied one the right (such as the Yeshua Jalilludin versus the Minister of Home Affairs case in the 1980's).

Malaysia Travel/Tourism:

A glorious haven comprising of island life, adventures, city excitement and oriental culture & heritage, Malaysia has been attracting tourists from all nook and corner of the world as an ideal travel destination for over a decade now. With energetic, entertaining dance forms, with a mythical culture that represents fertility, vigilance and dignity, with elaborate traditional festivals like the bamboo dance and the warrior dance, and with a strong sense of community, Malaysia is truly a land of many cultures, wonders and attractions in the heart of Asia.

A land of fascinating extremes, where towering skyscrapers look down upon primitive longhouses, it truly accounts for a memorable eco-holiday. Above all, with some of the best beaches and diving spots in the world, it is ideal for island getaways. It is no wonder then, that with promoting Malaysia as a destination of excellence, the travel/tourism development department of Malaysia has been able to increase the number of foreign tourists and also extend their average length of stay, thereby increasing Malaysia's tourism revenue considerably over the years.

Island Life highlights in Malaysia consist mainly of the Langwaki Island, Kedah, and the Pangkor Laut, Perak. While the local legends, beautiful beaches and natural marvels make the Langwaki Island especially enchanting and unforgettable as a fascinating Island getaway, the Pangkor Laut, Perak, is basically a private island whose market value has increased dramatically after it was voted as the Best Island in the World by the UK-based Conde Naste Traveller Magazine. Aficionados of adventure would just love to explore Mt. Kinabalu, Sabah, Malaysias first World Heritage Site and one of Southeast Asia's highest mountains (4,093 metres). Towering amidst a veil of clouds, while the largest cave chamber in the world at Mulu Caves beckons the tourists with its inexplicable mystery, on the other hand, lush tropical jungles teeming with wildlife for millions of years, like the Taman Negara, Pahang, would be tempting one to experience the exhilaration of endless escapades.

Those looking for city attractions in Malaysia like glamour, shopping, fine dining and more will definitely be able to satisfy their fine tastes and sensibilities. With the ultra-modern Petronas Twin Towers (in the Kuala Lumpur City Centre), the classic Moorish-style old Railway station, the luxurious and extravagant shopping malls and restaurants with succulent Chinese and oriental food fests, one cannot fail to revel in the umpteen alluring attractions of Malaysia.

With all these and much more in store, its no wonder that global tourists continue to return to Malaysia time and again to explore its mixture of cultures and environments for a fantastic, inspiring holiday.

Lopa Bhattacharya (Banerjee) now based in Buffalo, New York, United States, is a content writer/developer working for various overseas corporate website projects, CD-Rom presentations, brochures, flyers and other communication materials). Has worked on numerous SEO copywriting projects on varied themes ranging from travel, hotel industry, photography, web design and software development to US-based clubs and network communities. Was previously an editorial associate for the news, culture and entertainment portal based on the life and times of Kolkata.

Surviving The Commodity Markets, PART 4 - Trading Guidelines For Different Account Sizes

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.

$10,000 ACCOUNT:

Risk no more than 7.5% maximum a trade ($750)

A $10,000 account is probably the minimum commodity amount to begin trading with. Remember that a bigger account is NOT for buying more futures contracts or commodity options, but being able to easily split it into fifteen to twenty different parts. We want to have enough money to support each new position, for many tries, until we hit the great trades that make up for all the losses, expenses and turn a profit.

Probability allows us to have times when we do everything right and have a good run of winners. But the outcome of INDIVIDUAL trades is impossible to predict. Only by doing things right over the long run will probability favor us over the commodity trader who is reckless and random.

The reckless trader will have times when he does very well. But in the end the odds will take him out and give his money to the ones who maintain control. We dont have to trade perfectly - just better than most.

OPTIONS:

With a $10,000 account you can now buy a better quality commodity option that has lots of time and is closer to the money. This may not be possible if the cat is out of the bag. This is a market that is already running strong and the option premium is inflated.

You want to purchase commodity options before the crowd starts chasing the futures market. We use our Timeline program for timing as well as commercial option analysis software to signal high probability trades that have undervalued options and room for the premiums to expand. The bottom line is you can risk $500 (5%) or perhaps even $750 (7.5%). But for a $10,000 account, a $1,000 option is high risk and done only if the trade looks exceptional and it permits you to purchase a great option value. In this case you would look to salvage some premium if wrong, rather than let it expire worthless.

FUTURES:

A $10,000 commodity account gives you more margin money, thus the ability to hold two to three different positions at one time. Remember that we dont know which "high probability" trade will work out, if any, so this is one place where diversification may help.

Ive seen many times in the past where an account was too small to safely take advantage of four good trade opportunities at once. As sometimes happens, the trades that were picked did not work out, while the ones let go were stellar performers. Remember to risk no more than $750 per trade to stay within the risk parameters of 7.5%.

OPTION WRITING:

With a $10,000 commodity account, we are just beginning to get a small amount of flexibility. Very often when the TimeLine or Option Writing program signals an option CALL write, it may later signal a PUT write before the initial call is covered. We will then have two positions. This requires two margins instead of one.

We may even get the opportunity to average in a second lot if the options are far out-of-the-money. And we also have the money to do an adjustment. This is taking a small loss and then immediately selling a new option farther away to possibly recoup the loss and make a profit.

As you can see, the advantage of a larger account is survivability - that is, being able to risk a smaller percentage of the total account. In addition, it permits more flexible strategies that involve multiple option writes and more complex positions. A larger account ($10,000) is NOT for taking on larger quantities of the same position. In other words, don't treat it like two $5,000 accounts.

Part Five 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

How Do You React When Your Stocks Are Down

When investing and dealing with the market, losses are inevitable on occasion. It may be a bitter pill for many to swallow but for those who are pros to the game it is a pill that should be expected along the way.

Many people point to Warren Buffett as an example of how well the 'buy and hold' method of investing works over the long term. So while it is easy to hear those words and accept them as a reasonable investment strategy, its another thing all together to actually act on when your stock has dropped 20% during a single trading session.

If you have experienced a bear market, you know how difficult it is to stick with your original investment strategy. Should you sell now and protect your capital? Should you wait? Will it bounce? If you sell now will it bounce? Should I sell half now? Your emotions will often try and get the best of you. A good trader will control their emotions, and assess the current situation. What was the reason for the drop? Was there news released? Has the environment in which you are now trading in changed?

The buy and hold strategy requires discipline. Nerves of steel are also helpful. Most investors who risked more than they should will often head for the hills, and often make bad investment decisions along the way. Often, they will sell when they should have held, or held when they should have sold. Gain control of your emotions, and react accordingly.

If you have done your due diligence on your investment before you bought, then you should be able to weather the storm over the long term. As a matter of fact, the drop may provide the perfect opportunity to add to your position. Its important to remember that the buy and hold strategy works best with large cap stocks.

During bear markets, its perfectly normal for normally stable stocks to start to sell off. There are plenty of legitimate reasons, including, those who need to liquidate their positions (to buy a house, pay off some bills, go on vacation etc), to those who are looking to take some profits off the table. If your investment is up 50%, you too may be tempted to take some money off the table and invest it in something else. Since we don't know the motivation of the sellers, its something that we shouldn't spend too much time trying to figure out. Unless there has been news out that changes the direction of the company, its a safe presumption that the share price should continue to move higher.

We've put together 3 fundamental truths that should help you to weather the storm.

First: what you hold in your portfolio is more than a piece of paper; it is a part of a business. You own a share in that business and as a result have a stake in the prosperity of that particular business. You will find that along the way many people simply invest in stocks simply because they are going up and hope to sell before they go down below the price at which they were purchased. These types of investors are more like 'gamblers' than investors because they invest nothing solid into their holdings. What goes up must come down and these types of investors run a very real risk of loosing money on these types of ventures.

In order to be truly successful as in investor you must do two things. First, you must not let emotion rule reason. Business and emotions are never a good combination. This is no different when it comes to investments in the stock market. Second, you must be able to evaluate the business and the potential of that business completely separately from the price of the stock. Remember that even the best company in the world is a lousy investment if you pay too much for the privilege.

Second: If you are trading with the big picture or the long haul in mind then you should look at a bear market and falling prices as a blessing rather than a curse. The only times these should profoundly effect you as a long term investor is when you have an immediate need for access to your money. If you look at it from this point of view, then declining prices only really indicate a good time to purchase more stock at a discounted price (more stock for the same money).

Whether your are trading for the short term or long term, the following tips should help to improve your returns:

If you have made a tidy profit, take it. Many investors get greedy and leave money on the table for much longer than they should, resulting in a lower profit, or sometimes, a loss. You may sell too early, but its better than selling late. Just like you can never predict a bottom, you cannot predict the top. Sometimes its better to be mostly right, than completely wrong. We got into this market to do better than the average stock market. If you get a gain of 35% or more in a short time, take the money and run. If you feel the need to stay in longer, consider selling at least half.

Do not trade with less than 500 - 1000 shares of a security. If your trading capital is thin, you'll lose more money in commission than gain in successful trades.

Always focus on risk than return. This puts a limit on the amount of return you can expect. However this also allows you to sleep at night. This produces a comfort level. Never invest outside of your comfort level. If your portfolio drops 10%, are you still going to be able to sleep at night? No amount of return is worth sleepless night and friction caused by irritability just because you're nervous about losing your shirt (or 10% of it) in a sudden drop. Don't confuse this with a bad investment. A bad investment is a bad investment and should be sold immediately. However, if a 10% correction bothers you, invest in something less risky.

The biggest mistake stock market investor make is to make the current situation fit the one they bought the stock in. I've seen countless swing traders buy a stock based on the movements of the 15 minute charts, only to say well, the daily chart looks good. If the share price of your company is down, you need to reassess what is happening now. Based on the current due diligence, is this just a temporary move down, or is this part of a larger change in the trend of the share price.

There is plenty of money to be made investing in the stock market, however you will make more money if you invest without emotion, and assess the current situation to identify if the party is over, or if you have been presented with an amazing opportunity. Buy and hold does not mean buy now and look at your positions in 10 years. It means investing in solid companies, and assessing along the way. Sometimes, things change, and you have to be willing to accept the change. The successful investor can easily identify if the share price is down for a bad reason, or is down to present them with a perfect opportunity to add more shares.

Become a better investor today and learn more about stock market basics, the Alberta Oil Sands and stock market trading at 1source4stocks.com

Forex Trading Not Only For Banks and Investment Houses

Forex trading online is a booming business and a lot of people make a good living from it. Forex trading is a very interesting business idea, simply because it allows people from all over the world the chance to trade and strike it rich in a market that has enormous liquidity. Forex trading is a serious business and it is vitally important that you gain proper education, before committing your hard earned money to the markets.

Online forex trading are spreading like wildfire as people are looking to generate income. Online currency trading allows you to make transactions any time of the day, at your own convenience. The reason why this market has grown much more than other financial markets, is because of the rise in the number of traders working online rather than using the more old fashioned method of trading by the phone.

Systems for Forex trading are methods that makes it possible to verify entry and exit points, based on parameters, which have been validated by historical examination, on quantifiable data. Whether you are a smalltrader with as little as $200 to start with or a bigger investor wanting to trade multiple contracts, you'll need to have a reliable trading system.

To be able to trade with profit, you must be able to define and choose low risk entry points. A lack of self discipline in following a well thought out trading strategy will lead to losses. Now, with the proper education and big amount of self discipline, this is a striking and profitable Internet investing opportunity. You can trade from your PC or connected laptop from any place in any country in the world.

There is a wide variety of online training available. Therefore You'll be able to get educated from the comfort of your own home. Now, if you're interested in forex trading, you must start off by getting some good forex training. Make sure that your education includes currency simulation training, to help you understand the process and to minimize mistakes when you switch to the real deal.

Forex trading is an extremely lucrative, yet volatile and therefor risky market. It is very appealing to the online trading newcomer as it is a controlled environment, and quite simple to understand. Currency trading is no longer the private playground of the banks and investment houses. Forex trading is one of todays hottest business opportunities.

http://www.small-biz-ideas.net Provides you with a broad range of small business ideas. Learn more about Forex trading!

Day Trading For A Living

Every person that is considering trading in the stock market considers day trading. It is inherent to the game of investing to want to play with the Big Boys by day trading. It can be an expensive game to learn, and for some people, it will forever be a losing game.

Part of the problem with day trading, is getting information soon enough to make a decision. Another problem, is trying to scalp small percentage points like you see the analysts on TV doing. If you have a big enough bank account, and have access to really fast equipment, you might be able to pull this one off. My recommendation, leave it for the big boys who pay the big bucks to have a seat on the board of trade, as a small investor, you are never going to beat them at their game.

However, the biggest single problem facing a novice day trader is simply pulling the trigger. Most novice traders suffer from paralysis of analysis, they are trying to find the perfect time to get in or get out. There is no perfect time, you just have to make the best you can with what you got.

One of the saddest things that can happen, is for a trader to know deep in his heart that a trade has gone bad, but doesnt want to take the loss. He will sit there, holding a losing trade, knowing he should sell, but he just cant force himself to take the loss. Until he sells, it is just a paper loss, not a real loss, and the trade may turn around. When he sells, it becomes a permanent, real loss. However, while he is hesitating, his position is losing ground and when trading options, they can end up completely worthless.

This is where having a good mechanical trading system will come in handy; it helps to eliminate the emotion from trading. A good mechanical system will have a set point to enter the trade, and a set point to exit the trade. As long as the trader remembers, and uses, the rules of his system, the odds of winning on a trade greatly increase. More importantly, the odds of having a devastating loss are greatly decreased.

To find what trading system works best for you, use paper trading until you completely understand what the rules are, where you should enter the trade, where you should exit the trade. Learn where to place the trailing stops to minimize loses. Dont be afraid that the time spent paper trading is time lost in the market. One thing you can be assured of, there will always be another trade coming along.

John Marston is a self taught trader who has traded online for over 15 years from his home in California. You can go to his website at http://www.Trade-The-Stockmarket.com which has a wealth of information about various trading strategies. You can also read his Blog which describes some of his personal trading strategies.

Picking An Internet Stock Broker

Believe it or not, a very important step in increasing your financial success is by choosing an appropriate internet stock broker.

You may be asking yourself, "Well Gerbec, what makes an internet stock broker appropriate?" Three things: cost to trade, in depth analysis of your portfolio, and in depth analysis of the stock market in general. Allow me to hit on each one of these individually now.

The first, the cost to trade a stock. I'm sure most of you have been searching the web and have come across ads where the brokerage company states, "Only $4 a trade!". I'm sorry, but, unfortunately this is not as straight up as it originally appears. Sure, you can pay only $4 a trade, but, you can only trade for $4 if you commit to a trading schedule. What does that mean? For instance, allow me to use the stock brokerage company I used to trade through: Sharebuilders.

Now, don't get me wrong, Sharebuilders is not a bad internet stock brokerage company. The company is great for beginner's because it has a glossary of terms and a few e-documents that explain things like options and puts. They also appeal to beginners because of their advertisement which states you can trade for only $4. You can trade for only $4, but, you have to commit to a trading schedule. Also, you only can get that deal if you commit to buying X dollars of such and such a stock every single week of the month. Basically, you will be paying $16 a month, instead of the $15.95 that it usually cost to trade on sharebuilders.

So, my first advertise is, shop around, call the 800 number, and ask what it really cost to place a live trade. I would much rather save my money for a month, and buy all the stocks at one time with an additional fee of $15.95, then have a computer buy it for me automatically every single week for $4.

Second, in depth analysis of your portfolio. What exactly does this mean? Well, your portfolio is the name we give to every single stock, mutual fund, ETF, money market fund, bond fund, bond, etc. that you own. Depending on each investor's own goals they should invest accordingly. For instance, say I have $25,000 that I'm investing for my child for when he goes to college. I don't need to touch this money for about 18 years and I also want to increase this money greatly because the cost of attending a university for four years by then will be close to $300,000. Therefore, I would invest my money in large company's hoping for long term, aggressive growth. On the other hand, if I needed the money in a a year or two, it would be much wiser just to open a CD account and also put money in a general money market fund. Believe it or not, there are internet brokerage accounts that will analyze your portfolio according to your goals and how long until you need your money.

Third, in depth analysis of the market. Now, they may or may not give you individual analysis of stocks, but, you don't need that. That's what I'm for! But, some company's make you pay for in depth reports in sectors. these reports range from $10.00-$400.00! Make sure to look for a company that does give out these reports for FREE!

Now, if you stock around for this long, you're in for a treat. I'm going to give you my choice for, hands down, the best stock investment firm in the nation. Ask any financial adviser and they would certainly agree. Charles Schwab.

Charles Schwab allows you to trade for only $15.00. Now, this may not be the cheapest deal out there, but, believe me, its worth it! Why? Well, because they are the ONLY website I have seen that will analyze your stock portfolio, tell you how your portfolio looks against what it should look like with your goals. Make 5 star recommendations on how to fix your portfolio. They offer those reports I talked about for FREE (also the only website I've seen that offers that). And, the best part, no minimum deposit. No annual fees. And a general cash fund that receives 5.25% APY.

Charles Schwab has received A+'s all around and is my internet stock brokering site.

Feel free to comment this blog or write in with suggestions for future topics.

This article belongs to and is owned by Jayson Gerbec. Feel free to place it else where, but, be sure to give myself, Jayson Gerbec, credit for the article and include a link to my website, http://www.freewebs.com/gerbeconwallstreet

Monday, October 1, 2007

Tips for Online Currency Trading

Did you realize that currency trading is the world's largest business? Yes, it's true. Over three trillion dollars worth of transactions take place each and every day in the world's currency markets and online currency trading is now available to everyone.

The markets are extremely volatile and fortunes can be won and lost in mere minutes. But please understand that currency trading is anything but some sort of get rich quick scheme. It is like any other investment and can be compared to the stock market. Be warned, if you are interested in participating in currency trading you had better get a sound education or you will surely lose your money.

The currency market is an informal, unlike the formal stock exchange, market where dealers buy and sell currencies in order to make a profit. Currency trading is open 24 hours a day, 7 days a week because it is a global exercise. To borrow a phrase from the British Empire, the sun never sets on the currency markets.

To invest in online currency trading, you need to open an account with one of the many reliable firms that you will find on the Internet. You must deposit a minimum amount of money and fill out the requisite paperwork before paying allowed to trade such currencies as the French franc, German mark and Eurodollars. I would strongly recommend to the newcomer to take it very slowly as he embarks upon the world of online currency trading.

The market operates on a very high margin-trading basis. That means you can control a great deal of money by putting down only a fraction of it. It is called leverage and you are usually allowed approximately 10 times your cash position. That can be a big advantage for making profits. It can also cost you a lot if your trades go against you, so you have to be on top of the situation. This is not a game.

If you are going to venture into online currency trading, study the trading and the markets. Many of the larger online currency trading firms offer information and training materials that are extremely helpful. It would also be beneficial to learn about technical trading as that is what most short-term traders use to help make their buy and sell decisions. There are mountains and mountains of information available on the Internet.

Online currency trading is not gambling but you need to know what the investment is all about and how it works before you consider trading. Look for a company that has been established for a long time and has a solid track record. If you are not sure about something and by all means ask as many questions as you need.

Also, note that online currency trading is not for everyone but for the people that take the time to learn the business, it can be very profitable and rewarding. You should only use money that you can afford to lose and never trade with the mortgage or tuition money. If it's done right they can be quite exciting and lucrative. The market moves quickly and if you enjoy fast paced action, nothing beats online currency trading.

organ Hamilton offers his findings and insights regarding online currency trading. You can get interesting and informative information here at Online Currency Trading

What your Financial Planner has not told you about a Self-Directed IRA

IRA investments do not just have to be about stocks, bonds and mutual funds. If you open a self directed IRA account with an appropriate self directed IRA trustee, as its owner you are entitled to make your own investment choices, including investing in business or real estate opportunities.

Why hasn't your financial planner told you about this? Financial planners will advise on opening self directed IRAs and other self direct retirement plans, but normally use banks and institutions that tend to limit clients to investing in their own product range. However, if you have experience in investing, or an entrepreneurial flare, you will realize how limiting this can be. A self directed IRA with an independent IRA trustee can open up a vast range of prospective investment opportunities to you.

For example, if you choose to self direct your IRA with a non-traditional IRA trustee, then you can buy a real estate investment property with your IRA funds. Not only can you purchase a real estate, but also you can also purchase a business. Using your funds to buy real estate or having IRA real estate holdings enables you to use the gains, both profits and capital, as part of your IRA and enjoy the tax advantages. It is important to get professional advice on how to set up your Real Estate IRA so that your funds can be legally invested through your IRA and used to build up your retirement funds, otherwise you could be found to have made early distributions from your IRA and be subject to severe IRS penalties. A self-directed IRA expert can show you how to run transactions through your IRA so that your retirement funds remain in compliance with IRS Regulations and so you can avoid prohibitive transactions.

Excerpt from the IRS flagship website www.irs.gov:

Are there any restrictions on the things I can invest my IRA in?

The law does not permit IRA funds to be invested in collectibles.

If your IRA invests in collectibles, the amount invested is considered distributed to you in the year invested. You may have to pay a 10% additional tax on early distributions.

Here are some examples of collectibles:

Artwork, Rugs, Antiques, Metals - there are exceptions for certain kinds of bullion, Gems, Stamps, Coins - there are exceptions for certain coins minted by the U.S. Treasury, Alcoholic beverages, and certain other tangible personal property.

Check Publication 590, Individual Retirement Arrangements (IRAs), for more information on collectibles...

Finally, IRA trustees are permitted to impose additional restrictions on investments. For example, because of administrative burdens, many IRA trustees do not permit IRA owners to invest IRA funds in real estate. IRA law does not prohibit investing in real estate, but trustees are not required to offer real estate as an option.

(Excerpt taken from IRS website.)

There are many different kinds of real estate opportunities available nowadays to the prospective investor. Examples include -

Timberland
Commercial Real Estate
Foreclosures
Tax Certificates
Discounted Real Estate Paper
Other real estate like products

In all of these areas, a competent and experienced Self Directed IRA Specialist can show you how to set up an investment strategy to legally avoid the common pitfalls of investing in non-traditional assets with an IRA. Your investment future depends on it.

With 9 years of Internet marketing experience and owning 3 profitable online businesses, Joshua Geary is among the most read authors on the Net for self-directed iras. An avid writer, business strategist and online marketer, he brings his knowledge of the marketplace to anyone willing to surpass personal goals everyday! Visit Asset Exchange Strategies online at to learn more about the structure of Self Directed IRAs for non-traditional invesmtents.

Magic Bullet To Retirement

Everyone is looking for that magic bullet that will allow them to retire rich or at least comfortable. They want to be able to do what the TV ads show - vacationing in Fiji, fly fishing in Vermont, etc, etc. It seems so easy on TV.

A pretty financial analyst from some big company shows the prospect how it is done. The next part of the trick is getting it done and that aint easy. It usually means a change because the potential retiree must take part of the cash now being spent on present life style and put it away not to be spent until retirement becomes a reality. If the couple shown in the ad do it they will be glad they did. Sacrificing some current pleasantries will have been worth it. The $2,000, $3,000, $5,000 trip today could be worth twice that amount or more at age 65 if the worker now is lucky enough to have a good broker or planner one who will not allow loss of principal during subsequent bear markets.

Annuities sound good, but 99% are rip offs. If an annuity is appealing insist on a sample policy. Take it to an attorney and pay $250 or so to have it translated into English. The most important paragraph is the cancellation clause. Get a letter from him stating the major features. When the policy is delivered compare it line for line with the sample to be sure they are the same. Accept no substitutions or changes. The persons saving will want to have a financial planner who has an excellent exit strategy. There are very few of them. Ask to see their model portfolio results for the years 2000 to 2003.

If they lost 30, 40% or more find another advisor. Advisors like to show how they did in relation to the S&P500 Index which lost 40%. They show they did better. Better still means they would have lost the clients money. This is the road to disaster as there will be another serious bear market and customers money will go down the rat hole again. A smart investor will continue due diligence until such an advisor is found. Rarely will it be a stock broker. Occasionally a financial planner can be found. Search on the Internet. Make them prove (and be sure it can be verified) the results. Dont accept 10-year projections.

These are nonsense. Even during the bad 3 years there should be profits. When people come to the end of the road and may no longer be able to work for an income the money put away will be their blessing. The great Social Security farce may have blown up by then. People must take personal responsibility for their retirement. Few have done so and think the government will take care of them. Think again or enjoy those canned cat food sandwiches. Act now. Unless you are the Lone Ranger there will be no magic bullet.

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 at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2007 All rights reserved

Buying A New Or Used RV?

If a new or used RV is in your future... here are a few tips. Buying a new or used motor home, 5th wheel, travel trailer, or folding camper is always exciting as we anticipate places we will visit and the new friends we will meet in our new RV or camper... It is exciting and it should be as the RV industry is indeed "alive and well", sales continue to be strong, and the future looks bright as well. RV'ing is a tremendous form of recreation and is a great way for families to get away together.

As an RV technician, I have a unique perspective as I see these buyers six months to a year later when the euphoria of the buying process is long past and the reality has set in. By this time RV owners have a much better understanding of what they bought, mistakes which were made in the buying process, and the things they would do differently if they ever have the opportunity again.

Here are some of the major mistakes I have encountered so I am passing them on to interested RVers to help you avoid and some of the most common pitfalls motor home, 5th wheel, and travel trailer buyers encounter.

Buying the wrong RV heads up the list and explains why there are so many late model RVs on the market. When it comes to supply and demand there is no shortage of used RVs on the market. So why do people buy wrong? The answer is simple. The glitz and glamour of RV dealer showrooms and lots can easily sidetrack unsuspecting buyers away from their true needs when they see RVs which look better than their own homes. In short, emotion overtakes logic leading some to buy the wrong RV, usually one which is too large for ones true needs.

Another pitfall is going through the selection and buying process too quickly. Buying an RV is a major expenditure so taking ones time is only prudent both with the decision of RV type and size but also of delivery. Those who think they need their RV tomorrow and coerce their dealer into delivering it too quickly as making a big mistake which will result in down time(time in which your RV will not be available to you for your use) in the future. If you need it tomorrow it only means you did not begin your search process soon enough.

Another major pitfall is buyers conducting a poor inspection of their RV. It does not matter if you are buying a new or used RV, an in depth inspection is crucial. After all even if youre buying new do you want an RV assembled on a Monday morning or Friday afternoon? Trust me, you do not, and an in depth inspection will reveal both poor design and any lack of attention to detail in the final assembly process.

Last but certainly not least is the fallacy of placing too much stock in RV manufacturers warranties. Im not saying theyre not important because they are, but believe it or not , in some cases three years is not enough time to make some of the necessary repairs on some RVs. The truth of the matter is your new RV should not have to go back to the dealer more than twice in the first year to eighteen months. The reality is people get worn down dragging their RV back to the dealership repeatedly while also loosing the right to use their RV as it sits on the RV dealers lot. An in depth inspection and slowing down the buying process can alleviate much of these types of problems. I continue to be amazed at the number of people who buy RVs with things that simply are not working. Sometimes its naivet as many assume too much. My advice is when buying an RV NEVER ASSUME ANYTHING!

One last word about buying used. Some of the best deals out there are used RVs (the seller eats the depreciation, not you) and an in depth inspection goes a long way in reducing ones risk when buying used. You just have to know how to do it. If you feel you are not knowledgeable or experienced enough to be able to do this let me assure you there is a lot of good information available to help you. I encourage you to seek it out and do your homework because it is time and effort, which most assuredly will pay off. That is my wish for you that all of us will be "happy campers".

Ray Oberreuter is an RV technician who has worked in Nevada, Colorado, Arizona, and Washington. He and his wife Sandy are "fulltimers" who live in their fifth wheel and also maintain an RV INFORMATION website at http://www.rv-motorhome-answers.com/salesletter.html

Sunday, September 30, 2007

How to Reduce Negative Thoughts Relating to Trading

The thinking process of the brain relating to the psychology of trading involves:

-- Beliefs
-- Feelings
-- Values
-- Dispositions and
-- Faith

The positive or negative energy brings power to a person's actions, which ultimately determines whether a person is a winner or a loser. You can change for the better or for the worst. The old saying goes: For as a man thinks in his heart so he is.

-- Trading is the most difficult money making skill to master, because the market represents the aspects of people and life.

It is necessary to scratch the surface and explain what psychology means and how it relates to trading. Without doing so, you will not understand why this element is important to your trading plan.

The psychology aspects of people are separated into two categories:

1. Believers (the first category) who support the belief that something in the realms of other dimensions in the universe exist and
2. Non-believers (the second category) who are convinced that reality is the only dimension of life.

It is (the first category) that usually uses both sides of the brain to think and has access to a third component of the brain (faith) that is dead when the person is born. (The second category) only uses a small portion of the brains power. While (the second category) may or may not use both side of the brain to function, the third part of the brain (faith) is completely dead and non-active.

See, the psychology of the brain is separated into three separate parts:

1. Faith
2. The thinking factor and
3. The emotional part.

If the thought, (focusing on the power of positive thinking), division of the brain controls the emotions, the individual maintains and develops discipline. If the emotions run the thinking part of the brain, the human being lives in a pure state of extreme confusion and disorder.

This is why the answer to success is understanding how the correct forms of discipline work - without it you will lose your shirt in the market.

Discipline in the following three areas of trading will ultimately determine your trading success.

* Training --- The successful trader never rests on past successes, or believes that his trading ability has peaked. He is always learning and practicing his decision-making skills, honing them until they become second nature. Then he can react faster than a speeding bullet, but with the benefit of superior human judgment.

* Trading Rules --- The successful trader develops set of trading rules - a plan - that he follows faithfully. This guides his decision-making at all times. If a trader's plan dictates that it is time to exit a stock, the trader will exit that trade and not wait a minute longer.

* Self-Control --- Successful traders display an extraordinary amount of self-control. Keeping emotions constantly in check, the disciplined trader is immune to the highs and lows that attend large market swings - whether panic, in a downturn, or of euphoria. I will show you how to learn the secrets of discipline.

Can You Learn Discipline?

The big question here is whether you can develop the discipline you do not have naturally. I believe the answer is "yes, you can," but you must have the necessary commitment to do so.

Ultimately, undisciplined behavior is going to be punished by the market.

Private traders who persevere and master self discipline, have external stimuli that will help the process. However, the market does not help as much as it might, because of the principle of random reinforcement. It is the market's tendency to reward bad behavior from time to time.

This crucial fact is one of the reasons why it takes so long to learn how to trade. You need to realize this: there is no point in having a system if you are not going to follow it. Follow and develop a routine of self-discipline and you will be successful in your trading ventures.

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Forex System Addiction, Don't Let This Happen To You!

It is a process many new traders in forex go through. Find a system that people seem to be making money with and start trading it. At fist you make some pips but inevitably you experience some losses and then move onto the next system. We have all fallen victim to this process, it's what kills many new traders. At the first sign of a loss you move onto the next best thing and this process repeats its self over and over. Some traders can be trapped in this circle for many years.

It is the quest for the perfect system, let me assure you there is no perfect system, you will not find a system that never looses. However you can find a system that wins more than it looses, this is all you need in order to make money in the forex market. All we are looking for is an edge, an edge that over 10-20 trades will bring you out on top with a profit. Once you have this edge all you need to do is keep trading it, trade it like a machine.

Trading for a living can be very boring at times, we all enjoy experimenting with the latest indicators and systems but try to keep them separate from you main bread and butter trading system. Don't let new systems distract you from your trading routine, it is imperative in this business to find a system you like and stick to it. Focus on your solid edge that will pay you over time.

If you are wondering which profitable edges you should trade I recommend you study some price patterns, find one that appeals to you and back test it manually. You could then add this edge to your favourite system as a filter or trade it with discretion. You will be surprised how much price action can improve a system's results. Record your back testing results over a large period of time so you can know what to expect in your live trading.

Let's take a simple system and add price action to demonstrate this. For my example I will use a simple 10ema 21ema moving average cross. Everyone knows if you just trade every cross of moving averages you will end up losing your account, however this is not what we are going to do.

The cross of the moving averages is our signal to look at price action. I will only use one candle stick pattern in this example the 'engulfing candle'. Once you have a cross of the moving averages look for a small retrace with an engulfing candle in the direction of the cross, take the trade on the close of the candle with your stop behind it. I can guarantee you will be surprised with the results of this simple system, go ahead and test it out, try shooting stars also as they can be a great formation to trade on with the trend.

Although you may think that this is far too simple to work, I assure you this is why 95% of forex traders fail, they try to complicate trading too much. Keep it simple and you will succeed.

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Myths And Mortgages

When looking into reverse mortgage options, it can be hard to decipher between fact and myth. It is important to understand the aspects of the program to make sure that it is right for you and your situation.

Some of the mortgage companies today, sell their mortgage packages with every kind of mythical benefit known to man, from the belief that interest only is a real mortgage that will eventually payout (slight of words, there) to the belief that an interest only mortgage carries a lower interest rate (which is does, but only for the short term). When talking about Myths and Mortgages, let us start with some of the more traditional loans, and move into the weird and unusual.

There has been a tremendous jump in the available interest only mortgage packages in the last three to five years, so maybe we should take a minute to break down some of these mortgages into a language everyone can understand.

Theres a 3/1 ARM: A 3 year ARM, means that the interest rate is locked in for 3 years. For the first month, the interest payment is only 1%, for the next 3 years following only the interest is due as the monthly payment. After the 3 year term, and for the remainder of the life of the loan, normally thirty years, the interest rate will change, and the payments will begin to include principal and interest.

Theres a 5/1 ARM: A 5 year ARM, means that the interest rate is locked in for 5 years. For the first month, the interest payment is only 1%, for the next 5 years following only the interest is due for the monthly payment. After the 5 year term, and for the remainder of the life of the mortgage, normally thirty years, the interest rate may change, and the payments will begin to include principal and interest.

These mortgages also come in 7/1 and 10/1 ARMs, but analysts really dont recommend extending the interest only option out that far, since too many things can change before the 7 or 10 years is up.

The 10/30 interest only mortgage works in the following way: you borrow money in the form of a 30 year mortgage, with a fixed interest rate. The first 10 years are interest only payments, with the full amount of the principal being amortized (interest payments included) over the last 20 years of the loan.

The 15/30 interest only mortgage works in the following way: you borrow money in the form of a 30 year mortgage, with a fixed interest rate. The first 15 years are interest only payments, with the full amount of the principal being amortized (interest payments included) over the last 15 years of the loan.

These mortgages are really appealing to the consumer with any sort of investment knowledge. If I were going to borrower with the interest only mortgage option, it would be one of these two, the 10 or 15 of 30.

Now what other myths and mortgages can we find ? Theres the belief that the home mortgage income tax deduction is a substantial benefit to the taxpayer, and that 1% interest only loans are for the life of the loan! Ha! Theres also the balloon note myth, that proliferates the belief you can automatically refinance through your current lender when the note matures, or that adjustable rate mortgages are a better deal than fixed rate!

Another thing about myths and mortgages is that the real estate market cant go bust. An exploding growth rate in the mortgage loan industry, and the continued surge in real estate prices, has put the interest only mortgages in a huge category all their own. Up from the first part of the century, the interest only mortgage loans are now garnering nearly one-fourth of the mortgage loan market. That kind of growth is almost frightening, to even the most experienced lender. Can you imagine the possibilities, say four to five years from now, when many of these loans come due to pay the interest and the principal; what happens if our economy is not still a thriving bustling place ?

The benefit of the interest only loan is that the consumer is eligible to buy much more house, than with a standard mortgage. Thats great if youre certain in a given period of time, youll be able to afford a higher mortgage payment. But is anything guaranteed and given in this day and time ? What if you cant afford the payment when the interest only term expires ?

We have only to look at the disastrous consequences of the crash of the stock market during the 1920s to appreciate where this may be leading us today. Many people had financed their homes with an interest only mortgage, and when the stock market crashed and there was no work, they lost everything, including their homes.

So, we not only promote mythical nursery rhymes, we promote myths and mortgages, too!

About The Author

Morten Hansen has been focused on the Mortgages area for several years and is mainly writing about subjects, that make it easier for people to understand the different issues about Mortgages. For more details about Mortgages Loans visit our website www.MortgagesTips4you.com