Options For An Online Business - A Beginner's Guide

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

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)

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

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

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

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

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

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

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

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

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

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

"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

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

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"

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

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

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

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

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