Global Finance Articles WebSite

How To Communicate Value Proposition And Return On Investment

Global Finance Articles WebSite — Tue, 31 Aug 2010 14:15:06 +0000

As part of my continuing series on Value and Pricing, the following article shows you how to position your company’s value contribution to support the highest value-for-value exchange.

Too many business owners, when asked about the value or ROI of their product or service, shrug their shoulders and say, “I can’t really put a value on it.” If you can’t put a value on it, think how hard it is for your prospects and customers! And if they can’t put a value on it, how likely is it for them to buy it?

We’re going to give you a simple way to identify all the value elements of your product or service and articulate it in such a way that your customers will absolutely know in quantifiable terms what your value is to them. They will see so much ROI they’ll be foolish not to want to buy from you.

The key idea here is that you communicate Return on Investment by looking at your value proposition through your customers’ eyes. In other words, why should they spend their scarce money with you, versus using the funds in some other way?

Your customers want to know how long it will take them to get back their investment or make a profit. Many will want to see a recurring return.

There’s an old marketing saying: “Make your product free”. People will pay more when they think that “it doesn’t cost them anything.” You do this by building so much intrinsic value into your offering that it far exceeds the cost to the customer; do this correctly and in their perception, it’s free.

Creating Value with Your Product or Service:

First, list all the ways that you create value for your customers.

Does your product or service…

–Help client’s increase their revenues? Does your product/service increase their sales? Create more leads? Increase their competitiveness in their market? Shorten the sales cycle? Get more repeat and referral business?

–Allow them to raise prices, or at least hold prices level? Does the value you create allow your customer to charge higher prices for their offering?

–Reduce expenses? Does it reduce initial or ongoing cost? Does it reduce overhead such as utilities and rent or carrying charges? Does it save money on materials, equipment, staff, and outside services? Does it provide a more economical installation or a longer life span? Does it reduce error rate?

–Allow them to replace some existing expense at a lower cost?

–Enable staff headcount reductions? Does it allow your customer to make headcount reductions in staff or support personnel?

–Avoid impending or predicable expenses? Does it help avoid expenses altogether?

–Increase their products’ and services’ perceived value. Does it increase the perceived value of your customer’s offering?

–Increase productivity? Does it increase your customer’s productivity or the productivity of his staff? Does it increase manufacturing production or throughput?

–Give them greater control? Does it offer some way for your customer to track results, lead generation, sales, profitability, productivity, or any other key success factor?

Next, review the list and for each of the ways you create value, figure what each is worth. This could be in terms of absolute amounts of money, some percentage of revenues, or some percentage of expense reduction.

Create proof for each of your value assertions. Proof can be in the form of worksheets, testimonials, case studies, success stories, printed statements, even survey results.

Add up each of the value elements to come up with a total value, combining earnings and savings into one number. Again, the total value can be an absolute money number, such as $645,000, or it can be a percentage of sales.

Lastly, calculate your return on investment by comparing the total value to the cost of your product. You may come up with either an ROI (return on investment) or a “payback period.” Either way, you’ve quantified your product’s value in concrete terms, justified your price, and made it far, far easier for your prospects to make a buying decision.

Success Story

One of our clients sells enterprise software in the $150,000 to $250,000 zone. After 9/11, their sales cycle began to get longer and longer and stretched out as much as eighteen months, with most prospective deals ending in “no decision.” Prospects knew they needed to replace their old software, but they simply couldn’t justify the expense in a no-growth economic climate.

To accelerate the sales process we implemented a return on investment analysis using the exact steps described above.

First we itemized each of the ways the software saved or earned the client money, including replacing old software with a high maintenance cost, reducing the cost of computer leases, reducing materials waste, decreasing the number of customer service staff required, shortening their salesman’s phone time, increasing the accuracy of sales quotes, thereby increasing the prospect’s sales AND increasing overall sales profitability.

By assigning a dollar value to each value element, and offering proof for each one, our client was able to demonstrate a payback period of around 9 months, and a significant positive return on investment thereafter.

The first two prospects who heard this value presentation said the same thing: “We’d be fools not to buy this,” resulting in the two shortest sales cycles, and coincidentally, the two largest individual sales in the company’s history.

How To Communicate Value Proposition And Return On Investment

In Sechs Schritten Erfolgreichen an der Brse handeln.

Global Finance Articles WebSite — Tue, 31 Aug 2010 14:00:45 +0000

Es gibt jede Menge Bcher mit dem Thema “Brse kinderleicht”. Nur zu gerne greifen Anleger zu solchen Buchtitel, nur um anschlieend zu erkennen, dass sie nur moderne Mrchenbcher gelesen haben.

Brse ist eben nicht kinderleicht, aber durchaus erlernbar. Dieser Artikel soll Ihren Blick auf einige wichtige Punkte lenken, die leider viele Anleger beim Handel an der Brse nicht bercksichtigen.

1. Schritt: Fangen Sie an, Gewinne zu realisieren!

Einer der grten Fehler, den Anleger machen, ist, dass sie ihre Gewinne nicht realisieren. So schauen Anleger tatenlos zu, wie ihre Aktie nicht nur wieder einen Groteil des Gewinns einbut, sondern in einigen Fllen sogar zu einem Verlierer wird. Irgendwann wird der Kurs schon wieder steigen, denken sie sich. Doch diese Einstellung kann fatale Folgen haben!

Daher gilt: Fangen Sie an, Gewinne zu realisieren. Und scheinen diese noch so klein. Nehmen Sie lieber fters kleine Gewinne von z.B. 3%, 5%, 8% mit (Sie werden staunen, wie schnell sich kleine Gewinne summieren) als dem groen Gewinner, den man mal auf dem Papier hatte, hinterher zu trauern!

2. Schritt: Benutzen Sie Verlust-Begrenzungsstopps!

Verlust-Begrenzungsstopps sind die zuverlssigste Absicherung fr Trader.Trotzdem zeigen jngste Studien wiederholt, dass nur knapp die Hlfte aller Anleger davon Gebrauch machen. Merken Sie sich bitte: Sie sollten zu JEDER Zeit wissen, wann Sie Ihre Aktien wieder verkaufen; sei es mit Gewinn, oder mit einem Verlust!

Die sehr beliebte Kaufen und Vergessen Strategie (Buy and Hold), funktioniert nur zu Zeiten, in denen die Wirtschaft ordentlich wchst. So kann es nach einem Kursrutsch teilweise Monate bis Jahre dauern, bis die Aktie den Kurs wieder erreicht und Sie sich dann die Frage gefallen lassen mssen, warum Sie mit, wenn Sie Monate darauf warten, das Ihr Depot wieder bei +/- 0 steht.

3. Schritt: Folgen Sie einer Strategie!

Eine Strategie zu befolgen ist der entscheidende Schlssel zum Brsenerfolg. Ohne Strategie wissen Sie nicht, wie viel Profit genug ist (Realisieren von Gewinnen) und wann Ihre Schmerzgrenze erreicht ist (Begrenzen von Verlusten).

Eine Strategie ist nichts Anderes als eine Anzahl von klar definierten Regeln, in denen Kauf- und Verkaufspreis oder Kauf- und Verkaufszeit festgehalten sind. Ein Beispiel: Kauf der Aktie zum Freitagsschlusskurs. Profitziel: +3% (vom Kaufpreis), Verlust-Begrenzungsstopp -2% (vom Kaufpreis).*

Eine Strategie setzt Ihnen feste Profitziele und Stopps; Sie wissen BEVOR Sie die Aktie kaufen, wann Sie sie wieder verkaufen wollen.

Eine klar definierte Strategie hilft Ihnen zustzlich beim nchsten Schritt:

*Das Entwickeln einer Brse Strategie ist ein sehr komplexes Thema und wird in einem anderen Artikel von uns behandelt. In diesem Artikel geht es in erster Linie um die Notwendigkeit, berhaupt einer Strategie zu folgen.

4. Schritt: Kontrollieren Sie Ihre Emotionen!

Als aktiver Anleger sind Sie vor bestimmten Gefhlen nicht gefeit: Angst, Gier und Panik sind nur allzu bekannte Emotionen im Alltag eines Anlegers. Trotzdem mssen Sie lernen, diese in den Griff zu bekommen.

Die Gier lsst Sie nach Hochpunkten des Kurses schielen, obwohl Sie eigentlich genau wissen, dass diese Art des Handelns nicht ber einen lngeren Zeitraum funktioniert. Daher gilt: Seien Sie nicht zu gierig. Realisieren Sie Ihre Gewinne!

Die Angst und die Panik vor Verlusten lsst Sie keinen klaren Kopf mehr behalten. Dabei brauchen Sie gerade diesen an der Brse. Ihre Entscheidungen sollten rational getroffen werden, daher haben Sie ja auch VOR dem Kauf einer Aktie Ihre Strategie definiert. So wissen Sie vorher, dass Sie (um bei der oben bereits genannten, einfachen Strategie zu bleiben) 2% Verlust riskieren und geraten nicht in Panik, wenn der Markt 1% gegen Sie handelt

5. Schritt: Handeln Sie selten, aber profitabel!

Es ist richtig, dass Sie auf keinen Fall nur eine, zwei oder drei Aktien in Ihrem Depot haben sollten. Sie sollten diversifizieren um Ihr Risiko zu streuen. Setzen Sie nicht alles auf eine Karte. Ein 2% Verlust Ihrer einzigen Aktie bedeutet gleichzeitig einen Wertverlust Ihres Depots um 2%!

Viele Anleger denken jedoch, dass Sie nur genug Aktien in ihrem Depot haben mssen, um Ihre Chancen auf einen Gewinn zu erhhen. Das ist falsch!

Quantitt hilft Ihnen an der Brse nicht weiter, die Qualitt entscheidet. Handeln Sie deshalb selten, aber profitabel. Gehen Sie nicht an einem Tag zehn Positionen gleichzeitig ein, sondern handeln Sie berlegt.

Als Faustregel gelten 5 bis 6 Aktien in einem 20.000 Euro Depot als Richtwert einer guten Diversifikation.*

*Diversifikation und Money Management sind ein groes Thema an der Brse und beinhalten natrlich wesentlich mehr als nur die Anzahl der Aktien. Zu beachten sind zustzlich Branche des Unternehmens (Halten Sie NIE nur Aktien aus einer Branche in Ihrem Depot) und die Gre Ihrer Positionen.

6. Schritt: Seien Sie offen fr neue Mrkte!

Es gibt Anleger, die sich darauf festgelegt haben, nur Aktien aus dem Dow Jones zu handeln oder nur Aktien aus dem Dax oder Tech-Dax etc. Die Frage nach den Grnden beantworten Anleger meist mit Mein Lieblingsmarkt! Habe schon oft gute Erfahrungen gemacht Das Unternehmen ist mir sympathisch.

Merken Sie sich: Mit Sympathie fr bestimmte Aktien hat es noch kein Anleger zu Erfolg an der Brse gebracht.

Daher gilt: Seien Sie offen fr andere Mrkte. Ein Chart ist ein Chart, lautet nicht ohne Grund eine alte Brsenweisheit und so sollte es Ihnen gleich sein, ob Sie eine Aktie aus dem DAX, Tech-Dax, oder gar aus bersee handeln.

In Sechs Schritten Erfolgreichen an der Brse handeln.

Dancing With A Gorilla for Better Trades

Global Finance Articles WebSite — Tue, 31 Aug 2010 13:13:11 +0000

This is reported to be an actual radio conversation of a US naval ship with Canadian authorities off the coast of Newfoundland in October 1995. Radio conversation released by the chief of naval operations, 10-10-95.

(Please Note: This story is an example of why it is important to listen and blend with the market. It is not meant as a political statement of any kind.)

CANADIANS: Please divert your course 15 degrees to the south to avoid a collision.

AMERICANS: Negative, Recommend you divert your course 15 degrees to the north to avoid a collision.

CANADIANS: Negative Sir. You will have to divert your course 15 degrees to the south to avoid a collision.

AMERICANS: This is the captain of a US Navy ship. I say again, divert YOUR course.

CANADIANS: No Sir, I say again, please you divert YOUR course.

AMERICANS: This is the Aircraft Carrier US LINCOLN, the second largest ship in the United States Atlantic Fleet. We are accompanied by three Destroyers, three Cruisers and numerous support vessels. I DEMAND that you change your course 15 degrees north. I say again, that’s one-five degrees north, or counter-measures will be undertaken to ensure the safety of this ship.

CANADIANS: Uh, Captain, This is a lighthouse. Your call.

The market, like a lighthouse, will send signals and it is incumbent on us to listen and to blend with the market. In a collision, the lighthouse (market) always wins.

Markets Maxims

One of my maxims says “The stock will never listen to you, but, it will speak to you if you learn to listen”. Another one says, ” If you dance with a gorilla, don’t try to lead”. Folks, you must learn to listen (read charts and interpret news) and you must bend and blend with the market to avoid being crushed by it. This is not natural to our independent and proud natures. While we may be on the verge of a market upswing, every market upswing for 3 years has been met by a lower lows. Each upswing was seized upon by hopeful enthusiasm and dashed with the next roll over.

This has been a wonderful market for traders who trade both ways. It has been frustrating and devastating to one directional traders hoping for the return of a bull market. Trading is more than jumping in and holding on. It is dynamic and fluid and bidirectional. You must be trained in dynamic and tactical trading to flow with the market. You can and you must learn to do this. The following thought may help put this into perspective. It is paraphrased, as I cannot recall the author.

“The learners will inherit the earth while the learned will find themselves perfectly prepared and suited for a reality that no longer exists”.

Workshop Update

Boy what a week, we have just finished two great days of filming new materials for you in Phoenix and a “Two Days of Tradin’” boot camp in Denver. I was exhausted after the events but very pleased with the results. Both events were a success and the students loved the classes.

“The 1st day was a new course called Power Spreads. It will open you eyes very wide to understanding the power of using spreads to minimize risk and neutralize volatility. We also learned a great deal about option pricing and how to read volatility to select the most appropriate strategies. We used the X-Factor options graphing tool to historically trade QLGC and IBM and we saw price manipulation and how the options you may think is a good choice can be a real disappointment and why. I and sure you will enjoy the class when it is ready for purchase.

The second day we taped the new Market ‘Mind’ Fields. The class response was powerful. Some said it was like a mirror being held up to show them things they did not want to see but desperately needed to deal with. Almost all of us have land mines planted ion our minds. Market ‘Mind’ Fields will enlighten you to the reasons why trading is such a difficult challenge for folks and how to gain the mental disciple needed to survive and then thrive in the markets.

Friday and Saturday I was in Denver with a great bunch (mostly locals and mostly women) of students for my “Two Days of Tradin’” boot camp. What a fun time. I worked them pretty hard and they loved it. There were several who were very new and a little nervous but as the first day wore on they got into the swing of Bracket Trading and did very well. We traded several stocks on Friday just learning to go long and short at the right times. Back trading is a fantastic way to learn and train your train skills.

Saturday we added options to the mix by using the X Factor Options Graph to back trade several companies. We tracked several option strategies over run ups and sell offs to see which positions performed the best. Not all bullish strategies performed the same over the run ups and downs. It was very instructive to see the effect that different expiration months had on profitability. The students all realized that option trading is a lot more complicated than most people think. Picking the right strike, right month and whether to buy or sell premium can be critical. It is very possible to have two separate bullish option strategies at the same time and the one makes money while the other one loses.

New classes are being added to the calendar for March through May so check out which times and locations may fit your plans. You need to be in the trading simulator workshops. Two Days of Tradin’, will hone your trading skills like nothing else can.

Please join our Web shops and please consider coming to a Two Day Trading camp with me. I will work you … but you will come out a better trader.

Ryan with Better Trades

Dancing With A Gorilla for Better Trades

Philippine Apart-Hotels or Condotels as Investment Properties

Global Finance Articles WebSite — Tue, 31 Aug 2010 13:00:28 +0000

In the Philippines it’s not just that condos are comparatively cheaper and relatively more easy to maintain than a single-family home. In recent years, they’ve become the prime residential real estate investment and the best may be yet to come says Beth Collingz, International Sales Director, PLC International, the lead marketing partners for Pacific Concord Properties Inc’s Lancaster Brand of Condo Hotels.

Collingz said according to her research into Philippine property values, since 2000, mid market condos in Metro Manila have increased in value 120 percent, at an annual rate of 17.14 percent compared to new homes rising some 25 percent since 2000 or 3.57 percent a year and resale homes rising 20 percent since 2000 or 2.85 percent a year. The median price for an existing studio type condo in Metro Manila is around $53,000 for 2007, up some 55 percent from $34,000 in 2005 whilst mid range housing prices in the $90,000 range for 2007 are only up some 8 percent from $84,000 in 2005.

Rising demand for condos, hotels, short and medium term rental accommodation, offices and shopping malls in the Philippines, home to a population of almost 80 million and with a significant number of the more than 10 million returning overseas Filipino Baby Boomers, is also fueling rents. Residential rents in Metro Manila rose 26 percent in the three months to March 2007, their highest quarter-on-quarter increase in more than a decade, as more and more IT companies set up shop in the Philippines. Companies like Texas Instruments are investing $1B in expanded operations in the Philippines. High-end rents rose some 13 percent from a year earlier, said Collingz.

Collingz projects that Rents in the region are set to effectively jump up by at least 8.7 percent per annum over the next five years, compared with 3.3 percent in the United States and 3.7 percent in Europe. Yields from 8 percent to as high as 14-16 percent ROI on rental income property contrast with the 4 percent to 5 percent that private equity firms get in the United States and Europe.

These facts gives significant rise to the value of making Condotel investments in the Philippines says Collingz. People are in general looking to shift fund flows relatively towards Asia, Collingz said. It already has had a profound impact in markets where there’s a lot of this money chasing the same assets. In Singapore, the region’s second- biggest market after Japan, investments by private real estate funds accounted for seven of the 19 office blocks, worth 6.7 billion dollars, sold since September 2005. REITs bought six. A Goldman Sachs fund paid 690 million dollars for two buildings last November that house the headquarters of DBS Group Holdings. In Hong Kong, property funds of Morgan Stanley and Macquarie Bank paid a total of 7.9 billion Hong Kong dollars, or $1.02 billion, for four office blocks from March to May, according a recent article published by CB Richard Ellis.

As the Singapore, Japan and Hong Kong markets become saturated, the Philippines will be the next real estate market to attract substantial overseas investments. Lower prices and retirees spending money are also directing foreign attention to residential condominium hotels in the Philippines, which in turn is driving up more construction. A lot of this interest is being driven by the relatively cheap market prices here compared to Europe especially UK housing prices and the easy payment options available for condominium hotel developments, Collingz said. The buyers gain rental incomes that on todays purchase prices give a projected ROI of some 8 percent to 14-16 percent depending on the mode of payment for the unit she said.

Metro Manila remains a popular choice with international buyers and institutional investors. Collingz says clients tell her that it makes more sense to buy in a year-round vacation destinations and business centers. Lancaster – The Atrium Condotel developments by Pacific Concord Properties located in Shaw Boulevard, Metro Manila – fits the bill with all it offers to International buyers.

Accessibility is also a factor. Flights from London to Manila, for example, average just 16 hours, add to that the many airline specials and its easy to see why this area is becoming an international community. Unlike other offshore rental properties, where the rental market is largely seasonal, in the Philippines there is a strong market for rental properties year round. This gives buyers greater flexibility in choosing when to use and when to rent their property. The strong rental/second home market also has resulted in a proliferation of professional property managers and rental agents, making property ownership and rental easy. Pacific Concord Properties Inc with its flagship Lancaster Condo Hotel Developments fits the bill.

Lancaster Manila Atrium Tower A, Shaw Boulevard, Metro Manila, Philippines is a Full Service Condominium Hotel [Condotel] offering Studio, One, Two and Three Bedroom Suites for sale. To be completed and ready for turnover from December 2010, the Lancaster Suites Manila Atrium Tower II will provide unit owners with premier residential condo units with the option of enrolling their units in the Lancaster Condotel Rental Pool and earn Rental Incomes as Owner Non-Residents when not using their units through Condo Hotel Management.

Combined with rising condo prices, a general shortage of reasonable rental property and substantial increases in short and long-term rental rates, this makes Lancaster Suites Manila, one of the Hottest Investment Opportunities in the Philippines said Collingz.

Beth Collingz
PLC International Marketing Networks

Philippine Apart-Hotels or Condotels as Investment Properties

Of Investors and Investing

Global Finance Articles WebSite — Tue, 31 Aug 2010 12:35:58 +0000

SoWhos got the Trillion?

Any time you mention casually a Trillion dollars, people tend to listen. Especially, in the investments world. But, even in the world of investments, people just dont talk in terms of well a trillion dollars. And, they never talk about it concerning any single individual.

Wellnot never.

Forgive the bad grammar, but it isnt every day I get to talk about a man who has the attention of over 100 investment firmsand their assets.

Think about the last time you heard a trillion dollars mentioned in the press. It was associated with what? The U.S Government Budget? The size of the U.S. economy? Size of the U.S. Debt?

There are whole countries that dont have a budget of a trillion dollars. Most countries, in fact.

The point is, if you mention a single mans name and associate that name with one Trillion dollarsyou will get the attention of people around you. And not just investors.

But, for George Muzea, attracting attention is a minor issue. Getting results in the investments world has been the issue successfully for over 30 years. Remember the statement, Words are wordspromises are promisesbut, performance is reality? Performance is reality for George Muzea who is the advisor to some of the biggest investment firms – and their investors – in the world.

All 100 firms or so of themwith assets totaling over a trillion theres that word again dollars. You know, any percentage of a trillion would keep me up at night. There, any advice which could impact even pennies in any market move will create profits or losses of billions! Thats the world of George Muzea.

If you are going to create that kind of pressure for yourself, you better have a system that really works. Pennies in investment market movement will get you billions of dollars of investors complaints or more business from investors. As George likes to say, Theres no room for loyalty in the investments world.

Follow me closely again.

If you want to create pressure like that for yourself, you must have a successful system. You see, trillions of dollars in assets doesnt just come to any ole investment counselor. Investors dont trust counsel unless its already proven.

With tens of thousands of investors and investors services, as well as billions of dollars of investments and investment services out there, how do you gain that kind of trust to begin with?

Watch this.

Enron18 months prior

Long before the Enron scandal broke in the press, another individual had already let his clients know they should get out of Enron. Of course, some shorted the market and made a lot of cash. All the others got out with their accounts intact because George Muzea knew something was seriously wrong inside Enron.

How did he know that? Well, the Insiders told him.

No. No one actually said a thing to him. They didnt have to say anything. And he didnt know a one of them. One of whom? The Insiders, thats whom.

In everything in life, there are Insiders. Some are good. Some are bad. Some do things legally. Some illegally.

In the world of sports, owners, commissioners, directors, CEOs, and coaches are all Insiders in the sports world (not talking stocks here).

Inside a football huddle, the Insiders are the guys in the huddleand any coaches involved in calling the play.

If you own a business, you and your partner(s) along with any major officers who run the business, are the Insiders.

In your home, you and your spouse are the Insiders.

In a legal battle, the clients and the attorneys are the Insiders.

In any scientific discovery, the Insiders are the scientists, company officials patronizing the research and a select team of researchers.

In the investments world, the SEC forces all company Insiders to report their stock trades buying and selling within 48 hours of the event. In that world of investors, the company CEO, Directors, CFOs, and a few other officers are defined as Insiders for that company. (Also, those outsiders who own 10% or more of the stock of company are deemed Insiders also.)

Soback to George Muzea and the Enron debacle.

George Muzea just knew what the Insiders were doing in the investment world, buying or selling their company stocksparticularly selling at Enron while everyone else was being encouraged to buy Enron.

He saw that they were selling, when normally Insiders as investors would be buying. If Insiders diverge from their normal patterns of investor behaviorGeorge knows it. Most of us were running with the crowdand losing our shirts 18 months later when the story broke.

If Insiders diverge from their normal patterns of investor behaviorlike George Muzea, we can learn how to watch their moves tooand profit from it.

George knew 18 months aheadlet that sink in18 months ahead, there was already a problem within Enron. Long before the Enron scandal made the earliest editions of any newspaper, George Muzea knew what the Insiders were telling him by their actions.

Remember, they didnt have to say anything to him at all. They were acting. He was reading what they were doing and advising his clients accordingly.

What if you could understand the Insiders like George Muzea does? Think about it. You would NOT have to worry about the companies in which you were invested.

Correction, yes, you would have to worry about ALL of your investmentsall investors know that. But -and this is crucial – unlike most investors, you would have the skills to watch all of your investments and act long before there were any problems reported in the news like Enron.

As either a short or long term investor, you could watch your investments and tell your broker when to move a stock

Investors who stayed with Enron are now involved in expensive litigation concerning those investments investments which were made honestly with trust up front. Everyone can feel their pain. Their investments were torpedoed long before they, as honest investors, knew the real facts.

Insiders are the key to ALL investments and investors strategiesor should be. Why? Only the Insiders know whats really happening inside their companies. The Enron Insiders knew what was hidden from the stock world of fundamentals and technicals.

There are always things happening, good and bad, that cant be reflected in a timely manner, on a balance sheet or income statement. There are always things happening, good and bad, that cant be reflected in a timely manner, in the technical analysis. Had that been the case, investors relying on the technicals would have been out of Enronor shorting their investments in it.

George Muzea knows that. The Insiders know it. A select group of investors known generally as the smart money they know it. And many of them turn to George Muzea for that information.

I, for one, am glad to see that George is finally offering a course on how investors can use the Insiders of publicly traded companies as an indicator for their investments, be they swing traders, options traders, long term investors, day traders

Direction is what the stock market is all about. George Muzea has found the key to market direction

I told you a trillion dollars would get your attention.

Of Investors and Investing

Increase Your Trading Profits Using Better Trades

Global Finance Articles WebSite — Tue, 31 Aug 2010 11:11:55 +0000

Do You Want Increased Profits? Then Go After Decreased Losses!

Hello, this is Bob Eldridge and I’d like to share with you a frequently overlooked source of profits from your trading. It’s a simple concept yet so very important if you expect to be able to continue trading for any length of time! The concept is that of controlling both the number of losses you have and the dollar amount of those losses. I realize that statement sounds so obvious that you might be tempted to put this article away in favor of a night of bad television, but please stick with me here. I’ll share some things with you that you probably don’t expect to find here!

To better visualize the concept I’m describing, picture a large washtub, the kind you probably remember from your childhood. Now imagine the difficulty of filling the washtub if it has several ‘six-inch’ holes in the bottom! No matter HOW MANY garden hoses you have filling it up, the water is running out faster than it’s going in!! Now imagine plugging each of the holes, one at a time. Plug the first one and the difference is almost imperceptible. Plug the second hole and you begin to notice that there is less water splashing on the ground. Plug the third and you actually may see the water level in the tub begin to rise … just slightly, perhaps, but rise nonetheless! Plug ALL the holes but one and the difference becomes measurable! Now that you’re down to one hole, let’s begin to repair it a piece at a time. First we cover HALF the hole … while the tub still leaks, you can now tell there’s more water going INTO the tub than running out the bottom. Patch half the remaining leak and you begin to adapt to the idea that it’s OKAY if a little water comes out, just as long as there’s more going in than coming out!

Our trading accounts are something like that. Most new traders have HUGE trading account “holes” and the money is draining out faster than they can replace it! No matter how profitable they are on some of thier trades, they just seem to give it all BACK! If we’re smart about our trading when we notice that, we’ll STOP trading until we find the challenge and FIX it! What I’m describing are the DIRECT results of FOCUSING on the profits and almost totally forgetting about controlling the losses. There are many reasons for that but despite the reason, the results are the same. Left unchecked, such a situation will take us totally out of the trading business in a very short period of time! Does this describe you and your trading account? Would you like to know how to ‘FIX’ it? Let me share with you four RULES for trading which directly address losses and if followed, can ‘plug’ many of your profit leaks!

RULE 1. Wait for the stock to CONFIRM the anticipated direction before entering the trade

This rule can decrease the NUMBER of losses you experience. As simple as that sounds, it’s one of the most often violated principles of good trading habits. So often is this rule broken that we are all familiar with cute little descriptions such as “catching a falling piano”, or “reaching for a falling knife.” What you use for this confirmation is your own affair; price rise or fall, momentum, frequency of trades or bid / ask “size” are just a few ways. Personally I combine them all (more or less), developing a ‘feeling’ about the confirmation, rather than a measurable quantity. However you choose to define confirmation, let experience be your best teacher here and do NOT enter the trade until you’re convinced the stock is moving your direction!

RULE 2. When you are filled on the entry, place a STOP loss to minimize your potential for loss.

This rule controls the AMOUNT you can lose on any one trade. I like to use about 1/2 of the stock daily movement for my stop loss amount. For example, if a stock price moves on average, say $1 every trading day, then I’ll back off 1/2 of that, or 50 cents and place my stop loss there, limiting the losses possibly incurred on that trade. Whatever you use, be FAITHFUL in adhering to the protection afforded by the stop. In other words, DON’T CHANGE IT. If you’re stopped, you’re stopped. He who trades and runs away lives to trade another day!

So much for minimizing the NUMBER and dollar amount of losses. Equally important is allowing your profits to maximize AT THE SAME TIME! Here’s how to do that.

RULE 3. When you become profitable in a trade, replace the stop loss with a TRAILING stop, trailing by that amount of profit.

This one is so important that I believe it should be the 22nd amendment to our Constitution! Say you’re up 25 cents in a trade and you have your stop loss in at 50 cents below your entry (on long positions). Replace the stop loss with a 25 cent trailing stop. At THIS point, you WORST CASE outcome for the trade is BREAKEVEN (give or take a couple of pennies)!!! In my live trading lab on my website, I often refer to this as the MAGIC point in the trade. You have virtually NOTHING to lose and EVERYTHING to gain from that point on!

Finally, for the ‘do-it-yourself- traders …

RULE 4. Leave the trade alone from this point on!

The market overall will do a much better job of managing the trade (with the above rules observed) than you or I EVER could! Once you’ve reached the MAGIC POINT in your trade, just go away and do something else. Your trade is on autopilot!

I’m glad to have been able to spend the last few minutes sharing this with you. I hope it helps you to trade more profitably!!

Bob with Better Trades

Increase Your Trading Profits Using Better Trades

The Ins and Outs of Day Trading

Global Finance Articles WebSite — Tue, 31 Aug 2010 11:10:20 +0000

is one of the most popular forms of trading because the only components you need are a computer and an Internet connection. You can trade from almost any location you wish: your home, your office, the park, wherever suits you best. Because of this flexibility, day trading has the potential to be a very lucrative career for committed traders, but its definitely not something you should jump into without a little planning and forethought. To succeed at day trading, you must be willing to work hard, stay focused, and learn as many new strategies and techniques as possible, just like the pros.

What Exactly IS Day Trading?
Day trading is the practice of buying and selling financial instruments throughout the day. As the day progresses, prices will rise and fall in value, creating both the opportunity for gain and the possibility of loss. When traded strategically, the trends and fluctuations in the markets allow for quick profits to be made in brief periods of time. Keep in mind, however, that day trading is specifically designed to result in smaller earnings on a regular basis; it is NOT designed to result in huge fortunes through a single trade.

Day trading can be very profitable, but it is not a get-rich-quick scheme (though many seminars convincingly sell it as such). Nor is a sure road to immeasurable wealth and success (as some hyped-up websites would have you believe). Quite simply, day trading is just like any other business venture: in order to be successful at it, you need to have a PLAN. It would be very risky to dive in head-first without looking. However, with the right tools and with the knowledge of how to use these tools efficiently and effectively the risks of day trading can be greatly reduced.

How to Succeed With Day Trading
Traders who enjoy the most success in day trading, regardless of whether theyre in it for a living or for some extra income on the side, generally have solid trading strategies and the discipline to stick to their trading plan. Keep in mind that day trading is a very competitive field, and, in order to succeed, you need to maintain focus on a set of simple strategies which you can implement immediately, without hesitation. Remember, a proven, strategic trading plan can give you an edge over the rest of the market.

Now, devising a trading strategy is all well and good, but you may be wondering how to determine whether or not YOUR strategy is a SUCCESSFUL strategy. There are a few ways to determine this. Most traders rely on back-testing. Back-testing allows you to take a closer look at a certain strategy and see how it would have performed in the past, thereby allowing you to predict with more accuracy how it will perform in the future.

(NOTE: Although back-testing is an effective technique, be aware that past performance is not always indicative of future results).

Unfortunately, even with a tested, proven trading strategy, you are not guaranteed trading success. It takes something else. It takes discipline. A profitable strategy is useless without discipline. Successful day traders must have the discipline to follow their system rigorously, because they know that only trades which are indicated by that system have the highest probability of resulting in a profit.

Whether youre new to trading or have been trading for years, its all too tempting to place the entirety of your trust in graphs, charts, and software. If only trading was as easy as that! Simply purchasing trading templates and computer programs does not guarantee your success as a trader. Too many hobby traders have tried that, and, unsurprisingly, theyve failed. They bought the tools, but they didnt have the knowledge they needed to succeed. As in all things, education will do wonders for the aspiring and experienced trader.

Of course, this is not to say that software programs and markers are not helpful when it comes to day trading. On the contrary, many traders use technical indicators which are instrumental to their success a few examples of these are the MACD, moving averages, and Stochastics. However, though profitable day traders DO follow their indicators, they are also aware that nothing is 100% foolproof.

You will not get rich on just a single day trade. Successful traders know that trying to hit a lucrative home run on just one trade is a sure way to get burned. The key is consistency. You need to devise a solid strategy that produces consistent trading profits, and you need to learn and adapt as your experience with day trading grows and evolves.

In Conclusion
Theres no doubt about it: day trading can be a profitable and exciting way to earn money. And, with the right knowledge, you can radically reduce the risk, which will create even more opportunities for achieving trading success.

If you are not willing to spend the time learning the techniques of trading, reading about new and improved trading strategies, and working wholeheartedly in a fast-paced trading environment, then day trading is probably not for you. However, if you have the drive, dedication, and discipline, day trading could seriously impact the shape and success of your financial future!

The Ins and Outs of Day Trading

“If it ain’t broke, don’t fix it”

Global Finance Articles WebSite — Tue, 31 Aug 2010 11:00:51 +0000

I like maxims and quips. Little phrases that tell a big story. I like the parables in the Bible because a child can say “I get it,” and an aged student can say “Oh now I get it.” The principle of keeping it simple is a good one for most of life’s situations including trading. And while trading skills are not easy to master, they involve simple principles.

Mastery in most areas of life includes learning to conserve extraneous movement and effort. When it is done right it looks simple and onlookers often say “Well, I could do that.” But the “wanna be” soon finds that it is not as easy as it seems. Trading can be frustrating and discouraging, but when the market seems to get you down and you feel like you will never get it, remember Sean Connery’s famous line, “Impossible, but doable.”

Too often, traders experience real highs and real lows. While the give and take is normal and expected, big swings are usually the result of changing stride or technique inappropriately. Finding your stride or niche can really make the trading life a lot more consistent and smooth and therefore, profitable. Getting to know a few terrific trading stocks rather than collecting all the potential candidates from recommendations and scans begins to overwhelm a trader and changes the rifle shot accuracy to a shotgun splatter.

So, a while back in a Trader Talk Live training a student wrote “- the past 7 days of trading have been absolutely fantastic. I have confirmed again the value of following just a few stocks and getting to learn (as much as possible) their behavior. PD is one of my all time favorites”. She was referring to a principle that is trained in the Trader’s Forge two day trading camp that I conduct once a month. I advise students to build a stable of good trading stocks and get to know them. Pick your favorite 6-10 and back trade them repeatedly. Learn to recognize the patterns of behavior. Does it behave in similar ways around earnings? Does it make clean or sloppy turns? Does it have a tendency to throw certain chart patterns? In doing so, you get a feel for the traders who influence the stock and improve your chances to repeatedly tap that stock for pattern trades.

The patterns we observe are the behavior of people. Key Traders are interacting with various levels of traders, brokers, fund managers and the public. This cast of players is unique in each stock or group of stocks, bonds, commodities etc. Hence, unique patterns develop and that is the key. Instead of flitting around like a butterfly from bush to bush looking for a new flower, you can find certain flowers that keep producing on a regular cycle. You develop a routine and learn the cycle so that you can just stick around and harvest over and over again.

I have a friend who taught me this principle in a dramatic way. He had a very narrow group of stocks that he got to know and not only did he learn the patterns, but he also studied the company’s behavior. He knew how they acted around earnings, what products they were releasing, and how their stock responded to economic news and events. One year alone, he made over $750,000 trading one company. It was interesting to note that others seeing his success always wanted to know, “What’s it going to do next?” Like the children’s story of the Little Red Hen, most fellow traders wanted to cash in on his valuable insight and very few asked him to teach them how to trade like he traded. It was folly to think that if he gave them the information, they would also gain the skill it took to glean the information. That, however, is human nature.

It is the nature of most folks to want to find the easiest way. Most want to find a secret or a magic strategy. A good deal of the GDP of this country is based on selling the sizzle, not the steak. We search for the fountain of youth, the short cut, and the edge so to speak, but in the end one universal constant remains. Working smart is better than working hard. And in the end, the magic is usually finding the key or core of the matter and developing some simple and specialized skills.

If you can find a piece of good ground that can be cultivated and harvested over and over again, you find one of the jewels of trading. The secret of most millionaires is finding a stream of residual income. Patterns are there because people are creatures of habit and the market is just people. With six to ten good pattern trading stocks in the price range you like, there will always be something ready to trade. When you run across a great stock, you can replace the weakest one in your stable and place it on the bench until it warrants taking a position on the starting lineup.

The problems come when a trader chases the latest hot stock or lets their field of vision widen too far. When you find an account size and a group of stocks and a few strategies that work, stick with it!!! And don’t mess with it and Dance with what ‘brung ya’.

I would love to have you spend a couple days with me in the Trader’s Forge. As a trading coach, that is where I can do the most good for you. I train folks in the Trader Talk Live mentoring workshops each week but that training is most beneficial to the folks who have been to the two day training of the Forge. Last week was a terrific training in Tampa. This month is Denver and then on to Detroit.

I hope to see you in the online web training classes held throughout the week and soon in a two day FORGE Trading workshop.

Ryan with Better Trade

“If it ain’t broke, don’t fix it”

Dealing With Stock Market Corrections: Ten Do’s and Don’ts

Global Finance Articles WebSite — Tue, 31 Aug 2010 11:00:34 +0000

A correction is a beautiful thing, simply the flip side of a rally, big or small. Theoretically, even technically I’m told, corrections adjust equity 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, if this brief little hiccup becomes considerably more serious, new investment opportunities will be abundant!

Here’s a list of ten things to think about doing, or to avoid doing, during corrections of any magnitude:

1. Your present Asset Allocation should be tuned in to your long-term goals and objectives. Resist the urge to decrease your Equity allocation because you expect a further fall in stock prices. That would be an attempt to time the market, which is (rather obviously) impossible. Asset Allocation decisions should have nothing to do with stock market expectations.

2. Take a look at the past. There has never been a correction that has not proven to be a buying opportunity, so start collecting a diverse group of high quality, dividend paying, NYSE companies as they move lower in price. I start shopping at 20% below the 52-week high water mark… the shelves are beginning to become full.

3. Don’t hoard that “smart cash” you accumulated during the last rally, and don’t look back and get yourself agitated because you might buy some issues too soon. 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 to 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 equities now (as you certainly could 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 run out of cash well before the new rally begins.

6. Your understanding and use of the Smart Cash concept has proven the wisdom of The Investor’s Creed (look it up). 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 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. Just think where you would be today had you heeded this advice years ago…

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 (look this up also), 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 (kind of like men, I’m told); 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…

Dealing With Stock Market Corrections: Ten Do’s and Don’ts

Hi-Yo, Silver Fund!

Global Finance Articles WebSite — Tue, 31 Aug 2010 10:09:45 +0000

“Stay long precious metals” …

I’m beginning to think that’s Graeme Irvine’s mantra.

He’s the business columnist on Longer Life’s Bourse page, and I’ll leave it to you to discover his reasons for this four-word chant. Amidst Graeme’s siren calls, I’ve taken notice of his recent daily listings of silver transfers. It seems that HSBC-Hong Kong is in the process of accumulating a substantially high percentage of the current market inventory. The range is something like 60%, an achievement I find as breathtaking as it is intriguing.

Why would that much of the world’s investment-grade silver be moved to one depository? So far, I’ve not been able to find anyone willing to provide an answer. The accumulation is public knowledge, so I’m not suspecting a conspiracy.

I think most investors recall the Hunt brothers’ clumsy attempt to corner the silver market three decades ago — driving their Texan empire from billionaire to bankrupt within eight years — and wouldn’t think of trying to duplicate that stunt.

Super-investor Warren Buffet is, of course, much more sophisticated. His acquisition of 130million ounces of silver approximately nine years ago was made in tranches calculated to coincide with the market rather than drive it. All outward appearances indicate that he has no clandestine intentions; instead, he’s simply substantiating his confidence in the metal and possible lack thereof in the long-term strength of the dollar.

Perhaps the HSBC-Hong Kong hoarding is a result of an announcement made in June 2005 by the United Kingdom’s Barclay’s Bank in which they filed their intent with the USA’s Securities & Exchange Commission to establish an Exchange Trading Fund (‘ETF’) for silver. Specifically, the applicant is a Barclay’s subsidiary, iShares Silver Trust, and the process gained momentum in January 2006 when the SEC approved their listing on the American Stock Exchange.

The Silver ETF is meeting with strong resistance, most notably by the Silver Users Association (SUA), who represent entities who make, sell and distribute products related to silver. Their complaint is that in order to support the ETF, so much silver would have to be taken out of the marketplace and held in reserve that its membership would be burdened by the metal’s higher cost. As the SUA membership processes 80% of all silver produced in the USA, they represent a significant voice in this matter.

Ted Butler is one of the most respected silver analysts in the world. His opinion is that, no matter what the outcome of the Barclay’s application, the entire episode is a positive development for silver investors.

First, let him explain how Exchange Trading Funds for commodities operate, and then describe how the Barclay’s proposal is being positioned:

“In order to establish a commodity ETF, a financial institution buys and stores a quantity of the commodity in question and then issues shares of common stock at a fixed unit of conversion to represent fractional ownership of that commodity. In the case of silver, Barclays would buy the metal, in industry standard 1000oz bars, have them stored in London and elsewhere, and issue common stock shares in a ratio of one share of stock for every ten ounces of silver. The shares would then be traded on a recognized stock exchange, hence the name, exchange traded fund. In the case of the Barclay’s Silver ETF … theyve even decided on the stock symbol, SLV. The amount of silver bought and stored would increase and decrease depending upon the investment demand for the shares, similar to how the gold ETFs currently function.”

The practicalities of a silver ETF include:

- Stock certificates are certainly easier for the investor to store than the metal itself, and

- The ‘common stock’ format allows more categories of investors the eligibility to participate.

What is interesting about the Barclay’s proposal is that its goal is to put 130million ounces of silver into reserve, the exact level of Warren Buffet’s holdings. Could they be using that precedent as a model? Burton notes that even though Buffet was careful not to disrupt the market, the price of silver still doubled during that accumulation. Furthermore, Burton says, “I see nothing in the Barclays prospectus suggesting such buying restraint, either in time or price.”

So, Butler reasons, this makes the situation most favorable for involved investors:

“This silver ETF announcement is a true win-win for silver investors. (If) their silver ETF becomes effective, the impact on the price of silver will be great. Thats win number one, obvious and straightforward.

“But if … this ETF never sees the light of day, that will be a big win as well for silver investors. Why? Because it will prove for all to see just how critical the supply/demand and inventory situation is in silver. If the government says no way to this ETF, it will be for one reason only there is not enough real silver in the world to fund it.”

Either way, it’s a development worth watching. Graeme lists the Comex figures daily at the end of his column and always mentions when another allotment of silver moves to HSBC-Hong Kong. The growth of those figures could well be the ‘tracer’ of things to come.

Stay long precious metals.

Hi-Yo, Silver Fund!

Cohen Research Report Bullish on Pacific Asia China Energy

Global Finance Articles WebSite — Tue, 31 Aug 2010 09:08:59 +0000

A recent report published by the Cohen Independent Research Group, called Wall Streets #1 Independent Research Firm, rated Pacific Asia China Energy (TSX: PCE: Other OTC: PCEEF) a Buy. The 68-page research report set three wide-ranging valuation levels as price targets for PCE shares for the companys coalbed methane concessions in China. Considerations such as the wide range of the Guizhous abundant gas reserves, expected prices of natural gas during the research firms forecast period, and discounting factors, such as the stock prices high volatility, were included in their price targets.

PCE shares, which closed at C$1.16/share on nearly 131,000 shares trading hands on June 19th, were given long-term fair market pricing of C$1.96/share by Cohen Research. This pricing was under the most pessimistic scenario. The low-case scenario included a natural gas price as low as $275 per 1000 cubic meters, and included a discount rate of 25 percent on the stock price. Cohen also reported, in the report, that at the current market price, PCE is grossly undervalued.

Cohen Research wrote, As per our Base Case scenario estimates, the NAV of PACEs resources falls in the range of C$5.31 7.83 per share (with a discounting factor of 20 percent). Under the most optimistic pricing, assuming natural gas at $375 per 1000 cubic meters, Cohen targeted PCE shares at C$11.56/share. Cohen Research used the Net Asset Value (NAV) based method, which is one of the most accepted methods to value mining companies.

PACE, the acronym for Pacific Asia China Energy and not the stocks ticker symbol (which is PCE, trading on the Toronto Venture Exchange, or TSX), is fortunate that one of its concessions is in the Guizhou province of China. Estimates describe this Chinese province as hosting more than 20 percent of Chinas coalbed methane (CBM) reserves. The countrys total CBM reserves have been independently estimated to exceed 31 trillion cubic feet.

PACE was the first Canadian publicly traded company to participate in Chinas granting of CBM concessions. PACE is participating in the Baotian-Qingshan CBM project through its wholly owned subsidiary Asia Canada Energy (ACE). Chinas state-owned CBM company, China United Coalbed Methane (CUCBM), granted the 970-square kilometer CBM concession in September 2005 to ACE. The Baotian-Qingshan concession is located in the CBM-rich Guizhou province.

The Cohen Research NAV levels confirm what we anticipated. Earlier this year, we had reported on the assessment by Sproule International on the Baotian-Qingshan property. On March 1st, PACE had released three scenarios presented in the technical report filed by Sproule. The worst-case scenario on the property showed 504 billion cubic feet for three coal seams. The high case volume scenario for seven coal seams reached as high as 11.2 trillion cubic feet. Sproules assessment, called the Most Likely Case volume estimated 5.2 trillion cubic feet. Some analysts have valued each trillion cubic feet of gas at C$1 billion market capitalization.

This valuation does not include PACEs other CBM concession in China, the Huangshi project, where the company began drilling test wells in mid May. Nor does this include the companys joint venture partnership with Mitchell Drilling Services of Australia for the exclusive use of the drilling companys Dymaxion system in China. We interviewed Nathan Mitchell, president of the drilling company, who was both optimistic and excited about his companys joint venture with PACE, and looked forward to expanding his drilling operations into China.

Mitchell told us, during that interview, his drilling companys technology made it possible to extract gas for around US$1.25 per mcf. This would help make potentially uneconomic gas more economic under a very pessimistic scenario. Revenues from others using the Dymaxion system in China would flow into the coffers of both PACE and Mitchell. Obviously this joint venture is moving forward. On June 8th, PACE announced it had appointed a country manager for the joint venture, writing, Mr. Pacey will oversee all aspects of the joint venture activities in China as the Joint Venture Company prepares to deploy Mitchell Drilling Contractors Pty Ltd’s proprietary Dymaxion Surface to In-seam Drilling System later this year.

Cohen Research did warn of negatives in making a hypothetical Bear Case for PACEs projects. The research team wrote, Commercial viability has not yet been proven. The report also pointed out that technical studies were insufficient to accurately assess the quality of CBM to be extracted. Current drilling is underway on both CBM concessions. On June 12th, PACE reported, Early stage desorption data from 12 samples show a range of gas contents between 105 and 407 scf/t (3.3 to 12.7 m3/t) after 4 to 19 days of testing. These values will be exceeded as desorption will not be completed for several weeks.

The company appears on the right track and has been issuing regular progress reports, which are encouraging. As PACE progresses to its final drilling in Guizhou province, and as the price of natural gas recovers, we suspect Cohen Research will be pleased with their price targets, as might shareholders in Pacific Asia China Energy.

Cohen Research Report Bullish on Pacific Asia China Energy

Better Trades Momentum Part 2

Global Finance Articles WebSite — Tue, 31 Aug 2010 08:07:53 +0000

In Part I of this article, I taught you to trade momentum that occurs after an earnings announcement. In this article, I am going to go into some of the chart patterns we can use to trade momentum that is unrelated to earnings or news. And in Momentum Part III, I will show you how to combine news and chart patterns to trade momentum. But, before I get too far ahead of myself, let me recap what momentum is and why I trade it.

I love to trade options on stocks with a lot of momentum. What this means is that I want to trade those stocks, Exchange Traded Funds or Indexes that are moving fast and far. The way I see it, if I am going to put my money in the market, I want to place it where it will work as hard as possible for me. You may have attended my free webshop on Monster Momentum plays during which I introduced a couple of the technical tools that I use to find and trade this strategy, but let me show you today some other pieces to this strategy and how this can be a boost to your trading account.

The first step to trading momentum is that you need to find a stock that has the capability to move fast and far. These stocks generally have a dollar to two dollar average daily range during normal trading. Once the momentum picks up, they can trend twenty to thirty points or so in a matter of a few months. Sometimes this momentum is sparked by news announcements such as earnings or a new drug approval and sometimes it is just a stock that becomes heavily bought or sold by institutions. Whatever the case, once you learn to read technicals, you will be able to spot the building momentum in time to profit from the big move.

Many of my most profitable momentum trades took place not because of any news but just because the chart began to show signs of big buying pressure or big selling pressure. I look for things like breakouts, long candle bodies, and various candle patterns combined with the six indicators I use to signal a momentum trade. The best way I can teach you to trade momentum is to show you some of the patterns that I and others in my Traders Talks have recently traded.

The first thing to keep in mind with momentum is that once a stock has made a big momentum move, you know it has the ability to do it again in the future. It will probably take a breather for a while and it may not move in the same direction, but the momentum will almost always pick up once again.

Take Goldman Sachs (GS) for instance. This stock ran with a lot of momentum from $155 to about $205 before it started trading sideways.

If you had been to my Technically Speaking classes or in my Traders Talks you would have traded GS all the way up through that run. But at the end of the run, Goldman took a breather for almost a month while it traded in a sideways range between $198 and $203. During this sideways movement, I put my money in other stocks and ETFs that were moving with more momentum. Dont forget what I mentioned earlier, that stocks that have moved with momentum in the past will almost always move with momentum again. So when a momentum stock slows down make sure you are ready to trade it once it begins to move again.

I find momentum trades from my Momentum Scans (you can learn more about these in the Ultimate Scans free webshop), and on January 8th GS showed up on my Momentum Scan as the stock started moving toward that resistance level. By the time it had rallied through the $203 resistance level I had entered a bullish trade. There is no trade that is more fun than a momentum trade. When all the technicals are bullish and my momentum entry was hit, all I had to do was kick back and watch the buying pressure drive this stock up to almost $214 where it sits at the time I write this article. You can see how profitable these breakouts can be on momentum stocks. Goldman has run more than $11 in only five days!

Intercontinental Exchange (ICE) is another momentum stock that we traded in the past as it ran from $68 to $113. That move took nearly three months and then ICE began to slow down and consolidate. The stock was not attracting enough buying pressure to push it through $110. That resistance became an important price target for the stock. If buyers came back willing to pay higher prices for ICE the stock would rally above the $110 resistance and mark our next momentum entry.

You can see below that ICE broke out on January 3rd , prompting a bullish momentum entry. The stock then rallied to a high of $137 giving us a gain of 27 points in seven days.

ICE and GS are just two examples of the many momentum trades out there. I have shown you a couple important technicals pieces that need to be present to make this strategy work. Make sure the stock has the ability to move at least a dollar or two every day and then look at the price chart to see if the stock has moved with momentum before. Then wait for a breakout from a consolidation area to give you one of the safest, easiest and most profitable entries into the momentum trade. And remember, you may have missed these trades, but there are plenty more momentum trades to come. Learn to read momentum signals in a price chart with my six indicators adding confirmation and you will be prepared to catch the next big momentum trade

Hope to see you soon!

Markay Latimer with Better Trades

Better Trades Momentum Part 2

Making Money On The Trends with Better Trades

Global Finance Articles WebSite — Tue, 31 Aug 2010 08:07:13 +0000

Dear Traders and Friends:

I have been having a blast trading this last week. I made $7,300 on KKD, $1,700 on FRX, $2,000 on QQQQ and am doing well in my open trade entering FRX to the downside.

I am putting a day of my commentary here for you to see the value of using THE DEDICATED TRADER website as a trading tool.

One thing I learned, when I decided to trade in the stock market, is how important it is to learn from someone that is actually walking the walk and trading. Let me clarify that even more, making money in the market!

I have been shocked to find out how many people out there that are big name authors in the stock market that do not trade or have a negative trading record. What I mean is the rumor is they are no good at trading!

I do what I teach! I am one of very few stock market authors who not only talks the talk, but I walk the walk. I place my trades on my daily commentary for you to learn from. And this has been very valuable for my readers.

In addition to my commentary, I have a mentorship program called TRADERS TALK, where you can pay to spend four hours a week in a private Webshop with me. We go over any trades or whatever you want to learn, including my trades. It is very powerful, and I have been able to watch people go from a beginner level to about three years experience in just a few sessions.

Here is my commentary for Friday, June 6th:

Market Notes – Friday, June 06, 2003:

COMPLETION OF QQQQ TRADE: 3PM EST

I closed my QQQQ trade from a few hours ago using a GTC I set about 1/2 hour ago to just take 50 cents. I was filled for $2.95 on my 40 contracts listed below for a profit of $2,000 before commissions. Not bad for a Friday.

My other trades are going well – RED, RED, RED…I love the downside.

TRADES: 12:00 EST

1. I purchased 15 contracts of FRX puts. August $60 puts $5.90 FHATL. I will stop out if it breaks the high of today at $55.90 if it does not head back down right away. I will then trail it down to around $52 to profit.

2. I just purchased 40 contracts of the July $33 QQQQ puts for $2.45 QAVSG. I will stop out with an alarm if it breaks the high of today at $31.47 and does not turn back down right away. It gapped up today on Intel’s good earnings report but is getting weak as I type. I usually do front or next month out on the QQQQ. I will trail it down for profits.

Good MORNING & Happy FRIDAY!

The markets are looking very green at the market open, and my trades for today are all down ones (that is if the markets were down). Perhaps in a few minutes we will get a reversal????? I doubt it!

Anyway here were my candidates if the market was down:

DOW: AA AXP DD XOM

NASDAQ: CMVT INTU JNPR MOLX NXTL SANM SPOT

I had no up trades. We seem to be in the middle of a trend for most stocks, and we are in a very sweet uptrend.

That is about all for today. If I do place a trade I will put the comments above this section later today.

So even though this message is short, it is a powerful one…BE CAREFUL WHO YOU LISTEN AND LEARN FROM!

The stock market is very powerful. If you learn how to trade, and do not short change yourself by trying to trade without necessary tools, you can have TIME & MONEY FREEDOM beyond your wildest dreams. I would love to help you!

Last, I just want to mention my trade on the QQQQs. It is one of my favorite things to trade. It is an EXCHANGE TRADED FUND that actually owns all of the NASDAQ 100 stocks in it. MSFT is the heaviest weight so I do watch what MSFT is doing for a direction. It obviously follows the NASDAQ market.

But as you can see by my trade listed above, I was able to buy 40 contracts at $2.45 a share for a cost of $9,800 and my delta was .71. The stock only moved about 77 cents to take a profit of 50 cents making me $2,000 in about two hours. SWEET!

What I love about the QQQQs is that they have strike prices every one dollar! That means the July 33 calls I got when the stock was at $31.30 were only $2.45 with a delta of .71. That is incredible. You see, I could spend $5 – $8 per share on regular stocks to try and get that high of a delta, but it is so cheap on the QQQQ!

A lot of people miss the boat, thinking the QQQQ does not move enough to make it worth trading! What a mistake! I love trading this, and it only needs small moves to profit but your investment is so small compared to trading stocks.

If you had only done 10 contracts that would have been a $500 gain from $2,450 before commission which is 20%! In a few hours 20% is phenomenal!!

All you need to do is pretend the QQQQ are a stock. Look at support and resistance the same way you do already, and choose a strike price with a delta of .70 or higher for a short term trade and trade it up on support and down on resistance.

I will be doing a course on this soon. I will probably offer a free one hour class on my site to introduce you to it. I think you can see why I am so excited about it, and I hope you might catch the fever.

I teach a two day class twice a month, check it out on my site! I will be in Atlanta on June 19 -20thcome see why students say I was their miracle they needed to become a better trader!

Happy Trading!

Darlene Nelson with Better Trades

Making Money On The Trends with Better Trades

Information About Investing Online

Global Finance Articles WebSite — Tue, 31 Aug 2010 07:06:34 +0000

The Internet is a great tool for everyone, including investors due to the response speed, and the amount of information that is exchanged. Transactions are executed very quickly, with the click of a button or a few keystrokes. However, the Internet is also another avenue for fraud. Investors must use caution and common sense when using the Internet for securities activities.

The fact that information appears on the Internet does not render additional credibility to the information. Be especially wary if the identity of the source is not identified.

Over the Internet, investors can purchase securities of a company directly from the company. Treat the online transaction as you would a regular investment, and make sure that the securities are registered or exempted under both federal and state law.

Alternatively, investors can trade securities through online brokers. Study and understand the terms, conditions and costs of these services, before you use them. Brokers must be licensed, and must be registered with the Securities Exchange Commission.

Finally, be very careful with information you gather from a chat room. It is in these chat rooms that persons posing as credible sources send out information to pump the price of a stock. Once the price of this stock has increased, they dump, or sell their stock at a great profit. These are called pump and dump schemes.

Steering Clear of Cyber fraud
The following steps, according to North American Securities Administrators Association (NASAA) and the Better Business Bureau (BBB) can help you keep on guard when you go online.

1. Do not expect to get rich quick When evaluating an investment you have learned about online; exercise the same caution and deliberation that you would bring to any unfamiliar investment opportunity. The old rule If it sounds too good to be true, it probably is applies just as much to offers made in cyberspace as to those made through any other medium.

2. Download and print a hard copy of any online solicitation you are considering This document may come in handy if problems develop later. Be sure to note the Internet address, date, and time of the offer.

3. Do not assume that an online computer service polices its investment bulletin boards The vast majority of services take a hands-off approach to screening claims made in message postings, and even those that do minimal policing cannot possible keep up with the millions of messages posted each month. Remember, too, that anyone can set up a web site or advertise online, usually without any check on the legitimacy of their claims.

4. Never buy little known, thinly trade stocks strictly based on online hype Low-volume stocks are the most susceptible to manipulation since their price can be moved through relatively small strategic trades. Even if a hyped stock starts to move up, proceed with caution this may just be part of the overall manipulation scheme.

5. Be cautious about acting on the advice of individuals who hide their identity The use of aliases on computer bulletin boards is intended to protect privacy, but con artists also can exploit it. People online may not be whom they claim. What may seem to be two or more different people talking up a stock may actually be a single individual with a personal interest in driving up its price through false information or baseless speculation. In addition, an impressive-looking website can be the product of a laptop computer on the other side of the world, far from the jurisdiction of U.S. law enforcement regulators.

6. Do not get taken in by claims of inside information such as pending news releases, contract announcements, and innovative new products In cyberspace, practically anyone can say anything. Despite the abundance of hot tips littered across bulletin boards and discussion groups, it is extremely unlikely that genuine insider information will be publicly broadcasted on an investment bulletin board.

7. Be skeptical about claims that an online stock hypester has personally checked out an investment One established tactic of investment schemers is to talk up companies, mining operations, and factories in remote corners of the country or the globe, where it can be impossible for the average investor to investigate or visit in person.

8. Take the time to investigate outside sources of information on any investment you learn about online Check with a trusted financial adviser and always obtain written financial information, such as a prospectus, annual report, offering circular, and financial statements. Ask the online promoter where the firm is incorporated, and call the states Secretary of State or Commissioner of Securities to verify that information. Also, make sure that an investment opportunity and the person promoting it are properly registered with your state securities agency. In Hawaii, the agency to contact is the Business Registration Division of the Department of Commerce & Consumer Affairs.

9. If you think you have been duped, do not be embarrassed about complaining Early action increases your chances of getting your money back and may prevent others from losing money. If you spot a potential online investment fraud, contact your state securities administrator, Better Business Bureau (808) 942-2355, or The Federal Trade Commission (415) 356-5270.

Information About Investing Online

Investment War Will Make You A Millionaire

Global Finance Articles WebSite — Tue, 31 Aug 2010 06:30:55 +0000

The battle between investment activity in the internet and real world became enough tangible. I decided to broaden the subject and tell the beginners (making professionals thinking) about the differences and vice versa similarities between investment activity in the Internet and real world.

Simplicity. Effectiveness. Security. Perspective. Opportunities. That`s how we can outline the circle of the points, where the difference between two various investment worlds lies. In fact, investor, willing to deposit money, meets much more questions of the individual character.

However, if there`s a difference in some general question, there can`t be any consent in particular ones… so, let`s think, is it worth doing e-business, maybe it`s better to go back to the real life?

The first thing, attracting every investor, willing to make e-money – is simplicity. On any count, the easiest way to buy, sell something etc., not going out of the house is via Internet. To be exact, Internet in particular gives such an opportunity (well, phone as well). So, there is simplicity. Here is Your money on the monitor – do anything You want.

Of course, You can grow fat, but… these are personal problems. The same with investments. If You used Your money right, You can multiple them, not going out of the house as well. Here is the question: is the tale real? And we are ready to answer with confidence: yes, it`s real! But there is just one snag to it. You will have to pay for the simplicity of using the funds and getting income in risk.

Risk – that`s the thing, scaring away many “loafers” and risk in particular is disadvantage of any Internet activity. Whatever You start to do, You can get into trouble. Unfortunately. Otherwise, why would we need to do anything, going out of the house?

We can suppose that lack of security is that very “damper”, keeping the market from epidemic “attack” of anyone who feels like it. Besides, the market itself is ambiguous in a way. There are very profitable and not very profitable investment tools. Not very profitable – opening bank deposit via the portal of this bank. And very profitable – HYIP. And there`s a risk here. You can find many HYIP on theHYIPs.net

It appears because it`s impossible to earn such interests without risking everything. You risk everything to get everything. That`s why HYIP often shoots blank, then smb. looses money. Yes, of course, there are HYIPs in the real world as well, but they need technologies much more complex, and that`s the reason why Internet is the most suitable and fruitful sphere for “risky investment” development.

That`s why in particular, major part of our articles is about how to secure oneself technically and how to become more experienced, communicating with investors themselves.
Though, it`s not all, of course. You can use Your funds at Your own discretion, without giving them to anybodies` hands. In the real life, giving money to anybodies` hands, You may earn about 20% per year, though You won`t be so nervous.

There`s a gradation in the real life from 10% to 20% hence – the risk is increasing. More risk – is criminally. In the life of e-investor there are two gradations. Either there`s much risk and money, or own work. Although, we don`t dispute about the fact that there are also low-yield investment programs. However, what`s the sense, if one can go to the bank twice a year to obtain the notorious security.

Let`s talk about using the funds with one’s own hand. Any possible means, available in the real world, are open for You in the Internet. There are some differences. First, anyone can use them. Second – anywhere, anytime, in any way. So that to exchange USD for e-gold

You need nothing more than an e-gold account. These are also direct investments. Gold is increasing – the funds are increasing as well. And we are not even speaking about FOREX market and buying securities. There`s nothing easier. Excluding some moments – see above.
Now, let`s talk about perspectives and opportunities. First of all, You don`t have to be a prophet to say that Internet is future and working with investments on-line – is just a future lessons teaching. Moreover, now there are much more opportunities on-line that in the real life.

Roughly speaking, even a child can go in for investment activity, in case of having enough willing and knowledge. Now we need only to eliminate the defects, we were talking about and such form of earnings will not just compete, it will be more attractive than investment in the real world! Well then, we are waiting.

On the whole, summing up, we can say the following. If You want a stable, reliable income, You can put Your money to a bank. If You want more income – give it to people, knowing about the trades on securities` market and things like that. If not – Internet is for You.

Besides, it gives convenience to handle the funds. If You are overbold – You can work on the exchange. However, Internet and nothing more is convenient here. There`s no need to go to an exchange, everything is reliable and easy enough. And, it`s even more convenient to buy or to sell something on-line.

Investment War Will Make You A Millionaire

Online Sports Trading – A Viable Investment?

Global Finance Articles WebSite — Tue, 31 Aug 2010 05:04:47 +0000

What if there was some way to tap into the ever-growing popularity of world-wide sport that could turn the gambling factor of sports betting into an investment vehicle producing sustainable results over the long-term such as equity trading?

Sports Trading was conceptualized and bridge between conventional sports betting and real-world stock trading was built.

Please note: generalizations are used in this article because sport trading exchanges can differ in nature and offerings.

What is Sports Trading?

You may immediately associate sports trading with that of card trading but until fairly recently, sports trading has taken on another exciting meaning.

Although the actual definition of sports trading may differ exactly depending on the type of exchange in question, it is essentially the act of investing in virtual sports issues or contracts (i.e. sports teams, players or markets).

Sports trading is not to be confused with sports betting (betting against a bookmaker) or some other form of fancy gambling, sports trading runs along the same investment lines as trading on a conventional stock market exchange (e.g. Wall Street).

Participants of:

Fantasy sports games
Stock trading simulation games
Sports betting exchanges

will identify a commonalty with a typical sports trading exchange.

Although sport trading is still somewhat dwarfed by the sports betting and real-world trading industries, there is no question of the future popularity for this concept as people from all backgrounds are coming together to trade be it virtual stocks or issues or real contracts for real money on any sports related market, offered by the online sport trading exchange.

Sports trading exchanges are developing sophisticated technology, commonly employing a proprietary trading platform and in most cases, with a Level II type trading interface.

It is typical of a global sports trading exchange to offer around-the-clock (i.e. 24/7) trading as exchange members are not inhibited with limited or set trading hours so are free trade anytime, from anyplace around the world.

Advantages over Sports Betting

Sports trading has the thrill of sports betting but without the inherit risk of gambling that sports betting produces.

Some notable advantages sport trading has over conventional sports betting are (trading exchange dependant):

Far less risk; eliminates the ‘all or nothing’ situation
Can still profit even from an event loss
Capital appreciation
Dividend income
Not solely competing against professionals
Greater chance of success (not limited to above reason)
Can be invested with minimal effort

Sport trading eliminates the gambling factor associated with sports betting; traders seldom lose their total investment in a stock holding (i.e. they have the ability to trade out to prevent further loss), the sports bettor loses their entire wager with an incorrect guess.

The sports trader is not competing solely against professional bookmakers whose job is to get the better of you – more often. Sport trading exchanges are about people-to-people interaction so you are pitting your skill, judgement and knowledge against fairer competition. Learn to be savvy and you end up with the edge.

Once invested, the sports trader can theoretically sit-back and monitor their investments passively; the sports bettor must normally wager every time to potentially make money and therefore, incur greater risk on each and every bet.

Advantages over conventional stock trading

Participants of stock trading already will find other useful benefits from a typical sport trading exchange such as:

Lower trading fees due to being solely online trading
Greater participation from a wider audience
Not being exclusive to professionals
Around the clock trading (no set trading sessions)
Wider-economy independence
Readily accessible sport information for all
Global trading stock exchanges

The global online sport trader is conveniently afforded time-zone irrelevant trading from an online trading environment that typically does not shut for trading.

With the world-wide following sport increasingly enjoys (activity is seldom subject to prevailing economic factors that affect conventional trading exchanges) and the substantial amount of publicly available information not subject to a privileged few, sport traders can finally compete on fairer terms with other traders.

Online sports trading on virtual trading exchanges provide a wonderfully unique cross over between conventional sports betting and real-world stock trading in essence; they combine many of the advantages of the two, in a single investment product.

The opportunities that exist on these virtual exchanges and the resulting advantages are too long to detail here but it is the hope of this article to spread further awareness and the investment advantages of sport trading because this is a viable form of investment worthy of promotion.

Online Sports Trading – A Viable Investment?

Rental Income Investment Property

Global Finance Articles WebSite — Tue, 31 Aug 2010 04:30:10 +0000

Many people dream of owning a vacation home. But often concerns about maintaining it, renting it out in the off-season, or even justifying the expense when its only to be used for a couple weeks of the year keep them from making the dream a reality. Now condo hotels, an innovative type of vacation home ownership, provide a welcome solution to all these problems.

Also known as condotels or aparthotels, condo hotels have been growing in popularity as an approach to owning a luxurious second home.

Condo hotel buyers purchase an actual condominium unit in an upscale hotel or resort. The property functions as a full-service hotel, and owners have access to all facilities, amenities and services just like hotel guests.

They receive a deed to their unit and can use their vacation home when they want. When not in residence, they can place their unit into the hotels rental program and share in the revenue it generates. Like most real estate investments, the owner can also sell his condo hotel unit at any time and may make a profit on its appreciated value.

Young professionals, baby boomers and seniors alike are just beginning to discover the benefits of owning a condo hotel unit. They appreciate the hassle-free nature of condo hotels as a second home in which a professional management company handles everything from property maintenance to finding hotel guests to rent the units. They also consider condo hotels a means to diversify their investments.

Condo Hotels Are Not Your Parents Timeshare

As hybrid properties, condo hotels differ from timeshares in a number of ways. With timeshares, buyers pay only for the right to use the property for a set amount of time each year, usually a single week. They dont own the title to the property, and they do not receive any rent revenue for the weeks theyre not in residence.

Condo hotel owners can use their condos when they want throughout the year, within the guidelines of the individual development. They receive a percentage of any revenue their unit generates when theyre not there and the unit is rented out to hotel guests.

Timeshares traditionally diminish in value over time, rather than appreciate. While the history of condo hotel resales is rather limited, they are seen as an appreciating asset.

Condo Hotels Offer Facilities

How do condo hotels differ from owning a traditional single family house or condominium? Consumers who purchase a traditional condominium pay property taxes, insurance and maintenance fees, but typically dont have access to hotel-type amenities.

Condo hotels, on the other hand, are not your standard second home. They are suites in a hotel designed condominium.

The properties often feature four- or five-star amenities, ranging from full-service spas and fitness centers to fully-equipped business centers and fine-dining restaurants. They also come with exceptional hotel services like concierge, valet and room service.

With condo hotels, owners reap the rewards of condo ownership while enjoying the privileges of a full-service hotel.

Condo hotel units range from studios and full-size apartments to luxurious penthouses and villas. Prices for these homes range from $250,000 to over one million for top properties.

Condo Hotels Generate Revenue to Cover Their Costs

What makes the condo hotel concept so appealing? When owners are not using their condo hotel unit, they have the option of placing it into the hotel’s rental program. They receive 60% of the revenue their unit generates with the balance going to the hotel operator. The revenue generated helps offset the costs of owning a holiday home.

While many hotel operators dont guarantee the rental of the condo, by capitalizing on the hotel’s brand name, strong sales and marketing capabilities, centralized reservation system and management expertise, owners typically receive a higher level of rental income than they would from a traditional vacation home.

More importantly, ownership is 100 percent hassle-free, as the hotel operator takes care of finding hotel guests and maintaining the unit as well as managing the propertys many facilities.

Condo Hotel Expenses Are Shared

How are the ownership expenses split? As part of the rental agreement, the hotel pays for most operating expenses such as housekeeping, administration, sales and marketing. The condo hotel owner typically pays for real estate taxes, insurance and capital improvements. The rental revenue that owners receive helps defray these expenses and, in some cases, provides additional income.

Condo Hotels as Investment Tools

While developers primarily sell their condo hotel units as a lifestyle and vacation home alternative, many buyers see merit in the condo hotel concept as an investment tool. They say it gives them the best of both worlds. They can enjoy all of the benefits of vacationing in a first-class hotel while they own a property that has potential to appreciate.

For further information about Philippine condo hotels please do not hesitate to contact us:

Beth Collingz
PLC International Marketing Networks

Rental Income Investment Property

AVOIDING DAY TRADER STATUS WITH BETTER TRADES

Global Finance Articles WebSite — Tue, 31 Aug 2010 04:03:23 +0000

Due to an overwhelming request of questions about Day Trader Status I have decided to write this newsletter to look at these issues. Whether you know about it or not, you don’t want to accidentally learn about Day Trader Status by a notice from your brokerage firm saying that you are now tagged as a Day Trader!

WHAT IS A DAY TRADER?

A Day Trader is someone who does four intra-day trades in five consecutive trading days. Let me address some terms here to help you understand this better:

Intra-day trade: A trade that is opened and closed in the same trading day (round trip).

Five Consecutive Trading Days: These are calendar days that the market is open, all in a row. For example:

If the market was open on Monday through Friday that would be five consecutive days.

Then we would have Tuesday through Monday for the next five consecutive days (unless Monday was a holiday in which case it would then be Tuesday through Tuesday.

Next, we would have Wednesday through Tuesday, and so on. The key is five trading days in a row.

HOW TO AVOID IT

One of my favorite students, Debi D, taught me to use a calendar to record my intra-day trades. By placing an “X” on the day

you do intra-day trades, (2 X’s if you do two, 3 X’s if you do 3 in that day) you can avoid accidentally getting to four by

looking at your calendar. Make sure you mark the days the market is closed on your calendar.

WHY DOES IT MATTER?

I thought it mattered a lot, but after my research for this newsletter, it appears there actually are some great benefits

being classified as a “Day Trader” if the $25,000 is not an issue for you. Basically there are two issues at hand:

ISSUE ONE: Your brokerage firm will likely impose the NASD requirements of maintaining at least $25,000 in your trading

account – and you have 5 days to comply. If you have this kind of money there is no issue! However, if you are starting out

with limited funds to trade it could be a big issue! One important note – always ask for one time of forgiveness! Many

students told me they did and the status was removed – so ASK! There may be a way around it, but I am not sure. From my

reading of the requirements, the penalty for not complying is that you are subject to cash only trades, (which are what we

were doing anyway with options)!

There is a really incredible benefit though if you are tagged a Day Trader and maintain the $25,000 minimum value in

your account. You may be eligible for day-trading margin, which is 4 times account buying power. WOW DO I EVER LIKE THIS

ONE!! This buying power may only be used intra-day and may not be held past market close. Orders exceeding Day-Trading Buying

Power will be rejected.

ISSUE TWO: Tax Consequences with the IRS

Actually upon my research into the IRS Publications it does not appear as bad as I thought. A tax firm specializing in trading activity, says:
o They allow a full deduction of all trading losses in the year they occur, thereby circumventing the historical $3,000 net capital loss rule.
o They allow full current expensing of trading expenses without limitation, thereby circumventing the limitation on miscellaneous itemized deductions.
o They enable the active trader to still take advantage of the beneficial long term capital gain rules.

o They enable the active trader to circumvent the restrictive “Wash Sale” rules normally applied to investors, thereby alleviating a huge record-keeping nightmare.

o They allow the active trader to deduct losses on open as well as closed positions.

Continuing on with my IRS research:

You would report your trader’s activity as a business on Schedule C of your 1040, possibly allowing all the deductions for your classes and tools, versus a limitation on deduction for passive trading that would have had to be reported on your

Schedule A with a 2% AGI limitation deduction. But here is the sweet deal: you can still elect to report your gain or loss on

Schedule D as a capital gain unless you made the mark-to-market election, (which has you claim the income as ordinary income on Form 4797 instead of Schedule D – see IRS Publication 550 for more information on this). Just to be safe, you better talk to an accountant that specializes in stock market trading. Being a retired accountant, I want to tell you that most accountants will not know how to treat your trading income properly – you need to understand this.

The proper classification of your investment activities is important to determine how income and expenses are to be reported.

Traders that buy and sell securities frequently can report their purchases and sales result in capital gain and loss, and their deductible expenses are trade or business expenses.

Happy Trading!

Darlene Powell with Better Trades

AVOIDING DAY TRADER STATUS WITH BETTER TRADES

Financial Freedom

Global Finance Articles WebSite — Tue, 31 Aug 2010 03:02:45 +0000

Financial freedom eludes so many people these days who by all logical conclusions and observations should have obtained it. Its commonly cited as one of the most important and sought after goals in life and yet is rarely attained. This article does not attempt to give you a magic formula for success but I do share with you the choices that made a difference to me and can, if you choose put you well on the path to freedom.

Consumption
You can choose to spend some or all of your money on consumption items. These include food, entertainment, holidays, housing, motor cars, hobbies, and so on. These are things we need to live on a day-to-day basis. They also consist of items that service the things we want and so improve lifestyle.

Investment
You can choose to spend some or all of your money on investment items such as revenue producing real estate, shares, interest bearing deposits, businesses that produce revenue, etc.

Consumption or investment
Two important factors need to be understood about the simple concepts of consumption and investment.

The first factor is that spending on consumption items results in reducing the total value of your assets (net worth). Spending on investment items aims to increase your net worth. The second factor is that you have choice. You can choose between spending on consumption or investment items.

Of course, the best spending patterns are those that aim to attain a balance between spending on consumption and investment items.

Choosing consumption or investment
You now know the difference between consumption and investment spending and that you can choose between the two.

All you need to do is to think before you spend. Consumption spending can contribute to your lifestyle (driving a new car is fun, even if it was bought on credit and has created a liability of three to five years of payments). Investment spending provides income and wealth.

Shades of Grey
There is, of course, some spending that is not clearly defined as consumption or investment. Buying your own home is considered by many to be an investment. It isnt! The purchase usually is financed and the repayments are a liability. The upkeep of a house costs money. There are rates and taxes payable on it. You do not get any revenue from it. If you plan to sell it in a few years to make a profit on its increased value, then it may be an investment. However if you have to buy another house to live in are you really any better off?

Investment spending is necessary for building wealth
In order to build wealth, some investment spending is necessary. The more that goes into investment spending, the bigger and quicker your wealth will grow. However, if too much goes into investment spending, and not enough into consumption, then lifestyle can become meagre. But you can choose.

Accumulation over time
Most people are not born rich. Certainly, some inherit wealth, but consequently may not appreciate it. A few win wealth in lotteries, but ironically, perhaps because they have not worked for it, or are not used to it, could end up squandering the temporary riches.

Everyone, however, has one thing in common. The same amount of time goes past for each of us, and at the same rate. How you employ that time is significant.

Imagine that at the age of 21, you invested $1,000 at an average annual rate of return of 10%, and then by the time you reach 65, you would have accumulated over $70,000 without doing anything else.

If at the age of 21, you invested $1,000 at an average annual rate of return of 10%, and each month invested an additional $100, then by the time you reach 65, you would be a millionaire, without doing anything else.

If you did neither of these things, then the same time would pass, and you would not have accumulated any wealth.

These examples of investment, quite deliberately, use amounts of money that are affordable by most, and if spent on investment, rather than consumption, would probably not be missed.

In terms of investing, time is on your side.
Of course, you may not be 21 any more and you may wish to accumulate wealth at a faster rate. This is possible by increasing the amount invested, and the annual rate of return. It is not possible to systematically accumulate significant wealth (millions) without looking at a timeframe of several years (say 5 to 10). If you are trying to make more money in less time, then your objectives may not be realistic. Perhaps a lottery ticket, crossed fingers and large amount of luck could produce your desired result, but dont hold your breath waiting.

The power of compounding
In the above examples there is an additional factor at work. The entire return was reinvested and participated in earning the same rate of return as the original investment. None of the investment return was withdrawn and spent on consumption items.

Financial Freedom

Secrets That Ensure Profits

Global Finance Articles WebSite — Tue, 31 Aug 2010 02:01:46 +0000

The following article includes pertinent information that may cause you to reconsider what you thought you understood. The most important thing is to study with an open mind and be willing to revise your understanding if necessary.

This interesting article addresses some of the key issues regarding Futures trading. A careful reading of this material could make a big difference in how you think about futures markets and trading them.

How a strategic money management plan works is discipline, not magic. In the market place its possible to be right, and to still lose money. In fact, its pretty common. Traders who win on a high percentage of their trades often end up with their capital eroded away, and left with nothing to show for their work. They lose their gains because they dont know how to manage their money.

Being a good manager of your own money is one of the most difficult of skills to learn. But if you do not use good money management to bank profits, learn to take small losses when you are wrong and control your use of margin, you will lose it all. No matter how good of a trader you think you are, your first priority needs to be protecting your capital if you want to be successful.

As a trader, your capital is the most valuable asset you have. It is your only asset in the eyes of the market. Without it, you cant work at all. For this reason, bringing in no profits on a trade is better than losing any part of your margined account. If your account is intact, you are alive and live to trade another day. If your capital has suffered a loss your efforts for making gains will wasted playing catch-up. The more youve lost, the longer it will take to get back to where you started from, because now you have a smaller pile of capital to work from. A smaller capital base means smaller percentage returns on profits. Making 10% on a $5,000 account earns you $500, but if youve lost half of that account and have only $2,500 left, making 10% on your money will earn you only $250. Youd have to do that twice to make the same $500.

Sound money management has two main goals: to avoid losing money, and to avoid missing profit opportunities. The first goal is straightforward. You want to preserve your money and whatever profits youve accumulated. But you dont just want to keep your capital and let it go stagnant. You want to trade with it, to continue to grow it and make your returns larger and larger. Not keeping your money tied up in bad or problem trades for long periods of time will allow you to not miss new profit opportunities when they come along. Failing to avoid either of these will cost you

It’s really a good idea to probe a little deeper into the subject of Futures. What you learn may give you the confidence you need to venture into new areas. Working to avoid losing those profit making opportunities isnt quite as obvious a goal. With the second goal in mind lets compare the outcomes of two money-management decisions. Trader X buys a futures position, expecting it to go up, and finds that it doesnt. However, hes certain it will go up eventually, and hes incurred a small loss, so he decides to wait it out. He ends up holding the position for two months before finally selling it. Trader Y buys the same futures at the same time as Trader X, but once he sees that it isnt going up, he sells it at a small loss. He buys another futures position and makes a 10% profit on it. His next trade loses 2%, but after that he makes 7 %, and then loses 1%, and then gains 25% on a series of trades. Because the account is growing and he makes gains on an ever larger base of capital each time, at the end of two months, his account has grown quite handsomely, even though Trader Y was WRONG 50% of the time.

Which money management decision turned out to be the best? While Trader Y made a nice profit, Trader X not only lost time but also never made his money back. Even if he had made his money back on that position, its hard to see how this was a good use of his operating funds over the course of two months.

Clearly the goal of not tying up your capital in bad trades has an important impact on your profits. Using sound money management will keep your trading funds and your profits safe. Though it is a difficult skill to learn, once you know how to practice good money management techniques, you can almost guarantee that you will be a successful trader.

If you’ve picked up some pointers about Futures that you can put into action, then by all means, do so. You won’t really be able to gain any benefits from your new knowledge if you don’t use it.

More information can be found at http://www.futurestradingsite.com

Secrets That Ensure Profits

China Portfolio Insurance

Global Finance Articles WebSite — Tue, 31 Aug 2010 00:00:34 +0000

Are you excited about the upside potential of China but cant pull the trigger because of the significant downside risk? Here is a way to invest in China growth and still sleep at night.

China has been the largest economy in the world for eighteen of the past twenty centuries and it is clearly determined to regain its role as the hegemonic power in Asia and then challenge U.S. global leadership. Will it be able to sustain its 10% economic growth rate, quell rural discontent, build a sound market-based financial system, privatize dominant state-owned enterprises and move towards openness and democracy? This is a tall order and you can put me in the skeptic column.

Nevertheless, Chinas raw industrial power, momentum and the palpable ambition of the Chinese people could realistically yield a huge return. I advise my clients to go ahead and invest in China but emphasize that this is a speculative investment. It is smart to protect against the considerable downside risk.

Here is a simple plan you might want to execute to capture the upside while cutting your losses if the Chinese economy hits a speed bump.

First, you could take a broad stake in China through investing in the China iShare exchange-traded fund (FXI) that is comprised of 25 of the largest and most liquid China names. All of the 25 stocks included in the China iShare are listed on the Hong Kong Stock Exchange. Some of them are incorporated in mainland China (H shares) and some of them are incorporated in Hong Kong (red chips). The China iShare has been picking up steam in the last few months and is up just over 12% so far this year.

The China iShare provides good exposure to three key sectors of China: energy (20%), telcom (19%) and industrial (18%). This concentration can be viewed as a plus or a minus depending on your perspective. For example, some smart investors are placing a bigger bet on Chinas consumer markets. The top five companies represent 40% of the index. The annual operating expenses of the China iShare are only 0.74% compared to 2% plus for other alternatives out there including actively managed China and greater China regional funds. Keep in mind that most of these companies are still largely controlled and owned by the Chinese government.

Next, you could take out some insurance to protect this position by purchasing a put option on the China iShare (FXI). It sounds complicated but is actually very straightforward. An option is a right to buy (call) or sell (put) 100 shares of a security on a fixed expiration date at a set price (strike price). For this right an investor pays a fee or premium.

While you may grumble about paying the premium with cold hard cash when you might not need it, you probably have home insurance just in case disaster strikes and no doubt you have some life insurance as well. Why not protect your portfolio as well? It is especially important to consider hedging against more risky emerging markets such as China. While countries like China offer tremendous upside potential, the downside risk can be daunting and immobilize even the bravest investor.

Lets look at a couple of examples. Say you buy 100 shares of the China iShare (FXI) which is trading at $62 per share. Your total exposure is $6,200. Then purchase a put option (right to sell the China iShare) that gives you the right to sell FXI at a price of $60 on the third Friday in January 2008. I think we all can agree that a lot could happen to China, good and bad, from now until January, 2008. If the price of the China iShare moves down toward the strike price, the value of the option will increase.

This will cost you a premium of a little over $500 but limits your potential loss to $2 per share plus the premium. Or buy a put option at a strike price of $50 and your premium drops to about $200 with a worst case scenario of a loss of $12 per share plus the premium.

Here is another example. You know Latin American markets are hot and believe the bull market will continue but are wary that there is the potential for a sharp pullback. You could buy 100 shares of the Latin America 40 iShare (ILF) giving you exposure to Brazil, Argentina, Mexico and Chile at a price of $113 for a total exposure of $11,300. Then buy a put option giving you the right to sell 100 shares at a strike price of $100 in March 2006 for a premium of around $300. Your worst case scenario would then be a loss of 15% with unlimited upside.

Keep a cool head when investing in emerging market countries like China. They should represent only be a small portion of your portfolio and, whenever possible, take out some insurance.

China Portfolio Insurance

Future of oil

Global Finance Articles WebSite — Mon, 30 Aug 2010 23:59:58 +0000

In recent days oil market has witnessed surge in global oil price. Crude oil went to a two-month high on concern that U.S. refiners will fail to produce enough gasoline to keep up with peak demand this summer.

Short fall in supply of oil from Nigeria and uncertainty on Iranian nuclear issues are already keeping buyers of oil nervous. Delivery in May future hit $68 per barrel, a 20 pct jump from last years $56.5 per barrel, only $2.85 from August 2005 high’s of $70.85.

Since last 3 years oil market has been witnessing a substantial rise in the average price of oil. Last week number of oil analyst and agencies have one again raised their 2006 average forecast price to $63.

US Energy department Data reported that refineries are operating around 86 pct of their capacity. Analyst estimates that during same period last year, plants utilised 94 percent of their capacity. Not to forget that February, March & April are also crucial as all the maintenance work is done during these months.

There is difference of opinion as experts differ on whether the current soaring oil demand will outstrip the current supplies, and how quickly.

But for oil watchers, what could be more concerning is that if the current surging demand from China and India persists then Saudi Arabia, which has a known 25% global oil reserve, may see its oil reserves dwindle in twenty years time. Many leading oil analyst says Saudi Arabia is believed to be forced to over supply http://www.topsuppliers.com .

The country has the ability to produce 15 million barrels per day. Middle Eastern Oil analyst is of view that if Saudi Arabia produces 15 mbp, the lifespan of Saudi Arabia’s proven oil reserve of 260 billion barrel, 100 billion has already been used and therefore the reserves can be used in our lifetimes.

Meanwhile, last year’s impact of five major hurricane hitting United States of America still has the biting effect on the oil industry. Coastal oil refineries are still fighting to deliver maximum production.

Developing oil sands or natural gas-based diesel fuel is slower and more expensive proposition, though researchers are making every effort to produce an alternate to counter oil price.

US President George W Bush in his one of his State Union address in February, called for intense effort to develop more efficient fuel sources. The US Energy Department and the Agriculture Department spend tens of millions of dollars every year on biomass-based energy research and development. This is in addition to the billions of dollars. More than $4 billion was spent in 2004.The U.S. provides in subsidies for the production of corn, from which most domestically produce ethanol is derived.

Considering how ethanol is produced, corn or sugarcane is grown, harvested and delivered to an ethanol plant. Growing and harvesting the corn and heating the reheating the fermented corn of sugarcane to produce ethanol of a high quality to replace some of the gasoline in car requires enormous amount of energy.

According to researchers, it was found that it takes 30 pct more energy to top make ethanol from corn. Wood biomass takes 55 pct more energy. Swiss grass takes about 50 pct. Ethanol is just highly uneconomical product in the West, as compared in developing countries, also due to low labour wages. It also contributes to air pollution. Cars running on gasoline containing ethanol produce more air pollution than cars running gasoline alone.

Another research work on Pig manure is underway. One pig produces 10 pounds of manure to yield up to 21 gallon of crude oil. Hence, it is estimated manure from America’s 60 million pigs could produce 50 million barrels of oil a year. Framers can earn $10 per pig from manure.

There are all very expensive propositions. The researchers would continue to search for oil alternate, but substitute for oil may still be far away. With current pace of global growth, thirst for economic boom and demand incurring due to population explosion is unending.

I have very few reasons to believe that oil prices will fall to USD 50 per barrel and would rather like to argue that we would continue to see higher oil price trend. Without which search for new oil find could not be met due to high exploration cost. Oil price could also be kept high intentionally, to give investors incentive to explore oil and to developed alternate fuel find which requires billions of Dollars. With growing annual demand for 2 million barrel per day, most of it coming from Asia, one single event that disrupts oil production could send prices sky rocketing. Current demand for global oil is 84 million barrel per day. I expect the oil to trade in a USD 75-80 range in a short span of time. Not long ago talking of oil price averaging USD 60 was a sin. So let us get prepared for the next coming big move.

Future of oil

Condotel or Apart-Hotel Suites Make an Excellent Rental Property Investment

Global Finance Articles WebSite — Mon, 30 Aug 2010 22:59:06 +0000

Many people are aware of the strategy of developer extended loans to purchase rental real estate says Beth Collingz, Overseas Sales Director of PLC International, lead marketing partners for Pacific Concord Properties Inc’s Lancaster Brand of Condotels in the Philippines. You make a very small down payment with the majority of the purchase price payable over as long a period the developer extends at zero interest.

In Apart-Hotels or Condotels, the rental income goes a long way to cover the cost of servicing and managing the unit and in the long term after paying off the purchase price, can give a ROI through rentals of up to 16% per annum. Regardless of the possible bumps on the road to greater wealth, condotel investments are at least an easily-understood investment tool that most of us can handle added Collingz

Collingz expects rental income to rise 15 percent in the coming 12 months after gains of as much as 30 percent since January 2006, when Pacific Concord Properties Inc are set to launch Condo Hotel operations of their flagship Lancaster Suites located in the Ortigas business district in Metro Manila.

UK Private equity units of banks and investment clubs, driven in part by the current strength of the Pound Sterling in international trading, are being attracted by returns in the Philippines as much as double those in the United States and Europe, are purchasing significant blocks of real estate for investment trusts for Asian commercial property. There are large amounts of capital now chasing increasingly limited investment-grade real-estate opportunities in Asia, said Collingz. We are currently in the closing stages of packaging the investment of some $20M in private-equity real estate funds for new Lancaster Brand Apart-Hotel or Condotel developments in Metro Manila and Cebu, on the strength of expected rental returns which will continue to grow at a rapid pace. With funds raised for commercial property deals in Asia having doubled in each of the past five years, Collingz see the market value of Condotel investments in the Philippines reaching new heights in 2007/8 as more developments come on line.

Rising demand for homes, hotels, short and medium term rental accommodation, offices and shopping malls in the Philippines, home to a population of almost 80 million and with a significant number of the more than 10 million returning overseas Filipino Baby Boomers, is fueling rents. Residential rents in Metro Manila rose 26 percent in the three months to March 2007, their highest quarter-on-quarter increase in more than a decade, as more and more IT companies set up shop in the Philippines. Companies like Texas Instruments are investing $1B in expanded operations in the Philippines. High-end rents rose some 13 percent from a year earlier, said Collingz.

Collingz projects that Rents in the region are set to effectively jump up by at least 8.7 percent per annum over the next five years, compared with 3.3 percent in the United States and 3.7 percent in Europe. Yields from 8 percent to as high as 14-16 percent ROI on rental income property contrast with the 4 percent to 5 percent that private equity firms get in the United States and Europe.

People are in general looking to shift fund flows relatively towards Asia,” Collingz said. It already has had a profound impact in markets where there’s a lot of this money chasing the same assets. In Singapore, the region’s second- biggest market after Japan, investments by private real estate funds accounted for seven of the 19 office blocks, worth 6.7 billion dollars, sold since September 2005. REITs bought six. A Goldman Sachs fund paid 690 million dollars for two buildings last November that house the headquarters of DBS Group Holdings. In Hong Kong, property funds of Morgan Stanley and Macquarie Bank paid a total of 7.9 billion Hong Kong dollars, or $1.02 billion, for four office blocks from March to May, according a recent article published by CB Richard Ellis.

As the Singapore, Japan and Hong Kong markets become saturated, the Philippines will be the next real estate market to attract substantial overseas investments. Lower prices and retirees spending money are also directing foreign attention to residential condominium hotels in the Philippines, which in turn is driving up more construction. A lot of this interest is being driven by the relatively cheap market prices here compared to Europe especially UK housing prices and the easy payment options available for condominium hotel developments Collingz said. The buyers gain rental incomes that on todays purchase prices give a projected ROI of some 8 percent to 14-16 percent depending on the mode of payment for the unit she said.

Beth Collingz
PLC International Marketing Networks

Condotel or Apart-Hotel Suites Make an Excellent Rental Property Investment

Monitoring Your Finances Reveals Priceless Lessons

Global Finance Articles WebSite — Mon, 30 Aug 2010 21:58:33 +0000

A most important element for building wealth is to measure it. The people I know that have continually increased their net worth track it in order to direct it and stay motivated to reach ever higher financial goals. Seeing the quantifiable results of your spending and investing decisions is the first step to take control of them. Contrarily, the people I know in the worst financial shape have no idea where there money is spent and are too afraid to know what their net worth might be because it wont be pretty. Which extreme more closely matches your attitude? As Dr. Deming says, You cant manage what you dont measure. Think of it: if you were seriously wealthy, youd spend some time every week managing some aspect of money. Well, if you want to improve your financial condition, a beginner version of a money management and tracking method is required. In addition, the more money you build up, the more financial assets and obligations there are to monitor. If you dont have your financial tracking in place before you acquire them, Id bet that you wont own them for long.

If you dont see and feel the gains and losses of your financial decisions you are playing the complicated money-game of life without any scorecard. This is how so many people with decent paying jobs and insurance still get into financial trouble. You need to have navigation reference points to know if you are steering toward building wealth or destroying wealth. It is by monitoring your net worth that youll start to uncover the financial impact and consequences of your decisions.

The starting point for financial measuring is a simple statement of net worth (or balance sheet). If you have never heard this term, it is a list of the current market price of everything that you own and what you owe to others. The difference between these two numbers is called your net worth, and this is the number that you want to measure and increase every single month.

As with a business, once you start measuring the financial consequences of your behavior you can begin making your own personal spending rules. For example, if most of your monthly income is spent at restaurants, try making a rule that you only go out twice a week. If youre spending too much money on gasoline you need to find several ways to reduce it. Simple insights and subsequent rules like these will help increase your net worth, which will lead to bigger insights and develop into bigger gains.

If you find that you have a lot of debt that is decreasing your net worth, or possibly a negative net worth, then what rules about debt are you going to create for yourself? After you get some money saved, where are you going to put it? How much time are you willing to spend monitoring it? How much effort are you willing to exert to educate yourself about investing? These questions will aid in building your investing rules. Eventually youll have rules for spending, saving, employing debt, and investing that will shape your personal plan for you to start moving your net worth in a sharply positive direction. Think about adding a rule to read a new financial book each year. Your financial statements and financial rules can be as simple or sophisticated as you want to make them. If you keep making even baby steps forward, it may become no big deal to have specific rules for retirement planning, tax implications, entity structuring, evaluating investment real estate, checklists for buying mining companies, or selling a company youve built.

When you have calculated your first statement of net worth, you start having the ability to plan for purchases and payments. As a simple example, if your auto insurance bill arrives once a year, you can calculate how much money that you need to set aside each month to easily pay it when it arrives. Or if you are getting a new car, youll be a lot happier planning for the initial costs before you get squeezed at the end of the month and end up paying a few bills late.

After you get comfortable with a net worth statement, you can move on to an income & expense statement. Then move on to making projections for all of your statements. And creating scenarios such as: How much is a reasonable goal for retirement income for you? How much net worth will you need by when? How are you going to increase your income, increase your savings, increase your investment returns? The answers will be built upon the financial habits, tools and education that youll develop, but it can all start with your first net worth statement.

Monitoring Your Finances Reveals Priceless Lessons

The Magic of Compounding-Part I

Global Finance Articles WebSite — Mon, 30 Aug 2010 20:57:41 +0000

Some of you know about this, some of you don’t. Either way I’m going to give you the basics of compounding, plus a couple of new slants on the concept. I suggest you read The Magic of Compounding not just once, but several times. If you have children, print this write-up, and give it to them to read. If they master this concept they will become rich.

The Basics

Compounding describes how numbers, or money, can grow. Numbers can grow in an arithmetic progression, for example 2,4,6,8,10,12 or 3,6,9,12,15,18, where one unit is added on at each step in the progression and that action provides the growth, or, numbers can grow exponentially, 2,4,8,16,32,64. In an exponential progression the increase comes by doubling the number at each step in the progression. See the difference? This is compounding.

Now the really amazing part, the magic, comes when you see how fast compounding will make money grow. And guess what! That’s right, I’ve got a little game to play with you, a little story to tell, which will illustrate this principle. This puzzle is as old as J.P. Morgan’s moustache comb, so if you’ve already been schooled in compounding you have heard it before. But didn’t I tell you to read this section several times? OK, then, solve the puzzle with us once more while I tell it for the first time to the children for whom “The Magic of Compounding” has just been printed out.

The Puzzle

I’m a wealthy and generous man, and I want to hire you to work for me for one month. Since I’m also flexible, I give you a choice: you can choose to be paid the entire month’s salary up front on the first day of your employment, or, I will pay you 1 cent the first day. After that I’ll double your pay every day for the rest of the month, but you won’t get the money until the last day of the month. So on the first day you’ll work 8 whole hours, and you’ll have 1 cent coming to you. But on the second day you’ll earn 2 cents. Hold on, it gets better. On the 3rd you’ll have earned 4 cents, the day after that 8 cents and so on. Saturdays and Sundays are included just to give you a better chance. Oh, by the way, if you take your pay all at once on the first day I’ll give you a million bucks ($1,000,000.00) cash. Seems like an easy choice, doesn’t it?

Well, you decide for yourself. Now let’s look at how much the fellows who picked the penny-a-day plan are going to have at month’s end. Remember, on the one hand $1,000,000.00. On the other hand you get a penny the first day, two cents on the second day, 4 cents on the 3rd day, and 16 cents on the 5thday. If you keep working the numbers by the 15th day, you are up to $163.84. By the 18th day, you have cracked the $1,000 dollar mark coming in with $1310.72.

At this point you have to start thinking to yourself that it has taken 18 days, and I am only at $1300 and change. Was I better off taking the million dollars like the other day offered and taking a one million dollar lump sum payment? Maybe you were lets see what happens. Keep in mind, we are continuing to double our money every day and we have 12 days to go.

On the 20th day, you are up to $5,242.88. Your numbers quickly move up from here on successive days:

Day 21 $10,485.76

Day 22 $20,971.52

Day 23 $41,943.04

Day 24 $83,886.08

Day 25 $167,772.16

Day 26 $335,544.32

By the way, did any of you ask me what month of the year we’re in? Is it February with 28 days, or leap year with 29 days, or September with 30 days, or December with 31 days? You should realize that it’s going to make a difference. Do you want the million dollars? Ask your kids again which they would choose?

Day 27 $671,088.64

Day 28 $1,342,177.28

Day 29 $2,684,354.56

Day 30 $5,368,254.56

Day 31 $10,737,418.24

If you work for me in September with 30 days you make over $5,000,000. In December it’s over $10,000,000!
I have never met the child who didn’t leap at the $1,000,000 on day one. This is because the human mind thinks arithmetically, not exponentially. You might say that we are hardwired to think in this linear fashion. The software in our brains compels us to think about progressions as being simple arithmetic ones. Luckily though, how we think about things, our prejudices, our attitudes, and our mindsets, can all be changed and worked with. We can update the software! We can consciously change the way we think about numbers, money and investing by absorbing new information, namely, that when you make your money compound you can get rich sooner rather than later.

Start thinking exponentially, Make Money Now

Regards,
Richard C. Stoyeck
StocksAtBottom.com

The Magic of Compounding-Part I

Investing – How To Profit Using Formulas

Global Finance Articles WebSite — Mon, 30 Aug 2010 19:56:59 +0000

A classic Wall Street yarn, concerning a young man who was in the early stages of learning to be a professional speculator goes something like this. The young man had a problem, so he went to an elderly gentleman noted for his shrewd investment judgment, for advice. The young man had taken on quite an extensive line of stocks, but the market looked a bit over-valued and so he was thinking that his positions carried too many risks. He wondered if he shouldn’t perhaps sell. He was so worried about it that he was having trouble sleeping.

The old man’s advice was simple and direct: “Sell” he said. “Sell back to the sleeping point.” Although there is no doubt that this advice smacks of ambiguity, there is a simple wisdom in it. We may safely assume that neither the young man nor his elder adviser knew which way the market was going, but both were aware that the market was sufficiently shaky to cause legitimate worry. Translated into somewhat more orthodox investment terms, the advice meant – Sell enough of your stocks so that a market collapse won’t destroy you, but keep enough so that if your fears turn out to be groundless, and the market rises, you’ll still profit to some extent – in the meantime, get some sleep.

At first glance, it may seem a bit cynical on the old man’s part not to outline for his young disciple an exact and detailed course of action. But he couldn’t be honest and at the same time guarantee that he knew exactly what action might turn out to be best. Furthermore, the young man didn’t want someone to tell him precisely what to do. All he wanted was some help in easing the pressure and the help he received was clearly sensible.

How to Find the Sleeping Point
In a real sense, investment formulas are designed to help you in the same way that the old man’s advice helped his young friend – they inject an element of caution in your investing when caution seems advisable, they reduce the provision for caution when risks seem relatively low and permit you to benefit when prices rise. In addition, once you incorporate a formula into your investment program, it works more or less automatically, allowing you to sleep nights in the full knowledge that you are continuously hedged against various unforeseen possibilities.

But just as the investment sage left it up to the young man to decide exactly what his “sleeping point” might be, you can select a formula appropriate to your own temperament, financial circumstances and proclivity to insomnia. Any formula can be adjusted to suit the needs and preferences of any investor.

Although formulas are designed to give un-hedged, unambiguous and unbiased indications for action, the investor should not feel that he is surrendering all personal control over his investments when he adopts a formula. The reason behind this logic is clear. It’s because each investor selects the formula that will fit his own individual comfort level. A formula doesn’t try to tell you what to do – it merely helps you do what you are already doing more profitably. For example, formulas cannot tell you which stocks to buy or currency to trade.

The whole premise of using formulas is based on the fact that those using them are normally quite sophisticated and that they know what kind of investment vehicle they are interested in, how to select them and where to go for advice in their particular area(s) of interest. However, by supplementing their knowledge with considerations of the equally important questions of when to own and in what quantity – formulas can supply a valuable added dimension to their investment results and assist in the management of their portfolio on a more professional level.

Along this same line, it is worth mentioning that although the true purpose of a formula is to supply the investor with an investment policy which is definite in its instructions at all times, you need not feel that you must follow the formula precisely in order to profit from it. You cannot, of course, ignore it altogether if you expect to benefit from it, but you can profitably use it as a touchstone or a general guide without swearing eternal allegiance to its dictates. You might, for example, want to use a formula, but also desire to increase or decrease your risks at various times for a variety of reasons. Your use of the formula will show you how far you are departing from your original plan and will give you a well-ordered program to come back to when you are ready.

This article may be reproduced only in its entirety.

Investing – How To Profit Using Formulas

Your Stop Loss Is Critical When Day Trading Futures

Global Finance Articles WebSite — Mon, 30 Aug 2010 18:56:23 +0000

Stop loss orders are great insurance policies that cost you nothing and can save you a fortune. They are used to sell or buy at a specified price and greatly reduce the risk you take when you buy or sell a futures contract. Stop loss orders will automatically execute when the price specified is hit, and can take the emotion out of a buy or sell decision by setting a cap on the amount you are willing to lose in a trade that has gone against you. Stop loss orders don’t guarantee against losses but they drastically reduce risk by limiting potential losses.

With my system the only stop I use is what I call an emergency stop. My stop loss is automatically made when I make my initial trade at two points. It is only for emergencies, like news I wasn’t expecting, or anything that will make the market gyrate drastically and I never enter a trade without it. However I never expect to use this stop loss to exit my trade. I simply will not let the market move against my trade entry more than a tick or two. If I find that I exited the trade too soon I just reenter the trade but if the trade continues to move against me I have saved the loss of one or two points per. contract. Usually I will only have to exit and reenter a trade one time if I have entered a trade to early. This means I only lose a small commission per contract instead of fifty dollars per point- per contract, when trading the e-mini, and taking what many consider
a normal loss.

Trading the futures markets is a challenging but profitable opportunity for educated and experienced traders. However it is not easy, without a great trading system, and even traders with years of experience still incur losses. Finding a good trading system and trading in small increments with an emergency stop loss in place will allow those relatively new to futures trading to be successful. Once you have learned the skills you need to trade with consistent profits it will not be a problem but until that time it is absolutely critical that you do not take unnecessary losses. If you are new to trading futures you should never trade until you have a mentor with a trading system that gives you consistent profits.

A great way to protect profits if you have not established an exit strategy is the trailing stop. The trailing stop loss is an order that is entered once you enter your trade. Your stop price moves at a specified distance behind the market price. Trailing stops are raised when a price rises, in a long trade, but will remain stationary when it falls. Trailing will only occur when the market price moves in favor of the trade to which the order is attached. The trailing stop order is similar to the stop loss order, but you use it to protect a profit, as opposed to protect against losses. Trailing stops are designed to lock in profit levels and they literally trail along your increasing profit and adjust your stop loss levels accordingly. Often traders will find tailing stops confusing because they change them while in an open position. This is not a wise practice, and should be avoided. It is an indication that you are not sure of your trade and if one is not sure of a trade it would be wise to exit immediately. Trailing stops are ideal because they allow for further profit potential to enter due to momentum, while limiting risk. Trailing stops are an important component to a trader’s risk management unless they have an exit strategy in their system that might serve them better.

The market order is the simplest and quickest way to get your order filled to enter a trade or to use as a stop loss. A market order is a trade executed at the current market price and they are often used to exit trades to ensure that the order has the best possible chance of execution. A market order to exit is simply an order used to exit the trade immediately. Be aware that in a fast-changing market sometimes there is a disparity between the price when the market order is given and the actual price when it is filled.

Stop loss orders are used to exit trades, and are always used to limit the amount of loss, but some day traders use them as their only exit, while other traders use them as a backup exit only. If one uses them as their exit they will risk more than is necessary and might want to find a better system to trade. Stop loss orders allow you to define your risks before you open a position and in my opinion that risk should be minimal. Stop loss orders are one of the easiest ways to increase your chances of survival when trading commodities and futures and they are a powerful risk-management tool.

Your Stop Loss Is Critical When Day Trading Futures

LIFESTYLE TRICKS TO LIMITING YOUR TRADING TIME

Global Finance Articles WebSite — Mon, 30 Aug 2010 17:55:47 +0000

I have traveled around the USA teaching thousands of students how to trade with a lifestyle and one of the tricks I use are 3 x 5 cards. I have watched students respond with such excitement that they actually have confidence again and feel in control of their trades. The cards fit in a pocket, wallet or purse and are easy to access. My problem, let’s say I am rushing to catch a plane and I can’t log onto my computer, is that if my alarm goes off and I don’t have my brain in writing in front of me on a 3 x 5 cardthen my real brain freezes and I do nothing. This NOTHING is usually a bad decision. The 3 x 5 cards have literally changed and enhanced not only my trading big time, but also hundreds of students now use this success method for time freedom and making better decisions.

I love using my ETA software to keep track of my practice portfolio and my real portfolios. I would be lost without it. This program makes practice trading so easy, practically forces you through closing the trade. A lot of inexperienced traders don’t practice trade, because they do not see the value of it. I still practice trade everyday. The reason being, is that you can’t trade everything you want all the time. So I practice what I want to trade and then when I come out of a deal and have cash to trade again I know exactly what I want to do because I know the heartbeat of the deal. In addition, as a retired accountant, I use to charge my clients $15 for the form trades get reported on to the IRS and then $5 per trade. That can amount to thousands of dollars a year for tax return fees if you are an active trader so the ETA software does the work for you and you can print out the schedule at the end of the year and attach it to your tax return as schedule 1 and save a ton of tax preparation fees.

Anyway, back to using 3 x 5 cards to use as a back up for trading, these cards allow me to go on about my day doing anything I want. I can run to the store, go to my kids school, workout or just have fun not thinking about the market. That is what I mean when I say LIFESTYLE TRADING. Nothing could be worse than watching the market so close you have another job! Most students I have taught want their life back, not one more intense time stealer. So with these cards you get to EAT YOUR CAKE AND HAVE IT! Yes, I said it correct, anyone can have a cake and eat. You get to profit in the market on very limited time.

What I do is I take the blank side of a 3 x 5 card and:

1. Write on the top 1/4 of it the details of the trade and underline it
2. On the next 1/4 I write the reason for the trade and underline that
3. Then I divide the bottom of the card in two with a vertical line and On the left side I draw support and resistance lines with $ amounts
4. On the right side I put the cost of my option (or stock) in the middle left and circle it. Then I draw a line up and a line down.
5. If I expect the stock to go down to make money (buy put, sell call, etc) I will use the up arrow for the stock price I need to exit at a cost (pull the plug) and also a price of the option where I don’t want to risk any more.
6. If I expect the stock to go up to make money I write this information on the down arrow – trying to make the direction of the arrows flow with the trade.
7. Then I go to the remaining arrow and write the stock price my goal is and the price of my option goal
8. At this point I then go to my REAL TIME MARKET (see below for info) and set the alarms on all of these so that it comes to my cell phone and my computer.

At this point, get on with more important things in your life and let the trade rest of the trade come to you! It is such an incredible freeing up of time, and we all need that.

I have edited in my three cards from the trades I did today so you can see exactly what I mean with my real trades.

On the back of the card I keep notes, perhaps if you are in the trade a few days you could log how the option price is going at $X stock price or what was going on in the market.

If an alarm goes off, my first step is to ask question before I make a move:

1. What is the market the stock follows doing?
2. What is the stock doing?

If you expect the stock to go down, you bought puts, and your upper alarm goes off that the trade is going wrong, I will not pull the plug if it is just kissing the resistance goodbye, so I will reset the alarms.

However, if good news comes out, and the market and stock are raging upwards on high volume the party is over and I jump out immediately.

I hope you try this out, because it WORKS!

By Darlene Nelson with Better Trades

LIFESTYLE TRICKS TO LIMITING YOUR TRADING TIME

The Risks and Rewards of Investing in Foreclosures

Global Finance Articles WebSite — Mon, 30 Aug 2010 17:54:33 +0000

There are many different things to invest in these days. One investment route which individuals take is with regard to foreclosures. Foreclosures occur when the current homeowner of a property fails to pay their monthly mortgage and the property is repossessed by the lender. There are various risks and rewards which go along with investments of this type and some of these will be discussed below.

Advantages and Disadvantages to Buying Pre-Foreclosure Properties

One type of property sale which relates to foreclosures is the pre-foreclosure sale. A pre-foreclosure sale occurs when the lender allows the homeowner with past due mortgage payments to sell the home on their own and pay back the lender what they can from the sale of the home. The lender often agrees to this so that they do not have to get involved with possessing then reselling the home and the homeowner likes this option because it prevents foreclosure. The investor also benefits from this type of sale as well.

Some advantages to purchasing an investment property via pre-foreclosure sale include discounted price, speedy purchase and wonderful profit opportunities. As for the disadvantages, the investor who buys property by way of a pre-foreclosure sale may find that the homeowner is hard to contact and/or unwilling to sell, the research is cumbersome and there are other potential buyers who wish to purchase the property.

For those who wish to purchase property via a pre-foreclosure sale, they should do their independent research, approach the homeowner in a courteous manner and ensure that they make an offer that will not cause them to lose money in the end. By doing so, the investor may find that buying a house by pre-foreclosure sale will work to their advantage.

Advantages and Disadvantages to Buying at a Foreclosure Auction

Another way to purchase foreclosure property is through a foreclosure auction. Auctions of this type are usually held at the local courthouse of the county where the property is located within. This is a common way for foreclosed properties to be sold and this too has its pros and cons.

The main advantage to purchasing property at a foreclosure auction is the reasonable price for which one can bid on a property. Although there will be other bidders, the resulting price is usually one that is quite attractive. Another advantage relates to the profit which the purchaser will see when they resell the home. Since the home was won at a reasonable amount, when the highest bidder goes to resell the property they will most likely see a good profit margin from that sale.

With regard to the disadvantages, purchasing a home at a foreclosure auction has a few which are tied in with it. The first disadvantage to buying a home this way relates to the inability to inspect the property. As auction homes are usually sold as is, the bidder who wishes to adequately inspect the home beforehand will be unlikely to do so. Another disadvantage to purchasing a home via auction is that the purchase price and deposit is due via cash or cashiers check in many instances which may be difficult for many investors to obtain on short notice.

Advantages and Disadvantages to Buying Real Estate Owned (REO) Properties

One last type of property purchase which relates to foreclosures is real estate owned properties, or REOs. An REO is when the property returns to the exclusive hands of the lender and then needs to be sold from that point. The lender is looking to sell their newly acquired property as soon as possible since they do not want to be in charge of the property and its necessary maintenance. The lender will then look for potential buyers of the property.

Some advantages to buying an REO are that they usually have good title, property taxes will be up to date and repairs may have been made to the property by the lender to ready it for sale. As for the disadvantages, those who purchase REOs may find that the savings which they see by purchasing an REO are not as great as they could be and therefore, the profits may not be as great as well.

Conclusion

When purchasing property in any of the previously mentioned ways there are a few things to keep in mind when doing so. It is extremely important to do independent research with regard to the properties and purchase methods, ensure necessary funds for purchase and inspect the property whenever possible. This will help to ensure that the buying process goes as smoothly as possible.

The Risks and Rewards of Investing in Foreclosures

CONDOTELS (CONDO-HOTELS) – New Hotel Phenomenon Set to Sweep the Philippines

Global Finance Articles WebSite — Mon, 30 Aug 2010 17:30:06 +0000

Interest in the Philippines condominium hotels sector has increased significantly in the past two years following many years of intermittent development and association with other shared ownership vehicles, says Beth Collingz in her recent report: ‘Condominium Hotels-The Philippines Latest Hotel Phenomenon’

Beth Collingz, Overseas Marketing Director, Investment Sales for PLC International Marketing the lead marketing partners for Pacific Concord Properties Inc’s Lancaster Brand of Condotels in the Philippines explained: A condominium hotel is a hotel operating unit which is sold to individual equity investors, where each owner acquires a room, suite or studio whilst the whole enterprise is managed as a hotel operation under a single brand.

Buyers own their units the same as regular condos. There is no time limit to ownership. All Condos come with freehold title deeds. The Condotel model is similar to the serviced apartment or apart hotel sector and is suitable for an investor who wants to test the water in hotel investment.

We are seeing more and more sophisticated customers coming to the market and a change in demand patterns; the traditional timeshare products seem past their prime. This, plus an increase in investment appetite for the hospitality sector, suggests that the condominium market looks set to grow Collingz continued: Many international hotel brands have also declared that the Philippine hotel landscape is ready for condominium hotel developments, either in conjunction with self-contained hotel operations, as fully self-contained condominium plans or as a part of a mixed-use development plan such as the Lancaster Brand.

Condominium hotels are significantly less developed in the Philippines than in the US, in part owing to a low cost residential focused market as well as the lack of development in the hotel sector since the 1997 Asian Crisis. Alternative hotel ownership are featuring more and more in the hotels sector, with the rise of condominium hotels and a shift in investor strategy, thus creating a new investor profile. At the moment, the Philippine condominium market is being targeted and driven by private retail purchasers, typically reasonably net worth individuals attracted by a city centre or a resort investment foothold although we are now seeing more and more first time property buyers moving into the Condominium Hotel marketplace said Collingz.

Metro Manila and Cebu are particular favorites as an investment destination. There is room for a wider pool of institutional and real estate investors to invest in a portfolio of condominium units or the establishment of an investor-developer partnership.

Collingz continued that a lot of this interest is being driven by the relatively cheap market prices in the Philippines compared to Europe, specially UK Housing prices, and the easy payment options available for our Condo Hotel Developments, but there are other factors, too. Offshore Property Investors, Foreign baby boomers as well as overseas Filipinos, are looking for ways to maximize their return on investments as they approach retirement, and so are purchasing second homes, particularly Condo Hotel Investments where they can use the Condo for vacations and rent it out through our In-House Condotel Management when they are not using the unit thereby gaining rental incomes that on todays purchase prices, give a projected ROI on their investments of some 12-16% depending upon the mode of payment for the unit.

Pacific Concord Properties Incs Lancaster – The Atrium, Shaw Boulevard, Metro Manila, Philippines is a “Full Service” Condominium Hotel offering Studio, One, Two and Three Bedroom Suites for sale. To be completed and ready for turnover from December 2010, the Lancaster Atrium will provide unit owners with premier residential condo units with option of enrolling their units in the Lancaster Condo Hotel Rental Pool and earn Rental Incomes as Owner Non-Residents when not using their units through Condotel Management. This makes the Lancaster Brand of Condotels, one of the Hottest Investment Opportunities in the Philippines.

Part of the success story for this sector will be the education of a whole new investor base previously accustomed to buy-to-let residential plans or conventional commercial real estate investments, together with the emergence of a secondary market in the Philippines to demonstrate transparency and liquidity said Collingz.

Beth Collingz
PLC International Marketing Networks

CONDOTELS (CONDO-HOTELS) – New Hotel Phenomenon Set to Sweep the Philippines

Investing in St. Louis Real Estate

Global Finance Articles WebSite — Mon, 30 Aug 2010 16:53:56 +0000

It is common for investors to express uncertainty over their ability to manage their portfolios during prolonged periods of market volatility. But prudent investors understand that making sound investment decisions shouldnt be based on the markets twists and turns. Rather, these decisions should stem from an understanding of investment fundamentals and an awareness of the mistakes others have made. Keeping a few common mistakes in mind and steps to avoid them may help you as you work toward your goals.

Mistake #1: Maintaining unrealistic expectations

Theres nothing wrong with hoping for the best from your investments its human nature. However, you could encounter serious long-term cash flow problems if you base financial plans for the future on unrealistic assumptions. According to an August 2004 Gallup poll, nearly one third of 800 investors surveyed expected to generate profits of 10% or more in their portfolios during the next year. How does that anticipated return compare with actual historical returns? Based on data from Standard & Poors and the Federal Reserve, from 1926 to 2003, a hypothetical portfolio divided equally among stocks, bonds and cash would have had an average total return of 7.3% annually*. While the composition of your portfolio may be different from the portfolio in this example, it is important to maintain realistic expectations in order to have the best chance at reaching your goals. Although past performance is no guarantee of future results, familiarize yourself with the historical performance of appropriate investment indexes or appropriate benchmarks and use their average long-term returns to help maintain realistic expectations for your own investment returns.

Mistake #2: Chasing hot investments and overtrading

Investors tend to convince themselves that recent investment performance represents the future. The problem with chasing todays winning stocks or mutual funds is that by the time you hear about the latest hot performers, you may have already missed out on all or most of the opportunity to participate in that price appreciation. Chasing past winners is closely correlated with another potential investment mistake overtrading. Shuffling your investments too often increases the chance youll buy high and sell low a worst-case scenario for investment success. Overtrading also generates more transaction costs and fees that cut into investment gains. One potential solution: work with a financial advisor. An experienced professional may be able to help you stay focused on your goals and avoid the urge to trade frequently. In fact, studies have found that investors who work with a financial advisor tend to hold on to their investments longer and realize better returns than do-it-yourselfers.

Mistake #3: Failing to keep your balance

You might be surprised to find that strong or weak returns in one area have caused a shift in your overall investment strategy that could affect your ability to reach goals or manage risk. Work with your financial advisor to review your asset allocation once or twice a year to make sure that it remains in line with your investment objectives.
Of course, investment mistakes do happen, but many are avoidable. Learn from the missteps of others, start applying these lessons to your investment strategy and make a point of working with a qualified professional.

Leveraging Your Investments

One of the best vehicles for your money is real estate. In St. Louis, we are experiencing an average return of 9 – 12%. Because there was not the fast and explosive growth that other cities experienced, the correction that the market is undergoing currently will not be nearly as volatile and will provide a much safer investment for home buyers. St. Louis real estate can also be much more affordable that in other parts of the country because it enjoys a relatively low cost of living. Many of the residents who have relocated to St. Louis have done so because of the affordability factor. Because of this, St. Louis is poised to enjoy a steady and comfortable growth over the next 20 years.Then the question remains – what to look for and how to know what to purchase. That is where you will need the experience of a proven real estate professional who knows the market, can demonstrate to you a proven track record of success. The real estate process can seem complex and daunting but working with an experienced agent can make all the difference. Currently in St. Louis, the downtown neighborhoods are turning over and experiencing a strong urban renewal. Neighborhoods to watch include Benton Park, Tower Grove East, and Old North St. Louis.

Investing in St. Louis Real Estate

The Condotel Investment Opportunities

Global Finance Articles WebSite — Mon, 30 Aug 2010 15:52:33 +0000

The buyers are investors in hotel-condos, a real estate product that combines the flexibility of ownership of a condo in ahotel setting. Popular in the United States, Europe and the Middle East, hotel-condos are just starting to pop up in the Philippines for the first time.
Unlike simple condominiums — which owners can use as they please — hotel-condo units are both investment and residential units that can be used by their owners for up to 30 days per year. The plus is that the owners can invest in real estate while having access to hotel amenities like a spa, gym, room services. The remaining time, the units’ owners return the rooms to a rentable pool run by the hotel. As the units are rented out, the owners receive a split of the income. Alternatively, unit owners can live permanently in their suites and enjoy hotel living 365 days a year.

One such project recently announced, with Pacific Concord Properties Inc — among the first developers to do a hotel-condo in Metro Manila — submitting plans to build a 42-story twin high-rise at Shaw Boulevard, will be called Lancaster Suites – The Atrium.

The Lancaster Atrium is a twin tower development that sits on a common podium with the Lancaster Suites Tower I, which was sold out in less than 18 months and is part of its hotel-condo program.

Beth Collingz, Marketing director for PLC International Marketing Networks, which is exclusively marketing the Lancaster Suites and Lancaster Suites – The Atrium Hotel Condominiums in Metro Manila, said condotels started appearing on the market following PCPIs launch of the Lancaster Suites back in 2004. We see a marked increase of interest from buyers who live Europe as well as from corporations looking to invest in Philippine real estate. There have been a plethora of residential properties coming on the market, but not many Condo Hotel developments adding that, in the currently hot Philippine real estate market no one felt the need to try out a product that had not been tested in the country before.”

The market for investment properties has shifted in part because of a booming demand for hotel rooms in Metro Manila and a weak dollar internationally. On a broader scale, baby boomers are retiring and buying second and third homes, and interest in real estate as an investment remains strong, when it comes to the market for hotel-condos, the Lancaster project is attracting international customers familiar with this type of investment opportunity. Collingz said The Lancaster Atrium Tower A development will have 450 hotel-condo rooms and suites, a spa, swimming pool, business center, its own mini mall, shops and convenience stores and several restaurants. The project, located atop a common podium with Lancaster Suites Tower I is only one block from the Ortigas Center, Shangri-La Mall, Edsa Plaza Hotel and SM Mega Mall, will continue construction of its superstructure this year having already completed foundation works and put in place 5-levels of basement parking.

While it is possible to secure easy no prequalification, no down payment 6 year no interest payment plans for the Lancaster Atrium suites, Collingz said that most buyers purchase these properties with a small down payment of some 30% to reduce the monthly payments to around $400 a month for a Studio unit or take advantage of a 20% discount for outright cash purchases.

Unsurprisingly the hotel-condo investment trend in the Philippines will accelerate — from Metro Manila to other major metropolitan hubs such as Cebu. PCPIs Lancaster Cebu development is already sold out with Condotel operations will commence this March.

PCPI has appointed Lancaster Hotels, Land and Properties, Inc (LHLPI) to oversee the operations, sales and marketing, and asset management of the condotel. Guided with a clear goal of maximizing profitability, LHLPI will spearhead the management of the condotel as well as that of the entire condominium building.

Statistics from the Department of Tourism indicate that the number of tourist arrivals to the Philippines has been consistently growing by double digit percentages for the past three years. In 2005, of the 2.3 million tourist arrivals, 1.7 million visited Cebu. In fact, an additional 40,000 hotel rooms are needed to accommodate the expected five million tourist arrivals by 2010.

The Lancaster brand of Condotel developments further validate the increasing demand for hotel rooms which make us more confident that our market and financial projections will be achieved.

Further info on Lancaster Condotels in the Philippines can be found on the firms website

Beth Collingz- Director
PLC International Marketing Networks

The Condotel Investment Opportunities

Por Qu Los Medios De Noticias Financieras Le Pueden Costar Dinero?

Global Finance Articles WebSite — Mon, 30 Aug 2010 14:53:32 +0000

El adelanto en las comunicaciones que tenemos hoy en da, como el Internet, peridicos financieros y canales de la televisin enfocados a la inversin, como CNBC, son medios de informacin de alta velocidad llenos de habladuras absurdas. Todas estas fuentes de informacin son indicadores de que no hay escasez de personas en los medios que intentan contestar nuestras preguntas acerca del mercado de valores y en especial sobre acciones. Usted tiene que recordar que los medios de noticias compiten constantemente para sobrevivir contra otros canales, el cual usted puede o no ver. Si ellos no se escuchan como si supieran exactamente lo que sucede o de lo que esta en moda, entonces usted deja de ver sus presentaciones. Si usted no sintoniza sus exposiciones entonces sus ndices de programacin bajan. Si sus ndices bajan ellos son despedidos y su presentacin es cancelada.

Esto significa que los periodistas financieros estn en el negocio en bsqueda de noticias o grandes historias para as proyectarse como la autoridad en la materia, no importa que se hable. El mercado de valores es un gran lugar para ellos buscar noticias sensacionalistas que alimenten al pblico. No verifican muy bien los hechos y algunas veces ni lo hacen. Esto significa que algn ejecutivo con informacin privilegiada (insider) que quiera provocar una expectacin falsa todo lo que tiene que hacer es mantener buenas conexiones con los periodistas financieros, patrocinadores y programas de inversin, o abiertamente comprar un canal de televisin como hizo Jack Welsh, director general de GE cuando l creo CNBC. Que gran manera para los ejecutivos manipuladores de controlar el flujo de informacin que el pblico recibe a travs de poseer uno de los pocos canales de televisin de noticias financieras! pero esto no es tan bueno para usted. Estos periodistas tambin avivan el fuego al traer a grandes expertos para hablar de los diferentes puntos de vista de un tema que los verdaderos expertos no consideran importante.

Esto solo hace ms confuso para el pblico poder entender que es importante a la hora de comprar o vender valores. Los programas en CNBC como Closing Bell, Kudlow & Company y Mad Money no hacen ms que confundir y dar una direccin errnea a la mayora de los inversiones que estn en el pblico. Peor aun, esto significa que las noticias financieras que salen a la luz pblica permiten a las acciones sobrevaluadas ser recomendadas va anlisis en el Intenet, cuando los ejecutivos manipuladores tratan de salirse del mercado. Esto hecho ocurri en el tope del alza del mercado del ao 1999. Para una gran descripcin histrica de lo que ocurri lea el libro de Maggie Mahar titulado Bull.

El famoso economista de la Universidad de Yale, el Prof. Bob Shiller , Ph.D. es particularmente duro con los medios en su libro Irrational Exuberance (Exhuberancia Iraccional). El Dr. Shiller es uno de los economistas ms respetados por Alan Greenspan (presidente ejecutivo de la Reserva Federal de Estados Unidos) y de quien obtuvo el trmino Exuberancia Irracional. El Dr. Shiller describe a los medios como un lugar en donde las opiniones superficiales son preferidas sobre el anlisis profundo. Estoy completamente de acuerdo con l y entiendo que tambin se hace solo porque la industria prefiere tener al inversionista individual confundido y emocionalmente vulnerable para que venda o compre cuando ellos quieran con total indiferencia de los mejores intereses del inversionista.

Las personas que haban invertido los ahorros de sus vidas en el mercado de valores fueron saqueadas porque las noticias financieras en los medios y los analistas exageraban lo que era una gran compra de acciones en el mismo tope del alza del mercado en 1999 y el 2000. Al mismo tiempo los ejecutivos corporativos manipuladores vendan todo lo que ellos tenan. Lo que es asombroso es que nuestro Gobierno Federal en la forma del Security Exchange Commission nunca hizo nada al respecto. Nunca hubo ningn caso o protesta en contra de estos ejecutivos, los cuales de alguna manera mgica, vendieron todas sus acciones seis meses antes de que el mercado colapsara.

He aqu un valioso consejo a considerar por parte suya: Si usted es un inversionista principiante es importante que NO VEA LAS NOTICIAS O LEA LOS PERIODICOS FINACIEROS! No permita que el mercado de acciones lo lleve a la bancarrota. No escuche lo que ellos quieren que usted escuche. Debe enfocarse en aprender lo que es importante del mercado de acciones antes de actuar. La prensa solo le va a confundir hasta que se haya educado.

Por Qu Los Medios De Noticias Financieras Le Pueden Costar Dinero?

Saving for Retirement in the New Economy

Global Finance Articles WebSite — Mon, 30 Aug 2010 14:00:12 +0000

Lets face it. Most of the financial advice out there says something like this, If you make on average $60,000 per year Most of the advice is designed for baby boomers about to retire. The young generation 35 years-old and under are not going to relate when their incomes range from $25,000 to $40,000. True their income may rise someday but there is a good chance it could decrease with the onslaught of lay-offs, downsizing and cost cutting. The wages their parents earned who worked at companies like GM making a combined income of benefits and wages in the $65 per hour range are not likely to be around in the future. Many of these companies have two-tier wage systems that hire new workers somewhere around $24 per hour (benefits and wages combined). Not only are low wages going to be a problem but also lack of employment opportunities, high interest mortgages, expensive college education, lack of social security income and major cut backs in all federal spending. So what strategies should a young person making his/her way in a tough times economy to do?

The biggest advantage young people have is their age. Compound interest is a very powerful force that is likely to make or break a retiree. By putting away only $200 per month from the age of 30 and compounding it at 9% interest a young person could have around $500,000 by the time they are 67 years-old. Double that amount and you could be well over a million dollars. With a 401K offered by your employer it becomes very easy to save because it is pretax dollars that you dont have to think about.

You may also choose to put your money into a Roth IRA. Generally, the money is taxed before it is put away and then you dont have to pay taxes on it in retirement. Not a bad deal when it has compounded for 30 years. The best retirement utilizes a combination of the two. It is beneficial to put away money automatically in your 401K and set a goal of putting away $100 or $200 per month into a Roth IRA.

One may also consider reducing the cost of big expenditures and saving big money. The housing market is beginning to cool as baby boomers are leaving the market with their large incomes. It wont be long before appreciation on houses has returned to a mediocre percent such as 3%-5%. As a young person trying to show his or her financial stuff they may want to buy the nicest houses they can get. Unfortunately that nice house also comes with a large mortgage payment. A good rule to follow is that your housing cost should not be over 25% of your household income. For example, If my wife and I make 70,000 (two young professionals at $35,000/year) than we could have a house that costs $1,400 per month. Because we are financial savvy, with a lot of energy, we bought an older house with an $800 per month mortgage payment, put our sweat equity in it, and watched its value increase 20%. Because we were under our $1,400 limit we also bought 10 acres for a nice cottage at $300 per
month. Now we are increasing our long-term assets at a cost of $1,100 per month. What happens to the savings? Well they go into our retirement account.

Of course one of the best ways of saving money is diverting your expenses into investments. Basically, You dont buy what you dont need! Go to discount grocery stores, take cheap vacations within driving distance, buy good quality clothes at discount prices, and stick to a solid budget. It is much easier to save money than it is to make more. Keep in mind that even though you dont look as wealthy as your friends you are probably much wealthier financially. Trust me; no one gets out of college making a hundred thousand dollars a year. Therefore, dont try and make your self look like it.

Saving for Retirement in the New Economy

Getting Started in Real Estate Foreclosure Investing

Global Finance Articles WebSite — Mon, 30 Aug 2010 13:52:52 +0000

Deciding to Invest in Real Estate Foreclosure Investing

With the increase in Real Estate property appreciation rates across America, a prospective foreclosure buyer may want to fix up a property to improve its value to live in, to rent out or to resell. The strategy a buyer pursues will determine which foreclosure property to buy and the location.

For example with San Diego, California’s media home prices topping at $500K+, a couple might not be in a position to afford a home of their own in San Diego, California. Yet, might be able to purchase a foreclosure property in another area or state with lower housing prices but in a faster growing market or with better future appreciation growth potential; when the property increases it’s value in a few years time, sale of the property could provide the necessary capital to purchase in the San Diego area.

Locating Foreclosure Properties

Finding foreclosure properties can be done by visiting the local recorder’s office and making photocopies, since listings are added on a daily basis, this can be daunting.

Using the internet, a number of web sites allow searches by state, county, city, and zipcode. All the sites listed below offer listings for a fee. Take advantage of the free trial period offered to fully evaluate thier listings. The sites should offer the latest listings with daily/monthly updates.

Determining the Distressed Property Valuation

Once you have identified a foreclosure property of interest in an area you have researched, determining the value proposition will determine whether or not to continue. The determination will be influenced by your investment strategy, i.e., whether you wish to live in, to rent out or to resell are factors to consider as well as your investment time frame.

The first step in foreclosure property valuation is the obtain information regarding the area. A number of web sites offer free sales comparables or “comps”. This information greatly assists in determing the property value.

Securing Financing

Due to the quick window of opportunity a foreclosure presents, it is important for a potential buyer to be pre-qualified before engaging in Real Estate Foreclosure Investing.

Also, knowing the amount of monies available to the investor can be a guide to locating areas within the U.S. that are with the the investment range

Being pre-qualified allows the buyer to be in a financial position to purchase the foreclosure property. Pre-qualification provides an important edge in competitive markets. Once approved, financing in-hand makes negotiations easier.

Finding and working with Real Estate Agents

The single most important aspect of foreclosure investing involves finding and working with a Real Estate agent.

If a foreclosure property is being considered out of the area or state, then working with a local agent in that area -who can advise on the condition, knowledgable about the growth potential, advise on local conditions, is an important relationship to develop.

Since a majority of Real Estate agents focus on “traditional” real estate transactions, mentioning “foreclosures” might cause them to balk at potentially working with an prospective investor; Therefore, educating the agent on the opportunity of working with you is important.

Buyers representatives have the home buyers interests at heart, and are charged with finding the right property and negotiating the best price for their clients. Picking the right real estate agent will make a buyers life much easier. There are agents who specialize in the foreclosure market, with specific experience in REO properties.

Look for an agent with foreclosure transaction experience, as well as knowledge of local, regional and state laws. But its also important to consider the agents knowledge of the area; their ability to close a deal; and their access to other professionals (attorneys, lenders, mortgage and title professionals) to ensure that the buyer is in good hands.

Making an Offer

Once you have determined the property valuation, researched the area and appreciation growth potential, and established a relationship with a Real Estate agent making an offer amount somewhere below the market value is the final step.

If the property is bank owned (REO), you could prepare an offer similar to a typical purchase offer, contingent on a full inspection and title search.

Getting Started in Real Estate Foreclosure Investing

An Overview Of Forex Investing Strategies

Global Finance Articles WebSite — Mon, 30 Aug 2010 12:52:04 +0000

FOREX trading refers to an international, 24/7, over the counter, exchange market where currencies of different nations are bought and sold. Trading is always done in pairs assuming the price of currency bought to go up and that sold to fall down. It is the largest liquid financial market making it impossible for any single investor to influence the prices of currencies.

There are two kinds of FOREX investing strategies:

TECHNICAL ANALYSIS
FUNDAMENTAL ANALYSIS

TECHNICAL ANALYSIS:

Technical analysis is mostly undertaken by small and medium size investors.
A technical analysis considers factors that are actually affecting the market rather than factors that can affect it. Thus the price quoted reflects all the factors that have influenced it. Only market generated facts and figures are taken into account and factors like fear, hope, expectations or other changes are not considered. Thus the analysis is generally based on these suppositions:

Price reflects all actual market movements. That means price includes everything known to the market like supply and demand of foreign exchange, political factors, trade agreements etc. It is not concerned with what resulted in change rather deals with actual changes. It works on the assumption that price can take only one of the three directions:

 Upward
 downward
 sideward

It rest on those market patterns that have been identified as significant. That means those factors which are repetitive in nature or will produce desired results.

History always repeats itself as human psychology changes very slowly with time. That is market movements are predictable.

VARIOUS TECHNICAL INDICATORS ARE:

1. RELATIVE STRENGTH INDEX:

It takes into account the ratio of upward and downward movements in index and expresses it in the range of zero to hundred.

2.CHARTS:

Charts include various hills, slopes, curves that develop on a chart over a time and reflect some major and minor changes in pattern. Some of the chart formations include:

TRIANGLE
RECTANGLE
HEAD AND SHOULDERS
DOUBLE TOP AND BOTTOM
SAUCERS
V

3.GAPS:

A gap represents area on a bar chart where no trading took place.

UPGAP: it is formed when the lowest price on a particular day is more than the highest price of previous day.

DOWNGAP: it is formed when highest price of a certain day is less than the lowest price on previous day.

NUMBERS:

Various number theories are used in technical analysis like:

Fibonacci theory
GANN

STOCHASTIC OSCILLATOR:

This indicates the overbought or/and undersold condition. It uses a scale of zero to hundred percent.

FUNDAMENTAL ANALYSIS:

It is the one where current economic, political, financial situation of the country of currency is studied. A countrys economical and political condition depends upon many factors like the interest rate, unemployment level, exports and imports, per capita income, percentage of population living above and below the poverty line, inflation, trade relations with other countries, tax policies etc.

A fundamental analyst studies and evaluates all these factors before coming to any decision. Thus it helps in long tem decision making and making profits in short term by extra ordinary developments.

Some of the indicators that help in fundamental analysis include:

1. GROSS DOMESTIC PRODUCT:

It reflects total market value of all the goods and services produced in a country during a given year.

2. RETAIL SALES:

This reflects total receipts by all the retail stores in a country.

3. CONSUMER PRICE INDEX:

It reflects change in prices of consumer goods.

4. BUSINESS CYCLE:

It reflects various phases through which a business passes. These phases include:

EXPANSION
PEAK
RECESSION
DEPRESSION

5. MONETRY POLICY:

It controls the supply of money in an economy.

Trading successfully needs knowledge, time and understanding of a market. You cannot earn continuously in a Forex market due to its volatile nature. Thus as a trader you should try to consider both technical and fundamental strategies of forex trading and make decision based on market expectations and trends. Try trading with money that you can afford to loose without any regrets. Trade with logic and if you are not sure quit and take rest for some time.

An Overview Of Forex Investing Strategies

Cash for Structured Settlements

Global Finance Articles WebSite — Mon, 30 Aug 2010 11:51:07 +0000

How Much Can You Get by Selling Structured Settlements?

represent a stream of payments, often extending twenty years into the future. If you sell this stream, you cannot expect the buyer to pay you the total of these future payments. In fact, you will get much less, depending on the amounts and years involved. Let us look at how the buyer computes the amount to pay you.

Money Has A Time Value

If you have 10000 dollars in hand now, you could invest it in different ways. If you are a small businessperson, you could use it to improve your publicity efforts and expand your production capacity. These might result in the 10000 dollars doubling in a year’s time.

Or, if you are a stock investor, you could trade in stocks and probably make the 10000 dollars grow into at least 12000 dollars by the end of the year.

More modestly, you could invest in an interest-paying security and earn a 5% interest paid every quarter. That could make the 10000 dollars into 10510 by end of the year.

Another possibility is to invest the money in a training program that provides you with a vocational skill in high demand. You could thus enhance your earning potential and thus earn a return on that investment.

What all the above examples indicate is that money in hand now could earn returns and accumulate into a larger sum by a future date. This is called time value of money.

Future Payments Are Discounted

Considering the time value of money, sums received on future dates are discounted to compute their “present value”, i.e., value now. This is typically done using prevailing interest rate in the market. For example, we found that 10000 dollars invested at 5% interest, paid quarterly, become 10510 dollars at the end of one year.

Hence, the present value of 10510 dollars received one year from now is only 10000 dollars. Present value is always based on a rate of interest, and the “interest compounding” method used. Interest compounding means the frequency with which interest is computed and added to the principal. In our example above, the compounding was done every quarter. Next quarter’s interest would be computed on this interest-added principal amount.

The future payments you receive under a are discounted in a similar fashion. Each of the payments would be discounted based on when it is received. Consequently, the amount you receive now, based the present values of all the different payments, would be much less than their total.

Use the Cash Well

It is possible that you are cashing out your structured settlement to meet unavoidable necessities, like paying off a debt or meeting medical expenses. In such a case, you have no option but to use the cash to meet these.

However, if the cash out is for other purposes, try to invest it in a way that earns you a good return. For example, you could invest it in a home, in a suburb where property prices are going up. Or take up a vocational course that would enhance your employability.

If you already have a decent income from other sources, you might even consider taking a vacation to recharge yourself.

Try to earn a return that would be higher than the interest you paid for cashing out. (The discounting of structured payments to present value is actually a kind of interest payment.)

Select A Buyer Carefully

The buyer of your structured payments should have certain qualifications.

Firstly, the person (or firm) must be experienced in the field. Cashing out structured settlements involves several legal formalities. Unless the buyer is experienced enough to handle all the formalities correctly, you might find yourself in trouble. If a legally binding assignment is not created, the original payer might refuse to pay your buyer.

Secondly, select a buyer who deals up front with you, explaining what to expect. Otherwise, you might come to have undue expectations and get into unnecessary conflict with the buyer.

Finally, select a firm that believes in ethical practices. Unethical firms might tell you one thing and do something else. They might also not give you a fair deal.

For more read at http://www.structuredsettlements.bz

Cash for Structured Settlements

Commodity Futures Trading Why It’s Not For Average Investors

Global Finance Articles WebSite — Mon, 30 Aug 2010 10:49:15 +0000

If you don’t mind losing $5,000 in 10 minutes, you may enjoy trading commodity futures contracts. There’s an old saying among commodity traders: “It’s easy to make a small fortune in commodities. Just start with a large fortune!” This is not a business for people who are emotionally attached to their money, yet thousands of average “investors” get lured into the commodity markets year after year. Why? Because of the possibility of making high percentage gains using the built-in leverage that is available to commodity futures traders.

The commodity markets include wheat, corn, soybeans, pork-bellies, gold, silver, heating oil, lumber, and numerous other common trade items. The huge companies that operate in these markets use commodity “futures” contracts to lock in their selling prices for the product in advance of delivery. This practice is called “hedging.” On the other side of that transaction is the trader, who speculates on whether the priced of the commodity will go up or down before the contract is due for delivery. Because futures contracts may be purchased using leverage, these financial instruments lend themselves to speculation.

For example, control of a corn contract worth $5,000 may only requrie $500 of actual cash, or 10% of the face value of the contract. If the corn goes up in value, and the contract becomes worth, say, $5,500, the speculator has made $500 on his or her original $500, for a 100% return. Compare this with the regular stock market, which limits leverage to 50%, so that $5,000 worth of stock requires a minimum of $2,500 of capital. If the stock goes up to $5,500 in value, the $500 gain is against $2,500 invested, for a return of “only” 20%. The 100% return sure looks a lot better, right?

You can easily see why investors in search of quick gains are hypnotized by the lure of big profits using maximum leverage in commodity futures trading. The real problem, however, is that the leverage works in BOTH DIRECTIONS. You can lose your entire investment in a matter of minutes due to the wild price gyrations that sometimes occur in these volatile markets. Let’s say the $5,000 contract drops to $4,000 in value instead of increasing. You’ve not only lost the original $500 you put into the contract, but an additional $500. You can go broke quickly this way.

So why do people play this game? Average investors do not wake up in the morning and say to themselves, “Right, I think I’ll start trading commodities.” What happens is, they receive a sales pitch from a commodity trading “guru” claiming to have a “system” for generating sure-fire profits in these wild markets. These “systems” range in price from $25 all the way up to $5,000 or more, and are sold based on the promise of “huge profits” from a small starting investment.

Newsletter writers or commodity gurus regularly pitch the myth about turning $5,000 into a million bucks in less than a year. The typical commodity system pitch comes in a long sales letter or booklet that describes a method for winning on “9 out of 10″ trades or similar inflated claims.

Of course, if it was possible to correctly trade 90% of the time, a person could easily amass millions of dollars in a very short period of time. So why are these guys so eager for you to spend $195 on their super-duper trading course? Because they probably aren’t making any real money with their own trading program! There’s much safer money to be made selling others on the idea of getting into commodity futures trading.

There is no sure-fire way to consistently make money in these markets, simply because the underlying commodity prices can swing wildly back and forth depending on a complex set of variables, many of which are totally unpredictable. That’s why the only people consistently making money in the commodity markets are the brokers, who collect a commission for executing the trade regardless of whether it wins or loses.

There are also a handful of successful professional traders who make a living in these markets. But the vast majority of people who dabble in commodity futures lose money. Unfortunately, with the lure of huge returns and easy money, a fresh crop of innocent traders enters the market each year, only to be quickly fleeced out of their money.

Don’t be one of them! Leave commodity futures trading to the professionals and stick with the more boring forms of investment, such as mutual fund investing or stocks and bonds.

Commodity Futures Trading Why It’s Not For Average Investors

Profit By Investing in Your Brand Account

Global Finance Articles WebSite — Mon, 30 Aug 2010 10:00:50 +0000

Branding involves creating symbols that potential fans or “targets” will associate with you or your product.

Those symbols, when combined and attributed to your brand, are then known as your brands identity.

Branding is reflected in everything you do or say as an artist or musician.
The pictures you take, Your autograph signatures, your name, logo, interviews, cover art and anything audible or visual should all be taken into consideration when developing your brand identity.

If your music brand is still young (under five years), be careful of everything you do or say in public.

Remember the Dixie Chicks? The Dixie Chicks were on top of the world until the day Dixie Chicks lead singer Natalie Mains made disparaging remarks about George W. Bush while overseas. With those remarks about George W. Bush, the Dixie Chicks branded themselves as “unpatriotic”. Hundreds of radio stations immediately yanked the Dixie Chicks music off the air. Be warned, watch what you do or say very carefully.

Back in the day, artists had publicists who would coach them as to what to say or do. Of course this often made the artist’s feel like puppets, but this practice usually kept the artists brand integrity intact. If you are a artist or musician be calculated about every thing you say or do. If someone hits you with a question you don’t want to answer, say something like “no comment” or “I’m all about music right now”.

Another thing to consider is your target market.

Find no more than two markets or genre’s to market to. I’ve worked with aspiring artist who say “I can sing all kinds of music”. Being a versatile singer or performer is a great thing, but not when building your brand identity. The majority of humans need to be able to categorize things in their minds in order to find a spot for them in our minds. Picture the human brain as a fleshy computer. It has many folders with many files. If your target can’t file your product into one or two categories (genres) instantly, you will be deleted.

It’s best to pick one or two genres -max, to market to. E.g. jazz and blues, hip hop and r&b, folk and country etc.

Build your own brand Identity – don’t let the public do it for you.
Recently, Arctic Monkeys sold over 300,000 using only the internet to market their music. Arctic Monkeys came out of nowhere with their CD “Whatever They Say I Am, That’s What I’m Not”. Arctic Monkeys got lots of free press but not the kind they would have liked. News articles and radio features about Arctic Monkeys all said the same thing -”we don’t know who they are or what they stand for”. Well that’s no way to build a brand.

With all of the free press Arctic Monkeys have received you’d expect them to be on every American teens lip’s. Not so. Most American Teens don’t even know Arctic Monkeys exist. Arctic Monkeys allowed the press limited access to their brand and the press did what they do best when the details are missing – they fill in the blanks with speculation.

If you are a young brand don’t let this happen to you. Tell the public what to think and say about you through press releases and brand building activities.

Let your brand account grow before you take deposits out of it.

With branding, consistency is builds equity. Once you have built your brand identity and start to get some good attention, leave it alone and let it create value for you. Consider your branding efforts as putting money into an interest generating account like a 401K. The more you put into the same account the more interest you’ll get. The more interest you get the more money you’ll get. Get it?

Artists and musicians who change their brand identity often don’t have much success establishing a solid brand identity and have a much more difficult time getting people to remember who they are or why they should buy that brand.

What you are shooting for is brand presence.

To have brand presence, you’ll need to pick a target market, you’ll need to build the associative symbols that represent your brand, you’ll need to handle your young brand with care, you’ll need to limit where and how you market your brand, you’ll have to tell people what your brand symbolizes, you’ll have to invest in your brand and let it grow for you without changing it.

As you follow the steps above you’ll see your brand grow and give you a return on your investment.

Profit By Investing in Your Brand Account

5 Pitfalls To Avoid When Searching For Your Next Investment Property

Global Finance Articles WebSite — Mon, 30 Aug 2010 10:00:27 +0000

Finding a bargain investment property on paper is only half of the process of property investment. The other half of real estate investing is going down to the property to examine the real estate investment property physically for defects either in terms of the construction and legal title and other liens that can be on the property. You do not want to spend lots of legal costs later to undo the bad lemon you bought into. This article will highlight five possible things to consider when searching for your next investment property.

Firstly, unless you find a property that is really run down and you want to tear it down to its foundations, you want to look out for properties that might have potential electrical and water piping problems. The reason why this is critical is that, wiring and water piping is usually hidden behind walls and other furniture fixtures and repairing them can be a very costly affair since you have to hack into the walls and run the piping and wiring if the problem is very serious. If you are new to property investing try to bring a electrical engineer along with you when you are doing some property inspection.

Secondly, foundation problems are usually harder to spot. When walking around the property, look for cracks appearing at the side of the house and the foundation that goes into the ground. Look for large unusual holes found at the side of the property and cracks on the exterior paint of the building. You might want to bring a civil engineer and a contractor along to figure out how much it would cost to fix the property if you suspect the repairs involved will be substantial. You can also bring them along to give a grim estimate to the house owner and bring down the cost of the property.

Thirdly, roofing problems can be a persistent nightmare to you and your potential tenant if you are purchasing the real estate for tenancy purposes. When inspecting the house, look around the ceiling near the windows and around the edges of the walls to look for new paint or yellow spots or cracks with water in them. Most sellers would be smart enough to eliminate the water bubbles after a heavy rain when trying to sell the property, but it is always important to figure out if there is a major leaking roof which might cost you are lot into repairing it. Use this defect to negotiate the price of the property further if you are interested in the property.

Fourthly, another reason why the investment property in question might be a bargain might be because there are legal problems associated with it. Common ones include, multiple owners that cannot agree whether to sell or not. Litigation here would be futile and you should avoid such property once you learn about it.

Another problem might be a lack of clean title. Did you know that the seller can be selling you only the building without the land or maybe there are existing tax liens on your property or some other liens that can prevent you from getting good title to the property? Spending some time chatting with a reliable real estate attorney to learn about common real estate problems in your area can save you lots of legal problems later.

Fifthly, bankruptcy of your seller or one of the part owners of your real estate may depending on the legal proceedings of your state affect your ability to transfer title quickly. Most states make it a requirement that the receiver of the bankrupt has to agree so pay careful attention to the bankruptcy legislation of your state. That being said, sometimes the banks are willing to sell you at a bargain so as to recover the bad debts quickly so do your homework before purchasing such an investment property.

In conclusion, these five pointers can be used as a starting point for you to evaluate your property investment. Spend some time to think rationally about the properties that you have seen and see if they have any of the above flaws and consider if you want to continue purchasing them and whether the costs that you may incur in fixing them will justify the discount of the property to the market value. Above all, take massive action today and pursue your property investment dreams.

5 Pitfalls To Avoid When Searching For Your Next Investment Property

Why your share market investing is failing?

Global Finance Articles WebSite — Mon, 30 Aug 2010 09:47:42 +0000

Every investor has several characteristics that combine to make them successful. The degree of success depends on how well you can implement these and how well your strategy works.

The method investors have for selecting shares that they want in their portfolio is arguably one of the most important areas of being a successful investor. For me personally I have stuck to selecting shares that are leading ie blue chip companies, whose price histories are in a long term uptrend and that are themselves doing better than the market average.

The next vital component is the trading plan. This doesnt need to be overly complex. You just need to know what you will do if the share price goes up, down or sideways. If you can cover these three things then you have a contingency for anything the share price can throw at you. And more importantly you will prevent yourself from reacting to sudden market fluctuations that happen all of the time.

The trading plan should also incorporate an overall strategy for the share that you have selected and explain the reasoning behind why youre doing what youre doing ie why you decided to place your order level at this particular point.

You will need a robust risk management strategy and to be successful in the long term you will need to implement the strategy. The number of times Ive seen people unwilling to action there risk management plan when the share price reaches their pre-determined value price is a little bit scary.

The above three things are great to have in place but dont forget that you must be disciplined in implementing them otherwise youre setting yourself up for failure. And you should remember that to get good at anything you need to practice and you need to gain experience. Champions are made in training. Not on the track.

After identifying these strategic factors you should consider how much you are willing to outlay on each share. It is important to try and spend the same amount on each share ie $5000 across a portfolio of 10 shares in different industries in order to maintain a balanced portfolio.

Finally before deciding to go ahead with any investment you should asses whether its risk to return is worth it. There is no point risking $1 to try to make 50 cents. Over my investing lifespan I have stuck with a ratio of 1:3. For every dollar that I am risking I stand to make at least three or if I stand to make $3000 from a trade then I am willing to risk $1000 in order to make it. The reasoning behind this ratio is that no matter how good you are you will always loose in some of your investments. Having a ratio like this ensures that when the of the investments pay off they more than compensate for any that lose.

To recap any successful investor must exhibit these characteristics over the long term.

Take responsibility for themselves and make their own decisions. They take the credit for making profit and accept the responsibility for any losses. They learn from these decisions and improve over time;

Make investment or trading plans and stick to them They make trading plans based on reliable information in the clear calm light of day and not emotional reactions that may emanate from the panic or euphoria of the share market. And, they stick to their plan;

Assess the Risk/Return Ratio of each trade They only enter into investments that offer reasonable potential for profit;

Manage the risk of every investment . And never lose too much;

Allow for contingencies in the plan so they know what they are going to do if the share being traded goes up, down or sideways in price. The share price can do nothing else. But you can do what you planned. The plan then dictates the actions and prevents unprofitable emotional reactions;

Only put their money into financially secure companies ;

Buy shares when they are cheap and sell those that are expensive relative to their price trends;

Only trade in companies whose prices are in trending up;

Trade unemotionally and have the discipline to trade the plan. They plan the trade and trade the plan;

Keep taking money out of the market. You only make money when you sell shares; and

Have sufficient confidence that has been gained from experience.

Why your share market investing is failing?

Philippine Apart-Hotel or Condotel Properties

Global Finance Articles WebSite — Mon, 30 Aug 2010 09:30:27 +0000

“Rents which we thought we would get in two years we’re getting now,” said Beth Collingz, a managing director in Metro Manila of the Condotel Marketing arm of PLC Global Pinoy, the International marketing partner of Pacific Concord Properties Lancaster Brand of Condo Hotels in the Philippines.

Collingz expects rental income to rise 15 percent in the coming 12 months after gains of as much as 30 percent since January 2006, when Pacific Concord Properties Inc are set to launch Condo Hotel operations of their flagship Lancaster Suites located in the Ortigas business district in Metro Manila.

UK Private equity units of banks and investment clubs, driven in part by the current strength of the Pound Sterling in international trading, are being attracted by returns in the Philippines as much as double those in the United States and Europe, are purchasing significant blocks of real estate for investment trusts for Asian commercial property.

“There are large amounts of capital now chasing increasingly limited investment-grade real-estate opportunities in Asia,” said Collingz. “We are currently in the closing stages of packaging the investment of some $20M in private-equity real estate funds for new Lancaster Brand Apart-Hotel or Condotel developments in Metro Manila and Cebu, on the strength of expected rental returns which will continue to grow at a rapid pace.”

With funds raised for commercial property deals in Asia having doubled in each of the past five years, Collingz see the market value of Condotel investments in the Philippines reaching new heights in 2007/8 as more developments come on line.

Rising demand for homes, hotels, short and medium term rental accommodation, offices and shopping malls in the Philippines, home to a population of almost 80 million and with a significant number of the more than 10 million returning overseas Filipino Baby Boomers, is fueling rents.

Residential rents in Metro Manila rose 26 percent in the three months to March 2007, their highest quarter-on-quarter increase in more than a decade, as more and more IT companies set up shop in the Philippines. Companies like Texas Instruments are investing $1B in expanded operations in the Philippines. High-end rents rose some 13 percent from a year earlier, said Collingz.

Collingz projects that Rents in the region are set to effectively jump up by at least 8.7 percent per annum over the next five years, compared with 3.3 percent in the United States and 3.7 percent in Europe. Yields from 8 percent to as high as 14-16 percent ROI on rental income property contrast with the 4 percent to 5 percent that private equity firms get in the United States and Europe.

“People are in general looking to shift fund flows relatively towards Asia,” Collingz said. “It already has had a profound impact in markets where there’s a lot of this money chasing the same assets.” In Singapore, the region’s second- biggest market after Japan, investments by private real estate funds accounted for seven of the 19 office blocks, worth 6.7 billion dollars, sold since September 2005. REITs bought six. A Goldman Sachs fund paid 690 million dollars for two buildings last November that house the headquarters of DBS Group Holdings. In Hong Kong, property funds of Morgan Stanley and Macquarie Bank paid a total of 7.9 billion Hong Kong dollars, or $1.02 billion, for four office blocks from March to May, according a recent article published by CB Richard Ellis.

As the Singapore, Japan and Hong Kong markets become saturated, the Philippines will be the next real estate market to attract substantial overseas investments. Lower prices and retirees spending money are also directing foreign attention to residential condominium hotels in the Philippines, which in turn is driving up more construction.

A lot of this interest is being driven by the relatively cheap market prices here compared to Europe especially UK housing prices and the easy payment options available for condominium hotel developments Collingz said. The buyers gain rental incomes that on todays purchase prices give a projected ROI of some 8 percent to 14-16 percent depending on the mode of payment for the unit she said.

Beth Collingz
PLC International Marketing Networks

Philippine Apart-Hotel or Condotel Properties

With Property Investment You can Retire Young And Live Off Your Profits.

Global Finance Articles WebSite — Mon, 30 Aug 2010 08:46:59 +0000

In the fast-paced, exemplary world today, money matters more than most other things. This is the era of LPG (Liberalization, Privatization, and Globalization.) People are interested in exponential growth of money rather than slow growth. So, instead of saving all your income and using it for your post-retirement life, you can invest your income in a judicious manner to multiply it and earn much more from it. Investment properties are a hot option for that kind of a plan. Investment property is a property that is not occupied by the owner, usually purchased specifically to generate profit through rental income or capital gains. There are lots of convincing reasons for you to realize the benefits of investment properties.

Property investment is where you make a small investment into a property, typically one still being built, which is known as an off plan property and then go on to rent it out to get good dividends, and then once raised in price, you can sell it to gain a profit or to purchase more property.

No investment today offers the stability and simplicity along with the excellent returns offered by investing in property. The stock market can offer high returns, but it is a very volatile and unsteady place. This is especially true for non-professionals and there are so many external factors that can effect your financial investment. Not to mention the fact that the major stock markets have generally been underperforming and property investment stands head and shoulders above other forms of investments. There are a lot of options when it comes to investing in property, as you can choose the option of investing in Commercial property such as industrial/offices, hotels, apartments, retail shops and the list goes on. It can be a residential property; you can buy it and sell it at a higher rate for capital gain or rent it for regular dividends.

Property is now the wise investors weapon of choice. No other investment allows you to purchase with other people’s money (Equity partners) and then pay this back with other people’s money (the rental income from tenants). If you own a property, you can release equity against that property. Although there is no law that states that your property will increase in value year on year, it is accepted that a well maintained property in a reasonable area will appreciate in value.

Here are some points which are sure to make you flabbergasted about the profits of property investment.

50% of individuals mentioned on The Times Rich List made their money through investing in Property.
A property worth just 4000 30 years ago would be today worth around 225,000
Equities or Stocks can be volatile, as with the .com crash, whereas a property is historically stable.
It is well documented that on average the value of a property doubles every 7 years.

Property investments provide equity growth and they maintain good cash flow and not to mention, the capital appreciation is higher than any other type of investment. According to figures from FPD Savills Research, the total net return including capital appreciation on a prime central London property was 18.6% last year. In the UK, the total net return was 16.3% and in Spain it was even a stronger performance during last year.

The benefit of investing in a property is that you can remove the emotion from the purchase and look at the property as an investment vehicle. This opens a lot of options for you. You can utilize your re-assignable contract option and sell at a substantial profit prior to completion, carrying no redemption penalty or you can take the “buy to let” situation and generate a good reliable rental income, including substantial capital appreciation.

With Property Investment You can Retire Young And Live Off Your Profits.

Be Cautious When Studying Mutual Fund Ratings

Global Finance Articles WebSite — Mon, 30 Aug 2010 07:45:50 +0000

Wherever you look, you will find various rating systems on mutual funds, each of which uses a different approach. All of them are designed to weed through the thousands of funds to get to the best ones. But is there really such a thing? Does a high rating really mean a fund will do better in the future? Many people seem to think so. A recent study showed that Morningstar, North America’s most recognized rating system for funds, has a tremendous influence on fund sales. If Morningstar gives a five-star rating, those funds typically enjoy increased sales as a result.

While ranking providers are careful to warn investors that their ratings don’t foretell the future, the star system is, unfortunately, used by some investors as if they were reading Consumer Reports to purchase a new drill. Supporters of the ranking approach argue that there’s no subjective component to the star rating. It isn’t determined by an analyst’s review, and can’t change simply because the service dislikes the fund’s manager or its investment strategy. And that’s good.

Performance will vary. Fund performance often falls off and risk levels rise during the subsequent three years after a fund is given an initial five-star Morningstar rating, suggests another recent study by Matthew Morey, a professor at Pace University. One reason for this is that after receiving a five-star rating the size of the fund grows dramatically, which then makes the fund unwieldy to manage, he suggests. Since Morey’s study was completed, Morningstar also has changed the way it doles out top rankings to make them more precise. One of the biggest problems with all rating systems is that they are not necessarily predictive in nature. This means they’re not really set up to tell you whether certain funds will necessarily do better in the future. For the most part, the ratings indicate how much you might have made and how much aggravation you faced in the process.

Combining risk and return. For example, one five-star fund might post moderate return scores, but incredibly low risk scores. Another five-star fund might have much higher-risk scores, but its return score could be strong enough to help it still rank in the top 10% of the pack.

In some cases, in fact, it’s not even the same fund to begin with. Remember, after a management change, the rating stays with the fund, not the portfolio manager. Therefore, a fund’s rating might be based almost entirely on the track record of a manager who is no longer with the fund.

Understand how the ratings were developed. Too many people put emphasis on the results without knowing how the results were achieved. If you are going to use ratings, take the time to understand how they were developed and what they really mean. It is not the destination but the journey that counts.

Past performance is no guarantee of the future. You have probably heard this disclaimer a thousand times before, but it is really important to understand. Most rating systems have little to no predictive element in them. It’s natural to think that the best performer of the past will be the best performer in the future. Unfortunately, it’s not that simple. Just think about it; if it were that easy, investors would just continue to buy last year’s winners knowing that they will be this year’s winners. And that seldom works.

Ratings are a very important element in trying to distinguish between good and bad funds. Good research, however, goes far beyond just looking for five stars or an A+. When evaluating funds, look at the quantitative, measurable characteristics of a fund: returns up against the benchmark, costs, risks, taxes and manager tenure. Use rating systems as part of your research, but remember: just because the analysts give them top marks, it does not mean they will be the best investment in the future, and doesnt it mean that they’ll be the best investment for you in particular. Take the time to understand how the ratings were achieved. This will be the first step to educating yourself about funds.

Be Cautious When Studying Mutual Fund Ratings

Investment Formulas – What Purpose Do They Serve?

Global Finance Articles WebSite — Mon, 30 Aug 2010 06:44:34 +0000

What exactly does a formula do? A complete detailed explanation can be as vast and complex as each individual investor and is beyond the scope of this article but a brief summary of a formula’s usefulness would include the two primary functions it fulfills.

First, over a full market cycle, it will improve your investment profits without the application of any thought whatsoever on your part. A good thing for most investors, because the less emotion they inject into their investment decisions – the better off they are. Because there are many investors who don’t believe that the market will ever go through a full cycle again – that the direction of the market is in a permanently upward movement, except for temporary, minor dips. It might be worthwhile to point out – without seeming to be pessimistic – that there are some good arguments against an indefinite continuation of bull markets as the past few years have shown.

The second purpose of a formula – apart from the question of profiting from complete market cycles – is to provide a means of profiting from more minor fluctuations. It is undeniable that the market will continue to fluctuate and a formula allows the investor to benefit from these fluctuations by specifying conservative investment policies when the market is relatively high, and more aggressive policies when it is relatively low.

For many, formulas appear rather complicated and so the obvious question that comes to mind is “Can the small investor profitably use them?” and the answer is resounding yes. True, some formulas are so complex that they are unsuitable for most investors but most formulas do not fall into this category. The most widely used formulas today, in fact, are based on extremely simple principles and can be used by anyone with a rough knowledge of elementary school math. Special measures to adapt formulas to the needs of small investors are necessary, at times but it is worth noting that small investors are just as likely to want to improve their profit performance in the market as are the larger investors. And what’s nice about formula’s, is that there is no particular disadvantage in having a small portfolio when using them.

Security or Uncertainty
All investors, both large and small find themselves in the same basic quandary. All would like to be sure of what is going to happen next to their capital and so they are inclined to appreciate the features of fixed-income investments such as, bonds, savings accounts or commercial paper.

In such investments, their capital is guaranteed and so is their interest. On the other hand, there are few opportunities for appreciable profits in these areas and no protection against a decline in the value of the dollar. As a result, many investors / speculators are attracted by the characteristics of common stocks or currency trading or whatever where neither their capital nor their return is guaranteed, but which offer substantially better opportunities for higher profits through capital gains.

How to resolve the dilemma? It is obvious that the great difficulty with all investments is there inherent uncertainty. One workable suggestion for reducing the damage this uncertainty can do has been often made. Simply don’t buy common stocks or other higher risk investments at all. However, most investors tend to regard this idea as, although practical, rather extreme and are reluctant to abandon the possibilities of profit that exist in these investment vehicles.

The formula idea is simply a form of protection against uncertainty. Formulas are designed to allow the investor to profit from the advantages of owning common stocks or other higher risk investment alternatives like currency trading, while providing them with a measure of protection against their handicaps; to give them some of the stability offered by fixed income investments, while not condemning them to a low return on their money. The whole point of formulas is to make the best of both worlds.

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Investment Formulas – What Purpose Do They Serve?

Expectations For Trading Or Investing Returns

Global Finance Articles WebSite — Mon, 30 Aug 2010 06:00:13 +0000

Clearly, anyone who trades does so with the expectation of making profits. We take risks to gain rewards. The question each trader must answer, however, is what kind of return he or she expects to make? This is a very important consideration, as it speaks directly to what kind of trading will take place, what market or markets are best suited to the purpose, and the kinds of risks required.

Let s start with a very simple example. Suppose a trader would like to make 10% per year on a very consistent basis with little variance. There are any number of options available. If interest rates are sufficiently high, the trader could simply put the money in a fixed income instrument like a CD or a bond of some kind and take relatively little risk. Should interest rates not be sufficient, the trader could use one or more of any number of other markets (stocks, commodities, currencies, etc.) with varying risk profiles and structures to find one or more (perhaps in combination) which suits the need. The trader may not even have to make many actual transactions each year to accomplish the objective.

A trader looking for 100% returns each year would have a very different situation. This individual will not be looking at the cash fixed income market, but could do so via the leverage offered in the futures market. Similarly, other leverage based markets are more likely candidates than cash ones, perhaps including equities. The trader will almost certainly require greater market exposure to achieve the goal, and most likely will have to execute a larger number of transactions than in the previous scenario.

As you can see, your goal dictates the methods by which you achieve it. The end certainly dictates the means to a great degree.

There is one other consideration in this particular assessment, though, and it is one which harks back to the earlier discussion of willingness to lose. Trading systems have what are commonly referred to as drawdowns. A drawdown is the distance (measured in % or account/portfolio value terms) from an equity peak to the lowest point immediately following it. For example, say a traders portfolio rose from $10,000 to $15,000, fell to $12,000, then rose to $20,000. The drop from the $15,000 peak to the $12,000 trough would be considered a drawdown, in this case of $3000 or 20%.

Each trader must determine how large a drawdown (in this case generally thought of in percentage terms) he or she is willing to accept. It is very much a risk/reward decision. On one extreme are trading systems with very, very small drawdowns, but also with low returns (low risk low reward). On the other extreme are the trading systems with large returns, but similarly large drawdowns (high risk high reward). Of course, every traders dream is a system with high returns and small drawdowns. The reality of trading, however, is often less pleasantly somewhere in between.

The question might be asked what it matters if high returns in the objective. It is quite simple. The more the account value falls, the bigger the return required to make that loss back up. That means time. Large drawdowns tend to mean long periods between equity peaks. The combination of sharp drops in equity value and lengthy time spans making the money back can potentially be emotionally destabilizing, leading to the trader abandoning the system at exactly the wrong time. In short, the trader must be able to accept, without concern, the draw-downs expected to occur in the system being used.

It is also important to match one’s expectations up with one’s trading timeframe. It was noted earlier that in some cases more frequent trading can be required to achieve the risk/return profile sought. If the expectations and timeframe conflict, a resolution must be found, and it must be the questions from this expectations assesment which have to be reconsidered, since the time frames determined in the previous one are probably not very flexible (especially going from longer-term trading to shorter-term participation).

Expectations For Trading Or Investing Returns

Finding a System to Day Trade the Futures Market

Global Finance Articles WebSite — Mon, 30 Aug 2010 05:43:46 +0000

When I first became interested in trading Futures I had no idea as to where to go to get information about trading. I didn’t know anyone that traded the Futures Market. In fact when I talked to anyone about Futures all I heard was “don’t trade Futures, it’s way too dangerous, you will lose everything you own”. Indeed you can lose money fast in the Futures market, but you can also make money fast because the leverage is fantastic and that’s what interested me. I knew I had to have a good system, but where would I go to find one.

At that time brokers would send you information, and maybe they still do, from various Exchanges about different trading strategies and how one might use them in a particular Futures Market. Well, this information looked pretty good! All I had to do was get a charting service and I was on my way.

I guess I wasn’t as bright as the person that gathered the information for the booklets because I simply could not make these indicators work for me. Surely someone was trading successfully using this information I thought, otherwise why would they publish the booklets. With this thought in mind I felt I just needed more information.

Books had to be the answer. Like I said previously, I guess I was not very bright because after reading thirty or forty books thoroughly, some two and three times, and having applied the techniques learned from the books, I was not able to trade profitably on a consistent basis. I’m sure some are capable of using these techniques to trade successfully, but I was not able to do so. While having a book burning party a few years ago, I decided to keep one book to remind me of my experience. It’s on my bookshelf and I glance at it once or twice a year to keep this experience fresh in my memory. There may be some great books out there that show you how to trade successfully on a consistent basis, but unfortunately I never found one. I wasted years on this endeavor.

By this time computer trading was getting popular. I received an advertisement about a program where I could actually write my own system and back test it to get results before actually trading it. Wow! This was great and it was only $4,500.00. They advertised anyone would be able to program this thing. Well they must have meant anyone with the exception of me. I wasted hundreds of hours trying to write programs unsuccessfully. I didn’t know the program language and I wasn’t able to get enough information to learn it so I decided to be intelligent about this situation and bought another program at only half the price of the first one. I was able to write a few programs that produced very well in back testing, if one could stand twenty point stops in the S&P. I really liked this idea but finally had to admit that it was not going to give me what I was searching for.

For years now I had been studying charts every single day plus weekends and evenings.Of course I was aware that all indicators, strategies, systems etc. started with price. None of these things can be made without price moving first. Price can’t be wrong because it is what it is, therefore it is always right. So I decided to put all of my energy into the study of charts, or price and its movement, and finally I found it. It was right there in front of me all these years and I just didn’t see it. After another year or so of perfecting entries and exits and how to read where price should go, and if it would continue on or turn at that point, I finally had a system. This system will give you profits consistently. I found that price will tell you where it is going and where it is likely to turn, and if it doesn’t turn there it will tell you in advance that it will likely continue.

I had a hard time learning to trade without a mentor. It actually took years of commitment, hard work, and a lot of wasted money. If you are new to trading Futures, or any market, and you don’t have a mentor with a good system that will give you consistent profits, then by all means that should be your first endeavor. It is said that 90 of everyone trading in the futures market loses. Make sure you’re in the 5 that are winners.

Finding a System to Day Trade the Futures Market

New Mexico Town Prepares to Embrace Returning Uranium Miners

Global Finance Articles WebSite — Mon, 30 Aug 2010 04:43:06 +0000

Once the proud center of the Uranium Universe, and until recently the worlds largest uranium producer, the city of Grants (New Mexico) nearly collapsed in the 1980s as uranium prices sank into a twenty-year depression. Five thousand uranium miners lost their jobs, and the city elders panicked, searching for an industry with which to replace mining. Uranium companies helped build our hospital, our school and most of our major infrastructure, Star Gonzales, Cibola Countys Head of Economic Development, told StockInterview.com. We are a mining community and know it is beneficial.

Grants is a sleepy town of less than 10,000, north of Interstate 40, off exit 85, and about an hours west of Albuquerque. This past November, we toured the towns Mining Museum, which boasts of having the only underground uranium mining museum. Grants is now a prison town, and instead of mining uranium, the town runs most of the states prison system. The times are changing again, though. Along with the recent $45.50/pound spot uranium price, revival of uranium mining in Grants is all but a done deal. Several uranium companies have taken their first steps into Cibola County. As with the state of Wyoming, more will follow them.

IS URANIUM MINING AGAIN WELCOME IN GRANTS?

We wondered what the political pulse on uranium mining would be like in Grants. So we talked to several representatives on the city, county and state level. Fasten your seatbelts, and move over Wyoming. Grants, New Mexico is making a public invitation to all uranium mining companies. We will greet them with open arms! Star Gonzales shouted into her phone. We are very mining friendly in this community. Thats an understatement. Grants Mayor Joe Murrietta returned from Vietnam after being wounded on the Fourth of July 1968 with a Purple Heart and began working at Anacondas uranium mill in Grants, New Mexico. He worked for Anaconda and ARCO for fifteen years before the uranium boom in his town ended. We can handle the mining industry, and we are looking forward to having it back, Murrietta told us. The mayor is confident the entire community would welcome uranium miners back.

Grants City Manager Bob Horacek worked in a uranium mill, as a college student twenty five years ago, and remembered it was a nice source of income to help him pay tuition. We are obviously looking for jobs, he told us. Its a pro, and economically we could use the higher paying jobs. Asked about one company, which announced it may build a mill, possibly in Cibola County, Horacek quickly responded, Id like to visit with them. State Senator Joseph A Fidel, a Democrat representing District 30, which includes Cibola and Socorro counties, perked up during our interview, when we talked about uranium in his county, I would be happy to have mining come back. It would be very positive economically.

We talked about environmental activists. Senator Fidel explained, If there are protests, they will come from outsiders, from Taos or other parts of the country. Ms. Gonzales agreed, There will be no protests from the local community. The mining spirit still lives today in this town. These echoed State Senator Leavells remarks, in part two of this series, Most of the protestors have come from San Francisco, DC and Santa Fe. Fidel concluded, The community will be very supportive of uranium mining. People will be cooperative and will react positively, when the time comes.

Each of the politicians interviewed were cautious, but optimistic. Grants, New Mexico was hard hit. As with the Governor of Wyoming, who basically told uranium companies to put up or shut up, New Mexican decision makers are waiting to hear directly from uranium companies. Are they serious? Fidel pointed out, I believe it will materialize into something serious. After all, the county may be sitting on hundreds of millions of pounds of unrecovered uranium. More than 340 million pounds, possibly a great deal more, of uranium was produced before mining came to a standstill during the twenty-year drought. We have a lot of uranium, said Senator Fidel. The county has good potential.

New Mexico Town Prepares to Embrace Returning Uranium Miners

Forex Forecasts – You Never Know What You Will Benefit From

Global Finance Articles WebSite — Mon, 30 Aug 2010 04:42:26 +0000

Possible risks and profits to be made can always be predicted if traders would only have more accurate forex forecast to base their trade and decisions upon. Forex forecasts are only one way of keeping up with the volatile forex market. Success will depend the most in knowing what and who will affect the rate changes.

The forex market has already been through a lot of ups and downs that even fortune tellers would have difficulty guessing what will be its next movement. Making a forex forecast can be helpful but can also be too risky. Besides, doing it is not that easy also.

In forex forecasts, nothing specific is given. The traders are not made to hope high and expect more. If you have seen or heard a forex forecast, be sure to check on some projected rate fluctuations whenever and wherever possible so you would have an idea it the forex forecast shows a likely possibility to be true or not.

Staying in touch and up-to-date with the latest news and happenings around the globe and information about the forex currency can help traders determine when is the best time to buy, sell and stay away from a particular market. All these things are important in the performance of your trade. Take note of some forex forecasts if only to serve as guide whenever you are in a situation that you find hard to make a decision upon.

How can one benefit from forex forecasts?

There are some companies that are offering forex forecast information as a subscription that traders can avail of. For those who do not have enough patience and browse for information in the internet, this forex forecast information would be their alternative.

No one said that there is a 100% accuracy in these forex forecasts. And no one told traders that they should also believe them 100%. If you want to have more degree of accuracy in the forex forecast, you could always find one with the most accurate percentage rate.

You could look for something or someone that offers free information or a trail period for you to test the degree of their ability to give accurate forecast about the forex market. There are also some sites that send out forex forecast to emails that you may want to try out just so you will choice to choose from if you decide to avail the services of some of them.

Relying only on one forex forecast is not the thing to do. You should at least have some more choices in the process of making an investment decision. Try to get more forex forecast from sources that are rampant online and offline so you would not stick to just one.

The thing to remember is that your investments are your future and you have already worked too hard to just let it all down the drain. Do not put the future of your forex trade into the hands of only person. Try to get several forex forecast and choose the best one that you think has great ounces of accuracy up their sleeves.

Before putting the future of your investments into the hands of those offering forex forecasts, make it a point to check out the latest that is happening in the forex trading and see if the trend is likely to go with what the predictions are telling about.

If you think more about it, people doing forex forecasts would not be out there giving bad forecasts because their reputation is the one at stake there. They surely would not want to ruin the image they have by giving false predictions about things that they know people will listen to, would they?

Like they say, traders should not believe all that is written in forex forecasts. Some but not all. There are still decisions to be made that will be based upon the trader itself and no amount or accuracy of forex forecasts can make that decision for them.

Just to be on the right side of things, always make sure and do your own research that will back up the forex forecast you actually think is going to work. You never know what it will lead to

Forex Forecasts – You Never Know What You Will Benefit From

WHY THE FINANCIAL NEWS MEDIA CAN COST YOU MONEY!

Global Finance Articles WebSite — Mon, 30 Aug 2010 03:41:50 +0000

The communication innovations we have around us today like the internet, financial newspapers, and special interest television channels focused on investing like CNBC are a high speed pipeline of nonsensical chatter. All these sources of information mean that there is no shortage of media people trying to answer our questions about the stock market and specific stocks. You have to remember that the news media are constantly competing to survive against other stuff you can watch. If they dont always sound like they know exactly what is going on then you wont watch their presentations. If you dont tune into their show then their ratings go down. If their ratings go down they get fired and their show gets cancelled.

This means that financial journalists are in the business of finding great stories and sounding like authorities no matter what. The stock market is a great place for them to dig up news scoops to feed to the public. They dont really check their facts very well and sometimes not at all. This means that if some insider wants to feed you a line of bull manure then all they have to do is maintain good connections with financial journalists, sponsor an investment show, or outright buy an investing TV channel like Jack Welch the CEO of GE did when he set up CNBC. What a great way for inside executives to control the flow of news information to the public then to actually own one of the only financial news channelsbut not so great for you!
These journalists also kick up the fire by bringing in so-called experts to talk about each side of some topic that real experts would not consider important.
This just makes it all the more confusing for the public to understand what is important when buying or selling a stock. Shows on CNBC like Closing Bell, Kudlow & Company, and Mad Money do nothing but confuse and misdirect the attention of most individual investors in the public. Even worse this means that the financial news media allows overpriced stocks to be recommended through analysts in the inside web that inside executives are dumping on the public because they are trying to get out. This actually happened at the top of the bull market in 1999. For a great historical description of what happened read Maggie Mahars book entitled Bull.

The famous Yale University Economist, Prof. Bob Shiller, Ph.D. is particularly harsh on the media in his book Irrational Exuberance. Dr. Shiller is one the economists that Alan Greenspan respects most and where he got the term Irrational Exuberance. He portrays the media as sound-bite-driven where superficial opinions are preferred over in-depth analyses. I agree whole heartedly with him and contend that it is also done just because the industry would rather have the retail investor confused and emotionally pliable to get you to buy and sell when they want with total disregard for your best interests!

People who had invested their life savings in the stock market were ripped off in the stock market because the financial news media and analysts were hyping up what a great buy stocks were at the very top of the market in 1999 and 2000. At the same time inside corporate executives were selling out everything they had. What is amazing is that our federal government in the form of the Security Exchange Commission never did a thing about it. There was never a blanket case taken or an outcry that almost all of the inside executives had somehow magically sold out of the market six months before the market crashed.

Here is the valuable tip I want you to consider: when you are a beginner investor it is important that you DO NOT WATCH THE FINANCIAL NEWS OR READ THE FINANCIAL NEWSPAPERS! Dont let the stock market industry lead you around by the nose like livestock to the slaughter house. Dont listen to what they want you to listen to. You should focus on learning what is important in the stock market and the mass media will only confuse you until you have educated yourself.
Recommended reading:
1. Mahar, M. Bull! A History of the Boom, 1929-1999 (New York, HarperBusiness , 2003)
2. Shiller, R., Irrational Exhuberance, (New York, Broadway Books, 2000)

WHY THE FINANCIAL NEWS MEDIA CAN COST YOU MONEY!

Philippine Apart-Hotels Set to Outstrip Treditional Buy-to-Let Market

Global Finance Articles WebSite — Mon, 30 Aug 2010 02:41:10 +0000

Beth Collingz, PLC Global Marketing Director of PLC International Marketing Networks, the lead marketing partners for Pacific Concord Properties Inc Lancaster Brand of Condo Hotels in the Philippines says Apart-hotels or Condotels as they are know locally are really growing in popularity among British and European investors. In the last two months alone we have sold a significant number of apart-hotel units both in the UK and Europe. Apart-hotels are an opportunity for investors to purchase into a new asset class with much higher yields than traditional buy-to-let properties.

The rental opportunity is achieved through a need for hotel accommodation, rather than residential letting markets. There are three key reasons why buyers are keen to invest in Apart-hotels or Condotels in the Philippines” Collingz continues, Firstly, it’s a completely hands-off investment: the developer builds the hotel, and the management company runs it. Their job is to operate the hotel, maintain it and ensure maximum room occupancy and, as they receive a percentage of the nightly room rate, they are motivated to do so.

Secondly, because investors income is a percentage of the nightly, weekly or monthly room rate of the rental operations pool of all the units in the development rather than a monthly income from a single rented property, they are not exposed to substantial monthly deficits.

From a financial perspective, the income level compares favorably with traditional buy-to-let. Generally, expected income levels are sizeable 12-16% ROI per annum would not be unusual in a well-selected apart-hotel. If suggested income levels on a development are much below 10%, we would not consider promoting it as it would not represent a good investment opportunity for our clients said Collingz.

In the Philippines this form of investment seems set to outstrip the traditional buy-to-let rental market. At present, Metro Manila and regional towns such as Cebu, lack hotel rooms meaning that occupancy levels in any developments are likely to be high.

Most new investors in the Lancaster Suites Manila are established UK property investors who are looking for a UK product with a higher yield and no operating deficits. However, Apart-hotels are also attracting first time buyers looking to establish themselves on the property ladder whilst making yearly income as well.

Demand for apart-hotels is increasing as investors become more aware and better informed about the opportunities on offer. And whilst finding financing for overseas property has been difficult in the past, PCPI offers all buyers a no prequalification In-House 12 year payment plan with zero down payment, making the entry level open to may first time investors.

Lancaster – The Atrium, located in Shaw Boulevard, Metro Manila, is a “Full Service” Apart-Hotel ["Condotel"] offering Studio, One, Two and Three Bedroom Suites for sale. To be completed and ready for turnover from December 2010, Lancaster will provide unit owners with premier residential condo units with the option of enrolling their units in the Lancaster Rental Pool and earn Rental Incomes as Owner Non-Residents when not using their units. This makes Lancaster Manila, one of the Hottest Investment Opportunities in the Philippines said Collingz.

All units at the Lancaster Suites have kitchen facilities. The standard unit price provides for the suite to be semi-finished but not fully furnished. Included in the current price are the interior finishings such as tiled & semi-fitted bathrooms, bedrooms with simulated wood plank flooring, semi-fitted living and dining area with simulated wood plank floorings and lower kitchen cabinets/work tops installed. Walls and ceilings are painted cement finish. A complete optional extra interior fit-out package including unit fittings and fixtures, furnitures, furnishings, air-conditioning, lighting fixtures and appliances will be available towards the time the units are closer to being completed continued Collingz.

For further info please do not hesitate to contact us:

Beth Collingz
PLC International Marketing Networks

Philippine Apart-Hotels Set to Outstrip Treditional Buy-to-Let Market

Ten New Investment Concepts, the Time has come.

Global Finance Articles WebSite — Mon, 30 Aug 2010 01:39:03 +0000

Theres a rumor going around that the Mutual Funds are broken and just cant work anymore, for a multitude of reasons. Theyve tried index funds, but these, too, have been less than impressive since they hit the street a few years back, and are now being enhanced… what does that say? Here are some new and/or forgotten ideas that can get your investment program back on track:

1. Abandon the popular averages: Over the past six years, all of the major averages are grossly negative or just beginning to get back toward their best past levels. At the same time, the NYSE advance/decline line has been extremely positive. Additionally, the last time the averages were up, issue breadth was totally negative.

2. And the basics of investing, again, are what? Most investors confuse Quality with analyst expectations and think that Diversification means getting one of every product type thats out there. In fact, they are basic risk minimization tools that every investor needs to use.

3. Appreciate the power of income: Base Income just has to grow every year, period, for a person to have any hope of keeping up with inflation. Thats right, growing Market Value is inflationary particularly with respect to hat size, and income paves the road to retirement income.

4. Buy low (within reason), sell higher: Profitable company stock prices fluctuate just like unprofitable ones. The difference is that the former are much more likely to move back up again. Buy quality at lower prices (just like any other form of shopping), big BUT, set a reasonable (10% or so) profit-taking target and pull the trigger. Re-load, and do it again.

5. Embrace The Working Capital Model: For both portfolio Asset Allocation and Performance Evaluation, use the cost basis of your holdings as opposed to their Market Value. This is the only way to use short time periods (a year being the shortest for anything at all meaningful) for any kind of analysis. Also, as a bonus, youll never make another fixed income mistake.

6. Fall in love with Volatility, not with securities of any kind: Market volatility is one of the few things (if there are any at all) that you can be certain about. Use it wisely and it will shorten your road to investment success. All too often, unrealized gains on the loved ones become realized losses on the tax return.

7. Remember Peak-to-Peak and Trough-to-Trough: There was a time when tests like these (and variations like P to T, or T to P) where the only valid (Market Value) tests of a managers ability. They still are. I have never found a correlation between the calendar year and any market, interest rate, or economic cycle.

8. Corrections are every bit as lovable as rallies: In truth, profit taking is more fun, and much easier decision-making than buying stocks while in the throes of a falling Equity Market. But one is just the flip side of the other, and you need to learn the lyrics to Every Day just as you knew Peggy Sue.

9. Understand The Investors Creed: How did trading get a bad rep? What is a stock exchange? Buy and hold just doesnt fit. The key is timing (not market timing) and selectivity. In a rising market you should be selling more than buying, resulting in a growing cash position. This is a good thing. In a falling market you should be buying more than selling, resulting in a smaller cash position also a good thing. If you run out of cash while the market is still falling, you are doing it right. By the same token, if you feel stupid having taken your profits and the market is still foaming, your brilliance will not be your only reward.

10. Investing is not a competitive event: Its all about you: your money, your risk tolerance, your goals, and your objectives. It doesnt matter what the others are doing, why and how. Think about this. There is no average, index, or benchmark that can be compared to the Market Value changes of a properly diversified portfolio. Nadda.

11. Establish Rules and Apply Discipline a bonus idea. Just do it.

From: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”

Ten New Investment Concepts, the Time has come.

Guide to mergers

Global Finance Articles WebSite — Mon, 30 Aug 2010 01:05:20 +0000

The economy today is not stabilized. Even big companies have to confront the ups and downs that come their way. But the only thing that keeps them going is survival. They have to survive in the market and progress swiftly or gradually. One strategy to advancement is that of mergers between companies. There are numerous mergers that take place locally but they do not have a great effect on the market especially the consumers. But the mergers that take place at the national or international level have a profound impact on the economies of the concerned countries.

There are different reasons behind a merger of two or more companies. But first of all there exist diverse types of mergers.

a) Horizontal Mergers- where two competing companies conjoin to form a single large company. The companies in horizontal mergers are selling the same product in the same market and so are contenders to each other. Such a merger can have a tremendous influence on the market from creating monopoly to escalating prices of the commodity. This is precisely the reason that The Federal Trade.

b) Commission that is worried about the market and the consumers keeps a hawks eye on such mergers and at times detains the companies from merging in the interest of the people.

c) The Vertical Mergers- are the mergers between a supplier and the distributor company of the supplies. This is an anti competitive merger but can be highly beneficial to the company. It is because the distributor will no more have to pay for the manufacturing of the supplies, it gets the product at the base price. So there is good cost saving due to this. Vertical merger also rules out lot of competition from the market.

d) Market Extension Merger is between the companies selling same product but in different markets. This merger enhances the market for the two companies since they now act as one sole company.

e) Product Extension Merger is like the one between an eminent company making motor parts and another that makes their own cars. So, the companies involved here sell different but more or less the same product in the same market. This merger promotes the sale of both the companies significantly.

f) Conglomeration is a merger where the concerned companies have nothing in common to sell.

There are various reasons behind merger of companies. Like

a) Synergy factor prompts the merger of most of the companies. The synergy in business pertains to the cost saving and revenue enhancement. The companies after merger decrease the staff keeping only the skilled labor, work with a single managing director, CEO etc. So there is good outlay saving. Moreover the economy of the sale i.e. the purchasing power of the company booms after merger.

b) To increase the output and rule the market- many mergers are made with the intention to oust the competition and jointly rule the market. This presupposes healthy relations between the competing companies.

c) Mergers also take place when a company is not able to perform well due to some or the other cause like the lack of required investment in the form of capital, tremendous competition etc. In such a situation this company can merge with one its parent company or any other company that has faith in the prior goodwill of the declining company and in its potential to grow and enhance. So companies also merge in order to overcome their internal inconsistencies.

d) Many a mergers besides economically are also politically driven.

e) Acquisitions which imply taking over of one stronger company with the other weaker one are also at times veiled by the name of merger.

However, the directors who plan to merge their companies should actually contemplate over it, keeping in mind all the possible pros and cons. They must seek advice from neutral financial consultants who do are more inclined towards the welfare of the company and not their own. Their own benefit is also hidden in a merger since the wages of the employees increase with the advancement due to merger. So it is recommended to take advice from all those who are the well wishers of the company before taking any concrete step in this direction.

Guide to mergers

Making Money In Forex

Global Finance Articles WebSite — Mon, 30 Aug 2010 01:00:42 +0000

The only way to keep up with the latest about Forex is to constantly stay on the lookout for new information. If you read everything you find about Forex, it won’t take long for you to become an influential authority.

Whether youre a futures broker, mortgage broker, banker or stock picker, FOREX trading is an essential part of a person’s portfolio. The FOREX market is risky, volatile and yes, an extremely lucrative market. Data shows that 90% to 95% of FOREX traders lose money in there first year of trading. So, you ask, why should the FOREX even be considered a part of a well rounded portfolio? Honestly, because trading the FOREX has the potential to make anyone thousands of dollars a month.

Only until recently has the average person been allowed to trade in the FOREX market. Now, even a mini account can be opened and with little as $300 and off you go. One caveat however, if trading the FOREX market were easy, then everybody would become millionaires trading it and this just isnt the case.

FOREX trading requires vigilant market analysis and in general there are two approaches to this analysis. The first is known as using fundamentals. Fundamentals rely on government reports such as, trade deficits, changing interest rates, CPI numbers, retail sales and supplies of raw material. FOREX traders will make a projection for upcoming data and place trades based on their speculations of that data, trade floor rumors and breaking international news events.

Those of you not familiar with the latest on Forex now have at least a basic understanding. But there’s more to come. Another type of FOREX trader is what is known as, a technical trader. FOREX technical traders rely on charts and mathematical formulas to place their trades. Their belief is that history and price direction repeats itself. Based upon these historical patterns traders can and do use them to predict price movement in the future.

The information about Forex presented here will do one of two things: either it will reinforce what you know about Forex or it will teach you something new. Both are good outcomes.

There is no proven, fool proof method to trading. Some people claim to have found, “the answer”, to currency trading. However, my experience shows it may be best not to try and reinvent the wheel. Learn with a time tested system. Follow a simple, reproducible and proven money making plan. Then from it develop your own style or basic method of trading. Decide when the best time to trade is, develop a good money management system and set goals. A lot of experienced FOREX traders trade when the London and New York markets overlap, between the hours of 8:00 am EST and 12:00pm EST. They trade during these hours because the market moves around a lot and becomes extremely volatile. The result is, most long surviving FOREX traders have learned how to become extremely good at money management.

One key to success in trading any market is to keep your emotions in check and thus lower your anxiety level. A true FOREX trader will discipline themselves to stick to their trading style regardless of what happens in the markets. You must plan a trade and then trade the plan. People too often feel after a few short months of trading successfully in a demo account they are ready for the real thing. Take your time and really learn how the FOREX market works as your long term success is at risk.

When word gets around about your command of Forex facts, others who need to know about Forex will start to actively seek you out.

More information can be found at
http://www.1shoppingcart.com/app/?af=355108 and
http://www.futurestradingsite.com .

Those who only know one or two facts about Forex can be confused by misleading information. The best way to help those who are misled is to gently correct them with the truths you’re learning here.

Making Money In Forex

Investment Newsgroup A Hidden Gem for Investors

Global Finance Articles WebSite — Mon, 30 Aug 2010 00:38:06 +0000

I think one of the most neglected tools in investing is newsgroup. Why? Some people may believe that there are more gossips than useful news. However, this is not always the case. Newsgroup is an online group of people who intend to share their common interest and opinions on the internet. You can post all sorts of questions, crazy ideas, rebuttals, theories, rumours, and others that are related to a particular topic and let the others to respond to your posting or questions. Lets say if you have a question about a recent stock movement of Apples shares, you may find dozens of second opinions on whether this is a good time to get into the market or throw off what you have in hands.

I know that many people love to join big established investment databases or to subscribe to investment newsletters such as the Wall Street Journal and the Investors Business Daily. However, those services are paid (ranging from $20 to $30 per month). Given the fact that most newsgroups are free to join, I think newsgroup can be a valuable supplement to the main dish. Investors in newsgroup may come from all over the world. Indeed, this is a huge community containing a rich amount of info and opinions. I do not deny that the quality of information can range from zero to ten. This is because some of them are investor geeks, whereas some of them are just average Joes. Please bear in mind that most of the newsgroups are free to join. You dont need to pay a single dime!

I think the most significant factor why an investor should join an investment newsgroup is to get some info that you may have overlooked. For example, you may get a piece of info about insider trading from the Securities and Exchange Commission (SEC), but you may not know how to interpret what the implication is upon a particular stock, not to mention how much data you have to sort through the SEC database. At times, you may just throw a question or a comment to a newsgroup about what you have found from the SEC, and you may get a lot of surprises from what other investors say.

Next, where to you find some of the best newsgroups for your investment info? I will give a brief review of some of the most common newsgroups as below:-

Google Groups (Beta)
This is another good place you can pop in to hear some good voices. Since this is a beta program of Google product, the numbers of newsgroups are much lesser than those of Yahoo. There are about 970 newsgroups about investing at the time of this writing. However, I find that the way Google categorizes the investing groups are unsatisfactory. This is because at times you may find some unrelated groups within the broad topic, investment. Again, this is a free service. No fees. No cost. Nada.

Yahoo! Groups
At the time of this writing, there are 17,400 groups specifically about investment ranging from currency, futures, options, short selling, retirement planning, day trading, mutual fund, IPO, online investing, stock pick to value investing. You can create your own group as well. The best thing is that the registration is free!. After signing in, you may locate a specific group to join. On the front page of Yahoo! Groups, you can browse the Groups directory or search for a group by topic. Then click on the “Join This Group” button on front page of any group. That’s simple!

Giganews
This is one of the top paid services that provides a number of cool features in newsgroup service. They claim themselves as having the world’s longest newsgroup binary retention of 70 days and text retention of 1020 days. Of course, for a paid service they provide 24/7 email support on all accounts. At times good retention does not mean that you will not lose an article or message. However, in terms of speed and completion, they claim that they can offer more than 99% completion in terms of avoiding missing articles. You have to bear in mind that uploads are unlimited but downloads are limited to the package you choose. In terms of pricing, they offer different options ranging from $7.99 for 2GB downloads per month to $24.99 for unlimited downloads.

Investment Newsgroup A Hidden Gem for Investors

What You Need to Know Before Investing in Art

Global Finance Articles WebSite — Sun, 29 Aug 2010 23:36:41 +0000

We all know when there is a panic on the financial market, everything that can be seen as an investment will rise in price. Besides traditional commodities such as gold and antiques, you can also consider some products of the modern art as in investment for your money. Let’s consider paintings. A properly chosen painting can essentially increase the wealth of an owner in just a few years. And it is not hard to choose such a piece of art, as it might seem at first.

There a lot of questions and problems you will need to solve before making a decision. Why is there a great difference in price for different paintings? How to buy artwork that will eventually rise in price? How not to overpay for it? What factors influence the cost of a painting? These and other questions are what you will have to answer if you want to change the interior of your house with a stylish modern painting and make a wise investment for your hard earned money.

The difference in price of artworks can be astonishing. For two almost identical paintings (the canvas, oil) in different places you will be asked to pay from $500 to $5000. How do you make the right choice in a situation like that? Often buyers simply don’t recognize the factors that price consist of. In the best-case scenario when you know an artist personally and you are buying a painting directly from him or her – the price practically equals the expenses of the painting. But this case is not very typical.

If you buy a painting from an art gallery, what are the factors that influence the price? First of all – rent of the gallery space. The majority of galleries are located in places where low rent is usually not the case. Salary of employees of a gallery who carry out the exhibitions. Cost of advertising such as publications in press. Expenses for posters, catalogues, invitations to opening of exhibitions, etc. Financing different “noncommercial” art projects, and many other things. You will overpay at least twice as much than if you buy a painting from a gallery. But if you want to invest your money smart, buying from an exhibition or through an art gallery makes sense. They will offer you the works of art that have already gone through preliminary selection and tough competition. You know for sure it is a good investment.

If you are buying a painting directly from an artist, all you can do is basically rely on your own taste and on some attributes of professionalism and success that the artist portrays/of the artist. What kind of attributes are they? While you consider buying a painting from an artist, it is relevant to take an interest in his or her art education. Certainly there are some talented self-educated artists, but they are very rare.

There are some questions you may want to ask your artist. Does he or she have any works in large museums? Is he or she a winner of any art competitions? Where was his or her recent exhibition? A list of exhibitions will tell you a lot about him or her. Ask him/her to show you a catalog of exhibitions, posters, booklets and other advertising material that he/she has. A good website is also a sign of professionalism. Certainly not all talented artists have their own websites but most of them do. And if you wish to get artwork, which in the near future will rise in price, you should choose among the artists who have already reached certain level of success. If an artist cooperates with large poster companies, it is a very good sign. For instance if a gallery offers you a painting for $2000, the artist will most likely give it to you for $1000.

If you have problems with going to galleries and attending the opening days you can do everything online. Search in Google or in any other catalogue under the category “art” and look at the personal websites of the artists. You most definitely will be able to see a lot of interesting things. This way of research has one disadvantage – good artwork may not look as interesting on the screen of your monitor as in real life. On the other hand, if you become interested in some paintings, even in digital format, the original will definitely make a much stronger impression on you.

What You Need to Know Before Investing in Art

Investing vs. Trading: Who Cares Anyway?

Global Finance Articles WebSite — Sun, 29 Aug 2010 23:35:08 +0000

The mutual fund industry requires customers that buy their funds and never sell them. So naturally, they disseminate a lot of editorial decrying any trading, market-timing or re-allocating that includes selling their mutual funds. This non-selling concept gets more ridiculous and hypocritical every year as scandals continue to trickle into the news regarding brokerage firm and mutual fund behavior. It turns out that the professionals running the mutual funds do a lot of trading, market-timing and re-allocating everyday, but somehow if you do this on your own, youll ruin your portfolio.

Since an unfortunate vestige of mutual fund sales material is: you need to invest for the long-term. and That it is OK if your investments are going down because these are long-term investments. These phrases and beliefs destroy portfolios and compounded returns.

To me, investing is simply day-trading in slow motion. In my view, when people dont have an investing plan they use the excuse, Im investing for the long-term. But, I find that all the successful trading rules that apply to a professional currency trader with a leveraged $250 million position also apply to someone with $25 in a mutual fund. If the mutual fund owner calls it investing, he thinks he is immune from all the decision-making required of all ownership; ignoring the fact that every structure require maintenance.

Lets take a closer look at maintenance; look at a home everything but the dirt needs to be maintained. Time, weather, and events take their toll on the floors, appliances, roof, windows, landscaping, etc. The same rules apply to owning a rental home. And the same rules apply to owning a strip mall, or an airport or manufacturing plant. The same rules actually apply to every business; the building, the equipment, the employees, the vehicles, the marketing plan, the product design, and the websites. Now if investing or trading is a business (or you are trading or investing in businesses) what makes you think your portfolio doesnt need to be maintained just like everything else? I am here to tell you that it does need to be maintained. In spite of long-term investing theories and cautions from your stockbroker or magazine headlines, most of the time you spend on investing would be considered maintenance.

How I define maintenance is continued review, evaluation, and action in alignment with your investing goals. Now the maintenance that they need is continual review. Is it meeting your expectations? Maintenance means information review: changes to your market view, interest rates, inflation, recession, the industry, a new federal law, an inter-country trade dispute, etc. Maintenance also means portfolio review. For example, , if a run up in real estate has unbalanced your portfolio, you may want to sell off weaker real estate holdings or, instead, sell off the strongest real estate holdings if the market prices are starting to fall back. Maintenance is also the mechanics of setting up alerts if a stock has fallen too far and you want to place a stop-loss order to get out, or an alert for a profit target that is about to be reached. Maintenance could simply be a monthly review to evaluate whether the stock is still above its 200-day moving average price.

Whatever the manner you want to address investment and portfolio maintenance, you need to start building your own trading rules, checklists for what to do before you enter a trade, and what could possibly trigger your exit of a position. Keep a journal to see how your rules are growing your account to notice which of them needs to be changed, eliminated, or updated. All of this is the maintenance required for the $25 mutual fund investment so that it doesnt become a $0.25 investment from neglect.

To the axiom: A fool and his money are soon parted, I would add this corollary: An amateur investor and his long-term investments are soon parted. Amateur investors that are not willing to perform the ongoing duties required to grow their investments rarely perform well. While a professional trader who carefully analyzes and executes his trading rules can count on the continued successful growth of their portfolio.

Investing vs. Trading: Who Cares Anyway?

Congress Approves .9999 Fine Gold Coins

Global Finance Articles WebSite — Sun, 29 Aug 2010 22:33:45 +0000

New .9999 fine (24 karat) 1-oz legal tender $50 gold coins will be added to the U.S. Mint’s line of gold bullion coins in 2006 when President Bush signs into law a bill that Congress passed in December. The legislation calls for the Mint to have the coins ready to distribute by June 2006, but the coins may be ready before then.

The legislation authorizing the new .9999 fine gold coins was quite specific, mandating the design and even the method of packaging. For the first year of issuance, the coins “shall bear the original designs by James Earle Fraser, ‘which appear on the 5-cent coin commonly referred to as the ‘Buffalo nickel’ or the ’1913 Type 1′.” This wording, without specifically saying it, calls for the obverse (front) of the coins to carry the famed Indian Head design by Fraser. The reverse will carry the equally-famed buffalo design.

Each Indian Head-Buffalo coin is to be encased in a protective capsule, possibly such as the capsules used by Australia’s Perth Mint to protect its .9999 fine gold bullion coins, including the popular limited edition Lunar Series Gold Bullion Coins. The protective cases “shall be readily distinguishable” from the packaging for proof coins, which are also authorized by the bill.

For years, proof coins have been individually encapsulated in protective cases. Individually encapsulating bullion coins will be new to the U.S. Mint. The Mint’s 22-karat (.9167 fine) American Gold Eagles, which are the world’s best-selling gold bullion coins, are packaged twenty to a tube and are not individually encapsulated.

Production of the Indian Head-Buffalo coins will be unlimited, and they will be marketed toward gold investors who prefer .9999 fine (24-karat) gold coins. The U.S. Mint already has the world’s best-selling gold bullion coins with its 22-karat (.9176 fine) Gold Eagles. Still, there is a huge market for pure gold coins, and the new Indian Head-Buffalo coins will give the U.S. Mint a product for that market. The Asian and Indian markets clearly prefer pure gold coins, while alloyed gold coins are more popular in the Western World.

Presently, the Royal Canadian Mint’s .9999 fine Gold Maple Leafs are the world’s best selling pure gold coins. However, the Gold Maple Leafs have fallen into disfavor with investors because of the ease with which they are damaged. To counter this, the Royal Canadian Mint recently introduced new packaging for the 1-oz Gold Maple Leafs.

The new packaging for the 1-oz Gold Maple Leafs will put the coins individually in capsules that are suspended in credit card sizes cards, twenty-five coins to a box. It is too early to gauge market acceptance of the new packaging for the Gold Maple Leafs.

Considering the popularity of the of Indian Head-Buffalo design, the U.S. Mint’s new .9999 fine gold coins could provide stiff competition for the Gold Maple Leafs. Fraser’s designs proved to be a winner in 2001 when the U.S. Mint produced a limited number of Indian Head-Buffalo $1 silver coins sets. The sets sold out immediately and today carry prices several times their initial offering prices.

The new Indian Head-Buffalo .9999 fine gold coins, however, will not be limited edition, at least not the first year. The bill permits the Mint to “change the maximum number of coins issued” in subsequent years. Further, the bill authorizes the Mint to change the designs on either the obverse or the reverse after the first year’s production.

Although the U.S. Mint produces its popular American Gold Eagles in four sizes, 1-oz, -oz, -oz, and 1/10-oz, the new Indian Head-Buffalo pure gold coins will be minted in only one size: 1-ounce. With the popular Indian Head and Buffalo designs, the Mint’s new .9999 fine gold coins could quickly become favorites with gold coin investors.

Congress Approves .9999 Fine Gold Coins

Building Financial Security Steps 4 to 6.

Global Finance Articles WebSite — Sun, 29 Aug 2010 22:32:08 +0000

4. Learn to Set Goals

Most self made, successful business people and investors have achieved their success by planning to do so.

They have set goals for themselves and achieved them. They invest time in reading and learning about wealth creation and are happy to learn from other peoples mistakes and experiences, as well as their own. They set goals, and realise that they will be far better able to achieve them if they familiarise themselves with the ways in which other people acted and the things that others have done to succeed. Wealthy people create wealth by carefully utilising the income that they have available to them to their best advantage. They know that working harder and longer hours is not the way to achieve financial freedom, instead they have to utilise what they have, and make it grow.

Having a goal enables you to focus your energies on devising ways to achieve it. When someone makes a decision and begins focusing on achieving a specific goal (and even better in a specific period of time), the powerful subconscious mind goes to work and begins playing with ideas and developing strategies of various ways to bring about the successful completion of the goal.

When you set yourself a goal both your conscious and subconscious start working on it and begin to develop an action plan. You will begin asking yourself questions about what needs to be done to enable you to reach your goal. Many find themselves coming up with amazing ideas and solutions to problems or obstacles that have been in the way of achieving their goal. The subconscious is an extremely powerful tool. The more often you remind yourself of your goal, the more your mind will work on ways for you to achieve it. Some people find answers come to them when they are asleep and dreaming.

Have you ever noticed that there is no correlation between being wealthy and having a high IQ or a university degree? If there were, every doctor and university graduate would be wealthy, and as statistics show, most of them end up in the same situation as 95% of the population.

Setting Goals helps you to focus your energy on developing workable strategies. Setting long term goals helps you look at the big picture. Once you can see the big picture, you can develop small sub goals. Sub goals are small simple goals that can be followed one step at a time. When you progressively achieve your sub goals, you will get closer and closer to your major goals. Goals are simply plans to succeed. It is said that if you Fail to plan, then you plan to fail. Goals help you keep motivated. Progressively achieving your goals can lead to a wonderful feeling of fulfilment.

5. Learn how to Budget.

Budgeting does not have to be tedious. All you need to do is to work out:
What your incomings are. What your regular outgoings are and then make sure that all of your other expenditure is less than the amount remaining. This will allow you to start saving and investing. Budgeting puts you in control of your finances.

6. Learn about investing in particular about property investing.

Learn to research the property market, so that you will be able to purchase properties that will not only give a good rental yield, but they will also return the best capital growth possible. Read investment books. Read auto-biographies of successful people. Speak to people who have succeeded in doing what it is that you want to do. The more you learn, the easier it will be to recognise a good investment.

Find out about Negative, Neutral and Positive gearing and why gearing is an invaluable tool, which will enable you to build up a wealth base in accelerated time, compared to if you only invested your own hard earned dollars.

Once you have educated yourself and understand why investing in property is such a powerful tool, you will be able to embark on the road to financial security.

In Australia, and many other countries less than 5% of the population reach retirement able to support themselves, without government or family assistance. If you want to be one of them, then now is the best time to start striving toward financial security.

Building Financial Security Steps 4 to 6.

Your Steps To Maximize Your HYIP

Global Finance Articles WebSite — Sun, 29 Aug 2010 21:39:45 +0000

Any investor wishes to make money in HYIP. Finding a successful high yield investment program is not enough to maximize your high yield investments. Certainly it is not easy to maximize your return on investment from best HYIP. The main point of this article is the strategies how to find fruitful and prosperous HYIP and to maximize your interests from this HYIP.

Before we start to discuss the strategies, we should find an answer to the question what is best HYIP. Well, it is difficult to answer because there are various possibilities. For some investors the fruitful HYIP is HYIP with huge daily interest, for other HYIPers the fruitful HYIP is HYIP with instantly withdraw. Undoubtedly, all these investors are right.

I guess than each investor wishes the fruitful HYIP which is online for a long time, not just several weeks or a few months. Moreover, each investor wishes that fruitful HYIPs must have fast support. Some HYIPs reply to your questions within 1-2 days and, of course, it is too long! I am a potential investor and I need to get an answer immediately!

Certainly, you can find many answers in FAQ section of a great number of HYIP web sites but sometimes you need information which you can not find there. If HYIP has phone support so it is very good, you can always phone them and get answers to your questions.

According to many experienced online investors, one of the most important things for the fruitful HYIP is fast withdraws. No one wants to wait 1 or 2 days till they receive payment. Certainly, everyone wants to get money within few hours. Fruitful HYIPs have to pay fast.

All investors agree with me that HYIP security is significant in online investments. Of course, the fruitful and prosperous HYIP must have the server protection to guarantee that users’ accounts are safe and secure. Real fruitful HYIPs spend a lot of money for hosting and advertising as well as Ddos protection and security.

If HYIP has Prolexic Ddos protection it is a really good sign of seriousness of this high yield investment program because according to online security data, Prolexic Ddos protection costs more than $2000 per month.

Daily interests are the subject of many hot discussions on online HYIP forums because investors have very different opinions. Some people prefer 10-20% daily and other like 1-2% daily. Undoubtedly, the prosperous HYIP invests money into Forex trading and to other contemporary industries. So if HYIP earn money in Forex they can not offer 10-20%. It is impossible and each investor knows that.

Now the time is to discuss ways how to maximize your HYIP. After having found the fruitful and prosperous HYIP, the key to having successful investments is to build a safe, diversified portfolio and to extract your own money as quickly as possible. This will limit risk to your capital because if one programme closes, you will still have the others to fall back on.

Before investing in any programme, you should do a little research on it. I mean you should remember the main features of prosperous HYIP, namely daily interests of no more than 2-3%, excellent support, high qualified web site design of the HYIP company and best users’ account protection.

Besides, HYIP scripts are easily to get a hold of and this makes it easier for fraudsters and scammers to operate. One of the things to look for is the programmer’s reputation if they are paying consistently.

When the investor makes any online investment, his aim is to extract his money as quickly as possible. This is because the investor wants to be able to invest using the profit he made from the high yield investment programme to protect his own capital. For example, a typical investment could be $100 then, after 30 days, the investor would extract his own money and re-invest the profits so that he is making risk that he uses other people’s money.

Another meaningful thing is that the investor will need to make use of referral systems to explode his profits from his investments. This is when the investor recommends someone to the programme and receives commission for it. This usually creates residual income for the investor which means him the opportunity to invest more of other people’s money to make even more cash.

This article will help you find fruitful and prosperous HYIP and maximize your high yield investments. To grab my collection of golden rules successful HYIP investing visit

Your Steps To Maximize Your HYIP

Investing in Australian Aboriginal Art

Global Finance Articles WebSite — Sun, 29 Aug 2010 21:31:30 +0000

One of the hottest areas of the contemporary art scene in Australia today is Australian Aboriginal art, which is becoming an increasingly attractive option for many investors. The Aboriginal art market has attracted increasing international attention in recent years, and has experienced exceptional growth which appears set to maintain pace in the medium term. Aboriginal art considerably outsells non-indigenous Australian art at auction and has gained significant international standing. It is critical that investors are well informed before entering the Aboriginal art market, however, not only to ensure that investments are made in quality work by quality artists, but also to guarantee the provenance and authenticity of the work.

Australian Aboriginal art has generally proved to be a solid investment over time. Work by important Aboriginal artists has increased in value markedly over the past 30 years, with individual works fetching prices as high $350,000 at international auction. Prudent investors who have developed good relationships with specialist galleries can derive great pleasure from collecting the art of the world’s oldest living indigenous culture, and can also be assured that the artists in question have been treated fairly and ethically, and that their investment is secure.

One of the first considerations when investing in Aboriginal art is a Certificate of Authenticity. Certificates are normally issued by the community where the artist lives and paints, or by the gallery from which the artwork is purchased. Certificates vary in the details they provide, however most include information including the artist’s name, community and language group, the title, story and size of the work, and the name and code of the relevant community art centre or gallery. A photo of the artist with the work is also often included with the certificate.

Many of the factors involved in determining the value of an Aboriginal art work are similar to those involved in any other art work. A particular piece should in the first instance be attractive to the investor on the basis of its immediate aesthetic value, but its current and future financial value depend on a variety of factors requiring careful research. These factors include the renown of the artist and the period of the artist’s career in which the work was created. Other factors particular to the Australian Aboriginal art market include the artist’s age and seniority as a tribal elder, and their role or position in the historical development of Aboriginal art.

Prior to purchasing a painting, investors should research the artist in as much depth as possible. Determine whether the artist is represented in significant collections or galleries in Australia and internationally. Also determine how prolific the artist is, and whether there is strong demand for the artist in the secondary market – in other words, at auction. View as much work by the artist as possible to determine whether the work under consideration is from a well regarded period or series. Works painted during particular periods can be significantly more valuable than those from other periods. Finally, make sure you have an accurate understanding of the current market value of the artist’s work.

If all these factors seem daunting, don’t hesitate to ask for professional advice. The Australian Aboriginal art market is far more open than it once was, with increased competition facilitating a marked improvement in service. Reputable gallery owners, dealers and auction houses possess the necessary expertise and are generally happy to assist new investors. One final point to consider when investing in any art are add-on expenses including transaction costs, commissions, insurance and restoration charges. These costs can be high, so be sure to factor them into the purchase price where applicable.

Investing in Australian Aboriginal Art

Building Financial Security Steps 1 to 3.

Global Finance Articles WebSite — Sun, 29 Aug 2010 21:30:51 +0000

We would all like to think of ourselves enjoying the good things in life, not having to stress about finances, and not having to be concerned about growing old, poor.

But if we are currently living from pay cheque to pay cheque, never seeming to get ahead or having any savings, how do we change things? Where do we start in our quest for financial security?

The best thing we can do, is sit down, take a deep breath and contemplate the differences between the haves and the have nots, the achievers and the laymen. What is it that the successful and wealthy do, that is different to us? What are the principles that they utilise to create wealth?

Once we find out the principles that others who have created financial security have used, it seems that then the only step left would be for us to try and duplicate the process.

Following is a list of some of the wealth building principles that I have discovered in my study of and conversations with successful people.

These concepts have been utilised extensively by those who have already created enormous wealth.

1. Use the power of Compounding Interest/Growth.

John D. Rockerfeller once described compounding interest as the Eighth Wonder of the World.

Compounding is also referred to as Rate & Time because the longer the time, and the higher the growth rate, the greater the effects of compounding become.

Compounding works by letting any interest earned get added to the initial investment, and then the next lot of interest is calculated on the sum of the two, and so on. Interest is earned on interest. This gives the effect of exponentially increasing the value of an investment.

One of easiest ways to calculate how compounding interest works with different rates of return is to become familiar with the Rule of 72. This rule states that The number of years that it will take for your money to double is 72 divided by the interest (growth) rate.
Therefore if you have $1,000.00 invested at 10% interest, then the number of years that it will take for your money to double to $2000.00 is 7.2.
72 divided by 10 = 7.2

2. Use the tried and true method of investing in residential real estate.

Statistics show that over 98% of the worlds millionaires have made their money through property.

It should really not come as a surprise, because everyone needs a place to live, and generally at least one third of the population are renting. Property is a necessity, so it can never go out of fashion.

As the population increases, so does the need for housing. The laws of supply and demand therefore will ensure that prices keep rising.

Banks consider property to be one of the most secure investments and because of this they will loan you a high percentage of the value. This leads to the next principle.

3. Using Other Peoples Money or Gearing is a tool used extensively by the wealthy.

Why is using Other Peoples Money so important? The reason is that it is possible to use leverage, also known as gearing to obtain a greater result, than you could have obtained using only your own contributions. The word leverage comes from lever. As you know a small amount of force applied on one end of a lever, can produce force far greater than what was initially exerted. A lever has the effect of multiplying the power exerted.

In the case of investing, it is referred to as leveraging when you use just a small portion of your own money, say 10% deposit on a $300,000.00 house, and borrow (leverage) the rest, in this case 90%. The capital growth that you benefit from is then calculated on the full $300,000.00, not just the $30,000.00 that you personally contributed, having the effect of multiplying your capital gain.

Gearing allows you to purchase a far more expensive property than you could if you were using only your own money. Controlling assets of a higher value means that compounding growth has more to work on, and therefore your net worth will increase much quicker. Gearing allows you to build an investment portfolio more quickly than would otherwise be possible.

Building Financial Security Steps 1 to 3.

Investing vs. Trading – What’s The Difference?

Global Finance Articles WebSite — Sun, 29 Aug 2010 21:00:54 +0000

There is a question which is sometimes asked by those new to the financial markets, and even occasionally debated by experienced participants. That question is how one differentiates between trading and investing. Because both trading and investing – when one considers them from the perspective of the financial markets – are performed in very similar fashions, they are often thought of as interchangeable actions.

In my book, The Essentials of Trading, I followed along with this basic theme by introducing the idea that what differentiates the two is scope definition. Both trading and investing, after all, are at the most simple of levels application of capital in the pursuit of profits. If I buy XYZ stock I expect to either see the price appreciate or earn dividends perhaps both. What separates trading from investing, however, is that generally in trading one has an exit expectation. This might be in the form of a price target or in terms of how long the position will be held. Either way, the trade is seen to have a finite life. Investing, on the other hand, is more open-ended. An investor will buy a companys stock with no predefined notion of when he or she will sell, if ever.

We can use examples to help demonstrate the difference. Warren Buffet is an investor. He buys companies which he sees as somehow undervalued and holds on to his positions for as long as he continues to like their prospects. He does not think in terms of a price at which he will exit the stock. George Soros is (or at least was while he was still actively running his hedge fund) a trader. His most famous trade was shorting the British Pound when he thought the currency was overvalued and ready to be withdrawn from the European Exchange Rate Mechanism. The position he took was based on a specific circumstance. Once the Pound was allowed to float freely, and quickly devalued in the market, Soros exited with a handsome profit. That meets the criteria of having a predefined exit, making it a trade, not an investment.

There is another way one can define trading as set against investing, though. It has to do with the manner in which the applied capital is expected to produce a return. In trading the appreciation of capital is the objective. You buy XZY stock at 10 expecting it to go to 15 and thereby produce a capital gain. If dividends or interest are paid out along the way, that is fine, but likely only a minor contribution to the expected profits.

In contrast, investing looks more toward income over time. That makes income production, such as dividends and bond interest payments, the major focal point. Do investors experience capital appreciation? Sure, but unlike in trading, that is not the prime motivation.

With these definitions in mind, consider what many people refer to as their single biggest investment their home. Based our second definition of investing, however, a home is generally not an investment because in most cases is does not produce any income. In fact, it produces considerable expenses in the form of mortgage interest payments, utility bills, and upkeep. If anything, a home is a trade. We buy it and hope for its value to rise over time, increasing our equity. And the fact that many people expect to move in only a few years and sell at that point makes it even more of a trade rather than an investment. (Of course own rental property can certainly be viewed as investing, unless one is flipping it, which would definitely be more trading.)

As noted earlier, for many people trading and investing seem like the same thing. The mechanics of buying and selling are basically the same. Sometimes the analysis one does to make those decisions is identical as well. Its the intention and definition of objectives which separate trading and investing, though.

Investing vs. Trading – What’s The Difference?

Gear up your tax planning with mutual funds. Smart tax saving tips and recommendations – 2008

Global Finance Articles WebSite — Sun, 29 Aug 2010 20:28:47 +0000

Tax planning has changed radically over a period of time. Since its time for filling income tax returns for 2007-2008 as the end date (31st march 08) is approaching. As a tax payer you need to understand the best way through which you can make use of the exemptions provided by the government. Earlier people had limited choice of tax saving instruments to be used for the purpose of tax planning. But now with the ELSS (Equity Linked Saving Schemes) launched by most of the mutual fund companies, the whole approach towards tax saving has changed. With mutual funds tax planning had become more important part of over all investment planning. With equity linked saving schemes the tax exemptions can be used in a manner such that you not just disciple your investments but also create good corpus through equity investment.
Tax planning for resident Indians
We recommend tax saving funds, also referred to as Equity-Linked Saving Schemes (ELSS). One such reason is that their benefits are too much to ignore as they hold almost all the benefits of an equity mutual fund.
For one, they do not have any restrictions. If you choose to, you can invest the entire Rs 1 lakh available under Section 80C in these ELSS funds.
They give you the benefit of higher returns. You can get 8 per cent with your PPF and NSC. But if you can get a 40-50 per cent return, coupled with a tax benefit, whats wrong with it?

How do you invest in an ELSS scheme? It is as simple as investing in any other mutual fund schemes. You just need to fill the form of particular ELSS scheme in which you want to invest. Submit it through any transaction point with the required document i.e. usually PAN card and KYC form. Thats it your work is done. You can know more through website. In this you can get the understanding of selecting any scheme and filling the form.
The benefit 3 Years lock in period for ELSS schemes.
Secondly, if you hate blocking your money for years on end, then this one surely made for you. The lock-in period for ELSS funds is just three years. When you sell after three years, you pay no capital gains tax. So, you get the tax benefit when investing and you pay no tax on your profits.
The best way to invest in a mutual fund is investing systematically through out the year using SIP. So you commit to putting away a fixed amount every month in mutual funds. This is an automatic savings habit that will hold you in the long run and help you not only to save but also invest regularly and continuously in the capital market through equity linked saving schemes (ELSS).
You need to be consistent in your investments to do well. The wonders which a disciplined investment can do cannot be replicated by even the best of investment strategies.
Want to know about the top mutual funds for Tax Saving?
Most of the Mutual fund companies have come out with tax saving funds. They are Equity Linked Saving Schemes (ELSS). The funds collected under this tax saving schemes are invested in equity instrument, thus providing better returns. Many of these ELSS funds generate as much returns as a diversified equity fund. With the awareness been increasing among the investor class, the equity linked saving schemes are gaining popularity among the investor class. To know more you can visit Godmind and get the collection of recommended tax saving funds which is been provided by Godmind advisors. Also you can ask the Mutual fund Advisors on which ELSS (Equity linked saving scheme) fund to invest in.
Take step towards informed mutual fund investment by investing with care and due diligence.

Gear up your tax planning with mutual funds. Smart tax saving tips and recommendations – 2008

Six Reasons Why You Need a Day Trading System

Global Finance Articles WebSite — Sun, 29 Aug 2010 20:00:33 +0000

Every minute more than 150 Million Dollars change hands in the electronic index futures markets like the e-mini S&P and e-mini NQ. You can win or lose thousands of dollars in a few minutes; the futures markets can make you rich in a few weeks or months or wipe out your account with no mercy. If you want to compete in the game of games and play against the best day traders in the world, then you need to get ready. Too many gamblers are entering the arena without any plan or strategy, completely unprepared, and that’s why they lose. Trading a system will dramatically increase your chances to succeed in trading, because it eliminates five of the top six reasons why unprepared traders fail.
Here are the top six reasons why traders fail,
and how a trading system eliminates them
Let’s take a look at the reasons why traders lose money:
1. Lack of a good
2. Lack of Discipline to Follow the Trading Plan
3. Failure to Control Emotions
4. Failure to Accept and Limit Losses
5. Lack of Commitment
6. Over-Trading
By all means you have to avoid these mistakes if you want to win. Here’s how a trading system eliminates 5 of the 6 top reasons why traders fail:

Solution #1: Having a trading plan
Having a trading system means having a pre-defined set of rules you have developed to guide your day trading. Therefore you HAVE a trading plan, eliminating the No.1 cause for failure.
Solution #2: Following the day trading plan
The easiest way to follow a day trading plan is to automate it. Almost every can be automated, and you could let the computer trade online for you. You won’t have to worry about your discipline any longer, as the computer mechanically trades every setup for you.
Solution #3: Controlling emotions
Trading with a system removes emotions from trading. If you don’t have a day trading strategy and you try to make decisions when the market is moving, you are liable to become emotionally attached to positions. You may experience panic and indecision when the market does not move in your favor, as you do not have a prepared response. That’s when most traders lose their money. If you follow a system you will know what to do no matter what the market does.
Solution #4: Controlling your losses
You probably have heard the saying Let your profits run. Unfortunately most traders let their losses run. A daytrading system will get you out of a position when the predefined stop is hit. Unless you override the system to give the trade a little bit more room it will stop the loss and therefore limit your losses.
Solution #5: Commitment
You won’t believe how many traders show a lack of commitment and therefore lose money. Lack of commitment means that they stop trading after the first loss, and don’t give their system a chance to make back the money they lost. Trading is not a one-way street, and losses are part of our business. If you can’t accept the fact that there will be losses, you shouldn’t trade. Fortunately a trading system can help you to overcome this problem; an automated daytrading system continues trading according to the rules, and therefore adds much more consistency to your trading.
As you can see, Five of the six top reasons why traders lose money in the markets are simply eliminated when you start trading with a system. Without any guarantee, your chances of making money rise incredibly when starting with a profitable trading system.

Authors name
Markus Heitkoetter
Author’s Info:
Markus Heitkoetter is a 19 year veteran of the markets and the CEO of Rockwell Trading. For more free information and tips and trick how to make consistent profits with online trading, For more information visit this website www.rockwelltrading.com.

Six Reasons Why You Need a Day Trading System

Crane Hire or Contract Lift? – That is the question.

Global Finance Articles WebSite — Sun, 29 Aug 2010 20:00:28 +0000

Crane hire companies have a complete range of industrial cranes available for hire.

Even deciding what kind of crane you need is a complex process that will require you to provide planned location, weight of load and distance from the centre of rotation (slew) of the crane that the load will be moved. This is because a crane can move a heavy load a small distance from the centre of slew, or a lighter load a larger distance from the centre of slew. There are tables for each crane type, detailing safe distances and loads that can be moved.

You have two options, Crane Hire or a Contract Lifting Service

Crane Hire

Hiring a crane is a much more complex procedure than you might expect if you are a first time hirer.

As can be expected with any large piece of industrial machinery there are complex Health and Safety procedures to comply with.

When hiring a crane conditions the client must provide an appointed person and supply the hire company operator with a detailed method and safety statements, drawn up by a competent and trained person, prior to the lift. The appointed person must supervise the lifting operation as detailed in BS 7121 (Safe Use of Cranes) and provide qualified personnel such as slingers, signallers and crane operators.

Hiring cranes and plant is inevitably accompanied by risk. The cost of a modern mobile crane ranging from 100,000 to more than 2million, the financial consequences in the event of an accident could be immense.

As a customer hiring a crane or other item of plant, you will have to satisfy the crane hire company that you have adequate insurance cover for the following risks:
1. Loss of, or damage to, the crane whilst on hire.
2. Continuing hire charges whilst the crane is under repairs
3. Injury to the operator.
4. Third party cover (injury to other parties, including damage to their property.)
Crane hire companies can arrange cover for loss of, or damage to, the crane whilst on hire and continuing hire charges whilst the crane is under repair. Insurance cover for lifted materials is also available.

Contract Lifts

As described in Crane Hire, all crane lifts must comply fully with BS7121 Safe Use of Cranes part 1 General 1989 and the Lifting Operations and Lifting Equipment Regulations LOLER. Both these regulations lay down the requirements of all personnel involved in a crane lift.

In a Contract Lift, the Hire Company will choose the correct crane for the job, raise the risk assessment and method statement, arrange the traffic management and the correct level of insurance. With the introduction of BS7121 (British Standard Code of Practice for the Safe Use of Cranes) and LOLER (Lifting Operations and Lifting Equipment Regulations) clients who do not have sufficient experience and knowledge of crane operations usually prefer to place orders on a contract lift basis.

A Crane Hire contract becomes a Contract Lift contract when the crane owner supplies the Appointed Person and, hence, accepts responsibility for all aspects of the lift.

All crane hire companies offer a Contract Lift Service. This relieves customers of the responsibility for preparing a method statement, risk assessment, berthing study, lift diagram and managing and supervising the lifting operation. The crane hire company takes all the risk and concern away from customers, with a complete and professional tailor made package where their trained and experienced personnel manage the whole lifting process from initial concept right through to supervising the final lift.

In a Contact Lift the customer is still responsible for providing accurate information relating to both the items to be lifted and to the ground conditions. The customer must also have public liability insurance.

The preparation time required to produce the relevant Method Statements and Risk Assessments for a Contract Lift will require a longer notice period than for Crane Hire.

Crane Hire or Contract Lift? – That is the question.

How To Find A Good Investment Property

Global Finance Articles WebSite — Sun, 29 Aug 2010 19:22:57 +0000

Rental real estate is slowly becoming a good investment endeavor although there are some skeptical few who still thinks that its a daunting undertaking. Well we just cant blame them since searching for a good investment property is really hard. However, for those few optimists rental property is great way to accumulate wealth.

Just like any type of business undertaking it is important that you have a concrete plan or strategy on how you are going to develop your rental real estate into a money-making endeavor. Otherwise, you will end up losing all of your investment.

You need to do some painstaking research and probably have some connections to find a profitable rental property. This is because your objective is to make profit within the shortest time possible. This is also the same reason why you should find a seller that is willing to give you free equity.

Here are some tips to help you get started with your rental real estate business:

You need to have an investment plan since this will help you determine the duration of your ownership of particular rental property. Remember that the longer you own the property, the more youll spend on maintenance, repairs and improvements. If you want to make any major improvements on the property, be sure the sale price will be enough to cover the cost. If you are not sure then better not spend too much. Nevertheless, owning the rental estate property for less time would also create more investment risk especially when buying in an overheated market. To compensate for that risk, you need a bigger potential annual return.For many small investors, however, long-term ownership is smart because it allows them plenty of time to outlast any fluctuations in the market — and also since the rental income can be a nice supplementary income in the meantime. Being a landlord is even a rewarding day job for some.

There are various ways of finding properties and these are as follows: hunt properties that are already for foreclosure, you will be able to get some information by means of befriending city hall clerks or bank employees who know of properties that are about to be foreclosed or are already foreclosed; you may also try to contact a real estate agent whos on the lookout for possible buys; or you may join a local landlord or property owners association in order for you to make contacts. And while youre at it why not ask landlords directly to see if they are willing to selling; you may try looking in newspapers for rental ads or you may drive around neighborhoods in order to search for rent signs.

Get your finances in shape

If you really want to engage in a rental estate property business you need to have a good credit standing — meaning less credit card debt and other consumer debt. You see, lenders usually require bigger down payments, charge higher interest rates and want your finances to be in better shape when you are buying rental properties.

It really pays to have a large cash reserve after buying any property since there might be some needed repairs that rental property may require. If you can afford to set aside at least one month rent for each unit, thats a good start. You may also try to apply for a line of credit secured either by the property or your own home in order to cover larger costs.

Avoid overspending
The reason why you invest on a rental estate property is for you to gain profits and not to lose every savings youve got. Make sure that you still have save enough for your retirement before investing in rental real estate since just like any business wherein you tend to lose some and then win some but just to be on the safe side try to save as much as you could. Better be prepared than be sorry later on.

How To Find A Good Investment Property

Investments guide

Global Finance Articles WebSite — Sun, 29 Aug 2010 19:20:57 +0000

Investment requires prudence. Whether the amount is small or big, you need to have complete information about the place or field where you are going to invest it. Investment is most often made with a purpose to accrue good returns in future. Investment is like a source of income where initially you put in some capital and expect it to multiply or boom in the near future. There are various types of investments nowadays and different strategies are associated with them. Investment can be in the field of property, land etc., in the stock market, in bank in the form of fixed deposits, in trusts and insurance policies.

When you move out to invest say for instance in property, the strategy of buy for low and sale for high prevails. In the language of investment this is called the arbitrage. What you require first of all is a perfect idea of the fluctuating market. When the market value is low, make as many purchases as possible. When the market as you assessed picks up pace, sell whatever you purchased at simply double the price. This profit however is not possible without a vigilant study of the market. An investor who has scrutinized the market from top to bottom predicts the highs and lows of market and makes purchases much before the onset of the profit season.

Arbitrageurs are very smart nowadays. In order to incur huge benefits, they even go about purchasing some very archaic piece of furniture or property from a low price market, invest a few more bucks in its renovation and then sell it in an expensive market or put it up at auction on the internet.

There are times when massive investments are being made in one area, this is known as the market bubble. Take for example, if a piece of land in a specific area is inviting too many buyers and that too with unbeatable profit, there is a horde of investors to purchase land in that area and sell it for the maximum possible. Similar is the case with the stocks of a company that is giving brilliant dividends to its stock holders, if the company lowers even a single dollar on its stock, multitude of people gratify their desire to receive excellent gains later.

Related to this is the value investment. Here the investor estimates the value of the company in the form of its returns. If a company has a good record with its shareholders and its shares are relatively at a lower price in the market, the investor will purchase maximum shares as possible since he is confident of the companys value. The investors basically peep through what is visible in this case. Many companies only flaunt to be successful in the market but actually they have been charged with many illicit proceedings. While there are companies that make a slow and simple start and scale new heights gradually. The investors are in search of these types of companies, the ones that are not feigning to be great.
An insight into the actual situation of the company prompts the investor to make judicious investments.

The risk factor is always lurking behind these investments. It could be a case that the buy low and sell high strategy does not work, that the market does not soar high as forecasted. In this case huge losses can meet your investments. It can also be a possibility that the stocks of the company that is deemed to be performing well, do not meet the expected surge in price or that the company rather than progressing starts retreating. So, the risks cannot be ignored at any cost and it is also a fact that the long term predictions about the market, company etc. might turn out to be true, short term ups and downs are reasonably difficult to foretell. So the financial advisors mostly speak the lingo of long term investments so as to ignore the short term impediments.

It is advised to take guidance from a good financial advisor before making any investment. For a colossal loss in investment is potent enough to ruin the entire life of the investor.

Investments guide

Investing In Gold Coins And Bullion

Global Finance Articles WebSite — Sun, 29 Aug 2010 18:20:14 +0000

The first known coins were minted in the mid-seventh century B.C. Coins revolutionized the conduct of commerce.

Alexander the Great introduced a regulated and universal coinage throughout his empire. Coins were typically engraved with the likenesses of rulers and deities, providing a historical snapshot. Coin collecting started in Renaissance Europe. Wealthy

Europeans collected Greek and Roman coinage.
The United States minted its first gold coin in 1795. From then until 1933, U.S. mints produced hundreds of styles and denominations of gold, silver and other coins. Dazzling pieces of artistry and history, collectible rare coins and bullion are among the most prudent additions to any quality investment portfolio.

A collection of coins and bullion could add value and stability to a portfolio. Investing a percentage of a diversified portfolio in gold, silver and platinum could act as a hedge against inflation. Gold can be viewed as an alternative asset class. Tangible assets are usually not as susceptible to the same market pressures as stocks and bonds. Typically, gold is not correlated to either the stock or bond markets.

Gold often trades inversely to the U.S. dollar, making it a useful hedge in times of dollar depreciation. The gold supply is limited all the gold ever mined would fit into a storage room about 55 feet long, 55 feet tall and 55 feet wide.

Bullion is a term for coins, ingots, private issue, and so on that trade below, at, or slightly above their intrinsic metal value. Only the precious metals (gold, silver, platinum, and palladium) are included as bullion. A bullion coin is a legal tender coin that trades at a slight premium to its melt value.

Examples of bullion: U.S. Gold, Platinum and Silver Eagles, Canadian Maple Leafs, South African Krugerrands. A rare coin can be determined by several factors: mintage, grade, series. Values of coins are determined by both scarcity and grade.

Set building is the practice of collecting a complete series of coins representing all the different designs of a certain U.S. coin, for instance. It provides a systematic path for the collector.

Investors have frequently found that a carefully assembled set of coins is worth substantially more than the total of its individual pieces. Well-compiled sets have also tended to be more liquid than comparable accumulations of random coins. It can provide an exciting historical treasure hunt, as well as an investment instrument.

Set building provides the investor with the opportunity to define objectives and formulate strategy. Set building can be a life-long adventure. Sets can be collected by: type (which can be any particular design or denomination), series (all dates and mints struck of a denomination) or design type, commemorative issues, and more.

A key date coin is generally considered to be the most important coin in a particular series, usually the lowest-mintage and/or the most expensive. Rarity is based on the number of specimens extant of any particular numismatic item.

For protection, investors and collectors should only buy rare U.S. coins that have been graded and certified by the three leading independent coin-grading firms: professional Coin Grading Service (PCGS), numismatic Guaranty Corporation (NGC), independent Coin Grading Company (ICG). These organizations are recognized industry-wide for their accuracy, objectivity and high standards.

These services help to make the market in numismatic coins safer and more liquid. When a coin is graded, it is immediately encased in a tamper-resistant slab and sealed with its certification number and grade displayed.

Investing In Gold Coins And Bullion

Condotel Investments in the Philippines Attract Foreign Investors

Global Finance Articles WebSite — Sun, 29 Aug 2010 17:19:33 +0000

UK Property Investors, London Stockbrokers, Property & Estate Agents and Overseas Filipinos based in London are taking advantage of the Cheap Philippine Real Estate market and easy terms of payment, to snap up Condotel investment properties in Metro Manila and Cebu

Pacific Concord Properties, Inc., Flagship Lancaster Atrium Suites Condotel [Manila] development located along Shaw Boulevard, Mandaluyong City, Metro Manila, is one of the hottest Condotel Investments in the Philippines where property investors, apart from real estate appreciation initially reckoned to be 100% for early investors, will get projected Rental Incomes on their units of some 14-16% per annum once fully operational from 2010

To be called Lancaster Atrium [which is the second Tower adjacent to the existing Sold Out Tower I] Condotel Studios, One, Two & Three Bedroom Suites are currently available to Property Investors adopting International Standard Escrow Trust Account Buyer Safe Easy Secure Payment Plans with 6 year interest free payment terms or up to 12 year no prequalification “In-House” financing [available to all overseas buyers], full condo ownership, no management costs for Condotel Suites, no enrollment charges for joining the Condotel Rental Pool, and minimum monthly maintenance fees, as buyers or sellers of Real Estate you really should take a moment to look at this Philippine Condotel Investment Opportunity

According to Beth Collingz, of PLC International Marketing Networks, a Lead Marketing Partner with Pacific Concord Properties Inc., whom have Condotel developments in Metro Manila and Cebu, and specializes in working with international clients: My phone has been very busy with buyers from the UK, Scotland and Australia interested in purchasing investment properties and holiday homes here. A lot of this interest is being driven by the relatively cheap market prices in the Philippines compared to Europe, specially UK Housing prices, and the easy payment options available for our Condotel Developments, but there are other factors, too. Offshore Property Investors, Foreign baby boomers as well as overseas Filipinos, are looking for ways to maximize their return on investments as they approach retirement, and so are purchasing second homes, particularly Condotel Investments where they can use the Condo for vacations and rent it out through our In-House Condotel Management when they are not using the unit thereby gaining rental incomes that on todays purchase prices, give a projected ROI on their investments of some 12-16% depending upon the mode of payment for the unit

Beth Collingz, who runs PLC Global Pinoy, an internet based marketing network specializing in Condotel Investments in the Philippines, indicated that more than 85% of all Condotel sales in Metro Manila were to international clients. While such a level of foreign-purchasing activity is not as high in the Philippines provinces, Cebu in particular, has seen a sharp increase in real estate purchases by international buyers in the past several years.

These international buyers know its a buyers market in the Philippines right nowthere are a lot of properties available and fewer local buyers, Collingz said. Im working with clients who are purchasing their second property with me. We also have referrals from many of our prior customers and new clients who have found us through our Condotel Investment Web sites, http://www.lancastersuites.com and http://www.plcglobalpinoy.com which include a special section for international buyers

For more information on Philippine Condotel Investments please do not hesitate to contact us:

Beth Collingz
PLC International Marketing Networks

Condotel Investments in the Philippines Attract Foreign Investors

Track Down The Elusive Homeowner – “Bloodhound Style” – Real Estate Investing Trick

Global Finance Articles WebSite — Sun, 29 Aug 2010 17:18:37 +0000

“Vacant – Boarded Up Houses” are my FAVORITE DEALS for quick turnaround flips. You’re talking about someone that cares so little about the property that they’ve left it to decay. The owner of that house should be begging you to take their junk house off of their hands. Except, the only problem is, the owner has completely vanished without a trace…Or so it may appear!

In these times of computers and the Internet, It’s a very rare occasion when someone can’t be tracked down. Every homeowner leaves little clues, and it’s your job to piece them together. If you want to be successful at this, you need to have a system and you need to follow it exactly as I’m describing it to you. If you only do one or two things, you may get lucky…but if you do them all, you’ll almost always get your “Mark”. I suggest you print up the following Ten Step Plan and follow the process every time you track down a seller.

The Ten Step Plan To Finding Homeowners “Bloodhound Style”

1. Place A Flier in the door stating that you buy houses in any condition & stick one of your “I Buy Houses” bandit signs right in the front yard.

2. Ask The Neighbors….Not Just immediate neighbors. I always go Four houses out on each side and across the street. You should be able to get bits and pieces of information from each person. Don’t be afraid to ask questions..Leave your card and offer money (if you buy the property) for any information that they may “remember” after you leave…Ask & You Shall Receive!

3. I go to Whitepages.com or you could call 411 – You’ll find about half of them right here!

4. Visit your local Tax Assessor’s Office. Check the “Mailing Address” to see where the tax statements are headed. ALSO, I ALWAYS run that person’s name to see if they own other property in hopes that there are more abandoned junkers that we can cut a deal on. Sometimes a new mailing address will be on other properties as well.

5. Run the name through the clerks office and look at all the recorded docs and court indexes for that person. You can often get a good picture of what’s going on, and sometimes even some other addresses or addresses of relatives, etc. This is where your detective skills kick in. You want to scour through and see if you can find anything…divorce filings, new loans, liens, Law Suits. If their salary is being garnished, the employer’s name and address will be their for you. . Many times you’ll see that the individual is in jail or just got out of jail. You can usually find their attorney or a new address off of the arrest info. If they’re in jail, you can call the prison and set up a visit with the inmate.

6. Send out a letter and put “Address Service Requested” on the envelope. Make sure that the address is hand written on the envelope and regular stamp is used (NO BULK RATE)

7. Hire a Skip Tracer. usually use “FINDTHESELLER.COM” because they’re pretty inexpensive and they’re pretty good at finding people that I can’t with very limited info. It usually takes 24 – 48 hours to get a match but you can be trying the other methods while you’re waiting.

8. If it’s a unique last name, I’ll start calling everyone in the phone book within the area…hoping to get a relative. I’ve been surprisingly successful with this “Shot Gun” approach. If the name is something like, “Johnson” or “Jones”…I wouldn’t even attempt it..:)

9. Voter Registry – You can get updated addresses

10. Place the lead in your file in case another clue arises in the near future (Property goes into foreclosure, neighbors call you, someone calls on the sign, etc)

Track Down The Elusive Homeowner – “Bloodhound Style” – Real Estate Investing Trick

“Forex has the Advantage”

Global Finance Articles WebSite — Sun, 29 Aug 2010 17:17:14 +0000

Greetings Fellow Forex Traders,

When it comes to trading in any market, Forex currency trading has a huge advantage over other players in trading business. Firstly, the Forex market has the advantage of time freedom. You see in the 4x market one can trade around the clock from Monday through Friday. In the stock market that is simply not possible since the market closes at 4:00. This advantage of time freedom allows those who have not yet earned enough money trading in the 4x market to maintain their day jobs while trading at night. It is also quite plausible to trade in the morning before a person goes to work. Trading the Forex can become an excellent second job for you.

Unlike the stock market, the currency trading market does not require a trader to pay a commission to place a trade. This will come as a welcome sign of relief to those who have grown accustomed to the vast amount of money they must fork over to their brokers which go towards clearing, exchange and government fees. In the 4x market you also do not have to worry about having a large sum of money in your account to sell your currency pairs. This concept of selling as you may already know is commonly called shorting in the equities world. You can buy or sell at will in the currency trading arena.

It is so amazing to be able to participate in this market right now. You can do so from the comfort of your very own home. As long as you have a computer that is connected to the Internet you are in business. You can begin trading with as little as 300 dollars. I will show you how to turn this 300 dollars into some serious money in no time at all. This should be a lot easier to do given the advantages that you know the 4x market has over its competitors.

The Forex market is traded by some of the world’s richest individuals including Bill Gates and Warren Buffett. You now have access to the same opportunities as they do. What is stopping you from getting on the road to financial freedom. You can start now. You do not have to wait. You have already begun the journey by choosing to educate yourself on the pros of the Forex market.

I personally love the fact that you can trade whenever you want to with the Forex. You see, in the stock trading world you are flagged if you are deemed to be a daytrader. In other words if a trader of stocks chooses to trade every day, he or she must have an account balance of 50,000 dollars to do so. There are no such restrictions when it comes to trading the 4x. If you work at night, you may trade in the daytime. If you work during the day, you may trade at night. You simply trade according to the schedule that works best for you.

I want you to think about money for a moment. Who uses it? The whole world does in some form or another. Another advantage that the Forex market has is that there will always be a need for money. You are simply trading one currency for another in the currency market as the 4x is commonly reffered to. The Forex market is not going anywhere. It is here to stay. The only question is then who will be a part of it. We need money to buy the things we use everyday and so do those who live in the other parts of this world.

Another advantage that 4x has over stocks is the advantage of trading focus. Instead of having to choose between over 4,000 stocks you can deal with 4 main currency pairs. Any good business person knows that focusing on too many things is a recipe for financial disaster and this can hold equally true in the stock market. A stock trader also must grapple with the time issue doing research on all those potential stocks presents. It is also much easier to become familiar with 4 things as opposed to 4,000 things. Focus is the name of the game and 4x trading makes it much easier to do so.

The ball is now in your court. Will you take it and make the decision to win with currency trading? 4x is indeed the winner’s game and those who win consistently know how to play it well.

Much continued success,

The creator of “The 4x Express”

“Forex has the Advantage”

Net Income Over Cash Flow

Global Finance Articles WebSite — Sun, 29 Aug 2010 16:16:33 +0000

Some Financial Analysts argue that using cash flow will provide a more accurate picture in determining the fair value of a common stock. What gives? They reason that investors should follow where the cash is. Cash flow will track the flow of cash in and out and this is the reason business exists; to get cash.

Things are not that simple, however. Just as net income, cash flow can be easily manipulated. Cash flow here refers to cash flow from operations found on the statement of cash flow published regularly by publicly traded companies.

Let’s take a look at the statement of cash flow for one publicly traded company, Amazon.com (AMZN) and decipher its components. We will use the statement of cash flow for the year ending on 31 december 2004. Here is the source from Yahoo! Finance: http://finance.yahoo.com/q/cf?s=AMZN&annual

The top part is net income, which is self-explanatory. This is what a company earns during a period of time. For the time period earns $ 588 M. To get into the cash flow figure, we need to add depreciation expense, subtract any increase in accounts receivable and inventory and add any increase in short term liability such as accounts payable. Sometimes, there will be some adjustments made to the net income which will increase or decrease cash flow depending on the charge.

Now here is how companies can manipulate cash flow. This will in effect temporarily give an impression that cash flow has improved markedly.

Temporarily Delaying Payment. This will increase Accounts Payable which in turn will improve cash flow. While only good companies can demand its suppliers to delay payments, all the debt eventually needs to be paid.

Demanding faster payments from customers. While an efficient collection is needed for a firm’s survival, giving less credit to customers will result in them balking away. In the short term, cash flow will improve due to improved collection. In the long run, customers will go to competitors who can offer better credit.

Keeping a tight supply of inventory. While bloated inventory is wasteful, there is a certain level of inventory that is needed to keep a business running. Short-minded management will try to manipulate cash flow by keeping a short supply of inventory. When you run a retail business, certain inventory is needed. It is not similar to a built-to-order company like Dell Inc. (DELL).

These three items vary from quarter to quarter and year to year. When determining fair value, it is best to ignore these fluctuations and focus on operational earnings generated by the company.

Another misleading cue from cash flow is that it adds up depreciation as the amount of cash generated from operations. While depreciation expense is a non-cash transaction, it is a necessary cost of doing business. For example a company bought a computer and depreciate it for five years. For the next five years, the company incur a non-cash charge, which is the reason why we add depreciation expense to our cash flow. However, we need that computer for our operational purpose. Unless we stop spending in our capital expenditure, adding depreciation expense to our cash flow does not make sense. Sure, you enjoy the benefit now. But five years from now, you need to spend money on a new computer, which is a cash outflow.

As with other investing tools, cash flow from operations cannot be used independently of other ratios. Each and every financial ratio has its strengths and weaknesses. I believe that cash flow does not reflect the true earning power of a company because of short-term fluctuations of the balance sheet and the addition of depreciation expense into a firm’s cash flow.

Net Income Over Cash Flow

Gold Topping $500 Really is a Big Deal

Global Finance Articles WebSite — Sun, 29 Aug 2010 15:15:55 +0000

As gold topped $500, the news became front-page across the country, and radio and TV financial programs led off talking about the price of gold. Invariably, all noted that gold had reached nearly a two-decade high. Yet it is doubtful any of the reporters assigned to the story really grasped the importance of gold topping $500.

Further, few reports dared suggest that the price of gold could climb still higher. Gold stands a good chance of seeing higher prices before the inevitable price correction, which always follows such a strong move.

Most reports saw $500 gold as a novelty, not the ominous sign that something is drastically wrong with the state of financial affairs in the United States. The truth: gold is responding to profligate spending in both the government and the public sectors. Further, gold is rising because of the massive inflation by the Federal Reserve under Alan Greenspan. Let’s take a brief glance at only one reason for gold’s jump above $500: federal spending.

The federal government now has more than $8 trillion in official (on the books) debt. Only three years ago, gross public debt stood at $6 trillion. For those calculating, that is a one-third debt increase in only three years. The United States took 226 years to run up a debt of $6 trillion. In three years, an additional $2 trillion was tacked on.

According to The Privateer, present projected spending will push the official debt to $11 trillion before the end of Bush’s second term. If this becomes reality, in only eight years the official federal debt will have nearly doubled. Additionally, there are the “off-books” liabilities.

Unfunded U.S. government liabilitiesSocial Security, Medicare, Medicaid, military pensions, federal workers’ pensions, and other promise such as picking up the tabs for bankrupt corporate pensionswill reach $50 trillion by the end of the year and climb to $70 trillion by the end of Bush’s second term.

The official debt is the accumulation of years of federal deficit spending. This fiscal year’s deficit (October 1, 2005 thru September 30, 2006) is projected to be $521 billion. Deficit spending looks to get worse.

Pulling statistics from the respected Congressional Budget Office’s January report on the federal budget and economy, Citizens for Tax Justice show annual deficits under Bush policies skyrocketing to $1.164 trillion by 2015. These projections are seven times the Bush administration’s numbers because the White House assumes, among other things, that current tax cuts “sunset,” that Iraq and Afghanistan expenditures will suddenly end, and that federal appropriations will “plummet” as a share of the economy.

The Congressional Budget Office forecasts that by 2013 “the government is likely to be spending more to pay interest on the debt than on all domestic appropriations put together.” Any wonder the price of gold topped $500?

It appears unlikely that the problem of deficit spending will be addressed any time soon in Washington. Sadly, our lawmakers do not yet even see it as a problem. While it is true that Democrats never miss an opportunity to carp about Bush’s refusal to “roll back” his tax break for “rich Americans,” the Democrats would be as quiet as church mice if the deficit spending were for welfare programs. Either way, the results would be the same: continued deficit spending.

The way gold topped $500 was a big deal because the price of gold is the thermometer for the health of a nation’s currency. A rising price for gold suggests a fever is building. However, the reporting suggests that few reporters understand the United States is infected with a deadly virus, not a common cold.

Gold Topping $500 Really is a Big Deal

To Invest Or Not To Invest, Its Only Your Future Were Talking About Here!

Global Finance Articles WebSite — Sun, 29 Aug 2010 14:30:47 +0000

Making the leap and deciding to invest is the first step – whether to start a business, invest in the stock market, real estate, or some other venture it’s going to demand knowledge, skill and may or may not impact your financial stand point once it’s all said and done. All investments carry at least some kind of risk, and as a result of risk people feel nervous when it comes to making investments.

Despite the large or small risks, to get your money working in your favor and growing for you will mean an investment of some sort. It is simply a matter of selecting the right investments, diligent maintenance and usually holding out to the end rather than pulling out before the term is due. This is a hard concept to learn and it’s actually bit me more than once myself too!

Here are some suggestions to help you with investments that will increase your capital with time.

Determining the risk factor before you jump with both feet off something you’ll regret later:

The first thing one should keep in mind is potential risk of the investment you are going to make. Consider the effect on your life if you lose every penny you are going to invest. This will help you to determine if youre over investing and taking too high of a risk. You might even have to put yourself on a certain budget so that you only invest a certain percentage of the dollars you earn. This way you’ll be investing out of your excess capital and not your laundry money (:–).

Probably all investments possess risk, but some are more risky than others, sound advice from a successful investment agent can go along way. Don’t be afraid to ask really “dumb” questions and keep asking till you understand the topic. This is your money were talking about here and were not playing monopoly anymore.

High-risk investments do have their obvious benefits, that being short term, large gains. These high risk investments can be stressful unless youre playing with “house” money or money that you’ve earned and it won’t hurt too much if you lose it all. High risk investments are not for everyone, some just can’t handle the stress of possibly losing their hard earned cash. This might be you; if youre not sure you can first try with some small investments, just to prepare yourself for some big ones. By doing so, you will get a feel for the market and see what’s it’s all about while learning.

Make sure that you are not borrowing money or spending money that you may need elsewhere, and make sure that the loss of money will not disturb your life style in any way. I’ve also been bitten by this one. On the bright side I’m learning what not to do.

Tracking Your Past Investments Performance:
If you’ll be making investments in fields like stocks and bonds, it is very important to know and track the historical performance of the respective company or bond. Once your research has been thorough than make your move.

If you do not see any increase in price value of the stock or bond for the last couple of months but it seems to be steady then it could be a good potential for a long term investment. Steady growth is a good indication for potential growth in the near future, which after a long period will yield better than short-term investments.

Investigating Recent News:

The best way to keep updated about the market is to read financial and business news. Searching these topics online can make you familiar with recent market events. Above all try to have fun. Once you get the hang of regular, calculated investing you might find the stress is not too bad and the financial rewards are very enjoyable!

To Invest Or Not To Invest, Its Only Your Future Were Talking About Here!

How Do I Invest For My First Home?

Global Finance Articles WebSite — Sun, 29 Aug 2010 14:12:11 +0000

Buying your first home may be too overwhelming. There are a lot of facts to know about and things to consider before finally making a decision. And its not just any simple decision to make. Its one that will affect your life entirely as your home will be your shelter for the rest of your life, or at least most of it.

Thus, once you have decided that you will be buying a new home, you have to do your homework. Research on the things you have to know about buying a house. Learn the ins and outs of the housing market so you will not be easily fooled by the people you deal with. Remember, these people do everything for them to earn a lot. They can entice you so much into buying in an impulse. So it would be better if you have some knowledge about what youre getting into.

Other than the research work, the most important thing you have to consider if you want to buy your first home is where to get the funds to pay for the house. There are several ways that you can do to start saving up for your first home.

If you have a Roth IRA account, you can use that to save for your first home. If you qualify as a first-time home buyer and planning to purchase a home not less than five years from now, you can avail of the five-year plan of Roth IRA. This plan allows you to withdraw your earnings before age 59 without paying any taxes, penalties or charges.

Another way is through personal savings. This has been an old and tested method of saving for anything. And it requires strict discipline and commitment. If you are earning a regular salary, you might want to consider having the bank automatically deduct a certain percentage of your salary once you receive them and transfer it to your own savings account. This way, you will not be tempted on spending all your salary and forget about saving. Also, you should try to avoid making frequent withdrawals with your savings account. The reason you opened it is so you can save for something that you want, like a home. As much as possible, try to gain access to your savings account only when there is sufficient funds to pay for the home you wish to buy.

When you are thinking of buying a new home, try to determine your target date. If you plan to purchase a house 2 years from now, or less, then putting your money in more conservative investment tools is the way to go.

However, if you are not planning to buy until five years from now or even more, then you can be more aggressive and start investing on higher yielding investments which tend to perform better over a long period.

Try to also look for some assistance. According to a survey done by the National Association of Realtors, 23% of first-time home buyers get their down payments as gifts from relatives or friends. However, if this is not possible for you, there are banks, charities and local government institutions that provide assistance to first-time home buyers. There are some that offer to lend 3% of the purchase price as part of the down payment. This borrowed money can be paid when the buyer refinances or pays off the loan, or sells the home.

Also, it is always a good practice to keep your bills updated to improve your credit rating. Having a good credit report lowers the interest rate charged on your mortgage. As early as possible, try to clean up your finances so when the time comes that you will apply for a mortgage, you wont have to deal with higher interest rates.

Buying your first home requires a lot of preparation. This is not a simple investment to make. The decision to buy a home is something that will affect you for the rest of your life so better be prepared as early as possible.

How Do I Invest For My First Home?

BALLON STRANGLES, A BETTER TRADES STRATEGY

Global Finance Articles WebSite — Sun, 29 Aug 2010 14:00:26 +0000

I have often taught that there is a countermove for everything that a market or stock can throw at you. You may not know it but there is one. This is generally a true statement because if you wait too long, there are some situations you can’t get out of but for the most part there is a way to respond to and survive just a bout anything. IF YOU KNOW WHAT TO DO AND HOW TO DO IT. The emphasis is to make the distinction that knowing is not enough. You must know how and that takes training. However it does start with knowing what.

I developed the Balloon Strangle as a way to counter the effects of high volatility and unpredictability (ie. Danger) of news announcements that happen when the market is closed. This would be like earnings after hours or an anticipated Board meeting or a court ruling. Something that could move the stock in a big way but you don’t know for sure which way. Conventional wisdom (and it is good advice) is to avoid this like a plague.

A conventional strategy to mitigate the effects of volatility is the strangle or straddle play. Traditional positions for a strangles and straddle are at or near the money. You take opposing positions so that either way it goes you have a winning position. You hope that the move is big enough that the losing position goes to zero and then the winning one can make money. Problem near the money position are expensive and the move must be quite large to erase one position and still move far enough to make money on the other one. But the idea is that you are somewhat insulated from the unknown. At least you can stay even as one goes up in value and the other goes down.

The Balloon Strangle was a twist using the leverage of Out of the Money positions. If you use a graphic to show the option prices you will often see a leverage point in the curve created by plotting the option prices. It occurs in the Out of the money positions. It represents a spot where the value of the option changes much faster in one direction than the other. In other words if the stock moves one way the value of the option changes very fast but very slow if it moves the other way.

Here is an example of a Balloon Strangle on an earnings play with YHOO. I played this because of the potential YHOO had to move far enough to make the cost of both an Out of the money call and a put pay off. The potential was for a double of my money.

Now YHOO sits way between the important price levels. This is the perfect setup for this play. The YHOO earnings usually has a big move and it is has clear targets.

Now here is what happened. YHOO moves like it was following a script. The upside move goes right to resistance.

Now the results YHOO moved up to resistance and hesitated. 2 hours into the trading day and at the next sign of hesitation I pulled the plug on the trade. Resistance seemed to be holding, I got what I was looking for in an up side move so I sold both positions. The net of $1.75 was very close to the estimate of $1.70.

By the way, as the day wore on and YHOO did not make any attempt to move higher, the Oct 42.50 began to drop in value much faster than the stock sagged. This dropped the 42.50 calls over .50 while the stock pulled back .60. Waiting for the end of the day would have cost me over .50. The play was to be in only to catch the reaction to the news.

This strategy takes practice and applies to potentially good sized moves. Always practice with out funding first.

Ryan with Better Trades

BALLON STRANGLES, A BETTER TRADES STRATEGY

“Successful real estate investor tips”

Global Finance Articles WebSite — Sun, 29 Aug 2010 13:11:11 +0000

Becoming a successful real estate investor
Becoming a successful real estate investor requires being able to find good real estate investment deals and put them together. Your job is not to become an closing attorney, a management expert, or a repair person. Use professionals!

You must learn how to appraise and find the true value of real estate this information will help you make better investment decisions. Realtors, appraisers, and banks determine what a property is worth by looking at comparable sales usually three to five sales of similar property that has recently sold in the same neighborhood. You must be able to do the same.

Getting a list of comparable prices of properties bought or sold (and when it sold) for the neighborhood you need information about, and asking active real estate investors in your area what the market is like will be helpful and making a better investment decision. What is the ideal market for investing?
There is no such thing as an ideal real estate market for investing. It tends to be more difficult to find bargains in rising markets if the market keeps rising the probability of selling the property quickly for a large profit increases. In contrast but when property values are falling more bargains become available.

You need to be able to assess the true value of properties based on when you expect to sell. Your purchase must be made at a good enough discount to allow for a profitable sale at a later date.
Leverage
Leverage is very important for investors because the less cash you put down on each property the more properties you can buy. If the properties go up in value your rate of return goes up. However if the properties go down in value and you have a lot of debt on the property this can result in negative cash flow.

Since real estate is generally cyclical negative cash flow is only a short-term problem and can be handled if you have other income or a cash reserves. This makes “Nothing down” investing very helpful to protect against negative cash flow for high leverage investor.

If you are a long term real estate investor leverage will work in your favor if the markets in which you invest appreciate in the long run and your income from the properties can pay for most of your monthly debt. Strategies to limit risk
To limit risk become educated in your local real estate market first by understanding the large scale trends from global down to national regional and specific neighborhoods. Learn about target neighborhoods with the help of successful real estate investors in your area along the way.

Real estate investors can help you interpret market indicators such as the average length of time houses have been on the market this month versus last month or last year. With this information it will help you make better investment decisions.
Exit strategies
It is important not to guess the future of a local real estate market you need to have a clear plan in mind when purchasing property. As a real estate investor you must know exactly how you will exit the property before you buy. And have a backup plan or two in case the first course of action doesn’t work. You must know your market and your plan before you begin to invest. For more helpful information and online real estate corses from Donald Trump himself visit us today at http://www.TrumpUniversityCo.com

“Successful real estate investor tips”

Making Yourself Smart Investments

Global Finance Articles WebSite — Sun, 29 Aug 2010 13:00:04 +0000

There is a harsh fact about reality. The good job that you have may not last your entire life or career. The stability of the job may change and the particulars about it may change it to one that is completely undesirable. You must think ahead and plan on making your money work for you. No matter how much you have, you must plan on saving at least three months salary for a rainy day. Additionally you must set aside a proportion of your salary to invest now in well performing businesses on the stock exchange, as well as through available mutual funds which have a superior performance and you should consider investing in real estate. Particularly you should consider real estate that you can fix up for rental properties.

Stock investment on the internet in one such new technological avenue. Stock brokers have understood long before the public the great advantage that the speed of the internet gave them in financial matters. They offer to the public the advantage of internet sales and buying of company stocks and mutual funds. At least seven years ago the stock market utilized proprietary computers, intranets, wide area networks (WANS) to manage and predict the public sales and purchases of commodities, stocks, and bonds. The market place is a very competitive place. The government and the stock market board exist to provide a fair market where no one person or block of investors have a larger influence than any other. Prior to the internet and the 21st century only large blocks of investors or extremely wealthy ones could purchase stocks and commodities as an investment. This is because they were limited to how small or large a package of stock could be sold. When banks or other groups of investors, retired math teachers, became involved then investment packages could be subdivided smaller. Hence more people could afford to invest their surplus cash into more risky but profitable ventures. The invention of the telegraph allowed the transfer of information at the speed of light. After this the invention of the Teletype maintained the technological edge into most of the 20th century. when the age of the personal computer arrived then financier Mr.Bloomberg advanced both the electronic management of stock but provided the pioneer work to facilitate the inclusion of the internet into the confines of Wall Street.

You can acquire attractive properties which require very little in the way of repair. Some only need cleaning and painting to become profitable rentals. Today in Tulsa, Oklahoma there is a vast excess of available homes which have become available. These are offered by banks, mortgage investment firms, and real estate agencies. On the other hand the reason why these are available should be mentioned. The city of Tulsa has been through a devastating financial depression which began shortly after major internet companies and communications groups went bankrupt. This led to the loss of over 75,000 technical jobs and over $250,000,000 in lost revenues from income and sales taxes. These jobs have not be replaced but have been out sourced to off shore resources. I remember walking several miles along the edge of several housing divisions which were marked by the rarity of an occupied house. Most were marked by the “For Sale” signs and tall unmown grass. There are some real bargains here in Tulsa for those with good salaried jobs! These can become a smart investment for you which has stability and that can increase in profitability over the years.

Making Yourself Smart Investments

Investors Look at Philippine Apart-Hotel or Condotel Property Investments

Global Finance Articles WebSite — Sun, 29 Aug 2010 12:10:35 +0000

PLC International Marketing Networks has revealed that some institutional investors are trying to diversify their property portfolios through areas like Southeast Asia, China and beyond – with the Philippines heading the list, then Thailand, Japan, China, and Singapore property investments featuring in some portfolios.

In the UK, “Investors are moving to new areas to find value” said Beth Collingz, Global Marketing Director of PLC International Marketing Networks based in Metro Manila and Cebu in the Philippines. “More and more of clients for Condotel Investments are coming from the UK. There has been a distinct market shift from US based clients over the past few months and we see that trend continuing over the winter months of 2006 and on into 2007 has Sterling continues its increase in value over the US Dollar.

A lot of this interest is being driven by the relatively cheap market prices in the Philippines compared to Europe, specially UK Housing prices, and the easy payment options available for our Condotel Developments, but there are other factors, too.

Offshore Property Investors, Foreign baby boomers as well as overseas Filipinos, are looking for ways to maximize their return on investments as they approach retirement, and so are purchasing second homes, particularly Condotel Investments where they can use the Condo for vacations and rent it out through our In-House Condotel Management when they are not using the unit thereby gaining rental incomes that on todays purchase prices, give a projected ROI on their investments of some 12-16% depending upon the mode of payment for the unit

Metro Manila remains a popular choice with international buyers and institutional investors. Collingz says clients tell her that it makes more sense to buy in a year-round vacation destinations and business centers. Lancaster – The Atrium Condotel developments by Pacific Concord Properties located in Shaw Boulevard, Metro Manila – fits the bill with all it offers to International buyers.

Accessibility is also a factor. Flights from London to Manila, for example, average just 16 hours, add to that the many airline specials and its easy to see why this area is becoming an international community. Unlike other offshore rental properties, where the rental market is largely seasonal, in the Philippines there is a strong market for rental properties year round. This gives buyers greater flexibility in choosing when to use and when to rent their property. The strong rental/second home market also has resulted in a proliferation of professional property managers and rental agents, making property ownership and rental easy. Pacific Concord Properties Inc with its flagship Lancaster Condotel Developments fits the bill.

Lancaster Manila Atrium Tower A, Shaw Boulevard, Metro Manila, Philippines is a “Full Service” Condominium Hotel ["Condotel"] offering Studio, One, Two and Three Bedroom Suites for sale. To be completed and ready for turnover from December 2010, the Lancaster Suites Manila Atrium Tower II will provide unit owners with premier residential condo units with the option of enrolling their units in the Lancaster Condotel Rental Pool and earn Rental Incomes as Owner Non-Residents when not using their units through Condotel Management and reciprocal arrangement with Lancaster Cebu Resort Residences. This makes Lancaster Suites Manila, one of the Hottest Investment Opportunities in the Philippines said Collingz.

For further information about Philippine condo hotels please do not hesitate to contact us:

Beth Collingz
PLC International Marketing Networks

Investors Look at Philippine Apart-Hotel or Condotel Property Investments

Getting Started With Online Investing

Global Finance Articles WebSite — Sun, 29 Aug 2010 12:00:37 +0000

As with everything else these days, the stock market has gone online. If you can shop, pay bills, and do your banking online, why not invest too? Investing online is not as big of an ordeal as some people make it out to be. The key is to know what you want before you start.

When opening a new account, investors need to answer the regular questions, such as the type of account they want and how it will be funded. When selecting an account type the kind you choose will depend on whether or not the account is taxable or tax-deferred, and also whether it is for just you or you and someone else.

You will also have to decide whether your account will be cash or margin. A cash account means you are only able to place trades for investments with money in your account. A margin account gives you a credit line from your brokerage firm. You can also have a margin account with options, which means you are purchasing the right to buy and/or sell a stock at a specific price. Options are quite complicated and usually only purchased by traders with experience and large portfolios.

After choosing the type of account money must be deposited. The initial deposit can be sent to the firm by check or an automatic transfer from a bank account. Another option is transferring an account from a different brokerage firm, but the process is quite lengthy and can take months to complete.

If you are trying online investing for the first time, start small. Dont put every penny of your life savings into an online account. A smaller sum is easier to handle and easier to keep track of. When you feel confident and are ready, then you can expand your online account.

Another good thing to do when investing online is to try and stay diversified, in other words dont concentrate all of your portfolio on just one thing, instead develop a well-balanced portfolio of stocks, bonds, and cash.

Many brokers will encourage you not to bail out on mutual funds. The main reason most investors are in mutual funds are because they dont have the experience to make their own calls on stocks. They are also occupied with other things beside just watching the stock market. Keeping your mutual funds can be a wise decision instead of prematurely playing the market in individual stocks.

It is important to remember that online brokerage firms add fees and charges that need to be looked at closely. Before buying and selling large scale stocks online, look at what the tax results are of such trading. The average online brokerage costs are lower than full-service brokers, but fees can still add up.

Remember that just because you are investing online, the Internet is not foolproof and you are bound to run into some problems. There will surely be times when you are unable to gain access to your account. Youre connection could be down, the brokerage firms server could crash if trading is overly heavy, you could experience a software glitch, or you may be away from your computer when there is a major market move. Always be prepared for these things and keep in mind the available alternative trading options such as phone trading.

When investing online it is your responsibility to say as informed as possible. Dont just settle for what you hear. Instead do a little research on a company before investing in them. There are services that send you automatic e-mail messages over news about your stock; take advantage of these. Remember in online investing everything is up to you and knowledge is power.

Getting Started With Online Investing

Charting Patterns that Show You the Money!

Global Finance Articles WebSite — Sun, 29 Aug 2010 11:30:59 +0000

The Time is Right: With the Fed lowering interest rates and setting a good tone to the markets along with earnings season coming up next month, there has never been a better time to learn to read price charts to pinpoint the best entries and exits for your trades.

When you know how to correctly read price and candle patterns you can identify the beginning of the next big wave and the most profitable entry for your trades. The price graph will also give you clues about when that wave is slowing down so you have time to tighten your stops and maximize your returns.

The markets today are providing us with great trading opportunities. The positive reaction to the interest rate news sent stocks skyrocketing, which made for some wonderful trades if you positioned in early. Many of those stocks, however, are due for a pullback. And what a perfect time to be trading because once you learn to identify the typical pullback, or retracement patterns, you can use those to enter trades before the next big run into earnings.

Here’s An Example:

A pattern that we usually see before a stock makes a run into earnings is a rectangle. A rectangle pattern is created when a stock moves up and down in a small range for a short period of time. This type of consolidation is more of a sideways move, during which time the stock doesn’t loose much of its value, but the options do become cheaper as the volatility decreases. An example of a recent rectangle is a trade we did in the two day Technically Speaking Workshop during which we bought calls on Freeport (FCX). This trade was done because the stock had just broken out of a rectangle pattern and, as you will learn in the Technically Speaking Workshop, we teach entering trades on the first or the second day of the move.

This trade was based on a contingency order at $92.50 on the Breakout Entry #1 seen below. This teaching method allows you the flexibility to trade as an end-of-day trader so you don’t have to be tied to your computer. The first entry was one that was triggered while unable to watch the markets. On the second day, there was an additional entry above $93 as the stock opened up outside of the rectangle. That is Breakout Entry #2, and is the pattern used to enter the trade in the Technically Speaking Workshop. As you can see below, FCX has rallied to a closing high of $108.67 – almost a fifteen dollar rally since entering the trade!

Another Example:

Another pattern that you might see as stocks pull back from the recent rally is a Flag pattern. This is similar to rectangle but one that is tipped on its side. With this type of pattern the stock pulls back in price and gives a better entry price into the trade. DryShips, Inc. (DRYS) formed just such a pattern this month as it retraced about ten dollars before heading to a new high. Below, you see the Flag pattern outlined in blue with the Breakout Entry #1 around $71. The second day provided another opportunity to enter the trade at around $75 before the stock rallied to a new all time high of $81.65 (at the time of this report). Depending on what day you would have entered the trade, this has been anywhere from a six to ten dollar upward move in the stock.

When you can properly identify pattern such as these and more you will have the skills needed to correctly read a price chart to determine when the retracement has ended and when you should enter a trade. That is how you enter trades near the beginning of the next big move.

Charting Your Way to Profits Online Classes.

Learn more about how to read price and candlestick patterns to enter the right trades at the right time and earn maximum profits.

Markay Latimer with Better Trades

Charting Patterns that Show You the Money!

What If You Only Have $100 Left But Still Somehow Manage To Generate Over $100,000 This Year

Global Finance Articles WebSite — Sun, 29 Aug 2010 11:09:18 +0000

Yes that’s right armed with nothing but still generated over $100,000 in the end of this year. Is this rocket science? No it is not. Everybody even 12 years old boy can do it, all you need is proven formula that will show you what to do and when to do.

By following 3 formulas below having $100,000 income per year is no more dream. However first off I must warn you what I’ll show you below is not get-rich-quick scheme. During my last 2 years online I’d searched to every possible place in order to formula that could bring me $100,000 in a night, unfortunately there’s no such a thing.

So you need to give a time in order to make this formula work, your perseverance will pay off when the time has come.

Formula #1 – find your passion

Except you’re very cold blooded person you need to do business not just solely from profits but also from doing something you love also. Because like or not there’ll always be some problems during your business but if you doing something you love you’ll face it as a fun hobby.

Don’t worry about competition, there’re always some competitions in every field in life. Beside that’s what marketing all about how to make a killing out of your competition.

Your passion can be anything no matter how ridiculous they are, just write all of your passion.

Formula#2 – how to find profitable merchant that eager to give you more money than you boss

If you have no product to sell and only have $100 left you need to gain advantage of other people’s product. It can be as simple as joining affiliate program. Affiliate program is the act of promoting other people’s product and get paid whenever someone buy through your link.

You can do some research about which merchant in your field that offering affiliate program. All of them free to join and will cost you nothing. If you find affiliate program that require you to pay, don’t even take a glance at it, it’s simply common sense why you need to pay just for giving somebody money?

You can do research through search engine with go to affiliate directory. For example www.affiliateguide.com

Formula#3 – set up your online presence

Now you need to select merchant you want to represent as an affiliate. Don’t take more than 10 programs to represent. Take more than 10 programs will get you overwhelmed, and will confuse your visitors which eventually doing nothing.

And it is best if the 10 products is complement product with each others.

Now after choose the products there’s a few ways to start promote your product. You can create website and put product review that lead to specific product you represent or you can set up google adwords campaign and bid directly to merchant’s website or you can put solo ads in ezine that cater your industry telling them about your affiliate’s product with your link embedded in.

If you decide to use google adwords you need to be careful about the sums of money you spend. You need to be sure that the sums of money you spend less that the sums of money you get. And so the same if you decide to use solo ads.

I’ve seen few people make lot money with this, they have hundreds of ads on google. They pay copywriter to create the ads, set it up in 15 minutes and just sit back collect the money. Some of them have made up to $30,000 per month.

However I must warn you what works for someone is not guarantee will work to other. So you need to find out yourself, if the method is suit for you or not.

What If You Only Have $100 Left But Still Somehow Manage To Generate Over $100,000 This Year

A New Idea To The Health Insurance Crisis In America

Global Finance Articles WebSite — Sun, 29 Aug 2010 11:08:46 +0000

Lack of health insurance coverage for over 41 million Americans is one of the nations most pressing problems. While most elderly Americans have coverage through Medicare and nearly two-thirds of non-elderly Americans receive health coverage through employer-sponsored plans, many workers and their families remain uninsured because their employer does not offer coverage or they cannot afford the cost of coverage. Medicaid and the State Childrens Health Insurance Program (SCHIP) or HAWK-I here in Iowa help fill in the gaps for low-income children and some of their parents, but the reach of these programs is limited. As a result, millions of Americans without health insurance face adverse health consequences because of delayed or foregone health care and extending coverage to the uninsured has become a national priority. -(Information taken from kff.org)

The number of people that are forced to go without health insurance is nothing less than a crisis in this country today. We have fallen into a vicious cycle over the last few decades in which health insurance premiums have become too expensive for even a middle class family to afford. This in turn results in the inability of the uninsured to cover medical costs which often times results in the financial ruins of the family, and in turn results in the continuing loss of income by the medical community, which in turn drives the cost of medical expenses higher, finally cycling back to the insurance company which then must drive the premiums of health insurance higher to help cover the rising cost of health care.

Many proposals have been tossed around by politicians on both sides of the isle ranging from socializing health care comparable to the Canadian system, to endorsing health savings accounts and cracking down on frivolous law suits against the medical community. Many of these proposals have good points, but along with whatever good points they bring they also bring major downfalls. For instance; a socialized national health care program would eliminate the need for health insurance all together and the cost would be taken on by taxes, which in theory doesn’t seem like a bad idea. However, the downfalls to this system include a deficit in new doctors willing to get into the field due to the inevitable decline in income while the demand would grow due to no personal responsibility. In short if people didn’t have to worry about deductibles or copays that would normally keep the person from seeking medical treatment for minor things, they would simply go to the doctor every time they had an ache or pain. So now we have waiting lines for people with major health problems since everyone is scheduling an appointment while at the same time we are loosing doctors due to lack of incentive.

The current battle cry by the republican Bush administration is to push HSA’s (Health Savings Accounts) which reduce premium by taking a less expensive high deductible health insurance plan with a tax deferred savings account that earns a small interest on the side that you contribute to along with your premiums each month. Any money withdrawn from the savings account for qualified medical expenses are taken “tax-free”, and unlike a flex spending account like many people are familiar with in employer based plans, you don’t lose the money you put into the account that you don’t use. Basically if you never used any of that money in the savings account you could withdrawal or roll it over into another vehicle once you turn 62 1/2 penalty free to be used for retirement. This is a viable option for some people, however for many the premiums for these plans are still too expensive, and the problem remains that if you need major treatment in the first few years of the policy you will not have a big enough amount in the savings account to help cover the gaps leaving that person responsible for a large portion of the cost out of pocket.

Now we come to what I believe is one of the biggest problems from a health insurance agent’s point of view, which is the inability for persons with pre-existing health conditions to obtain coverage. From the number of people that contact my office searching for health insurance coverage, I would have to say that about half of them have a health condition that will either result in an insurance company declining that persons application, or result in an amendment rider which basically excludes coverage for any claims related to that condition. An example of a condition that I run across constantly is hypertension or high blood pressure. This condition will sometimes result in a company declining an application all together if other factors are involved, but most generally result in an amendment exclusion rider. You may think that this isn’t that big of a deal, after all, blood pressure medicine is about the only thing they would have to pay for out of pocket, but what many people don’t realize is that this rider will exclude ANYTHING that could be considered part of this condition including heart attacks, strokes, and aneurisms which would all result in a huge out of pocket claim. Consider the fact that my father had a double by-pass surgery recently that ended up with a final bill of around $150,000. This whole amount would have had to come out of pocket had he had a hypertension rider on his health insurance policy, not to mention the added cost of 2 months off of work thrown into the mix. On a modest income of $40,000 per year this would have ruined him financially.

So what how do we fix this problem? Obviously the proposals thus far have been flawed from the beginning, and even if one of these plans gained support from the American people chances are it would never be passed into law simply due to political infighting. One side wants to keep health care privatized while the other wants to socialize it, which as we discussed before both have upsides and downsides. It seems that we are doomed on this issue and there is no real ideas or light at the of the tunnel right? Maybe not, let me tell you about a client I had in my office a couple of years ago.

A young woman came in wanting to compare health insurance plans to see if there were any options for her and her family. She had several children and had been on Title 19 Medicaid and had been going to college paid by the state. She had recently graduated from college and had gotten a job with the local school system, however for whatever reason she was not eligible for health insurance benefits. Obviously she still couldn’t afford 5 or 6 hundred dollars per month for a plan so she went back to the aid office and explained her situation. They ended up working with us to find an acceptable private health insurance plan and reimbursed her for a percentage of the cost which I didn’t even know was possible!

This got me thinking, consider how many more people would be able to obtain coverage if they could be reimbursed by the government a percentage of the premium according to their income. For example; take a young married couple in their 20′s with one child, let’s say that their family income is $25,000 and that the average premium for a $500 deductible health insurance plan for them is $450. Just as an example let’s say that the government determined that a three person family with an annual income of $25,000 is reimbursed 50% of their premium taking the actual cost to the family to $225 per month. This is now an affordable enough premium for the family to consider.

With this merging of private insurance with government assistance we get the best of both worlds. Of course the next question goes to cost, how much more would this cost the American tax payer and how much would this raise taxes? I don’t think that it would cost the tax payers much more an here’s why I think that: First off we would bring down significantly the amount of uninsured people that are unable to pay for the medical care they get in turn driving down the total cost of health care. Secondly the number of people that are forced into bankruptcy and driven to Medicaid Title 19 assistance due to medical bills stemming from catastrophic medical conditions that don’t have health insurance coverage would be significantly reduced. This is important to keep in mind considering that once someone is on Medicaid they are receiving health care basically 100% covered by the government so there is no more incentive to not seek treatment for minor or non-existing conditions. On the flip side many conditions that would have not been caught before they became severe because a person didn’t seek treatment due to not having insurance coverage would now be caught before they turned into a catastrophic claim. Finally, if the government allocated a certain amount of money to help cover claims by people that have pre-existing conditions the private insurance companies could do away with exclusions and declines due to already existing health problems, this is already done is some states such as the HIPIOWA Iowa Comprehensive Plans which insures Iowa residents that can not obtain coverage elsewhere.

You may be sitting there thinking that this is all just wishful thinking and that these ideas could never be implemented, but all of these ideas are already being implemented. The problem is that only some states do some programs and not even most health insurance agents know that some low income families can get reimbursed for health insurance premiums. If these programs were all standardized and put into effect on a national well publicized level I believe it would put one hell of a dent in the uninsured population in this country. Now I don’t pretend to know what the reimbursement levels should be for what income levels but I do know that anything is better than nothing, and in my opinion this is the best middle ground we could find. The Democrats would be happy with the socialized aspect of the reimbursement, and the republicans should be happy that health care remains privatized giving this solution a better chance at a by-partisan backing.

I have faxed this idea to several senators and congressmen but always received the same type of standard response about how they are concerned with health care and that they are working hard to find a solution knowing full well that no one really even read my letters. The only way to get these ideas out into the public is for you that read this to pass it on to others by word of mouth, by email, or by linking your websites to this webpage. If enough buzz is created than these ideas would get the consideration that they deserve, and if enough people like you and I demanded that a solution be found than perhaps enough stress can be placed on the politicians to get something done. The number of uninsured Americans is only going to go up, the cost of health care is only going to go up, and the cost of health insurance premiums are only going to go up if something isn’t done now! Until then the only thing that I as a health insurance agent can do is to compare all of the options out there and present you with the lesser of all of the evils, which in too many cases the option that is chosen is the biggest evil of going without coverage.

A New Idea To The Health Insurance Crisis In America

Offshore Investing: The Perfect Solution

Global Finance Articles WebSite — Sun, 29 Aug 2010 11:00:15 +0000

Offshore investment is an expression heard often, but not necessarily understood by the masses. Here is a breakdown of the definition of the phrase and some generalizations concerning it.

First of all, the term offshore indicates something being foreign or outside of the domestic territory of one of the G8. The G8 (Group of Eight) refers to the annual summit of the government heads of the eight most prominent nations in the world. These eight nations are Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States of America. Offshore investing, or alternative investing, is conducting financial business outside of the investors home country, which is usually one of the G8 nations.

By having anything from a foreign bank account or credit cards to more intricate offshore financial dealings, such as trusts and multi-level investments, investors gain access to varieties of international trade.

Many large financial institutions have offices in popular offshore locations to capitalize on the increased interest in this type of investing. Studies calculate that about half of the worlds money is offshore from the location of the money holder. This is largely due to the fact that the primary offshore investors are the worlds wealthiest individuals and corporations.

The number of offshore investors has grown rapidly in recent years due to several factors. First and foremost, the introduction of the world to the Internet has enabled people to gain knowledge and invest outside of their own region. They are no longer intimidated by offshore investing and consider it a possibility because of the instant communication between nations afforded by the Internet.

The ever-expanding diversity of investments has also attracted more buyers. These new types of investments, coupled with the jurisdiction and regulations options available through offshore banking, make it an appealing choice indeed.

With all the options out there, how can investors and brokers make the best decisions regarding their money? The Internet offers a vast source of information regarding offshore investment opportunities and probabilities.

There are also countless financial advisors specializing in international investments. Financial institutions realize the huge business that is in offshore investments and they have made that available to their clients as well by hiring special consultants for this purpose.

Elevated taxes can be a real detraction from the accumulation of profits. The typically lower taxes of smaller countries are the biggest incentive to invest offshore, since the offshore investor is usually wealthy and living in a higher tax area, such as the United States.

Of course, seeking higher returns on their investments is another common motive for people exploring offshore investing. Also at issue is the currency in which to keep the assets, and the strength of that currency rate.

Traditional investment specialists may frown on offshore banking because it is less regulated and less predictable. The risk and unknown factor involved turn some would-be investors off, although many individuals that pursue offshore investments have made their fortunes by taking similar risks elsewhere.

Reasons for choosing to invest offshore are plentiful and may involve more than just taxes and returns. Other considerations include a higher level of confidentiality due to the offshore nations government policies or legal protection offered by offshore investment approaches, like trusts and different kinds of corporations.

Offshore Investing: The Perfect Solution

A Few Tips For Day Trading the Stock Market

Global Finance Articles WebSite — Sun, 29 Aug 2010 10:30:26 +0000

Day trading the stock market involves the rapid buying and selling of stocks on a day-to-day basis. This technique is used to secure quick profits from the constant changes in stock values, minute to minute, second to second. It is rare that a day trader will remain in a trade over the course of a night into the next day. These trades are entered and exited in a matter of minutes.

The main question that most people ask when it comes to is simple: is it necessary to sit at a computer watching the markets ALL day long in order to be a successful day trader?

The answer is no. Its not necessary to sit at a computer all day long. There are a number of factors to consider, but generally the rule of day trading is to trade when everyone else is trading. In other words, trade in the morning.

As with all financial investments, day trading is risky in fact, its one of the riskiest forms of trading out there. The stock prices rise or fall according to the behaviour of the market, which is entirely unpredictable. Day traders buy and sell shares rapidly in the hopes of gaining profits within the minutes and seconds they own those particular stocks. Simple to do in theory, harder to do in practice.

If you are constrained by a small amount of capital, you may not be able to buy large amounts of a stock, but buying only a small amount can add to the risk of a loss. And, obviously, it is impossible to predict with certainty which stocks will result in profits and which in losses. Even the best of traders must learn to accept both outcomes.

Its also important to know that in day trading, it is the number of shares rather than the value of shares that should be the focus. If you day trade, you WILL face losses, but even for the more expensive stocks, the loss should be marginal, because prices do not usually fluctuate to an extreme degree over the course of just one day.

The day trading industry deals in a large variety of stocks and shares. Here are just a few:

Growth-Buying Shares shares made from profit, which continue to grow in value. Eventually, these shares will begin to decline in price, and an experienced trader can usually predict the future of this type of share.

Small Caps shares of companies which are on the rise and show no signs of stopping. Although these shares are generally cheap, they are a very risky investment for day traders. Youd be safer to go with large caps and/or mid-caps, which are much more secure and stable thanks to a premium.

Unloved Stocks company stock that has not performed well in the past. Traders buy these shares in the hopes of generating profits if and when the stock rises in value. As with small caps, unloved stocks can be a risky choice for day traders.

These examples are NOT your only options when it comes to day trading stocks. The best way to determine which type of stock is right for you is to invest some time for careful research, a knowledge of market patterns, a solid strategy, and a disciplined trading plan.

The key to successful day trading is to be prepared. Know as much as possible about the industry before you begin actually trading. You need to learn to trade ONLY when the market gives the right signals, and ONLY when the volume of activity in the market supports a successful opportunity.

A Few Tips For Day Trading the Stock Market

How Option Trading Profit In Any Market Conditions

Global Finance Articles WebSite — Sun, 29 Aug 2010 10:07:44 +0000

All stock market multi millionaires must be able to profit under any kind of market conditions. If you are able to profit only when stock markets go up, then you will find it a gargantuan task to ever have any sustainable success, much less become a stock market millionaire.

Yes! It is possible and easy to profit whether stocks are up, down or sideways using option trading. If the ability to trade all kinds of market conditions is the doorway to becoming a stock market millionaire, then option trading would be the very key.

In this article, I will outline some common ways by which you can profit from all kinds of markets by option trading. For more free option trading information, you may wish to visit www.OptionTradingPedia.com.Simple Option Strategies for Up MarketsBuy Call Option – You could buy the same number of equivalent stocks for a fraction of the price using call options and profit when the stock goes up. If the stock should crash, you will lose only the small amount you put towards buying the option instead of the whole amount that you would have put towards buying the stock itself.

Sell Naked Put Option – Instead of buying call options, you could sell short put options thereby pocketing the entire amount you made on selling the put options if the stock should go up. Bull Call Spread – A bull call spread consists of buying call options at the money and selling short out of the money call options of the same month. The benefit of this strategy is that you profit when the stock goes up and profit also when the stock stays sideways!

Simple Option Strategies for Down MarketsBuy Put Option – Instead of shorting stocks and risking a margin call, you could simply buy a put option. Buying a put option is exactly the same as buying call options except that you profit when the stock goes down instead of up.Sell Naked Call Option – Instead of buying put options, you could sell short call options thereby pocketing the entire amount you made on selling the put options if the stock should go down.

Bear Put Spread – A bear put spread consists of buying put options at the money and selling short out of the money put options of the same month. The benefit of this strategy is that you profit when the stock goes down and profit also when the stock stays sideways!

Simple Option Strategies for UP or DOWN MarketsStraddle – A straddle consist of buying a call option and a put option at the same strike price on the same stock. This strategy allows you to profit whether the stock moves up or down and is excellent when you are certain that a stock will move greatly soon but isn’t sure which direction that may be.Strangle – Similar concept to a straddle but buys out of the money call option and put option instead of at the money ones in order to reduce the cost of the position.

Simple Option Strategies for Sideways Markets – Covered Call – If you are holding on to a stock that is moving sideways, you could collect “rental” out of it by selling the call option of that stock month after month and pocket the whole amount of the sale should the stock remain sideways.

Short Straddle – Instead of buying call options and put options as described above in a Straddle, you would sell short them instead. In this way, you create an option position which profits when the stock remains sideways.

Are you amazed now at how easy it is to profit in any kind of market conditions by option trading? These are only very few of the many more option trading strategies that you can use to your specific portfolio needs. To learn more about what option trading and stock options are for free, please visit www.OptionTradingPedia.com.

How Option Trading Profit In Any Market Conditions

Market Timing A Danger to Your Financial Success

Global Finance Articles WebSite — Sun, 29 Aug 2010 08:05:57 +0000

Market timing are the two most dangerous words in investing – especially when practiced by novice traders.

Market timing is the strategy of attempting to predict future price movements through use of various fundamental and technical analysis tools – and when used to predict trending moves, ends in disaster, and losses.

Many investors feel that market timing is the same as trend following and the two go hand in hand, they dont.

Trend Following and Market Timing

Trend Followers REACT to market movement and act on these moves when they occur.

Traders who believe in Market Timing think they can PREDICT turning points in advance and buy at a low or sell at a high.

This is impossible to do; no one can predict the market.

Market timing advocates buy low and sell high but this is not the way to make money from trend following.

The Real aim of Trend Following

To increase your chances of success in trend following you need to wait for confirmation of a move and for a trend to develop.

You are going to miss the start of the trend and not buy the bottom or sell the top, but this is hindsight.

By waiting for the confirmation for the trend to develop, the probability of the trend continuing and you getting a proportion of the profits are vastly increased.

The real way to make money dont predict wait for confirmation!

The real way to make money is by buying high and selling higher and selling low and buying lower You will have far less losses this way and still make healthy profits than if you try to predict with market timing techniques.

Market timing is doomed to failure – as the market never does exactly what we expect, and no scientific law governs the market (despite what the followers of predictive theories such as Gann and Elliott wave might tell you).

We are only dealing with probabilities – not certainties.

Trading is an odds game and your entry and exit levels from the market need to reflect this.

This means trading only when the trend is underway and likely to continue.

Dealing with Volatility

When dealing with market timing many traders are attracted to it as they feel it controls risk.

One of the major problems for traders is when they enter a trend in motion and they get stopped out.

The most effective way of entering a trend is a breakout method, but very often the trade dips back stops out the trader and then goes back they way they thought, but there is a solution:

Enter the Trade with Options

Options give you staying power to ride out short-term pullbacks against you, but you need to know how to use them correctly and this means:

1. Buying in the money or close to the money options 2. Make sure you have plenty of time value on your side

This will increase your chances of success dramatically; give you staying power, limited risk and unlimited gains!

The best Method, Market and Vehicle for Trading

The best method to get in on a trend is a breakout method (read our other articles for more information on why) the best vehicle to control and manage risk on entry is options.

Finally, the best markets with the best trends to lock into for profit are:

The global FOREX markets, all the major currencies offer great long-term trends, many of which last for years.

These trends last so long that you can forget trying to predict with market timing and just take a proportion of the trend, which will still give you big profits over the longer term.

As you can see market timing is misunderstood and has nothing to do with making money from trend following and actually creates risk, rather than reducing it.

Market Timing A Danger to Your Financial Success

Taking Control of your Finances.

Global Finance Articles WebSite — Sun, 29 Aug 2010 07:04:54 +0000

To find money to invest for your future, you need to make sure that your outgoing expenses are less than the income that you are receiving. You need to develop an excess that you can have free to invest.

Now before you start to think.well I dont have any excess leftif I was earning more money.then I would have some free. Let me dispel this mythand tell you that it is a known and excepted fact that the amount of money that people earn has little if any bearing on whether or not they have an excess left to invest. The only way to create an excess it to spend less than you earn, instead of spending all that you earn.

Even doctors and lawyers, who earn well over $100,000.00 per year, often end up at retirement with little more Net Worth than factory or office workers.

Net Worth is calculated by deducting the value of all the liabilities or loans you have from the income-producing assets owned to give you the net value of your income-producing assets.

Why arent high-income earners retiring wealthy? Why dont they end up with a greater Net Worth than someone on a low income? It is quite simple. Human nature seems to dictate that whatever anyone earns.they spend.some even spend more than they earn and charge it on their credit card.

The higher your income growsthe more you spend and the only way to get out of this cycle is to realise that it is happening, and make a concerted effort to reverse this habit.and to begin reducing your expenditures so that you can free up money to invest.

The best way to do this, is to try the 10/90 plan. This plan simply means that as soon as you receive your pay.you put aside 10% of it for investment.and then use the other 90% to live off of. Put aside the 10%, and then pay all the bills and do the grocery shopping.and then after that whatever is left over you can spend.

Most people do it the wrong way aroundthey pay the bills, do the shopping and spend what is left over, never leaving any left to save or invest. By taking the investment money out first you will alleviate the temptation to spend it.

The road to wealth is not determined by how much you earn, but by how you utilise the income you have and how much you save and invest.

You need to take control of your finances. One of the best ways to start having more control over your money is to find out where it has all been going, and then amend your spending habits to allow you to live within the 10/90 plan.

If you write down a list of your monthly net income, then in another column write down a list of the essential items that you have to spend money on. You should be able to work out an average for telephone, gas, electricity, insurances and rates, from your previous bills. Work out an average of how much is spent on grocery shopping and petrol. If there are any other necessary utilities include them as well. Then deduct the second column from the first and this will give you the maximum potential savings for each month.

It can be quite startling how high this figure can be and make you wonder where all the extra money went.

Another good learning experience is to simply write down for a fortnight every dollar spent and write next to it what it was for. You will soon find that there are a lot of unnecessary expenses, often caused by impulse buying, where you have spent money on items that you neither needed or really wanted, and could easily have gone without.

When you can begin to recognise these areas, and start to consider whether or not you are spending your money wisely, before you hand it over, then you will be beginning to take control over your money and are well on the way to embarking on your investment journey, which will enable you to have a financially secure future for you and your children.

Taking Control of your Finances.

Angel Investors Definition

Global Finance Articles WebSite — Sun, 29 Aug 2010 06:04:14 +0000

Angel investors are one of the financing options that you can look into when you decide to start your own business venture. Business start-up is not only a crucial process it also requires a lot of time, effort, and of course money. If you do not have the money needed to fund your business, then how can you start your operation? That is why, when you start planning your business venture, you have to carefully consider your capital. And if you do not have a large amount to start with, you can rely on angel investors to provide you capital. But before looking for one, you have to make sure that you understand the angel investors definition.

Angel investors are high-net worth and accredited individuals that give financial aid to future business owners who are in need of start-up money. They are well-educated, have valuable experience in business, and possess a large sum of money which they invest in exchange for ownership equity. They are usually the best financing option during the early stage of the business. Nowadays, lots of individuals choose to become angel investors. And so when you start your search for the right angel investor, it is important that you know the angel investors definition of each type.

Corporate Angel Investors Definition

Corporate angels are former business executives who have retired early or have been replaced. Although investment is one of their goals, they look for personal opportunity at the same time. So, usually they want to acquire a position in the business as part of the deal. But this should be thoroughly discussed since some corporate angels can be too controlling.

Entrepreneurial Angel Investors Definition

Entrepreneurial angels are successful business owners themselves. Unlike the corporate angels, they can take bigger risks and provide larger amount of money since they have a steady income source. Usually, these businessmen want to assist future business owners to have a successful start-up and eventually a competitive business. The major advantage of these angels is that they are less demanding and they allow the business owner to grow in his own, with them only as financial back-up.

Enthusiast Angel Investors Definition

Enthusiast angels are retirees who simply enjoy getting involved in different business deals and transactions. They are mostly above 65 years old and are already wealthy even before they start their own businesses. Just like the entrepreneurial angels, they also dont want to play any role in business management.

Micromanagement Angel Investors Definition

Micromanagement angels are individuals who have exerted their own efforts in order to become wealthy. Because of their experience, they believe that they know exactly how a business should be managed. Although they are not active participants in management, they can be very visible when the management of the business starts to have problems and is not doing well.

Professional Angel Investors Definition

Professional angels are lawyers, accountants, and doctors who want to make investments in companies that offer a service or product with which they have little experience. Their main goal of investing is to be hired by the business at the same time as consultant in their area of expertise.

These are the different types of angel investors that you might encounter when you start looking for the right angel investor for your business. By keeping these angel investors definitions in mind, you can easily decide which one is appropriate for you.

Angel Investors Definition