In April, the U.S. Mint revealed plans to strike new .9999 gold coins to go after the growing global market for .9999 fine (24-karat) gold coins in early 2006. Studies show that pure gold coins claim 60% of the world's gold coin market, which is about $ 2.4 billion annually. The Royal Canadian Mint's Maple Leafs holds the number one place for pure gold coins. However, problems surfaced with maple leafs.
If the Mint avoids the problems that have developed with Gold Maple Leafs, it has a golden opportunity to grab. An even larger share of the gold coin market The U.S. Mint's American Gold Eagles are the best selling 22-carat gold coins in the world.
Despite the fact that the world's best-selling 24-carat gold coins, design and packaging 1-oz Maple Leafs' leave them susceptible to damage. As a result, Gold Maple Leafs have fallen into disfavor among American gold coin investors. There are indications that gold coin investors worldwide have the same frustrations with 1-oz Gold Maple Leaf coins.
It is almost impossible to remove, inspect, and put 1-oz Gold Maple Leafs back in their tubes without scratching them, no matter how carefully done. Gold Maple Leafs have smooth, clear areas around Queen Elizabeth's likeness and sharp serrated edge. When the coins are put back in their tubes the edges scratch the fields - and sometimes elevated image of the queen.
And, heaven forbid that a 1-oz Gold Maple Leaf is dropped on a hard floor or a tabletop. But the most damage is done when investors handle the coins. If Gold Maple Leafs roughly treated, as investors are used to treat Krugerrands and Gold Eagles, Gold Maple Leafs are easily damaged. Consequently, many badly damaged Gold Maple Leafs are reflected in the secondary market.
Until a few years ago, Gold Eagles and Maple Leafs sold in the same markings on spot. But, as Maple Leafs, investors who bought since 1979, began to arrive in the secondary market, problems surfaced. Now, to keep investors in the U.S. market to buy Maple Leafs, the Royal Canadian Mint for new (current year) Gold Maple Leafs offer at a half-a-percent under Gold Eagle awards.
Damaged 1-oz Gold Maple Leafs are such a problem that a major secondary market maker stopped dealing in coins for a while. The head trader said he was not the time to discuss with buyers and sellers the terms of the coins. He said his staff had no time to inspect each coin and classify it as the amount of the damage. It is commonplace for sellers to say that the coins are in "perfect condition." But when Gold Maple Leafs come, they often badly scratched or nicked rim.
Another major bullion dealer (perhaps the nation's largest) currently buys back "perfect" Gold Maple leaves from dealers located just over a spot, which means that investors receive less than their place as dealers resolve this firm. For scratched or damaged coins, these firms pay less than spot, which the company to send a refinery at a profit if the company does not have the coins buyers for Gold Maple Leafs.
The secondary dealer returned to trading Gold Maple Leafs, but alone buy them at prices that will enable him to profitably melt the coins as they really are beaten. As noted, because of the problem with the secondary market Gold Maple Leafs, the Royal Canadian Mint has to price Gold Maple Leafs below Gold Eagles to entice people to participate in the U.S. market. Gold Maple Leafs investors
Fortunately - the free market is what it is - there are dealers who evaluate the time to Gold Maple Leafs and pay more for those in better condition will take. Nevertheless, the spread (the difference between what an investor can buy and sell at any time) to "perfect" Gold Maple Leafs is about $ 4 wider than Gold Eagles. However, the U.S. Mint's new 24-karat gold coins have no problem coins.
For example, the 1-oz Austrian Philharmonics and The Perth Mint's 1-oz coins are .9999 fine. However, these coins are not easy to be damaged during normal handling due to their design and / or packaging.
Philharmonics ten to a tube and can be taken off and put back without scratches in their tubes. The Perth Mint coins come individually encased in hard plastic capsules. As long as Perth Mint coins remain in their capsules, they maintain their perfect conditions.
Hopefully, you know the U.S. Mint of the problems with the Gold Maple Leafs and designs her new .9999 fine coins and their packaging, so that the coins are not easily scratched or damaged. If the Mint chooses to deal with the packaging of the new coins in tubes, as the Gold Eagles and as Philharmonics are packaged, then avoid. Currency have milled edges
Although Gold Eagles edges, old U.S. gold coins ($ 20 Libs and St. Gaudens) are milled were beaten with lettering on the edges. So, lettering is not new to the U.S. Mint. With lettering, the edges are smooth, making the coins are less likely to scratch other coins in treatment. Philharmonics, which is not susceptible to damage, letters have their edges.
[Over the centuries, mints learned to design to guard against "shaving," a process in which a small amount of metal is "shaved" the edges gold coins. Milled edges are trimmed clearly audible. Light letters on the edges solves the problem. If no lettering can be seen on coins that are known to have been beaten with letters, then the coins shaven and no longer have their original gold content.]
If you Maple Leafs, Perth Mint .9999 fine gold coins have milled edges and carry an effigy of Queen Elizabeth II on the obverse (front). However, to protect against damage, the Coin The Perth Mint encapsulates them in plastic capsules. When Perth Mint gold coins are removed from their capsules and tubes, the coins are easily scratched as his Maple Leafs.
To go after a piece of the $ 2400000000 .9999 fine gold coin market, the Mint needs to consider the mindset of bullion coin investors. Bullion coin investors look for alternatives to paper money, they are not coin collectors. Bullion coin investors prefer coins packaged so they can be stored and secured easily.
This means that the coin must package the coins twenty to form a tube, which has become - in particular as a result of the Gold Eagles - are preferred. Five tubes favorable total hundred coins. Furthermore, the tubes are made of the same durable plastic which Gold Eagle pipes are manufactured. Hard plastic pipes, such as Philharmonics, and can break when dropped. Gold Eagle pipes, however, are virtually indestructible.
"Shave" for protection against the Mint should design with letters edges. Their new coins Letters edges would make the coins less prone to scratches.
The Mint is like to feel and weight. Their currencies after the bullion coin market, and bullion investors Packing the coins in tubes allows investors to more easily inspect their coins. Collectors, on the other hand, want to make. Their coins in such pristine condition Although capsules are excellent for protecting collector coins, coins individually packaged in capsules require more space for storage. The other aspect that the Mint has to consider is the theme of the coin.
The coin should be the theme to make something uniquely American, as it did with his American Eagles coins. For the Gold Eagles, the Mint chose a slimmed-down rendition of Augustus Saint-Gaudens' famous Standing Liberty, which he founded in 1907 to create a new Double Eagle ($ 20 gold coin) worship. Almost a hundred years later, the Saint Gaudens, the currency is now called, is seen as the most beautiful coin by the U.S. Mint.
For the Silver Eagles, the Mint chose AA Weinman Walking Liberty design, which was used on half dollars from 1916 to 1947. Walking Liberty halves are among the most popular silver coins ever turned out by the U.S. Mint. Based on the success of the Silver Eagles program (more than 128 million sold since their inception), making the Walking Liberty on Silver Eagles was the right move.
Some may argue that the Standing Liberty and the Walking Liberty used in American Eagles program, design and therefore the currency to go to another design. However, the Standing Liberty and the Walking Liberty immediately identified as American by the world's bullion coin buyers. Besides, is not so much Miss Liberty icon of our nation as the eagle?
If the U.S. Mint avoids the problems that have surfaced with Gold Maple Leafs and offers gold coin investors a strong alternative, then it has a golden opportunity to gain a large share of the .9999 fine gold market. With proper planning, could Currency grip of the Maple Leaf on the .9999 bullion to shake. Currency market
Bill Haynes heads CMI Gold & Silver, one of the nation? Oldest precious metals dealers. For more information about investing in gold and silver, visit
Sunday 29 December 2013
Friday 27 December 2013
Basic Options Terms
Options are good investing and speculative instruments. But options terminology can confuse even experienced investors. In this article we will take a few basic options terms.
Option - A contract giving the holder the right, but not the obligation, to buy or sell a particular security at a predetermined price provides for a certain period. The seller of the option has the obligation to the terms of the agreement is fulfilled in case of exercise of the buyer's option.
Call Option - A contract that gives the buyer the right, but not change the obligation, to buy at an exercise price a certain amount of underlying any time before the contract expires (if the American style option) or any expiration (as the European-style option). The call option buyer hopes the price of the shares will rise by a specific date when the put option seller hopes that the price of the shares to decline or remain stable by the specified date.
For example: I'm writing a call option with 100 Microsoft shares, strike at $ 35 and maturity in July. Now I have an obligation to the terms of the agreement are fulfilled. I get some money for this contract and I hope that the price will be more than $ 35, no. But if you exercise the option buyer contract I have to sell you 100 Microsoft shares at $ 35 each.
Put Option - An option contract giving the owner the right, but not the obligation, to sell at an exercise price a specified amount of an underlying asset within a certain time. The put option buyer hopes the price of the shares will drop by a specific date when the put option seller hopes that the price of the shares rise or remain stable by the specified date.
For example, I write a putt option with 100 Microsoft shares, strike at $ 35 and maturity in July. I get some money for this contract and I hope that the price will not be less than $ 35. But if you exercise the option buyer contract I should buy from you 100 Microsoft shares at $ 35 each.
Underlying Security - The stocks, commodities, futures or other financial instruments to which an option contract is based.
For example: In previous examples underlying security is Microsoft stock.
Exercise Price or Strike Price - The price that the option contract, the holder may buy or sell the underlying asset.
Due Date - The date on which an option and all rights associated with it ceases to exist. Maturity is the last day on which an option can be exercised.
Expiration - The date and time after which an option can not be exercised.
Exercise - can holder to the right to appeal associated with a particular option. In the exercise of a call option, the holder acquires shares at an exercise price of the vendor option. In the case of a put, the holder of the option the seller sells the stock option at the strike price.
Automatic Exercise - The automatic exercise of in-the-money option at expiration of the clearing firm.
Premium - the total price of an option both intrinsic and extrinsic or time.
In-the-Money Option - A call option is in-the-money if the strike price is lower than the market price of the underlying asset. A put option is in-the-money if the strike price is higher than the market price of the underlying asset
At-the-money - An option is at-the-money if the strike price is equal to the current market price of the underlying asset.
Out-of-the-Money - An option with strike price is above (in the case of a call) or below (in the case of a put) the current market price of the underlying asset.
Intrinsic Value - The part of the price of an option that can account for the amount by which the option is in-the-money. Intrinsic Value = Oprion price - TimeValue (for options in-the-money)
Time Value of extrinsic value - The amount by which the current price of an option exceeds its intrinsic value. The price of the out-of-the-money and at-the-money options consists exclusively of extrinsic value
Options can be risky, but you can control and reduce risks. If you buy newbie in options, buy some books, visit some seminars or online training before your first option or sell.
If you want to invest or trading courses, trainings or seminars will visit FPLab - Educational Resource for traders and investors Links catalog
Option - A contract giving the holder the right, but not the obligation, to buy or sell a particular security at a predetermined price provides for a certain period. The seller of the option has the obligation to the terms of the agreement is fulfilled in case of exercise of the buyer's option.
Call Option - A contract that gives the buyer the right, but not change the obligation, to buy at an exercise price a certain amount of underlying any time before the contract expires (if the American style option) or any expiration (as the European-style option). The call option buyer hopes the price of the shares will rise by a specific date when the put option seller hopes that the price of the shares to decline or remain stable by the specified date.
For example: I'm writing a call option with 100 Microsoft shares, strike at $ 35 and maturity in July. Now I have an obligation to the terms of the agreement are fulfilled. I get some money for this contract and I hope that the price will be more than $ 35, no. But if you exercise the option buyer contract I have to sell you 100 Microsoft shares at $ 35 each.
Put Option - An option contract giving the owner the right, but not the obligation, to sell at an exercise price a specified amount of an underlying asset within a certain time. The put option buyer hopes the price of the shares will drop by a specific date when the put option seller hopes that the price of the shares rise or remain stable by the specified date.
For example, I write a putt option with 100 Microsoft shares, strike at $ 35 and maturity in July. I get some money for this contract and I hope that the price will not be less than $ 35. But if you exercise the option buyer contract I should buy from you 100 Microsoft shares at $ 35 each.
Underlying Security - The stocks, commodities, futures or other financial instruments to which an option contract is based.
For example: In previous examples underlying security is Microsoft stock.
Exercise Price or Strike Price - The price that the option contract, the holder may buy or sell the underlying asset.
Due Date - The date on which an option and all rights associated with it ceases to exist. Maturity is the last day on which an option can be exercised.
Expiration - The date and time after which an option can not be exercised.
Exercise - can holder to the right to appeal associated with a particular option. In the exercise of a call option, the holder acquires shares at an exercise price of the vendor option. In the case of a put, the holder of the option the seller sells the stock option at the strike price.
Automatic Exercise - The automatic exercise of in-the-money option at expiration of the clearing firm.
Premium - the total price of an option both intrinsic and extrinsic or time.
In-the-Money Option - A call option is in-the-money if the strike price is lower than the market price of the underlying asset. A put option is in-the-money if the strike price is higher than the market price of the underlying asset
At-the-money - An option is at-the-money if the strike price is equal to the current market price of the underlying asset.
Out-of-the-Money - An option with strike price is above (in the case of a call) or below (in the case of a put) the current market price of the underlying asset.
Intrinsic Value - The part of the price of an option that can account for the amount by which the option is in-the-money. Intrinsic Value = Oprion price - TimeValue (for options in-the-money)
Time Value of extrinsic value - The amount by which the current price of an option exceeds its intrinsic value. The price of the out-of-the-money and at-the-money options consists exclusively of extrinsic value
Options can be risky, but you can control and reduce risks. If you buy newbie in options, buy some books, visit some seminars or online training before your first option or sell.
If you want to invest or trading courses, trainings or seminars will visit FPLab - Educational Resource for traders and investors Links catalog
Wednesday 25 December 2013
Invest or be Pink Slipped
Firing an employee seems easier for companies. Until now you allowed them to set your clocks. Now it's time to fight back! Beat them at their own game. They had linked your future. Now your security is in your own hands.
Companies are trying to make the best use of their resources so they claim. You should do the same! And when the corporation is no longer the best use of your resource give them their pink slip. You should start to look for ways to leverage your time and increase your profit potential. Think like a corporation on how you can increase your revenue per quarter.
This is exactly what I did and I'm so grateful for. I was six years old, started before diversify my income. I accomplished this by investing in commodities. I still remember the thrill of my first trading commodities. I managed to get $ 1500 to $ 18,000 in turns. Approximately 4 months That was almost identical to my $ 20,000 / year salary at that time. Until that moment, nothing I tried to do to earn a real income you know the kind of income that would allow them to spend and enjoy life, I actually worked.
I immediately stopped buying all the other so-called moneymaking material. I started focusing all my efforts on investing in commodities. A funny thing happened to me. I noticed I was doing my job better, because I was happier knowing my investments work for me. Had I was able to handle stress better. I started setting goals and taking vacations away from home instead of using my vacation time just as time off work.
I even started troubleshooting a challenge for others, but the solutions seemed to come to me with ease. I gradually moved into the business through promotions. I started watching the company as an investment for me. This vision I could start taking full advantage of their tuition reimbursement program and their interest-free loans for the purchase of computers.
My experience with investing in commodities I could change my perspective on life. When I got the news that I would have a job as a result of reorganization, from I felt no pressure. I had planned at this time, six years. Of course, everyone was quite shocked when I kept my composure and said the company was the best company I have ever worked.
I continued to work diligently and happy until the last day. You will see the company had paid for my college education, gave me two interest-free loans for my computer and gave me a lifetime of experience. Well, the truth is that I knew I had allowed me to earn to invest the money. My investments in commodities and the company
Diversifying your income now!
© Copyright David Wells. This newsletter and all its contents are proprietary products. All rights reserved. You are welcome to forward it to anyone interested. The entire newsletter
Often referred to as The Money Motivator, David Wells is passionate about helping people become crack the code to wealth money magnets. Let him teach you the techniques Hillary Clinton used $ 1,000 into $ 100,000 over the course of a year.
To The Money Motivator to work for you, visit his website at and sign up for his free newsletter, Money Moments. In it you? Will receive creative ways for getting the money you need and how to invest like a millionaire.
Companies are trying to make the best use of their resources so they claim. You should do the same! And when the corporation is no longer the best use of your resource give them their pink slip. You should start to look for ways to leverage your time and increase your profit potential. Think like a corporation on how you can increase your revenue per quarter.
This is exactly what I did and I'm so grateful for. I was six years old, started before diversify my income. I accomplished this by investing in commodities. I still remember the thrill of my first trading commodities. I managed to get $ 1500 to $ 18,000 in turns. Approximately 4 months That was almost identical to my $ 20,000 / year salary at that time. Until that moment, nothing I tried to do to earn a real income you know the kind of income that would allow them to spend and enjoy life, I actually worked.
I immediately stopped buying all the other so-called moneymaking material. I started focusing all my efforts on investing in commodities. A funny thing happened to me. I noticed I was doing my job better, because I was happier knowing my investments work for me. Had I was able to handle stress better. I started setting goals and taking vacations away from home instead of using my vacation time just as time off work.
I even started troubleshooting a challenge for others, but the solutions seemed to come to me with ease. I gradually moved into the business through promotions. I started watching the company as an investment for me. This vision I could start taking full advantage of their tuition reimbursement program and their interest-free loans for the purchase of computers.
My experience with investing in commodities I could change my perspective on life. When I got the news that I would have a job as a result of reorganization, from I felt no pressure. I had planned at this time, six years. Of course, everyone was quite shocked when I kept my composure and said the company was the best company I have ever worked.
I continued to work diligently and happy until the last day. You will see the company had paid for my college education, gave me two interest-free loans for my computer and gave me a lifetime of experience. Well, the truth is that I knew I had allowed me to earn to invest the money. My investments in commodities and the company
Diversifying your income now!
© Copyright David Wells. This newsletter and all its contents are proprietary products. All rights reserved. You are welcome to forward it to anyone interested. The entire newsletter
Often referred to as The Money Motivator, David Wells is passionate about helping people become crack the code to wealth money magnets. Let him teach you the techniques Hillary Clinton used $ 1,000 into $ 100,000 over the course of a year.
To The Money Motivator to work for you, visit his website at and sign up for his free newsletter, Money Moments. In it you? Will receive creative ways for getting the money you need and how to invest like a millionaire.
Monday 23 December 2013
Why Women Make Better Investors than Men
Being involved in a company that trains people how to actively trade in the stock market. I get the first hand the success or failure of our customers to see. Eighty percent of our customers are male. But I would bet that eighty percent of the successful stock traders are women.
Based on this experience, I began to wonder why it is that women tend to be better investors than men. I thought about it over and over, and I could not ignore the facts. Women make successful investors.
But why? I think it comes down to three simple words: EGO, EGO, EGO. The one thing that most people have in common is a big ego. Men tend to let their egos their decisions for them. They love when they have to sell. They buy in for fear of missing that one big chance. In other words, they do not invest to get out of the market, the best deal but to invest, so they look good (or bad).
Usually when people think of investing, they think of taking chances and risks. But the truth is that investing has much more to do with emotional intelligence than most people realize. Emotional intelligence is the ability to think about a situation and not to get emotionally involved with the lens. Women, in general, have a high emotional intelligence.
This quality makes women big investors. Instead of investing based on what will make them look good, women will invest according to a plan - not based on what mood they are in or that they are "good" or "error" will be.
Investing is not about being right or wrong. It's about making money. Women are able to get their ego aside in ways men have trouble doing up. This ability to put their ego aside makes women big investors.
Need proof? Ask yourself this: if a man and a woman are lost on a journey, which is more likely to stop and ask for directions? Women are more likely to investments ask questions until they fully understand the concepts. Men, on the other hand, may be afraid to ask the necessary questions because he can do poorly.
Women tend to invest learning provision. With a spirit And when they learn they implement solid plans. To say that they "know that a business is good", while men women you usually can tell why the company is good.
As more and more women turn to invest, I think we see this trend. Women better than men The ability of a woman to put her ego aside gives her all the upper hand in the investment strategy.
And because women are still paid less on average than men (a situation that needs to change - Pronto), women can use to invest more and work less their inherent advantages. So men can go, hard work, and earn a lot of money, while women can invest more, work less and earn more money.
Visit the Global Investment Institute and signup for our free Investing For Beginners E-Course at
Investment webmasters or publishers, please feel free to publish this article provided this reference is included and continue to actively use all the links.
Based on this experience, I began to wonder why it is that women tend to be better investors than men. I thought about it over and over, and I could not ignore the facts. Women make successful investors.
But why? I think it comes down to three simple words: EGO, EGO, EGO. The one thing that most people have in common is a big ego. Men tend to let their egos their decisions for them. They love when they have to sell. They buy in for fear of missing that one big chance. In other words, they do not invest to get out of the market, the best deal but to invest, so they look good (or bad).
Usually when people think of investing, they think of taking chances and risks. But the truth is that investing has much more to do with emotional intelligence than most people realize. Emotional intelligence is the ability to think about a situation and not to get emotionally involved with the lens. Women, in general, have a high emotional intelligence.
This quality makes women big investors. Instead of investing based on what will make them look good, women will invest according to a plan - not based on what mood they are in or that they are "good" or "error" will be.
Investing is not about being right or wrong. It's about making money. Women are able to get their ego aside in ways men have trouble doing up. This ability to put their ego aside makes women big investors.
Need proof? Ask yourself this: if a man and a woman are lost on a journey, which is more likely to stop and ask for directions? Women are more likely to investments ask questions until they fully understand the concepts. Men, on the other hand, may be afraid to ask the necessary questions because he can do poorly.
Women tend to invest learning provision. With a spirit And when they learn they implement solid plans. To say that they "know that a business is good", while men women you usually can tell why the company is good.
As more and more women turn to invest, I think we see this trend. Women better than men The ability of a woman to put her ego aside gives her all the upper hand in the investment strategy.
And because women are still paid less on average than men (a situation that needs to change - Pronto), women can use to invest more and work less their inherent advantages. So men can go, hard work, and earn a lot of money, while women can invest more, work less and earn more money.
Visit the Global Investment Institute and signup for our free Investing For Beginners E-Course at
Investment webmasters or publishers, please feel free to publish this article provided this reference is included and continue to actively use all the links.
Saturday 21 December 2013
Hedge Fund 101 - Make Money with Hedge Funds
Investors are always looking for the best investments that will yield the most profit. Any investor who can afford the extra cost should consider investing in Hedge Funds. Hedge Funds were launched in 1949 by Alfred Winslow Jones, who pioneered non-traditional investment strategies. Jones innovated this new investment by selling short stocks, while buying other stocks (long stocks). Hedge Funds are very similar to mutual funds except that fewer rules on Hedge Funds. As a result, hedge funds usually require a much larger investment.
What are Hedge Funds?
Hedge Funds can help investors make more money with a higher risk investments. Other techniques in Hedge Funds are "leverage" that money is borrowed to trade in addition to the information that one investor capital. Using Hedge Funds also requires an incentive fee. An incentive fee is a fee-based part the profits of the client, as opposed to a fixed percentage of the assets. This fee is then invested and ideally will get. investors more money
Generally, companies are the owners of Hedge Funds because most people do not have enough money to the minimum required to have a Hedge Fund investments meet. In 2004, investments Hedge Fund past the $ 1 trillion dollar mark. In mid-2004 about 39 companies shared the Hedge Fund total value of $ 1.1 trillion.
Common Techniques for investing
There are other techniques for investing in Hedge Funds. One way is to invest in a company just before a major merger. If one becomes aware of a merger, and purchasing large quantities of shares in a company that is about to merge, the shares rise sharply once the merger takes place. This is, unfortunately, a very high risk investment because some mergers may not occur.
Other techniques are short, that is where one invests in seemingly undervalued securities, trade commodities and FX contracts, and take advantage of the separation between the current market price and the highest purchase price in events such as mergers.
Why are Hedge Funds Beneficial?
Hedge Funds are also beneficial because of their high level of security. Hedge Funds are private, between individuals, and do not need to be made to the government or other companies. Known Currently, Hedge Funds are not registered with the SEC. Needed Hedge Funds are also based in places with less regulation (IE The Cayman Islands, The Virgin Islands, etc.). However, a disadvantage of Hedge Fund security is the fact that it looks suspiciously have mysterious investments. For this reason, many companies and investors criticized as being involved in Hedge Funds.
Conclusion
Hedge Funds are a very risky investment with a big payoff. To invest in Hedge Funds, one must be willing to do. A very large investment Hedge Funds are similar to mutual funds except that there is less regulation on Hedge Funds. Less regulation lead many people to be investors who invest in Hedge Funds suspicious. However, if one is willing to take the risk, Hedge Funds can definitely pay off!
Scott Hill Worth enjoys writing about financial topics. More information on Hedge Funds Blog, a blog with daily hedge fund research and news.
What are Hedge Funds?
Hedge Funds can help investors make more money with a higher risk investments. Other techniques in Hedge Funds are "leverage" that money is borrowed to trade in addition to the information that one investor capital. Using Hedge Funds also requires an incentive fee. An incentive fee is a fee-based part the profits of the client, as opposed to a fixed percentage of the assets. This fee is then invested and ideally will get. investors more money
Generally, companies are the owners of Hedge Funds because most people do not have enough money to the minimum required to have a Hedge Fund investments meet. In 2004, investments Hedge Fund past the $ 1 trillion dollar mark. In mid-2004 about 39 companies shared the Hedge Fund total value of $ 1.1 trillion.
Common Techniques for investing
There are other techniques for investing in Hedge Funds. One way is to invest in a company just before a major merger. If one becomes aware of a merger, and purchasing large quantities of shares in a company that is about to merge, the shares rise sharply once the merger takes place. This is, unfortunately, a very high risk investment because some mergers may not occur.
Other techniques are short, that is where one invests in seemingly undervalued securities, trade commodities and FX contracts, and take advantage of the separation between the current market price and the highest purchase price in events such as mergers.
Why are Hedge Funds Beneficial?
Hedge Funds are also beneficial because of their high level of security. Hedge Funds are private, between individuals, and do not need to be made to the government or other companies. Known Currently, Hedge Funds are not registered with the SEC. Needed Hedge Funds are also based in places with less regulation (IE The Cayman Islands, The Virgin Islands, etc.). However, a disadvantage of Hedge Fund security is the fact that it looks suspiciously have mysterious investments. For this reason, many companies and investors criticized as being involved in Hedge Funds.
Conclusion
Hedge Funds are a very risky investment with a big payoff. To invest in Hedge Funds, one must be willing to do. A very large investment Hedge Funds are similar to mutual funds except that there is less regulation on Hedge Funds. Less regulation lead many people to be investors who invest in Hedge Funds suspicious. However, if one is willing to take the risk, Hedge Funds can definitely pay off!
Scott Hill Worth enjoys writing about financial topics. More information on Hedge Funds Blog, a blog with daily hedge fund research and news.
Thursday 19 December 2013
The Power of Small Numbers: Trading Success is Based on Consistency, Not Home Runs
Online trading is so seductive - just sit, click, and rake in the profits! But as anyone who has ever seriously attempted online trading will probably tell you, it's just not as easy as it sounds.
Many novice traders are seduced by the lure of the "home run", that big trade
that makes you an instant millionaire and pull at night your own
private island paradise.
But when she wakes up.
To be on the trading of all kinds, really successful you need consistency, even if it
with small quantities. The ultimate goal is to keep the trade and then to
final wealth, but always go for the big wins they usually wind up with
large losses instead.
It is perfectly understandable that people are not interested in small profits.
After all, what would you have, big or small profits? Rather But the fact is
it's not a simple choice. Small gains are achieved more often, but
traders when they refuse to participate, they often lose much, much more.
Small but steady increase over time can add up to some truly huge numbers. For
For example, in option trading (my main area of focus for the last few years) is
not at all uncommon to hear about the profits of 100%, 300%, even 1000% in a single
trade! And while these results absolutely possible, by expecting them to be
our daily results we train our minds to accept nothing less and eventually
doom ourselves to disappointment.
To 10% profit taking. Imagine yourself training And what if you train
never too much of your money instead into a trade, but
manage it carefully? Say you have only 10% or less of your total trading
in a particular trade? If you would only be entitled to only half a profit of 5%
your total bill each month, compounding monthly earnings, you would
a better than 31% return in one year and more than 115% in just 3 years! How
much investment are you currently involved in the return as to have!
The key is small amounts, no big.
In the market there are usually only four possible outcomes:
1. A great asset
2. A small profit
3. A large loss
4. A small loss
Assume that over time, your small gains and small losses each average
out. That leaves you with only big profits and big losses. If you absolutely,
positively never allow yourself to believe that only leaves a great loss
the big profits. This large profits will ensure you a lot of money on
the long-term. You are not specifically for them, but we know
statistically, that as long as you can survive in the trading game long enough,
you are bound to occasionally some lucky "home runs" each.
You can not win if you're not in the game, and the way to stay in the game
by good money management, risk assessment, position sizing, etc. Without
these parts, most new traders blow up their accounts and never return to
the game.
Do not be one of those merchants.
There are to be made in online trading, fortunes but you should be able to stay in
the game. It is said that "the best offense is a good defense" and nowhere is
this more true than in the trade. Risk management and managing your money will
all but guarantee your success. The last major obstacle is your own emotions, but
that's a topic for my next article, "Emotions: A Trader Worst Enemy".
Jonathan van Clute is a full-time real estate investor, educator, speaker, and online options trader. In addition to his business activities, he is also a musician, video editor / animator, and one of the world's largest Segway Polo athletes. He can be reached via email at
Many novice traders are seduced by the lure of the "home run", that big trade
that makes you an instant millionaire and pull at night your own
private island paradise.
But when she wakes up.
To be on the trading of all kinds, really successful you need consistency, even if it
with small quantities. The ultimate goal is to keep the trade and then to
final wealth, but always go for the big wins they usually wind up with
large losses instead.
It is perfectly understandable that people are not interested in small profits.
After all, what would you have, big or small profits? Rather But the fact is
it's not a simple choice. Small gains are achieved more often, but
traders when they refuse to participate, they often lose much, much more.
Small but steady increase over time can add up to some truly huge numbers. For
For example, in option trading (my main area of focus for the last few years) is
not at all uncommon to hear about the profits of 100%, 300%, even 1000% in a single
trade! And while these results absolutely possible, by expecting them to be
our daily results we train our minds to accept nothing less and eventually
doom ourselves to disappointment.
To 10% profit taking. Imagine yourself training And what if you train
never too much of your money instead into a trade, but
manage it carefully? Say you have only 10% or less of your total trading
in a particular trade? If you would only be entitled to only half a profit of 5%
your total bill each month, compounding monthly earnings, you would
a better than 31% return in one year and more than 115% in just 3 years! How
much investment are you currently involved in the return as to have!
The key is small amounts, no big.
In the market there are usually only four possible outcomes:
1. A great asset
2. A small profit
3. A large loss
4. A small loss
Assume that over time, your small gains and small losses each average
out. That leaves you with only big profits and big losses. If you absolutely,
positively never allow yourself to believe that only leaves a great loss
the big profits. This large profits will ensure you a lot of money on
the long-term. You are not specifically for them, but we know
statistically, that as long as you can survive in the trading game long enough,
you are bound to occasionally some lucky "home runs" each.
You can not win if you're not in the game, and the way to stay in the game
by good money management, risk assessment, position sizing, etc. Without
these parts, most new traders blow up their accounts and never return to
the game.
Do not be one of those merchants.
There are to be made in online trading, fortunes but you should be able to stay in
the game. It is said that "the best offense is a good defense" and nowhere is
this more true than in the trade. Risk management and managing your money will
all but guarantee your success. The last major obstacle is your own emotions, but
that's a topic for my next article, "Emotions: A Trader Worst Enemy".
Jonathan van Clute is a full-time real estate investor, educator, speaker, and online options trader. In addition to his business activities, he is also a musician, video editor / animator, and one of the world's largest Segway Polo athletes. He can be reached via email at
Tuesday 17 December 2013
What Is A Fair Market Value, Really? If You're Going To Trade, Be Sure It's Worth It!
I've been involved in online trading, especially with stock and index options, for several years. In this time I have to think about value and the fact that a large part of the time everything, whether it's a stock or currency or even a house spent is worth exactly what someone else will pay. Sure, there are a million and a price models (especially in financial markets) that will tell you what something worth should be precise. But in the final analysis, if no one will pay that much, then it is not really worth that price.
Let us illustrate this concept in a very simple way. I'm an American so I will
Use U.S. currency to make my point.
What is an account worth $ 20? Without thinking about it and talking about inflation,
exchange rates, etc. Let's just say that it is believed to be worth the effort generally
$ 20.
Would you pay me $ 20 for a $ 20 bill? I'm probably not advisable, since there
would be no real reason to do so. You should go to the trouble of
to me $ 20 and I would have to go to the trouble of giving you my $ 20
bill, and none of us would be in a better position than we were before.
Therefore, I would like to present a $ 20 bill is not really the idea
worth $ 20 because nobody would probably pay $ 20 for it!
So how much would you pay for a $ 20 bill? Would you pay $ 19.99? Is it worth
the effort for 1 cent? No? How about $ 19.50? $ 19? Shall I continue?
In a free and fair market is the market itself that determines value, and
given a sufficiently large market, that value should be fairly accurate. I read a
article online some time ago about someone who decided to carry out an experiment
just for fun. He put a new $ 5 bill for auction online and began the wait
at 1 cent. He crafted a creative description of the note, and waited for the show
results. When it was all said and done, the bill had to sell in fact - for
just over $ 3. He spoke with the winning bidder, who said he had made a
profit many times online by purchasing currency for less than face value
(Including a $ 20 bill for less than $ 10 if I remember correctly).
The conductor of the experiment left it at that - nothing more than a somewhat
humorous exploration into what people think something is worth. But for me, this
meant so much more.
A dollar is not worth a dollar ... So what is it worth? What
would you trade for $ 1? For $ 20? For $ 100? $ 1,000? And if a dollar is not
actually worth a dollar, is part of the stock worth $ 50, or in fact anything at
all?
The answer is yes. At one point it is worth exactly what someone is
willing to pay for it. No more, no less. Money and value are only ideas,
they are no absolutes.
Consider this carefully the next time you're convinced the stock, option,
mint, house, or anything else that you want to buy is worth what you are going
pay.
Jonathan van Clute is a full-time real estate investor, educator, speaker, and online options trader. In addition to his business activities, he is also a musician, video editor / animator, and one of the world's largest Segway Polo athletes. He can be reached via email at
Let us illustrate this concept in a very simple way. I'm an American so I will
Use U.S. currency to make my point.
What is an account worth $ 20? Without thinking about it and talking about inflation,
exchange rates, etc. Let's just say that it is believed to be worth the effort generally
$ 20.
Would you pay me $ 20 for a $ 20 bill? I'm probably not advisable, since there
would be no real reason to do so. You should go to the trouble of
to me $ 20 and I would have to go to the trouble of giving you my $ 20
bill, and none of us would be in a better position than we were before.
Therefore, I would like to present a $ 20 bill is not really the idea
worth $ 20 because nobody would probably pay $ 20 for it!
So how much would you pay for a $ 20 bill? Would you pay $ 19.99? Is it worth
the effort for 1 cent? No? How about $ 19.50? $ 19? Shall I continue?
In a free and fair market is the market itself that determines value, and
given a sufficiently large market, that value should be fairly accurate. I read a
article online some time ago about someone who decided to carry out an experiment
just for fun. He put a new $ 5 bill for auction online and began the wait
at 1 cent. He crafted a creative description of the note, and waited for the show
results. When it was all said and done, the bill had to sell in fact - for
just over $ 3. He spoke with the winning bidder, who said he had made a
profit many times online by purchasing currency for less than face value
(Including a $ 20 bill for less than $ 10 if I remember correctly).
The conductor of the experiment left it at that - nothing more than a somewhat
humorous exploration into what people think something is worth. But for me, this
meant so much more.
A dollar is not worth a dollar ... So what is it worth? What
would you trade for $ 1? For $ 20? For $ 100? $ 1,000? And if a dollar is not
actually worth a dollar, is part of the stock worth $ 50, or in fact anything at
all?
The answer is yes. At one point it is worth exactly what someone is
willing to pay for it. No more, no less. Money and value are only ideas,
they are no absolutes.
Consider this carefully the next time you're convinced the stock, option,
mint, house, or anything else that you want to buy is worth what you are going
pay.
Jonathan van Clute is a full-time real estate investor, educator, speaker, and online options trader. In addition to his business activities, he is also a musician, video editor / animator, and one of the world's largest Segway Polo athletes. He can be reached via email at
Sunday 15 December 2013
Emotions: A Trader's Worst Enemy; Get Rid of Fear and Greed - You'll be Glad You Did
You hear it over and over and over in books, forums and chat rooms. Fear and greed, fear and greed, fear and greed. Emotions are a trader's worst enemy. What should we do? We are human after all. People have emotions. We can not just throw a switch and suddenly behave as "Data" on Star Trek the Next Generation.
So what is the answer for the aspiring entrepreneur?
It all comes down to two main components:
1. Having a plan
2. Having a suitable trading style
You hear often the first point. Unpleasant little phrases like "Plan your
trade, trade your plan "are thrown around as if it was really just that simple.
But without the second part, the first part is useless. What good is a plan if
you do not know what kind of plan is suitable?
For example, you could plan your commute to work is expected to create 30
mile trip in 20 minutes, but if you walk that plan is not going to work
very good is it? The plan was simply not suitable for you in that situation.
There are any number of possible trading methods and styles, from
chart reading to fundamental analysis, cycles to Fibonacci retracements,
intraday, Dogs of the DOW, options, futures, forex, Pork Bellies, Arbitration -
it can make you feel like your head will explode! But what you trade not
out almost as much as how, or perhaps why you trade.
Why should you trade?
Are you the type who likes to play video games, loves fast action, and has no
problem is glued to a screen all day? Then maybe intra-day trading 1 and 5
minute maps of high volatility stock options is for you.
Earlier check your trades maybe every few days, or maybe once a week? Than
perhaps swing trading currency pairs is more your style.
Rather sleep easy at all times, never worry in the least about your
trades because you knew in advance that they would benefit? When my friend,
arbitrage trading is calling your name.
Each style has its advantages and disadvantages, risks and rewards, but
the important thing is that the style of the trader must match. If you jump on the market
believe that just because someone else can do it this way then so can you -
you may be in for a very painful surprise.
Never trade someone else's plan. Never trade someone else's style. You
absolutely have your own temperament well enough to determine what you want
trade, and exactly how you will act. Your money management rules, your
tolerance for losses, ie costs, your willingness to change the trade if you
consultancy market is proven wrong - that are the real secrets of the trade
separate the novice from the veteran. With this in place, emotions can be
reduced if not eliminated.
After all, what would you most at ease? Driving through an unknown
city alone, unaccompanied, driving with a map or driving with a full color
street-level detail GPS navigation system?
I will take the GPS thank you.
So before you trade, consider the following your first, or next:
a. Do you understand what you trade and why?
b. You know what you will do given one of the possible outcomes?
c. Are you ready and willing to admit you were wrong about the trade, and if so, what will you do about it and when?
d. Are you comfortable with the thought of losing the money that you are on the market, and will survive your trading trade another day when you do that?
These are all part of what you need to have. In your plan I urge you to have at
if they thoroughly before risking the least amount of money in a
real trade.
Emotions - "You can not trade with 'em, and you must act without' em."
Jonathan van Clute is a full-time real estate investor, educator, speaker, and online options trader. In addition to his business activities, he is also a musician, video editor / animator, and one of the world's largest Segway Polo athletes. He can be reached via e-mail
So what is the answer for the aspiring entrepreneur?
It all comes down to two main components:
1. Having a plan
2. Having a suitable trading style
You hear often the first point. Unpleasant little phrases like "Plan your
trade, trade your plan "are thrown around as if it was really just that simple.
But without the second part, the first part is useless. What good is a plan if
you do not know what kind of plan is suitable?
For example, you could plan your commute to work is expected to create 30
mile trip in 20 minutes, but if you walk that plan is not going to work
very good is it? The plan was simply not suitable for you in that situation.
There are any number of possible trading methods and styles, from
chart reading to fundamental analysis, cycles to Fibonacci retracements,
intraday, Dogs of the DOW, options, futures, forex, Pork Bellies, Arbitration -
it can make you feel like your head will explode! But what you trade not
out almost as much as how, or perhaps why you trade.
Why should you trade?
Are you the type who likes to play video games, loves fast action, and has no
problem is glued to a screen all day? Then maybe intra-day trading 1 and 5
minute maps of high volatility stock options is for you.
Earlier check your trades maybe every few days, or maybe once a week? Than
perhaps swing trading currency pairs is more your style.
Rather sleep easy at all times, never worry in the least about your
trades because you knew in advance that they would benefit? When my friend,
arbitrage trading is calling your name.
Each style has its advantages and disadvantages, risks and rewards, but
the important thing is that the style of the trader must match. If you jump on the market
believe that just because someone else can do it this way then so can you -
you may be in for a very painful surprise.
Never trade someone else's plan. Never trade someone else's style. You
absolutely have your own temperament well enough to determine what you want
trade, and exactly how you will act. Your money management rules, your
tolerance for losses, ie costs, your willingness to change the trade if you
consultancy market is proven wrong - that are the real secrets of the trade
separate the novice from the veteran. With this in place, emotions can be
reduced if not eliminated.
After all, what would you most at ease? Driving through an unknown
city alone, unaccompanied, driving with a map or driving with a full color
street-level detail GPS navigation system?
I will take the GPS thank you.
So before you trade, consider the following your first, or next:
a. Do you understand what you trade and why?
b. You know what you will do given one of the possible outcomes?
c. Are you ready and willing to admit you were wrong about the trade, and if so, what will you do about it and when?
d. Are you comfortable with the thought of losing the money that you are on the market, and will survive your trading trade another day when you do that?
These are all part of what you need to have. In your plan I urge you to have at
if they thoroughly before risking the least amount of money in a
real trade.
Emotions - "You can not trade with 'em, and you must act without' em."
Jonathan van Clute is a full-time real estate investor, educator, speaker, and online options trader. In addition to his business activities, he is also a musician, video editor / animator, and one of the world's largest Segway Polo athletes. He can be reached via e-mail
Friday 13 December 2013
Investing and the Fear of Regret and Greed
People tend to feel sorrow and grief after having made an error in judgment.
Investors decision to buy or sell a security are typically emotionally affected by whether the security is purchased or sold for more or less than the current price.
One theory is that investors avoid selling stocks that go down to the fear, to avoid pain and regret having made a bad investment. On the other hand, they also avoid selling when prices go up, because they are very greedy and are afraid that the price will continue to rise.
Many people wonder why they are not 100% or 200% profits have taken when they had the chance. Ie their Most investors will rationalize they ran these high profits down because they were afraid they would lose even higher profits. In my opinion, for many of these investors, it was just greed that prevented them from selling their stocks.
Any experienced trader knows that fear and greed are two emotions that can dramatically affect your success in the market.
You have to deal with controlling greed and fear every day. While there are no easy answers when it comes to the stock market, one thing I am sure:
If you're a greedy trader and always try to squeeze out every last point of each trade, it is only a matter of time before you end up with a lot less than you actually started!.
Oliver Velez of http://www.Pristine.com says greed "that small sample in each individual. "Part of our success in the market, he says, is learning when this little monster a little more room to work and when to curtail its actions give." Each event has two ultimate outcomes - either a win or loss ", Velez says. "Greed can gaze at the stars, without any consideration of the rocks below. It can prevent you from considering that there is a downside and establishing a stop loss, or develop a systematic way of exit or termination of a trade if in fact things do not work. "
The embarrassment of having to report the loss to others can also contribute to the tendency not to sell losing investments or obtain.
Some researchers speculate that investors follow the crowd and conventional wisdom to the possibility of feeling regret in the event that their decisions prove to prevent incorrect.
Many investors find it easier to buy a popular stock and rationalize it down because all the property and thought so highly of.
Copyright © 2005 I.E.C. Haramis haramis@greekshares.com
Ioannis - Evangelos (Akis) C. Haramis was born in Greece in 1951 and studied in Greece, the U.S. and Belgium. He has been active in the equity markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank and the publisher of
Investors decision to buy or sell a security are typically emotionally affected by whether the security is purchased or sold for more or less than the current price.
One theory is that investors avoid selling stocks that go down to the fear, to avoid pain and regret having made a bad investment. On the other hand, they also avoid selling when prices go up, because they are very greedy and are afraid that the price will continue to rise.
Many people wonder why they are not 100% or 200% profits have taken when they had the chance. Ie their Most investors will rationalize they ran these high profits down because they were afraid they would lose even higher profits. In my opinion, for many of these investors, it was just greed that prevented them from selling their stocks.
Any experienced trader knows that fear and greed are two emotions that can dramatically affect your success in the market.
You have to deal with controlling greed and fear every day. While there are no easy answers when it comes to the stock market, one thing I am sure:
If you're a greedy trader and always try to squeeze out every last point of each trade, it is only a matter of time before you end up with a lot less than you actually started!.
Oliver Velez of http://www.Pristine.com says greed "that small sample in each individual. "Part of our success in the market, he says, is learning when this little monster a little more room to work and when to curtail its actions give." Each event has two ultimate outcomes - either a win or loss ", Velez says. "Greed can gaze at the stars, without any consideration of the rocks below. It can prevent you from considering that there is a downside and establishing a stop loss, or develop a systematic way of exit or termination of a trade if in fact things do not work. "
The embarrassment of having to report the loss to others can also contribute to the tendency not to sell losing investments or obtain.
Some researchers speculate that investors follow the crowd and conventional wisdom to the possibility of feeling regret in the event that their decisions prove to prevent incorrect.
Many investors find it easier to buy a popular stock and rationalize it down because all the property and thought so highly of.
Copyright © 2005 I.E.C. Haramis haramis@greekshares.com
Ioannis - Evangelos (Akis) C. Haramis was born in Greece in 1951 and studied in Greece, the U.S. and Belgium. He has been active in the equity markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank and the publisher of
Wednesday 11 December 2013
Seven Investment Terms Everyone Should Know
For those who have never given a second thought, their financial future, the term "Financial Planning" a scary. Investments can be a smart way to invest for your future money, but it can be confusing for people who have no experience in the financial business. Before you consult a financial planner is a good idea to familiarize yourself with some of the terms that you become likely to hear from him or her.
* Mutual Fund-An investment made with money that is collected by people with an investment objective in mind. The fund is handled primarily buys a person known as the fund manager. Mutual funds are easy and cost-effective, because you are responsible for making the decision about where to invest the money.
* Asset Allocation Fund-A mutual fund that contains different types of investments, such as stocks, bonds, real estate and foreign equities. These are typical of the small investors who want to invest in a variety of resources to maintain. Constant returns
* Risk-Return Trade-Off-This is the amount of money you can stand to lose relative to the amount of money you are willing to invest. Low risk investments often have low payouts, while the high-risk investments usually have higher payouts. When investing money you have the amount of money you can lose before determining how much money you are going to invest and where you decide to invest.
* Compounding-Money made an investment which are then reinvested in the same or another investment to generate. Their own income
* Bonds-Money that is lent to a company or government at a specified interest rate. The company will usually give a kind of document that explains the loan amount and the agreed interest rate and the total amount to be repaid at some time or "maturity".
* Stocks-Pieces of a company for sale. One could buy shares of a company at a certain price in the hope that the company would gain a significant amount of money and that they are able to sell at a higher price would be. Stocks
* Money Market Funds-money invested in debt by an investment fund. The aim is to obtain important money for the debt. The advantage of the Money Market Account is that they offer very low investment of less than $ 1.00.
Timothy Gorman is a successful Webmaster and publisher of . He provides more debt relief, credit counseling, repair and free financial planning information that you can research in your pajamas on his website.
* Mutual Fund-An investment made with money that is collected by people with an investment objective in mind. The fund is handled primarily buys a person known as the fund manager. Mutual funds are easy and cost-effective, because you are responsible for making the decision about where to invest the money.
* Asset Allocation Fund-A mutual fund that contains different types of investments, such as stocks, bonds, real estate and foreign equities. These are typical of the small investors who want to invest in a variety of resources to maintain. Constant returns
* Risk-Return Trade-Off-This is the amount of money you can stand to lose relative to the amount of money you are willing to invest. Low risk investments often have low payouts, while the high-risk investments usually have higher payouts. When investing money you have the amount of money you can lose before determining how much money you are going to invest and where you decide to invest.
* Compounding-Money made an investment which are then reinvested in the same or another investment to generate. Their own income
* Bonds-Money that is lent to a company or government at a specified interest rate. The company will usually give a kind of document that explains the loan amount and the agreed interest rate and the total amount to be repaid at some time or "maturity".
* Stocks-Pieces of a company for sale. One could buy shares of a company at a certain price in the hope that the company would gain a significant amount of money and that they are able to sell at a higher price would be. Stocks
* Money Market Funds-money invested in debt by an investment fund. The aim is to obtain important money for the debt. The advantage of the Money Market Account is that they offer very low investment of less than $ 1.00.
Timothy Gorman is a successful Webmaster and publisher of . He provides more debt relief, credit counseling, repair and free financial planning information that you can research in your pajamas on his website.
Monday 9 December 2013
Preparing to Invest: How to get started
Investments can be a source of great potential income. The two most common reasons that a person invests his or they do not have the money or they do not know how to start. These are to prepare and invest some things to consider before investing. Several ways
Save money to invest
* Lower debt
Everyone has debt and most will always be some debts, but if your outstanding credit card debt, then this may not be a good time to be investing. Credit card debt can consume and the best way to be and to create and atmosphere where you are able to save money, you should pay off high interest credit cards financially stable. If you have the maximum reached more than two credit cards or your cards and you're making minimum payments then you need to invest in paying off these debts before investing in other ways. Everything extra money
* Make Emergency Funds
Everyone needs an emergency fund for unexpected liabilities or accidents. Financial advisors will recommend that you rely on in case you lose your job or reach back at least three months of funds or 15% of annual income unexpected costs.
* Maximize Employment Benefits
If your employer has a 401 K plan, offers make sure you take full advantage of this plan. Strive to the maximum amount allowed per month. You may not think of this as an "investment" However, 401 K and similar plans are some of the best investments a person can make for their future.
Before you invest
* Consider your options
There are many different ways to invest your money. Do not rush into a decision based on advice from friends or family. Research and consulting many sources before deciding on the investment that is exactly for you. You need a goal. Ask yourself how quickly you want the return on investment and how much money you want and how much money conceivable to see your release.
* Financial Advisors
Financial Consultants can be when choosing your investment strategies. An excellent source of information In fact, if you are not familiar with the processes involved, they are almost essential. Before choosing a financial advisor, you should interview several to find exactly what you are getting for your money and always ask for references when interviewing a consultant. Figure
Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, credit counseling, repair and free financial planning information that you can research in your pajamas on his website.
Save money to invest
* Lower debt
Everyone has debt and most will always be some debts, but if your outstanding credit card debt, then this may not be a good time to be investing. Credit card debt can consume and the best way to be and to create and atmosphere where you are able to save money, you should pay off high interest credit cards financially stable. If you have the maximum reached more than two credit cards or your cards and you're making minimum payments then you need to invest in paying off these debts before investing in other ways. Everything extra money
* Make Emergency Funds
Everyone needs an emergency fund for unexpected liabilities or accidents. Financial advisors will recommend that you rely on in case you lose your job or reach back at least three months of funds or 15% of annual income unexpected costs.
* Maximize Employment Benefits
If your employer has a 401 K plan, offers make sure you take full advantage of this plan. Strive to the maximum amount allowed per month. You may not think of this as an "investment" However, 401 K and similar plans are some of the best investments a person can make for their future.
Before you invest
* Consider your options
There are many different ways to invest your money. Do not rush into a decision based on advice from friends or family. Research and consulting many sources before deciding on the investment that is exactly for you. You need a goal. Ask yourself how quickly you want the return on investment and how much money you want and how much money conceivable to see your release.
* Financial Advisors
Financial Consultants can be when choosing your investment strategies. An excellent source of information In fact, if you are not familiar with the processes involved, they are almost essential. Before choosing a financial advisor, you should interview several to find exactly what you are getting for your money and always ask for references when interviewing a consultant. Figure
Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, credit counseling, repair and free financial planning information that you can research in your pajamas on his website.
Saturday 7 December 2013
Have Analysts Gotten Honest?
It caught my attention when I heard an analyst on a popular financial news program tell investors to sell a stock because too many analysts liked the company, citing the fact that there is no sell ratings.
It seemed very logical to me that analysts should not tell investors 3M (MMM), which is one of the most consistent positive results records in the history of the exchanges has to sell. But the suspicion of conflicts of interest between brokers and analysts I decided to check it anyway. A bit of facts
While the stock is not at the time of writing had no sell ratings, there were quite a few hold ratings. Now I feel compelled to diverge here and say that the figure seems rather illogical than me. If a file is good enough to hold it's good enough to buy, and vice versa if you would not want to buy then you should not want to either stick to it.
As it turns out, the average analyst rating for 3M was only light and insignificant better than the average for all stocks in the Dow Jones Industrial Average, which the company is a part.
But what was most interesting about ratings on Dow components was that, despite the numerous and serious legal problems, AIG (AIG) was tied with General Electric (GE) and Du Pont (DD) for the third best rating, bested only by Citigroup (C) and Microsoft (MSFT). AIG was actually more highly recommended by analysts than JP Morgan Chase (JPM) and American Express (AXP).
This did not do much for my confidence in analyst ratings.
So I dug a little deeper look at the more statistically significant S & P 500. What I found was that companies in the index with the worst income has actually done more sell ratings than companies with the best performance.
At least analysts were with the sell rating, something they rarely did in the past.
However, there was a significant preference for the neutral "Hold" rating to commit to buying recommendations for all files indicates reluctance on the part of analysts and sell.
Mark Mahorney is a freelance financial writer for hire.
Mark Mahorney
It seemed very logical to me that analysts should not tell investors 3M (MMM), which is one of the most consistent positive results records in the history of the exchanges has to sell. But the suspicion of conflicts of interest between brokers and analysts I decided to check it anyway. A bit of facts
While the stock is not at the time of writing had no sell ratings, there were quite a few hold ratings. Now I feel compelled to diverge here and say that the figure seems rather illogical than me. If a file is good enough to hold it's good enough to buy, and vice versa if you would not want to buy then you should not want to either stick to it.
As it turns out, the average analyst rating for 3M was only light and insignificant better than the average for all stocks in the Dow Jones Industrial Average, which the company is a part.
But what was most interesting about ratings on Dow components was that, despite the numerous and serious legal problems, AIG (AIG) was tied with General Electric (GE) and Du Pont (DD) for the third best rating, bested only by Citigroup (C) and Microsoft (MSFT). AIG was actually more highly recommended by analysts than JP Morgan Chase (JPM) and American Express (AXP).
This did not do much for my confidence in analyst ratings.
So I dug a little deeper look at the more statistically significant S & P 500. What I found was that companies in the index with the worst income has actually done more sell ratings than companies with the best performance.
At least analysts were with the sell rating, something they rarely did in the past.
However, there was a significant preference for the neutral "Hold" rating to commit to buying recommendations for all files indicates reluctance on the part of analysts and sell.
Mark Mahorney is a freelance financial writer for hire.
Mark Mahorney
Thursday 5 December 2013
Creating a Financial Future - Putting Your Plan Into Action Part 1
This column has previously discussed "picturing the future we want", and that a plan to achieve this. We said that the plan of goals, measurements, and implementation should include. The fact that the embodiment is directed towards this column.
Putting the plan into action is what implementation is all about. Its one thing to have goals, but without concrete steps to achieve them, they remain dreams. The last column discussed measure of money for each of these goals. Now is the time to find out how we're going to put that money. Together
Of course, the first step is for the obvious. We need a source of income. This would be a salary, a donation, or even a loan (although we would normally advise against the latter option). One could consider multiple sources of income. This protects against excessive reliance on one source.
Assuming some income exists, we can begin to make plans for savings. Based on our analysis, we can determine how much should be saved on a daily, weekly, monthly or annual basis to achieve our goals. We can then consider whether it is possible to get the money fast enough to achieve growth. Our target date
If, in the end, we do not find ourselves able to save for our goals, we must remember that adequately the problem is not in our plan, but in our income levels. Sometimes it's just a matter of recognizing that goals can be without adjusting income levels. Unreachable This might involve second job, or side businesses, or rather may require stepping back from the situation completely, and increasing employability through education and training. It may also suggest that new, creative ideas to be considered. Alternatively, simply on sale of non-productive assets. Whatever may be the case, the income level is a crucial part of a financial strategy, and often overlooked by investment professionals.
Finally, when the incomes and savings decisions are established, we turn to the last part: the investment strategy. The latter strategy may include many different types of investments, and use many different types of methods, but in the end, it should always focus on the objectives.
For example, if the goal is to buy in one year, investing in stocks is not a house, the optimal strategy unless you plan to have a great deal of risk taking. On the other hand, if you are planning to buy if you have earned enough money, a house, but plan to continue regarding the specific time, flexibly stocks are more viable.
This brings us to the treatment of type assets. This is one of the most important decisions to make. There are at least a dozen different types of assets to choose from. Some of the most popular are:
Stocks Mutual Funds Real Estate Limited Partnerships
Art & Collectibles Gold / Commodities Bonds Insurance
Companies Derivatives
Of course, this list can go on, but we will focus on some of these. Let's first get rid of the obvious. Investing in a business can be a good choice for someone with a solid business plan and sufficient time and capital to make it works. However, many companies have a full-time commitment, and unless one is able to do their regular income, it can be a problem. It is possible to start part-time, a company is dependent on the type, and this may be an option for some. You could also invest in other people's business, but should be concerned with issues of fairness, compatibility, and incentive here. Finally, investing in a company with liquidity problems themselves, because they do not always sell a business for what it's worth, without first locating an ideal buyer. So, if you have planned to sell at a certain date, pending the achievement of a goal, you have problems.
Limited partnerships with them unnecessary trouble, especially because there is not a large market for both. So, even if they value, one may not be able to easily sell them. In this way they appear on investing in small businesses, and carry the same risks.
Insurance really should not be regarded as an investment, but I include it here because it is so often sold as an investment. In many ways one can help you plan for tax considerations, but as a pure investment, it is a non-starter.
Art & Collectibles may sometimes increase in value over time, and for people with specialized knowledge in a particular area, it may be a wise speculation. However, just like running a business, it takes time and energy, and has liquidity problems. Yet this one small part of a portfolio for some investors.
Commodities are greatest asset of a uniform point for all uniform value. This would include oil, orange juice, coal, silver, or pork bellies. Gold is a commodity with unique properties because of its long history of use as money and reputation as a reliable store of value. All goods have fluctuating prices in common, and those who invest in commodities generally have a thorough knowledge of the market for that particular good. Over 90% of people who lose money investing in commodities, while generally make a comfortable living. Experts Investing in commodities can be very risky for those who do not have specialized knowledge.
Reach Scott Pearson for comment or to learn about its investment adviser services, visit
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S.
Putting the plan into action is what implementation is all about. Its one thing to have goals, but without concrete steps to achieve them, they remain dreams. The last column discussed measure of money for each of these goals. Now is the time to find out how we're going to put that money. Together
Of course, the first step is for the obvious. We need a source of income. This would be a salary, a donation, or even a loan (although we would normally advise against the latter option). One could consider multiple sources of income. This protects against excessive reliance on one source.
Assuming some income exists, we can begin to make plans for savings. Based on our analysis, we can determine how much should be saved on a daily, weekly, monthly or annual basis to achieve our goals. We can then consider whether it is possible to get the money fast enough to achieve growth. Our target date
If, in the end, we do not find ourselves able to save for our goals, we must remember that adequately the problem is not in our plan, but in our income levels. Sometimes it's just a matter of recognizing that goals can be without adjusting income levels. Unreachable This might involve second job, or side businesses, or rather may require stepping back from the situation completely, and increasing employability through education and training. It may also suggest that new, creative ideas to be considered. Alternatively, simply on sale of non-productive assets. Whatever may be the case, the income level is a crucial part of a financial strategy, and often overlooked by investment professionals.
Finally, when the incomes and savings decisions are established, we turn to the last part: the investment strategy. The latter strategy may include many different types of investments, and use many different types of methods, but in the end, it should always focus on the objectives.
For example, if the goal is to buy in one year, investing in stocks is not a house, the optimal strategy unless you plan to have a great deal of risk taking. On the other hand, if you are planning to buy if you have earned enough money, a house, but plan to continue regarding the specific time, flexibly stocks are more viable.
This brings us to the treatment of type assets. This is one of the most important decisions to make. There are at least a dozen different types of assets to choose from. Some of the most popular are:
Stocks Mutual Funds Real Estate Limited Partnerships
Art & Collectibles Gold / Commodities Bonds Insurance
Companies Derivatives
Of course, this list can go on, but we will focus on some of these. Let's first get rid of the obvious. Investing in a business can be a good choice for someone with a solid business plan and sufficient time and capital to make it works. However, many companies have a full-time commitment, and unless one is able to do their regular income, it can be a problem. It is possible to start part-time, a company is dependent on the type, and this may be an option for some. You could also invest in other people's business, but should be concerned with issues of fairness, compatibility, and incentive here. Finally, investing in a company with liquidity problems themselves, because they do not always sell a business for what it's worth, without first locating an ideal buyer. So, if you have planned to sell at a certain date, pending the achievement of a goal, you have problems.
Limited partnerships with them unnecessary trouble, especially because there is not a large market for both. So, even if they value, one may not be able to easily sell them. In this way they appear on investing in small businesses, and carry the same risks.
Insurance really should not be regarded as an investment, but I include it here because it is so often sold as an investment. In many ways one can help you plan for tax considerations, but as a pure investment, it is a non-starter.
Art & Collectibles may sometimes increase in value over time, and for people with specialized knowledge in a particular area, it may be a wise speculation. However, just like running a business, it takes time and energy, and has liquidity problems. Yet this one small part of a portfolio for some investors.
Commodities are greatest asset of a uniform point for all uniform value. This would include oil, orange juice, coal, silver, or pork bellies. Gold is a commodity with unique properties because of its long history of use as money and reputation as a reliable store of value. All goods have fluctuating prices in common, and those who invest in commodities generally have a thorough knowledge of the market for that particular good. Over 90% of people who lose money investing in commodities, while generally make a comfortable living. Experts Investing in commodities can be very risky for those who do not have specialized knowledge.
Reach Scott Pearson for comment or to learn about its investment adviser services, visit
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S.
Tuesday 3 December 2013
Creating a Financial Future--Putting Your Plan Into Action Part 2
Real Estate can be a useful tool for investing are. The easiest real estate investment is not really an investment, but a cost reduction - that is owning your own home. Buy rather than rent allows housing costs put in someone else's bag in the direction of the assets rather than. However, if the interest is high, the amount you pay to borrow money would make the deal. Less attractive Today, with interest rates at an all-time low, it is difficult to imagine many cases where renting is more attractive than purchasing. Income Real Estate is also feasible for some. This would include the possession of small apartment buildings, storage facilities, or shopping malls. This is however to time commitments, just like running any other business, but the income can be very positive if you have selected your property. Carefully
Bonds represent money loaned to companies or governments at interest. This is a fairly safe way to make money as long as you secure loan to companies or governments. But a K-Mart bond, or a government of Zimbabwe union would obviously not a wise choice today. Like bond-rating agencies of severe recession or depression and falling interest rates. However, when interest rates rise, older bonds issued at a lower interest rate can actually lose value precipitiously. So, in this era of fast moving interest rates, bond prices tend to fluctuate much more widely than in the past, and their reputation as a perfect investment for widows and orphans is no longer viable. While they are useful compounds are themselves sterile, as part of a comprehensive plan. By this I mean that they do not grow. As a growing portfolio is important to you, bonds may not be useful. As with any other type of investment, one must consider the broad implications.
Stocks represent ownership interests in companies. As with investing in private companies, an owner of the actual company. However, stocks avoid some of the problems of investing in smaller companies. Liquidity is not a big problem, because they can sell when needed. Shares Moreover, one need not worry about making a part-time commitment to running the company, such as corporate management is already in place. However, one must always check the management to ensure they are working in the best interest of the shareholders. Normally one can depend on the media and assist in this monitoring process, but this method fails off. Yet, despite this problem, stocks are often the ideal investment for most people.
Mutual funds are simply baskets of stocks, bonds or other investments, together with other shareholders of the Fund. They help small investors diversify their business. (Diversification vs. Concentration - one can choose to distribute a wide range of investments or to concentrate in one or two general concentration their money is much more risky ..)
Derivatives are a broad category of vehicles that are 'derived' from other investments. This can include options, futures, swaps or. Options considered derivatives for example because they are based on the performance of a company stock. If the stock goes up or down, the option more or less worthwhile. Derivatives are sometimes useful for large account management, but generally provide a more intense result. So if a company's stock go up a small amount, may be an option to go up a lot, and vice versa. This use of leverage can riskier derivatives, and generally unsuitable for retail investors.
In much the same way, using the debt for investing, such as purchasing, margin also increases leverage, and thereby increases the intensity and risk. We recommend avoiding loans for investment, except in extreme cases, such as the risk makes this option stressful for many.
The choice of assets is only part of the battle. Most importantly, one must choose whether to invest for income, growth, or incrementalism.
Reach Scott Pearson for comment or to learn about its investment adviser services, visit
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S.
Bonds represent money loaned to companies or governments at interest. This is a fairly safe way to make money as long as you secure loan to companies or governments. But a K-Mart bond, or a government of Zimbabwe union would obviously not a wise choice today. Like bond-rating agencies of severe recession or depression and falling interest rates. However, when interest rates rise, older bonds issued at a lower interest rate can actually lose value precipitiously. So, in this era of fast moving interest rates, bond prices tend to fluctuate much more widely than in the past, and their reputation as a perfect investment for widows and orphans is no longer viable. While they are useful compounds are themselves sterile, as part of a comprehensive plan. By this I mean that they do not grow. As a growing portfolio is important to you, bonds may not be useful. As with any other type of investment, one must consider the broad implications.
Stocks represent ownership interests in companies. As with investing in private companies, an owner of the actual company. However, stocks avoid some of the problems of investing in smaller companies. Liquidity is not a big problem, because they can sell when needed. Shares Moreover, one need not worry about making a part-time commitment to running the company, such as corporate management is already in place. However, one must always check the management to ensure they are working in the best interest of the shareholders. Normally one can depend on the media and assist in this monitoring process, but this method fails off. Yet, despite this problem, stocks are often the ideal investment for most people.
Mutual funds are simply baskets of stocks, bonds or other investments, together with other shareholders of the Fund. They help small investors diversify their business. (Diversification vs. Concentration - one can choose to distribute a wide range of investments or to concentrate in one or two general concentration their money is much more risky ..)
Derivatives are a broad category of vehicles that are 'derived' from other investments. This can include options, futures, swaps or. Options considered derivatives for example because they are based on the performance of a company stock. If the stock goes up or down, the option more or less worthwhile. Derivatives are sometimes useful for large account management, but generally provide a more intense result. So if a company's stock go up a small amount, may be an option to go up a lot, and vice versa. This use of leverage can riskier derivatives, and generally unsuitable for retail investors.
In much the same way, using the debt for investing, such as purchasing, margin also increases leverage, and thereby increases the intensity and risk. We recommend avoiding loans for investment, except in extreme cases, such as the risk makes this option stressful for many.
The choice of assets is only part of the battle. Most importantly, one must choose whether to invest for income, growth, or incrementalism.
Reach Scott Pearson for comment or to learn about its investment adviser services, visit
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S.
Sunday 1 December 2013
Seecrets on Investment: Tired of Making Huge Losses in the Stock Market - Part 1
Over 80% of all individual investors lose money in a given time span of ten years. This figure is probably higher, since most people reluctance to reveal their losses. This article provides a broad overview of the financial landscape. Reflects the personal views of the author as an individual investor and author of a stock charting software with the experiences learned from the University of HK (hit hard). Use this article as the sole form of financial advice. Financial advice are available from authorized individuals and businesses, as required by law in your own country.
Investment is a statistical game. You win and sometimes you lose most of the time. To stay ahead, all you have to do is to make sure that your profits are more than you lose. More importantly, how to reduce losses and reduce the errors will be crucial in successful investing.
Take a typical fund manager. Of the ten positions, the fund manager can only win 40% of the time. Say, the manager makes an average return of 20% for each position. The rest are mistakes, but this manager capped the losses by 10% each. Do the simple math, and lo and behold, this manager is moving forward with profits. This is a simple example - professional fund managers use complex variations of this simple theme.
Another example is the venture capitalist. Say, of the ten companies, but succeeded. The company was successful return of 2000%, perhaps more productive. The remaining nine companies failed miserably and these investments are depreciated. Using this model, the venture capitalist is still ahead.
Headlines, media, advertising hype.
Most of us are familiar with this typical headline: "Whiz kid makes stock picks that most fund managers to outperform the market better." When such stories is front page news on the mainstream media, it is likely that they appear at the end of a great bull market. Stories like these characterize the misconception that anyone can pick stocks at random and win all the time.
Perhaps, a more enticing advertisement "How I 2600% (annualized) on a winning trade" may be interested to us. Any seasoned investor will be able to get a handful of transactions spectacular performance, such as 50% in a week has to offer. annualize this and it works to 2600% a year. But such transactions are few. There is no one in the world that such a method or strategy that is consistent and sustainable.
It is wise to deal with a critical mind and skepticism the media. Rationalisation of the possible reasons why the story appears a number of useful and not so clear understanding. For example, if you have a large position in a stock, then obviously you will only sing praises about why they will take to encourage buying. Momentum more her colleagues The author recalls a private analyst statement: "I can write great merits a reverse stock I can write some scathing things too."
Market gurus, financial astrology, divination.
Joseph Granville, a market technician, started his newsletter (Granville Market Letter) in 1963 and is still going strong at the age of 80 +. He was accurate to predict the market decline in 1976, but was wrong in 1982 and 1995. Given the statistical nature of investing, he had his successful talks and his fair share of blunders too. The good feature of this man must be willing to apologize to his. For his mistakes
Why do people continue to subscribe to his newsletter? This author suspects that his loyal customers are people who have their own opinions and views can form on the market, but they are susceptible to a different perspective or point of view they have missed in their own analyzes.
It's the same with other known market gurus. It seemed the media and the public are intolerant of their success rates as being not good enough. The estimates of this market gurus should be treated as a tsunami warning. Nine times out of ten, the warning appears to be false and people accept it and track with their normal lives. Each warning is taken seriously and the cost of taking precautions are minimal. When a warning proves to be accurate, it will save lives. It should be the same with predictions of market crashes this market gurus' are. Investors have to prepare just as they would with an impending tsunami warning. Itself
After seeing a BBC program on Membrane theory, May 11-dimensional worlds and parallel universes, financial astrology, feng shui and other methods of divination have some merit. This author recommends investors to have an open mind and, more importantly, understanding the strengths and weaknesses of each method. By taking advantage of the strengths, one can indeed enjoy the benefits.
The concluding part 2 will outline fundamental analysis, technical analysis, plus some tips on successful investing.
You may freely reprint this article provided you publish it in its entirety, including the author's bio and activating the link to the URL below.
The author, Stan Seecrets, is a veteran software developer with 25 + years experience in which specializes in protecting digital assets. He has real-time pricing systems developed and has witnessed the stock market collapse of 1987 and 2000/2001 in real-time. You can reach him via email (Stan Seecrets.biz).
© Copyright 2005, Stan Seecrets. All rights reserved.
Investment is a statistical game. You win and sometimes you lose most of the time. To stay ahead, all you have to do is to make sure that your profits are more than you lose. More importantly, how to reduce losses and reduce the errors will be crucial in successful investing.
Take a typical fund manager. Of the ten positions, the fund manager can only win 40% of the time. Say, the manager makes an average return of 20% for each position. The rest are mistakes, but this manager capped the losses by 10% each. Do the simple math, and lo and behold, this manager is moving forward with profits. This is a simple example - professional fund managers use complex variations of this simple theme.
Another example is the venture capitalist. Say, of the ten companies, but succeeded. The company was successful return of 2000%, perhaps more productive. The remaining nine companies failed miserably and these investments are depreciated. Using this model, the venture capitalist is still ahead.
Headlines, media, advertising hype.
Most of us are familiar with this typical headline: "Whiz kid makes stock picks that most fund managers to outperform the market better." When such stories is front page news on the mainstream media, it is likely that they appear at the end of a great bull market. Stories like these characterize the misconception that anyone can pick stocks at random and win all the time.
Perhaps, a more enticing advertisement "How I 2600% (annualized) on a winning trade" may be interested to us. Any seasoned investor will be able to get a handful of transactions spectacular performance, such as 50% in a week has to offer. annualize this and it works to 2600% a year. But such transactions are few. There is no one in the world that such a method or strategy that is consistent and sustainable.
It is wise to deal with a critical mind and skepticism the media. Rationalisation of the possible reasons why the story appears a number of useful and not so clear understanding. For example, if you have a large position in a stock, then obviously you will only sing praises about why they will take to encourage buying. Momentum more her colleagues The author recalls a private analyst statement: "I can write great merits a reverse stock I can write some scathing things too."
Market gurus, financial astrology, divination.
Joseph Granville, a market technician, started his newsletter (Granville Market Letter) in 1963 and is still going strong at the age of 80 +. He was accurate to predict the market decline in 1976, but was wrong in 1982 and 1995. Given the statistical nature of investing, he had his successful talks and his fair share of blunders too. The good feature of this man must be willing to apologize to his. For his mistakes
Why do people continue to subscribe to his newsletter? This author suspects that his loyal customers are people who have their own opinions and views can form on the market, but they are susceptible to a different perspective or point of view they have missed in their own analyzes.
It's the same with other known market gurus. It seemed the media and the public are intolerant of their success rates as being not good enough. The estimates of this market gurus should be treated as a tsunami warning. Nine times out of ten, the warning appears to be false and people accept it and track with their normal lives. Each warning is taken seriously and the cost of taking precautions are minimal. When a warning proves to be accurate, it will save lives. It should be the same with predictions of market crashes this market gurus' are. Investors have to prepare just as they would with an impending tsunami warning. Itself
After seeing a BBC program on Membrane theory, May 11-dimensional worlds and parallel universes, financial astrology, feng shui and other methods of divination have some merit. This author recommends investors to have an open mind and, more importantly, understanding the strengths and weaknesses of each method. By taking advantage of the strengths, one can indeed enjoy the benefits.
The concluding part 2 will outline fundamental analysis, technical analysis, plus some tips on successful investing.
You may freely reprint this article provided you publish it in its entirety, including the author's bio and activating the link to the URL below.
The author, Stan Seecrets, is a veteran software developer with 25 + years experience in which specializes in protecting digital assets. He has real-time pricing systems developed and has witnessed the stock market collapse of 1987 and 2000/2001 in real-time. You can reach him via email (Stan Seecrets.biz).
© Copyright 2005, Stan Seecrets. All rights reserved.
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