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Investing – How To Profit Using Formulas

admin — Mon, 19 Apr 2010 09:33:48 +0000

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

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

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

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

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

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

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

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

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Investment Newsgroup A Hidden Gem for Investors

admin — Tue, 30 Mar 2010 17:26:35 +0000

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

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

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

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

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

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

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

Crush the Stock Market Without Trading Stocks

admin — Sun, 28 Feb 2010 23:41:54 +0000

Do you look at the stock market and wish you’d bought some Google stock back when it was first offered for $104? You’d have gained nearly 300% on that investment in the first year – that’s roughly 9.2% each month! That’s a Wall Street level of success!

Imagine if I could show you an investment opportunity that could easily give you over 14% monthly? What if 21.5% per month was within reach? These yearly returns of anywhere from 500% to 1000% are possible for anyone who has the initiative to go out and get them. That’s 2-4X MORE than GOOGLE, one of the fastest growing stocks IN HISTORY! We’re talking about an investment opportunity where your returns will crush even the top gainers of the stock market. Are you starting to get curious about how these numbers are attainable?

You can beat the stock game by playing a different game, the Foreign Exchange trading game. Also referred to as Forex, the Foreign Exchange market is where one country’s currency is traded for another’s. You can buy 1100 Euros for $1000 US Dollars while the exchange rate is at 1.1 Euros/Dollar. Then you can sell the Euros back to dollars for $1100 (and a nice $100 profit) if the exchange rate moves to 1 Euro/Dollar.

$100 may be nice, but that 1% return on the $1000 doesn’t sound like the path to your 500% returns, does it? Here’s how that 1% gets its power: Leverage. With Forex, if you have $300 in your account, you can control a $10,000 trade. That makes your money a lot more powerful than the $1-$1 control you get in the stock market! If you’re thinking that you can lose more money this way too, just read on, you’ll learn why that won’t happen.

Consider this: The Foreign Exchange market has a DAILY trading volume of around $1.5 trillion dollars. That’s 30 times larger than the combined volume of all U.S. equity markets (that includes the NASDAQ and NYSE). This is an untapped resource, and you’re about to learn five simple steps towards taking your share out of that market and into your pocket.

1.Get Educated!
As with all things, the more you know about trading, the more likely you are to success. A little effort spent learning up front can save you hundreds and thousands of dollars of mistakes later.

2.Have a Strategy!
A simple repeatable system can turn trading into a low-risk mechanical system. Know when you should trade, how often you should trade, how much money to spend per trade, when to cut your losses, and when to take your profits. Push the right buttons at the right times, and you’ll make money.

3.Practice Makes Perfect!
Most Forex brokers will allow you to sign up for a practice account, where you can trade imaginary money until you’ve solidified your winning strategy. Don’t risk your hard-earned cash until you’ve proven that you’ll succeed

4.Scrape Together $300
That’s 2 months of brown-bagging lunch instead of buying it; or a few months of cutting down on the daily coffee-shop visits. If you start now, by the time you’ve learned a strategy and perfected it on your practice account, you’ll be ready with your $300 to start earning real money. More money is always better, but $300 is the minimum you’ll need to get started.

5.Go Out and Succeed!
By the time you get to Step 5, you KNOW you will succeed, and you’ll spring out of bed every day ready to make your profit. Some days you’ll lose a little money, but you won’t worry. Your strategy allows you to lose a little money from time to time; you proved that losing money periodically wasn’t the end of the world when you practiced; you’ll get up tomorrow and make it back by following your proven strategy.

Starting with your $300, if you made “Google Gains”, you’d have $862 in a year. That’s not bad. With Forex gains, though, you could easily turn your $300 into $1500-$3000 in a year! Who need the stock market?!?

Saving the best for last, here’s the shocking truth: The 500-1000% yearly returns are possible, but with a smarter strategy you could turn your $300 into over $10,000 in less than a year without increasing your risks! Best of all, you can do all of this over the Internet without leaving home. That’s 3000% while wearing pajamas. With these kinds of returns, you could realistically quit your job and trade full-time!

If you could use more money if your life (and lets face it, we all can), you owe it to yourself to learn more about Foreign Exchange trading.

Choosing Stocks from a Consumer Perspective

admin — Tue, 16 Feb 2010 20:32:48 +0000

Investing in the stock market sometimes boils down to one essential element, namely good choices. No matter how well we do our research, how often we buy and sell, or how much we pay experts for their tips and advice, without choosing stocks that represent value, we wont succeed. Although some are good at predicting the direction of the market and timing the ups and downs, if they dont purchase the right stocks, they will still meet with difficulties when trying to reap profits.

For that reason, some of the best paid people on Wall Street known primarily for their talent at picking stocks. Financial advisors give talks and write books and newsletters about how to choose stocks that will outperform the market, and most experts echo the same sentiment and agree that one of the best ways to judge a stock is from the point of view of a consumer. By using instincts we have already honed as ordinary shoppers, we can often ferret out information that even the most skilled and software-savvy market watchers miss. While they study analytical charts, earnings reports, and the stock exchange ticker tape, folks just like yourself actually do business with the companies they invest in, because their experience as a customer speaks volumes about the value of the company and its products and services.

Here are the kinds of things to look for as indicators of a companys worth:

1)How popular is their product or service? If everyone you know uses it, and is satisfied with such things as price, customer service, and reliability, the company is probably well situated among the competition.
2)Are the employees satisfied? One of the best ways to judge a company is by talking to employees. Many companies put on a good faade, but underneath the fancy marketing is plenty of discontent. But if employees like a company especially if they like it enough to buy stock in it thats a very good sign.
3)How well known are they? You may find a great startup company with all the trappings of success, but discover that it is lesser known. Many small or regional companies are popular in their own back yards, but the rest of the world may not yet know about them. Buying such unknowns can be a great way to invest in the next hot stock. If the fundamentals look good, sometimes being lesser known is a good thing for investors getting in on the ground floor.
4)If they went out of business, where would you go for similar products and services? If you cant think of a convenient alternative, the company is probably in a niche market that enjoys customer loyalty and repeat business.

Shop around, and notice what you see and how each business makes you feel. Then trust your intuition. Make a list of companies that get your attention, and then call their shareholder relations department and ask for more details. By starting your list with companies you already have a first hand experience of, you raise the chances considerably that you will make smart choices.

E-gold Investing: Make Money With Currency Trading

admin — Tue, 16 Feb 2010 16:04:04 +0000

Many people are already starting to pay attention to the newest online trend: E-gold investing.

E-gold investing is a all about a system that allows you to profit from the money that is being traded everyday on the internet. What you’re doing when you are trading e-gold (or e-currencies) is that you are providing the backup for internet money. Let me go back a bit. What exactly do I mean by “backup for internet money”?

There is a cashflow of all of the money that is being moved throughout the internet every day. However, this money has to have, for every dollar that is being backed up, a physical backup of that dollar must exist.

This is a very superficial explanation about how the dxgold system works, but to be honest, to profit from it, you don’t have to understand exactly how it works to profit from it. If I were to put the e-gold training courses into a metaphor I would say it’s very much like driving a car. You don’t need to know how it works in order to use it properly.

What you do need to know is the egold exchange process and every step of the way. This may sound complex, but once you get to know it, it becomes a daily routine that takes about five minutes just to check up on.

Investing in e-gold is something that I could describe as a great investing strategy, if you are investing in the long run.

It isn’t as fast as a rising stock in wall street, it isn’t something that will double your profits in a couple of days, but it is something you can expect to generate a good income from. And the important keyword in that past sentence would be to Expect, because this is a safe long term strategy that is guaranteed to make a profit for you.

This is why I personally think it is plain silly not to learn this currency trading system. You even know how much money you will make each day in advance.

For some it may be tough, but saving a couple of hundred dollars and investing in e-gold can be a very wise decision. As many people have experienced already, it can even turn into a “hands off” second income without the 8 to 5 job.

E-gold is all about discipline. Is about the discipline of having your money work for you and letting it grow, without getting an urge of a shopping spree and taking your money out of your account.

If you think you can wait for a few months and are interested in getting a second income, then the e-gold system could be a good fit for you.

E Gold Investments: Investing Smartly With E-Currency Exchange

admin — Mon, 15 Feb 2010 17:51:38 +0000

Investors are now starting to move their investments to the most recent investment trend: Making money with E-gold.

When you make an investment in E gold is a all about a profitable system that allows you to capitalize from the money that is moved through online transactions everyday. The process that is going on when you are trading e-Gold (or e-currencies) is providing the support for online cash. But let me back up the cassette. What am I trying to say by “support for online cash”?

A cash flow exists for all of the cash that is managed all over the internet every day. Nevertheless, all of this cashflow has, for every single cent that goes through a movement, a tangible support of that cent.

I’m providing a superficial explanation about how the dxgold formula operates, but to be more direct about it, to profit from it, it’s not neccessary to know entirely how it works to capitalize from it. If I were to explain the dxgold expert Training Videos into other words I could say it’s very much like driving a vehicle. It’s not a requirement to comprehend how it operates in order to use it right.

The one thing you need to know is the e ecurrency trading process and every step of the way. This may sound complex, but once someone teaches you how to do it (like from a e trading course), it becomes so simple that takes no more than an hour a week total.

Starting your portfolio in e Gold is one thing I will say with all confidence that is a wonderful investment strategy, if you are building an income in the medium run.

It may not be as fast as a wall street stock, it it won’t be something that will duplicate the money you invested in a day, but surely it is one of those few opportunities You and I can rely on to generate a real residual income from. And the distinctive message in that earlier phrase would be that you can Be safely assured, because this is a controlled medium term program that is insured to generate you cash.

This is why I personally think it is throwing money away not not learning this dxinone exchanging business. People doing this system even are aware of what percentage over your investment you will produce every day before you begin when you E Gold Invest.

For some people it could not be easy, but taking apart somewhere around $200 bucks and making money in egold must become a super wise decision. As many investors of all types are experiencing already, trading ecurrencies might potentially become a “paws off” 2nd income without the 8 to 5 job.

When you make an investment in E gold it becomes on self discipline. It becomes all around the self discipline of having your cash produce more money for you and allowing it develop, without developing an urge of a shopping spree and taking your money out of your e trading account.

Whenever you know you can hold off for a couple months and are motivated in having a second income, then the e gold investing system may be a perfect fit for you.

Buying Stocks. But Where?

admin — Tue, 09 Feb 2010 17:43:37 +0000

Silly question you may say! Of course you buy stocks via your broker or online using your brokerage account.

But

Its not necessarily that easy if you want to buy foreign stocks which you shouldnt really underestimate nor neglect. Theres a whole batch of foreign stocks out there that make great investments but that are not available in your country, or only with difficulty.

And thats the reason for this article. Several of my subscribers emailed me saying that they were interested in a stock but couldnt purchase it in their country. Now why is that?

If you want to buy Microsoft or Wall Mart stocks for instance, you will not experience any problems at most stock exchanges let alone the USA. These two stocks alone already have a trading volume of over 10 million + every day on Wall Street. Even the regional stock exchanges like Chicago or San Francisco etc. have a high trading volume with Microsoft and Wall Mart. Buying and selling takes place within seconds.

But although most foreign stocks are also found on the trading floors of New York and other international exchanges, there are exceptions. Like the Canadian company Loblaw for example. You wont see Loblaw stocks anywhere in Frankfurt, which is the largest stock exchange in Germany. Theres only a bit of volume at the regional stock exchange in Berlin. On average about 17 stocks per day. And thats nothing!

The same is true for other big exchanges too! You will not find every single stock in New York, London, Frankfurt, Sydney or Hong Kong. It simply has to do with supply and demand. If theres hardly any demand for a stock in XYZ country for whatever reason you wont have the necessary supply. So either the stock is not available in your country at all, or only at very low volumes.

The difficulty with very low trading volumes is, that if you dont only want to buy say 10 or 20 stocks, but maybe 500 or even 1000, this volume will be difficult to get and may take several hours or even days.

What can also happen then is, that your order will automatically be split up into several orders until the entire volume ordered is purchased. This is what happened to one of my orders a few years ago. And every order is charged with a commission. Considering the extra charges for each order at your local stock exchange, it might even be cheaper if you buy the stocks at a foreign stock exchange where volume is much higher.

And thats exactly what you also do if you find a good stock that you are eager to get hold of, but cant buy it in your country at all! You buy your stocks at a foreign exchange which in most cases will be the country of the stocks origin. This will also involve higher charges because you gonna have to do this via 2 brokers.

So lets take the Canadian Loblaw again. If I would like to buy this stock, Im gonna have to see my broker here in Germany who will then buy the stocks at the stock exchange in Toronto which will involve several extra commissions and charges. Because not only my broker will charge a commission but the broker in Canada too. So Ill end up paying 2 brokers who are involved in my transaction.

So thats simply how it works. My broker will contact a broker in Canada who will then make the purchase for me. And apart from extra charges involved it will also take longer before the transaction goes through.

But these extra commissions shouldnt be overrated. If you find a great and solid stock that you really want, then go for it and because if youre an investor and not a trader, you are probably contemplating a long-term investment anyway. And in the long run, commissions and other charges are negligible anyway.

At the end of the day its only important which stocks you buy and not the place where you buy them!

Yours in Successful Trading

Ricky Schmidt

E Gold Investments: Investing Smartly With E-Currency Exchange

admin — Wed, 03 Feb 2010 08:26:16 +0000

Investors are now starting to move their investments to the most recent investment trend: Making money with E-gold.

Starting your portfolio in e Gold is one thing I will say with all confidence that is a wonderful investment strategy, if you are building an income in the medium run.

Whenever you know you can hold off for a couple months and are motivated in having a second income, then the e gold investing system may be a perfect fit for you.

Find the best investment rates on savings and CD Rates » Wall Street

Investing – How To Profit Using Formulas

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