Penny stocks and options are high volatility investments that both the merchant and the long term attract investors due to the small amount of capital needed to make compared to the less volatile higher priced stocks made significant gains . The long -term investor buys to believe that the value of a company over time and share with them will increase a share. When he buys an option is usually to reduce in possession of the underlying equity risk. See the short-term trader at things a little differently . Usually appears a trader for large percentage price movement over a short period of time . Great rate , short- term to find both options and certain penny stocks . Movements
Penny stocks are often defined as stocks priced under $ 5 . It is often implied, but not necessarily the case , that penny stocks are micro - caps with capitalizations of less than about $ 250 million. Penny stocks can be found across the full width of the capitalization of micro cap to large cap stocks . For example , Sun Microsystems ( NASDAQ : SUNW ) met the definition of a penny stock for much of 2004 , the trade between $ 4 and $ 5 . In the autumn of 2004 , the trade between $ 5 and $ 6 per share , capitalization was more than $ 18 billion . The price of a large cap $ 18000000000 stock would hardly be expected to move by a large amount over a short period of time. The largest percentage daily winners of say 50 % or more are usually stocks that started at $ 5 or less . But they are mostly micro caps .
As a group, micro cap penny stocks avoided by large funds because prices are too easily influenced by extensive and sales orders and capitalization are too small to affect bottom line of a large fund . Buying more than 10 % of a listed company carries with it certain responsibilities knowledge . Large funds have to wait until the stock prices typically rise above about $ 20 before they can be seriously involved without moving the price and still have price movement impact on their financial results . The small investor has a distinct advantage over large fund managers when an early position in a good micro cap penny stock .
Short -term options are most appropriate when the underlying stock price higher , say above $ 50 . Although it is more likely that a micro cap penny stock will get 50% in a single day than it is for a higher priced stock , the typical 5 or 10 to leverage that options provide only makes it necessary for a higher priced stock to move 5 % to a 50 % gain in the corresponding option price to see. There are several additional considerations involved in the choice of an option. Not least of these is the market environment . When well chosen , options for higher priced stocks offer the same great daily price movements of penny stocks . Lower-priced shares must move through a greater percentage to a similar percentage movement to see. The corresponding option They are likely to do so only if they micro cap penny stocks .
James Andrews publishes Pointer Trader shares and options newsletter . One can read about choosing penny stocks and options on
© 2004 Permission is granted to reproduce this article as long as this paragraph is included intact .
Tuesday, 31 December 2013
Sunday, 29 December 2013
Short Selling for Investors
If you trade in the shares of the stock market experts like longs better than shorts. If you are "long" , that means you own stock and that is " good" . If you are short you have sold stock and that is " bad" . At least that's what Wall Street preaches . And why do they want you to believe this and is it true? Let the facts .
Today I hear stories on the financial news and articles in the newspaper that people who "short" driving the market down. They have more stock than they sold themselves and this is due to collapse the market. I've even heard that Congress is trying to pass a law that will not allow people to sell short pass . They blame hedge funds that are allowed to short sell . The fundamental flaw in this concept is like a short sale is to be done on an up tick started. This means that the stock should be up to . A "short " sale No short sale may be made to the pressures of the market down . That is a fatal pin in the balloon lying .
There are reasons why people will make . Selling a stock If you own it you may just need the money now have or if it is you might not want to lose money down to continue the downward trend. There is old saying in the market - "the trend is your friend " . If you have a stock that decreases you may want to sell first and if it falls on you to buy at a lower price it back later. This actually puts a floor under the stock because some time in the futures you MUST buy it. Who does the short circuit does not matter whether it is an individual or a hedge fund . They are actually doing both good for the market two things. They have to buy to support at a lower level , it keeps from going lower the price of a future and they are providing liquidity to the market.
When you buy long you want it to go up so that you can later sell it for profit. When you sell short you 're selling the idea of buying it back after it drops it. Both are driven by the profit motive . How can good and others are bad? It is like saying that there is a good flow and poor electricity.
If CEOs do not want people to their stock short I suggest they look in the mirror to find out who the culprit is . The company CEO is not working properly and that is why the stock decreases. No external person or group , a lower proportion , which is making a good profit to drive . There is a good reason for the price drop .
Buying short not put the market down . The final result of a short sale ( for short) is very positive for the market .
INVESTMENT LETTER 3 month free trial period. Copyright Albert W. Thomas All rights reserved . Author of ? ? If it doesn ? T Up, Don ? ? Buy T! ? ? Former 17 - year exchange member , floor trader and brokerage company owner .
Friday, 27 December 2013
Maniac Investment
means . According to Webster a maniac is " mad ;
raging with madness ; raging with disordered
intellect ' . You do not need someone like that know
You?
There is a book that is still in
print today that was originally published in
1841 titled Extraordinary and Popular
Delusions of Crowds by Charles Mackay . he
explains rather gruesome detail how people
were caught in the frenzy of buying real estate
in the South Seas in 1720 , the numismatic coin
craze of 1980 and the tulip trade in
1637. You wonder how people can be so
gullible to have bought a single tulip bulb or
country that she would never see enormous quantities
money . Could something like this ever happen
again?
I was floor trader on the commodities market
exchange in 1973 , when the Hunt brothers drove
silver of $ 2.00 per ounce to $ 54 . that mania
lasted a few months and quickly tanked to $ 6.00 .
I took part in the mania . I was one of the
maniacs .
When it was made it seemed
like the thing to do and very little questioning the
mental health of the participants . In fact, if you
were not part of the crowd there was something
wrong with you. In a stampede is
best to run with the herd or be trampled to
death . However, there were a few people who were not
mesmerized .
Today we take part in one of
manias that only now it is a bubble and
still not taken too seriously . Yes, it
the stock market mania . Many are still
caught in the madness of the crowd
1990's who believe that the "market is always
return . " They are clutching their tulip bulbs ,
Sorry , shares , and refuses to let go
of them , because they know that their value will grow
back to what it was three years ago . Stock owners
have become crazy with what - greed ? fear? denial ?
If anything, almost anything ,
down 50 % in price it will take a 100% increase
in value back to " even " . With the present
and economic conditions in the world that can
long time and maybe not in our lifetime .
Years ago I heard a story about how
they used to catch monkeys. A small hole just
big enough for the monkey to his empty hand sliding
inside would be drilled in a coconut candy and
and vegetables would be put into it . The coconut was
tied to a pole in the ground. When the monkey
grabbed a handful of goodies he did not let go
even when the hunter came to him. greed keeps
him in an invisible grip .
Many investors today are as
monkeys. They refuse to sell what is left
of stocks and mutual funds they hold even
although they can clearly see the big trend
goes down . She was mad with greed and
Now fear of losing catches them .
Until this madness is recognized
investors will continue to see their portfolios
getting smaller . They need to learn
let go .
Written 10/03/03 but today still apply .
Wednesday, 25 December 2013
Just Say 'NO' to Your Stock Broker
Currently we are in an advancing scholarship and we all hope it's going to go higher and higher . None of us , certainly including me , know for sure where it will end this year . Barron's , the financial weekly publication , on their front page stated that " THE BULL IS BACK " . They are guessing. But it feels good .
I wonder when I study the fundamentals of the economy, how they came to this conclusion . Unemployment an uptick just had , most companies have yet to declare a dividend is the U.S. dollar loses value against many foreign currencies , manufacturing capacity utilization is still low and shows no signs of increasing , the trade balance is much in the war and - and .
Yes, there is some good news . Many companies are " beating the treasure" . This means that they appear more sales and profit than the brokers on Wall Street thought they would have . This is a good press and usually has the effect of pushing stock prices higher . Many of these gains are better at the cost of laying off hundreds, if not thousands of workers . And worst of all we do not know whether these gains are true. Many are profoma meaning management is guessing.
If you " even" you are going to find one of those people who hopes that the market will go up again , so you can get that hope is the most expensive word in the dictionary . But what can you do ? You are now given the opportunity to save what 's left of your retirement account . All stocks or mutual funds you have it would be a gamble to say that this is the place to sell . It is smart to listen to the market and do what it tells you .
For each equity torn To set up a trailing stop - loss order and move it up every week if your stock advances . Suppose you bought a stock at $ 100/share and saw it drop to $ 15 . Quite daunting! It has now risen back to $ 30 and your broker , you will surely continue to rise . Maybe. But what if it does ?
Tell your broker to put in a stop - loss order about 10 % below the current price . He will say that you do not have to . This is where you just say 'NO' . Agents do not see any but their biggest and most active accounts . He must do what you ask as prescribed.
Put in a stop - loss order today. Protect your retirement account with a simple 'NO' .
Monday, 23 December 2013
A Secret Revealed: Why Most (Day) Traders Fail
One of the biggest problems I see with new traders ( and even some old ) has nothing to do with the software or the broker they use. Nor is the problem due to a too high or too low sales , or do not have enough money. The problem is not one of those things .
It has to do with not having a trading plan . A good trading plan will go a long way to go . To solve the above problems
Ted Williams was once asked how he hit the baseball so much better than all the others . He said he had no idea and he just went to the plate and swung at the ball . There is only one Ted Williams and as big as he was at hitting a baseball , I do not think he would be a great day trader with that approach have made . Most big hitters an idea what they are going every time they step up to the plate to do . Traders need to know exactly what they expect every time they enter a trade.
Everyone has to start with a basic trading plan and use it. As the old saying goes , "Plan your work and work your plan ." However, you should also be prepared to be flexible. That should be a part of your planning. As Clint Eastwood said as his character in " Heartbreak Ridge " , "You have to adapt , you have to learn to improvise . And if all else fails , you must learn to survive ! " Traders who are not able to make adjustments create, improvise and survive will have their own experience Heartbreak Ridge .
Your trading plan is not one where you just found out you are just going to be different to follow someone. That can be a way to start and get a little experience, and it can be a part of a much larger overall plan to be . But it can not begin and end there. You must learn to trade on your own , so you do not accidentally follow someone off a cliff . You need to know who to follow and who not to follow .
When I acted I made many good trades know who to follow and who not to follow . Yet , in the long run , I do not think you can make a living doing it. The biggest problem when following other traders is too far behind the market , because you are " following " and not leading . I think every trader should be the best trader can he possibly be on his own become . He must be there as soon as he can get . After more experienced traders can be a means to this end and can help get you started , but it can not. End This takes planning .
A basic trading plan will take your long term goals and objectives as a trader . You must decide whether you want to try to make the trade, or just be . Part-time entrepreneur career Once you've decided how much money you would like to make on either full- time or part -time trading can make other decisions. , As Must be realistic. Money goals They can not be alone, "I want as much money as I can ." These fundamental decisions , the time and money you will have to commit to be determined .
Your trading plan should be ongoing, constantly evolving and eventually things like how many days , weeks and hours you must act to contain your goals. If it is so detailed , I think it should be, you would know how many transactions per day and how much profit per trade you will have to average. Of course, these things need to be developed over time and added to your plan as you go and if you do more knowledge.
There are many excellent books on learning to day trade . My favorites are on
No permission is required to reproduce an unedited version of this article as long as the author tag is still intact and included . We request that we be aware of where it is placed and reciprocal links will be considered.
Floyd Snyder has been trading and investing in the stock market for three decades . He was at the forefront of the day trading craze swept the nation back in the late 1990's both as a trader and later as the moderator of one of the largest real-time trading rooms of the Internet .
Saturday, 21 December 2013
Copy Cat or How to Use a Successful Trading System
So you subscribe to his newsletter ( they all have one, $ 250 ) and buy his course on CD -ROM ( $ 495 ) and the next time he somewhere to attend a $ 500 discount for his seminar near you only $ 2,495 . You understand , do exactly as he does and you try your best to follow the instructions , but for some reason you're still not making money. At least you do not lose as much as you did before . ( I hope)
Go look in the mirror . You are not Richard Russell , Richard Wyckoff , Bill O'Neil or one of the great gurus of the market. All of them , every minute of his life dedicated to understanding the market . Everyone has been very successful and each has a different way of dealing with the trade . Can you make a copy of them ? It is very doubtful .
These great teachers can help you , but you need to develop your own. Method and style of investment Whether it is long term or short term it should be something that you are resonating . When I was a floor trader were trading thousand boys and I know there were a thousand different guidelines . No one had the same buy or sell signal . If they all followed a pat on the program they would all buy and sell at the same time , so it could not work .
I was in the pit and watched the same person offer to buy and when there was no seller would he offer usually sell at the same price . Yes , he was scalping for one or two ticks, but he knew what he was doing , even if it seemed strange . A friend of mine could buy arbitration by standing in the middle of the pit and hit gold and sells those disabled by one or two ticks because they do not because of the noise of other traders who were shouting their bids could hear each other.
You can look at the basic trading style of one of the ' greats ' , but you need it to your method. I have not seen anyone able to exactly copy a trading program successfully . You will improvise and find a slightly new approach that is " yours " . It then becomes a part of your mobile being. It works for you and probably will not work for someone else .
If the programs the hype masters sells work so well why are not there more rich merchants ? And if the programs are so damn good why tell them?
To be a successful trader, you can not copy an existing program to be cat but you can take a simple trading vehicle and customize your own plan . Put that in your cat tiger .
Al Thomas ' book , "If it does not go up , do not buy ! " Has helped thousands of people make money and keep their profits with his simple 2 - step method . Read the first chapter at and discover why he's the man that Wall Street does not want you to know .
Thursday, 19 December 2013
Building The Foundation For Wealth
Also you can build without building on first. Sound fundamental principles no wealth and financial independence
I have noticed that many people are busy wealth building strategies such as maximizing their 401K returns, aggressive trading and real estate investing without such a foundation properly.
Most of my customers are from a "one step forward , two steps back " cycle of wealth building they get nowhere in the long run .
There are steps you can take to ensure that you are maximizing and protecting your profits at the same time . Without these steps , you are destined to profit - loss cycle , which , in the end , is like turning to experience your wheels in the mud .
Discover how your working conditions affect your wealth building strategy and have more of the things you want to identify your biggest expense and management without more money.
Most people take profits mean that they can spend more on things they do not need . Their cash flow It is human to want to surround yourself with the things you want to customize how you feel about your new investment income or a raise at work .
But what happens here is that you lose future earnings capacity and you rip out pieces of your wealth building foundation because you put to work by investing in your debt . No new revenue
People talk a lot about return on investment . Think of the return on a 13 % credit debt that you pay off in 5 months aggressive investment debt . It's not just 13 % you save by investing in your debt !
Once that debt is paid off the payments you made towards greater debt , sometimes doubling the speed at which you are able to pay off those debts are greater rotation . Combined , the return on your investment here is huge compared to invest ! With the regular stock
Wealth building , in the beginning , it actually started with the debt reduction and strict management . A change in attitude about your debt, " liability " for investment, is the first step in the true wealth building .
Today you have to sit down and find the monthly cost really is not that much to you as it does mean building wealth . See how you can eliminate your debt to invest in order to maximize your cash flow quickly giving yourself a raise! Some of your expenses
Take most of what you have available each month and turn it to the next debt - increasing the regular monthly payment by as much as you can while rewarding yourself with a little thing to record your performance .
Before any other investment , think about the wealth you can build with the money that currently goes to debt. Once you have your debt under the knee , can all that money go toward investments , savings and the cost of living that far outstretch what you are able to experience now .
The only aggressive investment strategy that has absolutely zero risk, investment debt . You can not lose and profits are always huge compared to other forms of investing .
Live your retirement years free of financial stress , relax and enjoy life as a result of the automatic revenue streams via the powerful investments you can afford to invest in AFTER you create . Fault
C. C. Collins is a respected financial strategist and investing expert residing in North Florida . His profile can be viewed on LinkedIn and networks is welcomed.
In addition, readers may use a free trial version of Trend Rider ETF market timing signal service of the author.
Tuesday, 17 December 2013
Day Traders and Swing Traders and Options? Maybe!
Typical day traders and swing traders looking for stocks with a fast,
short-term movements , and are not in the business of the company
positions overnight let alone a week or two . Thus, the use of
options is usually not a part of their trade
strategies.
Now , however, a number of new opportunities available for profit
since many day trading companies are allowing their traders to trade
options . Unfortunately, many option strategies do not apply to
it quickly into and out of the nature of the day 's trading . neither day traders
or swing traders are usually in stock long enough for
to be the strategy of selling options for premium collection
viable .
As these traders often look to break - outs , and sometimes go
bottom fish to find for profit , pay a premium opportunities
option can work well for them . Why ? Because the trader would
to buy protection against catastrophic losses . bottom fishing
and breakouts associated with volatility , which
uncertainty and risk . There is a strategy that will
offer to perform the necessary protection of these traders
positions through overnight risk , but retaining
protected . This would still be able to take advantage of them also
the great potential revival that was the original purpose of
the identification of the soil and the break - out . This strategy is
called protective pit .
PROTECTIVE PUT
The Protective Put strategy involves buying put options
in conjunction with the purchase of the stock and it works well in
situations where a stock is susceptible to rapid , volatile movements .
A put option gives the owner the right , but not the obligation , to
sell a particular stock at a certain price, at a certain date .
For this right , the owner pays a premium . The buyer , who
receives the premium , is obliged to take delivery of the balance
the owner wishes to sell at the strike price of the
specified date . A strategically put option provides
protection against significant loss .
The protective put strategy is a strategy that is ideal for a
trader who wants full coverage coverage . This strategy is very
effective in stocks that normally trade at high volatility , or
in stocks that normally trade under such high volatility
but may be involved in an event -driven , highly volatile
situation .
When an investor buys a stock , they can buy the pit
( Protective put) to provide a good hedge . Construction of
this position is actually very simple . You buy the stock and
you buy for each well in a one to one ratio meaning a move
hundred shares . Remember, one option contract represents 100
shares. So , if you buy 400 shares of IBM than you should
purchase exactly four puts.
From a premium standpoint , you should keep in mind that by
purchasing an option, you pay money , unlike
to raise money. This means that your position should
" Surpass " the amount of money you paid for the put . if
you had to pay $ 1.00 for a well and your property against stock ,
the stock should rise in price $ 1.00 just to break
even . The protective put strategy premium time work
against which the stock should to a greater extent , and
faster, to offset the cost. of the well
When we buy a stock , three possible outcomes exist. the stock
can go up, down or it may remain stagnant . If we
analysis of the three scenarios , we would see that there is only one
scenario , the up scenario , can produce a positive return and
it is only when the stock rises more than the amount you
paid for the puts. Losses to produce the other scenarios . If the
stock stagnates , you lose the amount you paid for the put . if
the stock goes down , you lose again - but the loss is limited. the
is to limit the loss of very volatile situations which makes
the protective put an attractive and useful strategy .
This is how it works ! Set to buy for $ 31.00 and buy stock
the 30 strike put for $ 1.00 . If the stock goes down , the
position will produce a loss . For example , if the stock down
to $ 30.00 ( down $ 1.00 ) at the expiration of the option, you have a
$ 1.00 capital loss . With the stock at $ 30.00 , the 30 strike puts
will be so worthless you make a $ 1.00 loss , because that is
what you paid for the put . Your total loss will be $ 2.00 . use
the protective put strategy a cap on your losses . the well
attractiveness of the strategy is that it will allow you to set the loss
limits!
Let's see how that works . We will share price set at
$ 28.00 . Because you bought the stock at $ 31.00 , there will be a
loss of $ 3.00 . However, the puts are now in the money
with the stock under $ 30.00 . With the stock at $ 28.00 , the 30
strike puts are worth $ 2.00 . You paid $ 1.00 for them , so you should
a $ 1.00 gain in the bucket . Combine it puts profits ( $ 1.00 ) with
capital loss ( $ 3.00 ) and you have a total loss of $ 2.00 .
The $ 2.00 loss is the maximum you can lose no matter how low the
stock is because the buyer of your pit to take on the stock
the exercise price . This is indicates the protection of the well.
_ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ /
Amazing Options Trading Strategies for Safer Investing
Explosive and profit . Discover how to protect your
investments with the leveraged power of options . step
step video tutorials show you how
_ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ /
short-term movements , and are not in the business of the company
positions overnight let alone a week or two . Thus, the use of
options is usually not a part of their trade
strategies.
Now , however, a number of new opportunities available for profit
since many day trading companies are allowing their traders to trade
options . Unfortunately, many option strategies do not apply to
it quickly into and out of the nature of the day 's trading . neither day traders
or swing traders are usually in stock long enough for
to be the strategy of selling options for premium collection
viable .
As these traders often look to break - outs , and sometimes go
bottom fish to find for profit , pay a premium opportunities
option can work well for them . Why ? Because the trader would
to buy protection against catastrophic losses . bottom fishing
and breakouts associated with volatility , which
uncertainty and risk . There is a strategy that will
offer to perform the necessary protection of these traders
positions through overnight risk , but retaining
protected . This would still be able to take advantage of them also
the great potential revival that was the original purpose of
the identification of the soil and the break - out . This strategy is
called protective pit .
PROTECTIVE PUT
The Protective Put strategy involves buying put options
in conjunction with the purchase of the stock and it works well in
situations where a stock is susceptible to rapid , volatile movements .
A put option gives the owner the right , but not the obligation , to
sell a particular stock at a certain price, at a certain date .
For this right , the owner pays a premium . The buyer , who
receives the premium , is obliged to take delivery of the balance
the owner wishes to sell at the strike price of the
specified date . A strategically put option provides
protection against significant loss .
The protective put strategy is a strategy that is ideal for a
trader who wants full coverage coverage . This strategy is very
effective in stocks that normally trade at high volatility , or
in stocks that normally trade under such high volatility
but may be involved in an event -driven , highly volatile
situation .
When an investor buys a stock , they can buy the pit
( Protective put) to provide a good hedge . Construction of
this position is actually very simple . You buy the stock and
you buy for each well in a one to one ratio meaning a move
hundred shares . Remember, one option contract represents 100
shares. So , if you buy 400 shares of IBM than you should
purchase exactly four puts.
From a premium standpoint , you should keep in mind that by
purchasing an option, you pay money , unlike
to raise money. This means that your position should
" Surpass " the amount of money you paid for the put . if
you had to pay $ 1.00 for a well and your property against stock ,
the stock should rise in price $ 1.00 just to break
even . The protective put strategy premium time work
against which the stock should to a greater extent , and
faster, to offset the cost. of the well
When we buy a stock , three possible outcomes exist. the stock
can go up, down or it may remain stagnant . If we
analysis of the three scenarios , we would see that there is only one
scenario , the up scenario , can produce a positive return and
it is only when the stock rises more than the amount you
paid for the puts. Losses to produce the other scenarios . If the
stock stagnates , you lose the amount you paid for the put . if
the stock goes down , you lose again - but the loss is limited. the
is to limit the loss of very volatile situations which makes
the protective put an attractive and useful strategy .
This is how it works ! Set to buy for $ 31.00 and buy stock
the 30 strike put for $ 1.00 . If the stock goes down , the
position will produce a loss . For example , if the stock down
to $ 30.00 ( down $ 1.00 ) at the expiration of the option, you have a
$ 1.00 capital loss . With the stock at $ 30.00 , the 30 strike puts
will be so worthless you make a $ 1.00 loss , because that is
what you paid for the put . Your total loss will be $ 2.00 . use
the protective put strategy a cap on your losses . the well
attractiveness of the strategy is that it will allow you to set the loss
limits!
Let's see how that works . We will share price set at
$ 28.00 . Because you bought the stock at $ 31.00 , there will be a
loss of $ 3.00 . However, the puts are now in the money
with the stock under $ 30.00 . With the stock at $ 28.00 , the 30
strike puts are worth $ 2.00 . You paid $ 1.00 for them , so you should
a $ 1.00 gain in the bucket . Combine it puts profits ( $ 1.00 ) with
capital loss ( $ 3.00 ) and you have a total loss of $ 2.00 .
The $ 2.00 loss is the maximum you can lose no matter how low the
stock is because the buyer of your pit to take on the stock
the exercise price . This is indicates the protection of the well.
_ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ /
Amazing Options Trading Strategies for Safer Investing
Explosive and profit . Discover how to protect your
investments with the leveraged power of options . step
step video tutorials show you how
_ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ / _ /
Sunday, 15 December 2013
Sitcom Investing
A fickle stock market encourages good-humored mockery .
Recently , when I watched the premiere of a sitcom , an obvious omission breached television etiquette . Silence followed every exaggerated comedic set-up . There was no laugh track . Where were the premeditated giggles from the show ' audience? "Finally , the viewer determines the funny moment .
Then came to me , the writers of this show adopted a new aspect used by investment news programs .
I 'll be the first to admit , in addition to the various print and electronic financial information , the TV offers a plethora of additional financial news . However , the shows often let me ask : " What is missing " Furthermore, the shows very well leave viewers with overall responsibility , which segment is entertainment and that is practical advice .
Perhaps you recognize any of the canned statements below show that investment gurus continuously utter . Although each application can be ( and in may cases vital for successful financial planning ) , note the missing " laugh tracks . "
How many times have you heard "Invest for the long term? " The analyst can leave " because I hope you like my last performance and short-term disaster I caused to viewers who actually acted to forget . Recommendation on my way "Long - term prospects of each investor is somewhat different to the other and you should always review the recommendations of the guests with caution . What is his or her reasoning for such a revelation ?
" Buy and Hold " . The missing part: " because I have to recommend no idea of an exit strategy . " True enough , the more successful investors are those who invest in a well-planned strategy and stick to it . They generally keep their winners. However, there are times that an exit strategy will dictate .
Finally, there is "Using Asset Allocation . " The missing part: " because I can not tell which trump historically does better in this particular market environment you. " There are many ways to achieve diversification in your portfolio and it does not always have to turn to the distribution of the stocks, bonds and cash . Depending on your specific goals , time horizon , and risk , an appropriate allocation may be derived from the use of only one type of asset. Anyway , there are no guarantees when you put your money in the stock market and it is best to recall the risks of each investment yourself. Try including real estate , collectibles and insurance in your overall financial plan.
We can all look at the latest investment to make financial shows. Gurus Maybe we can include airy follow - up statements like looking at a Rocky Horror film . We often enjoy the entertainment provided by television personalities , however , it is important to regularly monitor your investments. Always examine your motive behind each buy and sell.
In reality , your financial future is no laughing matter and should be guided by a thorough commentary. TV shows come and go ; your finances on a day an inheritance .
Wardlaw 's belief is that familiar life elements best illustrate practical investment strategies, not typical investment jargon . With this philosophy , the author financial planners / advisors , brokerage firms , magazines , and other investment information helps syndicates create informative and entertaining articles . For questions and comments please contact the author at
Recently , when I watched the premiere of a sitcom , an obvious omission breached television etiquette . Silence followed every exaggerated comedic set-up . There was no laugh track . Where were the premeditated giggles from the show ' audience? "Finally , the viewer determines the funny moment .
Then came to me , the writers of this show adopted a new aspect used by investment news programs .
I 'll be the first to admit , in addition to the various print and electronic financial information , the TV offers a plethora of additional financial news . However , the shows often let me ask : " What is missing " Furthermore, the shows very well leave viewers with overall responsibility , which segment is entertainment and that is practical advice .
Perhaps you recognize any of the canned statements below show that investment gurus continuously utter . Although each application can be ( and in may cases vital for successful financial planning ) , note the missing " laugh tracks . "
How many times have you heard "Invest for the long term? " The analyst can leave " because I hope you like my last performance and short-term disaster I caused to viewers who actually acted to forget . Recommendation on my way "Long - term prospects of each investor is somewhat different to the other and you should always review the recommendations of the guests with caution . What is his or her reasoning for such a revelation ?
" Buy and Hold " . The missing part: " because I have to recommend no idea of an exit strategy . " True enough , the more successful investors are those who invest in a well-planned strategy and stick to it . They generally keep their winners. However, there are times that an exit strategy will dictate .
Finally, there is "Using Asset Allocation . " The missing part: " because I can not tell which trump historically does better in this particular market environment you. " There are many ways to achieve diversification in your portfolio and it does not always have to turn to the distribution of the stocks, bonds and cash . Depending on your specific goals , time horizon , and risk , an appropriate allocation may be derived from the use of only one type of asset. Anyway , there are no guarantees when you put your money in the stock market and it is best to recall the risks of each investment yourself. Try including real estate , collectibles and insurance in your overall financial plan.
We can all look at the latest investment to make financial shows. Gurus Maybe we can include airy follow - up statements like looking at a Rocky Horror film . We often enjoy the entertainment provided by television personalities , however , it is important to regularly monitor your investments. Always examine your motive behind each buy and sell.
In reality , your financial future is no laughing matter and should be guided by a thorough commentary. TV shows come and go ; your finances on a day an inheritance .
Wardlaw 's belief is that familiar life elements best illustrate practical investment strategies, not typical investment jargon . With this philosophy , the author financial planners / advisors , brokerage firms , magazines , and other investment information helps syndicates create informative and entertaining articles . For questions and comments please contact the author at
Friday, 13 December 2013
Poll Names Coin Laundries Best Investment For 2005
According to Morton Pollack , CEO of PWS , The Laundry Company and editor of the newsletter , "Historically , have been owners laundry a quiet group . They know a good thing , they have been quite reluctant . However, many now agree that it is time with regard paid to this powerful investment tool and we hope the survey will play a role . "
Coin Laundries traditionally been a very attractive investment yield strong returns regardless of the ups and downs of Wall Street and the economy. Deemed one of the top ten safest investments by the Small Business Administration and Dun and Bradstreet , neighborhood laundries provide a reliable running 20 to 30 % return on cash invested annually, according to the Coin Laundry Association.
" Today's modern laundries are all money , no inventory companies large tax benefits and require modest oversight ," said Morton Pollack . "We believe that they are the best part-time , investment portfolio are available and their future looks even brighter . Demography coin and card laundries serve are the fastest growing segments of the U.S. population . With so many proven benefits , we were not sure Laundry Center MarketWatch today must Card and Coin Laundries the Sexiest call or safest investment for 2005 so we are leaving it to the readers and the industry to vote for their choice via our free e - . mail newsletter " .
For more information about the laundry industry to learn, to get your free subscription to Laundry Center MarketWatch and to register on whether Coin laundries your vote to be named the Sexiest or safest investment for 2005, visit www . Laundrycenter.info or call 1877-45 LAUNDRY .
Ilene Fudim is a nationally recognized expert in the coin laundry industry and editor of the Laundry Center MarketWatch newsletter . She has been instrumental in helping launch many successful coin laundry business .
Coin Laundries traditionally been a very attractive investment yield strong returns regardless of the ups and downs of Wall Street and the economy. Deemed one of the top ten safest investments by the Small Business Administration and Dun and Bradstreet , neighborhood laundries provide a reliable running 20 to 30 % return on cash invested annually, according to the Coin Laundry Association.
" Today's modern laundries are all money , no inventory companies large tax benefits and require modest oversight ," said Morton Pollack . "We believe that they are the best part-time , investment portfolio are available and their future looks even brighter . Demography coin and card laundries serve are the fastest growing segments of the U.S. population . With so many proven benefits , we were not sure Laundry Center MarketWatch today must Card and Coin Laundries the Sexiest call or safest investment for 2005 so we are leaving it to the readers and the industry to vote for their choice via our free e - . mail newsletter " .
For more information about the laundry industry to learn, to get your free subscription to Laundry Center MarketWatch and to register on whether Coin laundries your vote to be named the Sexiest or safest investment for 2005, visit www . Laundrycenter.info or call 1877-45 LAUNDRY .
Ilene Fudim is a nationally recognized expert in the coin laundry industry and editor of the Laundry Center MarketWatch newsletter . She has been instrumental in helping launch many successful coin laundry business .
Wednesday, 11 December 2013
Landlording 101, Tricks of The Trade
Search Inside Your Mind tenant
Basic Mind -Reading Report 101 for Landlords
It goes without saying , but I'll say it anyway . The better you understand your tenants and their personal situation , their needs and the better you can serve your own . Note that your needs come after your tenants. Always put the needs of your tenants ' before your own and they will buy property for you in return . That's a fair trade . Take it !
Many cold - hearted , self-serving, money - begrudge , like - are landlords do not understand human nature . Let me tell you now , if you can not turn into another person to move and see a problem from the perspective of the person with empathy yourself, you will fail miserably in the " Landlording " business and in life. Wise up !
Fear not . If you're not quite sure what I'm talking about , here come the stories and details on how to be loved and adored by such people called tenants.
Let me first dispel the horror stories about Landlording . If you follow my advice and teachings , you have to tell . Very little pity stories You've heard the stories and they sound like this : Those damn lowlife tenants. They trashed our house , they disturbed the neighbors , they ruined our lawn , they were filthy pigs who never paid the rent on time , they have never done what we told them to do and it costs us a fortune to get rid of them and repair our investment once they finally did move .
Well , guess whose fault that is. Yep , it is completely and unequivocally the fault of the person who called calling a landlord . The real name for this type of so-called landlord is uneducated dummy and because these lazy fools the whole industry gets a bad rap !
There is a positive side to the scenario above and that is this: It is a perfect opportunity for you to exactly the opposite of the fools do and make for yourself an unlimited market for excellent interruption-free supply of tenants for life!
Tenants , believe it or not , are human beings . They are not animals or things mistreated , abused or exploited . If you are going to be moving in , prepare your holiday if your mother would be your mindset realigned in short order . In fact, you will start looking at it from a compassionate point of view. You will not be cut . You will not let things go needs . Confirmation that You will use more care , skill and diligence in preparing this property for a decent person to begin to call home. That's what you want to achieve .
Do you want to ensure a smooth , pleasant , aesthetic, comfortable creature , must fulfill safe , secure , affordable and convenient place to live . If you do those things and screening the population , it's like striking gold .
The process of getting good tenants begins in your mind . By this, I mean you have to teach to recognize value and acquire properties that structurally sound , aesthetically , functionally and physically provide safety , security , affordability , convenience and a sense of pride in the mind of your tenant yourself.
Sounds like a daunting task , right? Well it's not . In fact it is so easy to achieve once you get the process that you do not even think about it to understand. It will come naturally to you . I promise you that this is true and I intend to prove it to you as well .
I absolutely guarantee that you can do it. So for now , just take my word for it to be a fact , because it is. Here is an example of using a motto for your thought process lines compared to all the things I just said . Repeat the following :
Creed landlord
I promise never to rent to someone else , something that I would not be in. myself happy life
Townhouses not included!
Now apply for each potential property that you evaluate as potential rental investment property . Human nature is unchangeable . We have all the basic needs, wants , desires and expectations that contain fear. When you remove your anxiety and provide comfort and safety , you will own your market .
So what you should do before you can be to find great places to rent out to other people . A great landlord first I explain how to do in the book [ http://www.magicbullets ] this, so I will not go into here .
The screening process is also described in the book as well. I will touch on a few things that were not touched all the processes in the main part of the book , so here are a few nuggets for you now.
The following observations were made after you all the formal screening procedures are performed . I will pay you until the day you face-to - face meeting takes place with the tenants who have passed your telephone interviews and have managed to make an appointment with you to see your beautiful rental.
Now , here are some things you uneducated dummy - kind landlords can not begin to recognize , plans or evaluate when it appears before their eyes .
Once your prospective tenant shows up to view, take note of your property
the time . Are they on time? Can they keep their promise to you first ? Able to follow ? Clues they If they get lost ? Their late , I 'm sure you gave good directions and also used landmarks such as churches , shops and monuments , so they could find easily . If they can not follow simple directions , you think a lease and directions will be any easier ? No, they are harder to follow.
Okay They came on time. This says they respect your time , be able to follow directions and are serious about finding a nice place to live . How did they arrive on foot, by bike, bus , taxi , truck, motorcycle or tractor-trailer ? Preferably they came in a clean , well-maintained cars in a clean condition.
Now who drove the vehicle ? If a couple are both of them to rent if your tenant without wheels . Let's assume that your prospect is driving in their own cars . It runs fine, so you have no car on blocks and a parts yard will have a front yard in six months when they buy more cheap junk to get around with.
So the car looks ok on the outside , but what about the interior of the car? Do they smoke and have smashed down McDonalds bags so far into the floorboards it seems carpet ? Does this vehicle like a house on wheels , with garbage bags filled with clothing , a crying baby and a cat in the window ? Watch out if you like this kind of telltale signs . I do not think I need the picture of what will result if you miss this step in the study painting .
Pickup trucks with camper - shells can also be loaded to the gunnels with personal belongings , including small zoo animals . I encourage you to get there, also a look!
The bottom line is that people generally treat your home the way they deal with their own , if you're lucky ! So see how they have done with their own stuff up to this point and choose wisely based on intuition , gut feeling and physical evidence .
So the car inspection is over now . How are the appearances of the people ? Are they clean and well cared for ? Do they seem to the profile of what you had suggested over the phone interviews fit or are 180 degrees out ? They deceive you with success or deceive you into believing something else up to this point ? Now they have appeared , for it is blatantly obvious that these people are scammers ?
If you feel uncomfortable in the first few minutes of not brushing these people , treat it as just a crazy idea . That is your self-preservation instinct operational and you better listen . The book , Magic Bullets will help to protect you , so do not be afraid . Use this information to protect the events that lead to horror stories yourself. Not to think . Let's continue our conversation , shall we?
Up to now, they are on time . They have a good clean car and they seem to be honest and decent people , which indeed does not give you the same impression that you developed over the phone . In fact, these people are really more than you expect . Yes, if you have done well , that will often your experience and it is almost always a pleasure and a privilege to rent to such high quality individuals.
Have you noticed something about the process here ? There is no mention of race, religion , nationality , sex, age or marital status . That is discrimination based on federally protected rights and is against the law to discriminate on these issues . This also applies for the disabled and a few other groups I overlooked .
My point is simply this : if they meet all the criteria that ensures a good quality tenant , then you would exclude a potentially excellent long term tenant based on prejudices and that's Landlording dummy in the first degree ! So do not discriminate on the fundamental human rights .
So many people screw this process . They also make mistakes by choosing management companies to this kind of highly developed intuitive researched and planned - do for event . I honestly do not know of management companies that can be as thorough as an owner who takes the time to protect in this way their own interests.
I do not care how many management companies protest about the above statement. The fact of the matter is , they do not , so they can never be a tenant who your own personal preferences on how you can meet find .
I would like to personally screen prospective tenants , as in all cases , I have total control and that's what real estate is all about - control!
Think of the opposite of control. That would be the fair for the small investor . The way I see it, I do not want to be on the sidelines rooting for someone else to make money for me, or more , in the hope that they do not lose , steal or mismanage it to my certain doom money.
With the way I property , the approach is a 100 % guarantee every time I go outsmart , outwit , outperform , over promise and under deliver to the point that I crush . My competition I 'm in a league of my own .
My tenants are the winners and they know it . What kind of loyalty do you think develops in the minds of the people who are with me for protection? It stands as a testimony and irrefutable , obvious empirical fact that I deliver on my promises . Care enough about the people who have entrusted me with their welfare , their time , their money and their trust Not move my tenants. They either ignore because of old age or they end up buying it from me if I want to sell it . It so happens that all the time .
So think again when you have a dummy landlord talk about all the trouble they had heard and then ask yourself a question . They have read Magic Bullets before she became a landlord? It is 100 % sure that they did not. If they had , when their tenants they are loved and paid for their property again and again, and made them rich beyond their wildest expectations ...
Snap out of it ! Hey , are you with me ? OK , your back . Well let's get back to reality here . What I do work and the only thing I do not like about Landlording is cashing all those damn checks . I'm not kidding . Bank tellers look at you like you're some kind of thief because you have so many checks to cash .
Here are a few things you will not find unless you have been for a while, but I'm going to save you from the pain of learning the hard way . Now of course you're going to do everything right by following my advice in real estate, but there are a lot of things I do not know . Yes , I admit it . I do not know everything , but I know what I 'm going to tell you about next and that is ... drum roll , please! Watch out for real estate investment property that comes with existing tenants! Here is why. In general , the new owner takes the property subject to the existing lease and the rights of the tenant or tenants . Usually, will continue regardless of the existing lease or rental agreement that was made with the previous owner of force.
What can happen if you do not thoroughly assess existing tenants leases ? What if the previous owner hired to be a good-for unity - nothing drug addict brother for $ 1.00 per month for the next five years ? That is a valid lease. You can use them to court for false statements , but it will cost you rent your lost security , lost sleep and maybe.
Anyway , that's an extreme example of a purposely designed under - market rent lease, but it illustrates my point . Here is another. Let's say you get a great deal and you buy it, and find out why the owner sold it to you was because the tenants were very difficult and had him over a barrel . And all the while , they are lower than the average pay rents and complain about everything . She now gets you and you can not increase the rent and they refuse to move . Here comes your eviction lawyer and you have more legal fees and lost rent to boot.
My point is this: Make the seller to get rid of bad tenants before you close on the deal . Do a pre-closing inspection and personally walk through the empty apartment , house , apartment , trailer or kennel itself. Bring extra locks or call a locksmith and have the locks changed the day before closing . An honest seller will have no problem with that as long as the title company keys until your check is accepted at the closing table .
The lesson here is always better to install your own tenants because you control the process from beginning to end . Follow not a dummy landlord or standard , you could be , even for a dummy
Also, remember this : When you install new tenants , you're generally going to get , because inflation creeps along and landlords have a hard time raising the rent to people a higher rent of the property. I 've seen 10-15 year long-term tenants pay the same price for 15 years . You go broke if you let it happen .
Customize your rents accordingly each time you fill a vacant unit and if people want to renew their lease , then inform them of an economic reality that currently exists , inflation , and keep with it! You just The annual Consumer Price Index can be used as reference . If they do not understand , they have an option and that would be to look for a similar rental to you at a lower price . If you followed my advice will not find these elusive lower rent and your guests will thank you for letting such a clean place on the new price - adjusted rate .
There is a lot of garbage from held for rent and prices may be lower , but no one wants to live in a pigsty with lime green shag carpet and Brady Bunch orange counter tops , where cockroaches tell you what to do.
So the lesson here : Encourage balking tenants to find something similar to yours at a lower price . If they find it, let them go . Chances are , they will not. After everything I told you , it is often almost impossible , if you have a hands - on owner . There is a 10 % fee for the management of companies either . So you can even ask 5 % less than investors who use professional management to do their job. So many ways to slaughter your competition ... so little time !
Then Auito is a dual - licensed real estate agent and appraisal assistant . Besides the fact that a 20 - year veteran of the United States Coast Guard , Dan has also founded a non - profit drug prevention corporation , a real estate consulting group and is the author of " Magic Bullets in Real Estate. " This 300 - page power- packed book ( scheduled for late September 2004 ) comes with a website ( on-line in late September 2004 ) which further supports its readers. Dan lives with his wife Kimberly and their two children , Brandon and Briana , on the emerald island of Kodiak Island , Alaska .
Basic Mind -Reading Report 101 for Landlords
It goes without saying , but I'll say it anyway . The better you understand your tenants and their personal situation , their needs and the better you can serve your own . Note that your needs come after your tenants. Always put the needs of your tenants ' before your own and they will buy property for you in return . That's a fair trade . Take it !
Many cold - hearted , self-serving, money - begrudge , like - are landlords do not understand human nature . Let me tell you now , if you can not turn into another person to move and see a problem from the perspective of the person with empathy yourself, you will fail miserably in the " Landlording " business and in life. Wise up !
Fear not . If you're not quite sure what I'm talking about , here come the stories and details on how to be loved and adored by such people called tenants.
Let me first dispel the horror stories about Landlording . If you follow my advice and teachings , you have to tell . Very little pity stories You've heard the stories and they sound like this : Those damn lowlife tenants. They trashed our house , they disturbed the neighbors , they ruined our lawn , they were filthy pigs who never paid the rent on time , they have never done what we told them to do and it costs us a fortune to get rid of them and repair our investment once they finally did move .
Well , guess whose fault that is. Yep , it is completely and unequivocally the fault of the person who called calling a landlord . The real name for this type of so-called landlord is uneducated dummy and because these lazy fools the whole industry gets a bad rap !
There is a positive side to the scenario above and that is this: It is a perfect opportunity for you to exactly the opposite of the fools do and make for yourself an unlimited market for excellent interruption-free supply of tenants for life!
Tenants , believe it or not , are human beings . They are not animals or things mistreated , abused or exploited . If you are going to be moving in , prepare your holiday if your mother would be your mindset realigned in short order . In fact, you will start looking at it from a compassionate point of view. You will not be cut . You will not let things go needs . Confirmation that You will use more care , skill and diligence in preparing this property for a decent person to begin to call home. That's what you want to achieve .
Do you want to ensure a smooth , pleasant , aesthetic, comfortable creature , must fulfill safe , secure , affordable and convenient place to live . If you do those things and screening the population , it's like striking gold .
The process of getting good tenants begins in your mind . By this, I mean you have to teach to recognize value and acquire properties that structurally sound , aesthetically , functionally and physically provide safety , security , affordability , convenience and a sense of pride in the mind of your tenant yourself.
Sounds like a daunting task , right? Well it's not . In fact it is so easy to achieve once you get the process that you do not even think about it to understand. It will come naturally to you . I promise you that this is true and I intend to prove it to you as well .
I absolutely guarantee that you can do it. So for now , just take my word for it to be a fact , because it is. Here is an example of using a motto for your thought process lines compared to all the things I just said . Repeat the following :
Creed landlord
I promise never to rent to someone else , something that I would not be in. myself happy life
Townhouses not included!
Now apply for each potential property that you evaluate as potential rental investment property . Human nature is unchangeable . We have all the basic needs, wants , desires and expectations that contain fear. When you remove your anxiety and provide comfort and safety , you will own your market .
So what you should do before you can be to find great places to rent out to other people . A great landlord first I explain how to do in the book [ http://www.magicbullets ] this, so I will not go into here .
The screening process is also described in the book as well. I will touch on a few things that were not touched all the processes in the main part of the book , so here are a few nuggets for you now.
The following observations were made after you all the formal screening procedures are performed . I will pay you until the day you face-to - face meeting takes place with the tenants who have passed your telephone interviews and have managed to make an appointment with you to see your beautiful rental.
Now , here are some things you uneducated dummy - kind landlords can not begin to recognize , plans or evaluate when it appears before their eyes .
Once your prospective tenant shows up to view, take note of your property
the time . Are they on time? Can they keep their promise to you first ? Able to follow ? Clues they If they get lost ? Their late , I 'm sure you gave good directions and also used landmarks such as churches , shops and monuments , so they could find easily . If they can not follow simple directions , you think a lease and directions will be any easier ? No, they are harder to follow.
Okay They came on time. This says they respect your time , be able to follow directions and are serious about finding a nice place to live . How did they arrive on foot, by bike, bus , taxi , truck, motorcycle or tractor-trailer ? Preferably they came in a clean , well-maintained cars in a clean condition.
Now who drove the vehicle ? If a couple are both of them to rent if your tenant without wheels . Let's assume that your prospect is driving in their own cars . It runs fine, so you have no car on blocks and a parts yard will have a front yard in six months when they buy more cheap junk to get around with.
So the car looks ok on the outside , but what about the interior of the car? Do they smoke and have smashed down McDonalds bags so far into the floorboards it seems carpet ? Does this vehicle like a house on wheels , with garbage bags filled with clothing , a crying baby and a cat in the window ? Watch out if you like this kind of telltale signs . I do not think I need the picture of what will result if you miss this step in the study painting .
Pickup trucks with camper - shells can also be loaded to the gunnels with personal belongings , including small zoo animals . I encourage you to get there, also a look!
The bottom line is that people generally treat your home the way they deal with their own , if you're lucky ! So see how they have done with their own stuff up to this point and choose wisely based on intuition , gut feeling and physical evidence .
So the car inspection is over now . How are the appearances of the people ? Are they clean and well cared for ? Do they seem to the profile of what you had suggested over the phone interviews fit or are 180 degrees out ? They deceive you with success or deceive you into believing something else up to this point ? Now they have appeared , for it is blatantly obvious that these people are scammers ?
If you feel uncomfortable in the first few minutes of not brushing these people , treat it as just a crazy idea . That is your self-preservation instinct operational and you better listen . The book , Magic Bullets will help to protect you , so do not be afraid . Use this information to protect the events that lead to horror stories yourself. Not to think . Let's continue our conversation , shall we?
Up to now, they are on time . They have a good clean car and they seem to be honest and decent people , which indeed does not give you the same impression that you developed over the phone . In fact, these people are really more than you expect . Yes, if you have done well , that will often your experience and it is almost always a pleasure and a privilege to rent to such high quality individuals.
Have you noticed something about the process here ? There is no mention of race, religion , nationality , sex, age or marital status . That is discrimination based on federally protected rights and is against the law to discriminate on these issues . This also applies for the disabled and a few other groups I overlooked .
My point is simply this : if they meet all the criteria that ensures a good quality tenant , then you would exclude a potentially excellent long term tenant based on prejudices and that's Landlording dummy in the first degree ! So do not discriminate on the fundamental human rights .
So many people screw this process . They also make mistakes by choosing management companies to this kind of highly developed intuitive researched and planned - do for event . I honestly do not know of management companies that can be as thorough as an owner who takes the time to protect in this way their own interests.
I do not care how many management companies protest about the above statement. The fact of the matter is , they do not , so they can never be a tenant who your own personal preferences on how you can meet find .
I would like to personally screen prospective tenants , as in all cases , I have total control and that's what real estate is all about - control!
Think of the opposite of control. That would be the fair for the small investor . The way I see it, I do not want to be on the sidelines rooting for someone else to make money for me, or more , in the hope that they do not lose , steal or mismanage it to my certain doom money.
With the way I property , the approach is a 100 % guarantee every time I go outsmart , outwit , outperform , over promise and under deliver to the point that I crush . My competition I 'm in a league of my own .
My tenants are the winners and they know it . What kind of loyalty do you think develops in the minds of the people who are with me for protection? It stands as a testimony and irrefutable , obvious empirical fact that I deliver on my promises . Care enough about the people who have entrusted me with their welfare , their time , their money and their trust Not move my tenants. They either ignore because of old age or they end up buying it from me if I want to sell it . It so happens that all the time .
So think again when you have a dummy landlord talk about all the trouble they had heard and then ask yourself a question . They have read Magic Bullets before she became a landlord? It is 100 % sure that they did not. If they had , when their tenants they are loved and paid for their property again and again, and made them rich beyond their wildest expectations ...
Snap out of it ! Hey , are you with me ? OK , your back . Well let's get back to reality here . What I do work and the only thing I do not like about Landlording is cashing all those damn checks . I'm not kidding . Bank tellers look at you like you're some kind of thief because you have so many checks to cash .
Here are a few things you will not find unless you have been for a while, but I'm going to save you from the pain of learning the hard way . Now of course you're going to do everything right by following my advice in real estate, but there are a lot of things I do not know . Yes , I admit it . I do not know everything , but I know what I 'm going to tell you about next and that is ... drum roll , please! Watch out for real estate investment property that comes with existing tenants! Here is why. In general , the new owner takes the property subject to the existing lease and the rights of the tenant or tenants . Usually, will continue regardless of the existing lease or rental agreement that was made with the previous owner of force.
What can happen if you do not thoroughly assess existing tenants leases ? What if the previous owner hired to be a good-for unity - nothing drug addict brother for $ 1.00 per month for the next five years ? That is a valid lease. You can use them to court for false statements , but it will cost you rent your lost security , lost sleep and maybe.
Anyway , that's an extreme example of a purposely designed under - market rent lease, but it illustrates my point . Here is another. Let's say you get a great deal and you buy it, and find out why the owner sold it to you was because the tenants were very difficult and had him over a barrel . And all the while , they are lower than the average pay rents and complain about everything . She now gets you and you can not increase the rent and they refuse to move . Here comes your eviction lawyer and you have more legal fees and lost rent to boot.
My point is this: Make the seller to get rid of bad tenants before you close on the deal . Do a pre-closing inspection and personally walk through the empty apartment , house , apartment , trailer or kennel itself. Bring extra locks or call a locksmith and have the locks changed the day before closing . An honest seller will have no problem with that as long as the title company keys until your check is accepted at the closing table .
The lesson here is always better to install your own tenants because you control the process from beginning to end . Follow not a dummy landlord or standard , you could be , even for a dummy
Also, remember this : When you install new tenants , you're generally going to get , because inflation creeps along and landlords have a hard time raising the rent to people a higher rent of the property. I 've seen 10-15 year long-term tenants pay the same price for 15 years . You go broke if you let it happen .
Customize your rents accordingly each time you fill a vacant unit and if people want to renew their lease , then inform them of an economic reality that currently exists , inflation , and keep with it! You just The annual Consumer Price Index can be used as reference . If they do not understand , they have an option and that would be to look for a similar rental to you at a lower price . If you followed my advice will not find these elusive lower rent and your guests will thank you for letting such a clean place on the new price - adjusted rate .
There is a lot of garbage from held for rent and prices may be lower , but no one wants to live in a pigsty with lime green shag carpet and Brady Bunch orange counter tops , where cockroaches tell you what to do.
So the lesson here : Encourage balking tenants to find something similar to yours at a lower price . If they find it, let them go . Chances are , they will not. After everything I told you , it is often almost impossible , if you have a hands - on owner . There is a 10 % fee for the management of companies either . So you can even ask 5 % less than investors who use professional management to do their job. So many ways to slaughter your competition ... so little time !
Then Auito is a dual - licensed real estate agent and appraisal assistant . Besides the fact that a 20 - year veteran of the United States Coast Guard , Dan has also founded a non - profit drug prevention corporation , a real estate consulting group and is the author of " Magic Bullets in Real Estate. " This 300 - page power- packed book ( scheduled for late September 2004 ) comes with a website ( on-line in late September 2004 ) which further supports its readers. Dan lives with his wife Kimberly and their two children , Brandon and Briana , on the emerald island of Kodiak Island , Alaska .
Monday, 9 December 2013
Trading Is Not Rocket Science!
Despite what some people may lead you to believe , day trading , swing trading and trend trading is nowhere as difficult as they want you to think . It really boils down to two major components .
First, you need an approach that helps you trades that consistently high probability of making money identify . Once you have this, this " edge" use over and over again .
The only way to do this is to use the necessary discipline to never deviate from your system . The moment you start tinkering or tweaking things is when you lose your edge !
You will probably be tempted to do after you have had a few. Losers this This time , however, to keep your focus and remind yourself that your system is kept in local time. Statistical advantage that up
Think about this for a moment ? If you gamble in Las Vegas and even a 1 % advantage over the house you can make by taking advantage of this edge . Literal fortune That little can make the casino an advantage percent lose a lot of money over time . As a matter of fact when they notice that you have a viable system they will label a cheat and ban you from playing . It is certainly a good thing that can not happen to traders !
Now consider what happens when you produce a trading strategy that trades that go into the money more than 60 to 80 % of the time ?
Now the second step to success is to control your emotions. Two of the biggest indicators of a trader who does not manage their emotions FEAR & greed . These two emotions will wipe every trader in time , both experienced and inexperienced alike.
Let's talk about them for a minute ...
FEAR : Fear of losing money or fear of being wrong is what causes traders to have this emotion .
" Trade with scared money" often causes the fear of losing money . This is when a trader risking money to be used for rent, food , children's education , etc. If this is the case, the only solution is to which you are willing to find additional resources are put at risk. This helps to keep the mind at ease and reduces anxiety .
Fear is simply the wrong part in all of us that just do not like to be wrong. The remedy is to simply realize and accept that losses are part of this game . Think about this ? A football player just hit the ball once every three times on the plate and this will put him in the Hall of Fame .
I feel this every once in a while and remind myself that ... My approach to trade has both historical and real-time consistent winning trades . This gives me the confidence to step up to the plate and keep swinging. I also tell myself that the only way to make big money is to get into the game .
GREED : Traders who are greedy are often the exact opposite of those who are afraid . They have no fear and this can they get into trouble . They will tend to over trade , not actually follow the rules and " wing it " . Sometimes this will work , but it always ends up back - firing .
One of the biggest problems when greed sets in is the inability to know when to take . To profit These traders are so bent on making a killing they are never satisfied . If they are to 10 , 20 or 30 % they do not even think about cashing out , if they want more . This often leads to the inability to see the trade against then and they will allow winning trades into losing large ones .
A solution to this is to realize that the use of 3, 5, 10 or 15% on a regular basis a short time is added up very fast. I know that for me personally , once I was confident in my method, I no longer felt the occasional feelings of greed . Now I " go for broke " as I know there is always a good trade waiting. Me not to worry about
Dr. Jeffrey Wilde, a trading veteran with 16 years experience is a trading coach to over 3,500 dealers in 63 countries . His new blog provides free trading articles, tips and advice . He also provides a variety of courses available at
First, you need an approach that helps you trades that consistently high probability of making money identify . Once you have this, this " edge" use over and over again .
The only way to do this is to use the necessary discipline to never deviate from your system . The moment you start tinkering or tweaking things is when you lose your edge !
You will probably be tempted to do after you have had a few. Losers this This time , however, to keep your focus and remind yourself that your system is kept in local time. Statistical advantage that up
Think about this for a moment ? If you gamble in Las Vegas and even a 1 % advantage over the house you can make by taking advantage of this edge . Literal fortune That little can make the casino an advantage percent lose a lot of money over time . As a matter of fact when they notice that you have a viable system they will label a cheat and ban you from playing . It is certainly a good thing that can not happen to traders !
Now consider what happens when you produce a trading strategy that trades that go into the money more than 60 to 80 % of the time ?
Now the second step to success is to control your emotions. Two of the biggest indicators of a trader who does not manage their emotions FEAR & greed . These two emotions will wipe every trader in time , both experienced and inexperienced alike.
Let's talk about them for a minute ...
FEAR : Fear of losing money or fear of being wrong is what causes traders to have this emotion .
" Trade with scared money" often causes the fear of losing money . This is when a trader risking money to be used for rent, food , children's education , etc. If this is the case, the only solution is to which you are willing to find additional resources are put at risk. This helps to keep the mind at ease and reduces anxiety .
Fear is simply the wrong part in all of us that just do not like to be wrong. The remedy is to simply realize and accept that losses are part of this game . Think about this ? A football player just hit the ball once every three times on the plate and this will put him in the Hall of Fame .
I feel this every once in a while and remind myself that ... My approach to trade has both historical and real-time consistent winning trades . This gives me the confidence to step up to the plate and keep swinging. I also tell myself that the only way to make big money is to get into the game .
GREED : Traders who are greedy are often the exact opposite of those who are afraid . They have no fear and this can they get into trouble . They will tend to over trade , not actually follow the rules and " wing it " . Sometimes this will work , but it always ends up back - firing .
One of the biggest problems when greed sets in is the inability to know when to take . To profit These traders are so bent on making a killing they are never satisfied . If they are to 10 , 20 or 30 % they do not even think about cashing out , if they want more . This often leads to the inability to see the trade against then and they will allow winning trades into losing large ones .
A solution to this is to realize that the use of 3, 5, 10 or 15% on a regular basis a short time is added up very fast. I know that for me personally , once I was confident in my method, I no longer felt the occasional feelings of greed . Now I " go for broke " as I know there is always a good trade waiting. Me not to worry about
Dr. Jeffrey Wilde, a trading veteran with 16 years experience is a trading coach to over 3,500 dealers in 63 countries . His new blog provides free trading articles, tips and advice . He also provides a variety of courses available at
Saturday, 7 December 2013
Asset Location - Increase Investing Returns & Reduce Your Taxes
Location - Once the holy grail only for real estate investors is fast becoming the mantra for every stock , bond , and mutual fund investor . Experts and studies now recognize managing asset location is second only to asset allocation in determining the success of your investment returns.
Importance of Asset Location:
Location asset is a cornerstone for success for one simple reason . Taxable accounts differ from the tax-deferred accounts { 401 ( k ) , IRA and similar retirement } . Taxable accounts, you income tax on any dividends and capital gains generated by paying your investments. This tax significantly reduces the amount of reinvestment and annual investment growth . On the other hand , retirement accounts defer taxes which returns to connect without penalty and at a significantly faster rate . Asset location refers to the optimal placement of securities between taxable and tax-deferred accounts. To reward long-term compounding and significantly higher yields good choices. Investors Bad choices , or more generally , no choice , leading to below average results .
The effects are striking. Investors lose up to 20 % of their after - mislocating returns by investing in the wrong type of account . That says a recent study by three finance professors Robert Dammon and Chester S. Spatt of Carnegie Mellon University , and Harold H. Zhang of the University of North Carolina . The professors analyzed two types of assets, stocks and bonds, to determine suitability for investing in tax - deferred accounts. Their conclusion ? Investors should hold shares in taxable accounts and bonds in tax - deferred accounts , to the extent possible . Young investors are the most to gain by following such advice . Three of the most powerful elements of investing - dividends , deferred taxes , and compound interest - combine for a dazzling effect on retirement income .
Unfortunately , the typical investor never takes advantage of all three benefits . A recent Federal Reserve survey shows Americans their taxable and tax-deferred investment accounts with identical effects. People focus on individual accounts instead of their entire portfolio. They ignore the benefits of allocating investments among various accounts and wind up with multiple accounts all hold the same. To their detriment , nearly half of all investors hold bonds in taxable accounts and stocks in the tax - deferred accounts.
Why asset location work :
Tax efficiency is more important than ever . Two recent changes are driven asset location strategy . Last year, tax , employment growth and Tax Relief Reconciliation Act of 2003 , cut top tax rates on dividends from 35% to 15 % . Same dividends , however, would be at the normal rate ( to 35 % ) taxed when withdrawn from a retirement account . The new law on the taxation of capital gains from 20% to 15 % . Since most equity investments generate income from both dividends and capital gains , investors realize lower tax bills when holding shares or equity funds in a taxable account .
Similarly , fixed income ( eg bonds ) and property trusts generate a steady stream of money . These interest payments are subject to the same ordinary income tax rates of up to 35 % . A tax - deferred retirement account offers investors the best possible care for these effects and the resulting profits .
That investment goes where ?
Fortunately, your asset location strategy are relatively simple . Place heavy duty assets in tax -deferred accounts first . Anything left over can go in taxable accounts . The academic study , the professors concluded with three general rules to help in decision making. First , search taxable bonds , real estate investment trusts ( REITs ) and related funds in tax-deferred accounts. Second , locate stocks and stock mutual funds in taxable accounts - even if you are an active trader and generate significant short-term gains . Third , never buy until you fill with taxable bonds or REITs . Complete a tax-deferred accounts municipal bonds The combination of composing and defer taxes on the higher yields of corporate bonds . If this all sounds a bit overwhelming , just check the table below .
Table 1 : Asset Locations for high efficiency and minimal taxes .
TAXABLE INCOME
- Inventories
- Tax - free or tax-deferred bonds ( munis , treasuries and savings bonds )
- Mutual funds invest in stocks or tax-advantaged bonds
Tax - deferred accounts ( traditional IRAs , 401 ( k ) s , and deferred annuities )
- Taxable bonds ( corporates , zeros , TIPS and high yields )
- REITs (Real Estate Investment Trusts)
- Mutual funds invest in bonds or taxable REIT
Two exceptions are worth noting . First , qualified distributions from Roth IRAs are tax free. In general , place assets with the greatest potential for returns within a Roth . Second, if a 401 ( k ) or IRA keeps all ( or nearly all) of your investment money , throw this article away and focus only on asset allocation .
Summary :
You , as an informed investor can take your return on investment . Control of taxes and related charges Reduce risks and increase returns Assign your investments . Find your investments to minimize . By managing all your accounts on the tax obstacle for your financial return
Tim Olson
TheAssetAdvisor.com
Mr. Olson is the editor of The Asset Advisor, a financial investment services proven strategies for no - load mutual fund investors . He brings 26 years of training and experience of the Stanford University , Ernst & Young financial advice , personal wealth management , and venture capital investing .
Importance of Asset Location:
Location asset is a cornerstone for success for one simple reason . Taxable accounts differ from the tax-deferred accounts { 401 ( k ) , IRA and similar retirement } . Taxable accounts, you income tax on any dividends and capital gains generated by paying your investments. This tax significantly reduces the amount of reinvestment and annual investment growth . On the other hand , retirement accounts defer taxes which returns to connect without penalty and at a significantly faster rate . Asset location refers to the optimal placement of securities between taxable and tax-deferred accounts. To reward long-term compounding and significantly higher yields good choices. Investors Bad choices , or more generally , no choice , leading to below average results .
The effects are striking. Investors lose up to 20 % of their after - mislocating returns by investing in the wrong type of account . That says a recent study by three finance professors Robert Dammon and Chester S. Spatt of Carnegie Mellon University , and Harold H. Zhang of the University of North Carolina . The professors analyzed two types of assets, stocks and bonds, to determine suitability for investing in tax - deferred accounts. Their conclusion ? Investors should hold shares in taxable accounts and bonds in tax - deferred accounts , to the extent possible . Young investors are the most to gain by following such advice . Three of the most powerful elements of investing - dividends , deferred taxes , and compound interest - combine for a dazzling effect on retirement income .
Unfortunately , the typical investor never takes advantage of all three benefits . A recent Federal Reserve survey shows Americans their taxable and tax-deferred investment accounts with identical effects. People focus on individual accounts instead of their entire portfolio. They ignore the benefits of allocating investments among various accounts and wind up with multiple accounts all hold the same. To their detriment , nearly half of all investors hold bonds in taxable accounts and stocks in the tax - deferred accounts.
Why asset location work :
Tax efficiency is more important than ever . Two recent changes are driven asset location strategy . Last year, tax , employment growth and Tax Relief Reconciliation Act of 2003 , cut top tax rates on dividends from 35% to 15 % . Same dividends , however, would be at the normal rate ( to 35 % ) taxed when withdrawn from a retirement account . The new law on the taxation of capital gains from 20% to 15 % . Since most equity investments generate income from both dividends and capital gains , investors realize lower tax bills when holding shares or equity funds in a taxable account .
Similarly , fixed income ( eg bonds ) and property trusts generate a steady stream of money . These interest payments are subject to the same ordinary income tax rates of up to 35 % . A tax - deferred retirement account offers investors the best possible care for these effects and the resulting profits .
That investment goes where ?
Fortunately, your asset location strategy are relatively simple . Place heavy duty assets in tax -deferred accounts first . Anything left over can go in taxable accounts . The academic study , the professors concluded with three general rules to help in decision making. First , search taxable bonds , real estate investment trusts ( REITs ) and related funds in tax-deferred accounts. Second , locate stocks and stock mutual funds in taxable accounts - even if you are an active trader and generate significant short-term gains . Third , never buy until you fill with taxable bonds or REITs . Complete a tax-deferred accounts municipal bonds The combination of composing and defer taxes on the higher yields of corporate bonds . If this all sounds a bit overwhelming , just check the table below .
Table 1 : Asset Locations for high efficiency and minimal taxes .
TAXABLE INCOME
- Inventories
- Tax - free or tax-deferred bonds ( munis , treasuries and savings bonds )
- Mutual funds invest in stocks or tax-advantaged bonds
Tax - deferred accounts ( traditional IRAs , 401 ( k ) s , and deferred annuities )
- Taxable bonds ( corporates , zeros , TIPS and high yields )
- REITs (Real Estate Investment Trusts)
- Mutual funds invest in bonds or taxable REIT
Two exceptions are worth noting . First , qualified distributions from Roth IRAs are tax free. In general , place assets with the greatest potential for returns within a Roth . Second, if a 401 ( k ) or IRA keeps all ( or nearly all) of your investment money , throw this article away and focus only on asset allocation .
Summary :
You , as an informed investor can take your return on investment . Control of taxes and related charges Reduce risks and increase returns Assign your investments . Find your investments to minimize . By managing all your accounts on the tax obstacle for your financial return
Tim Olson
TheAssetAdvisor.com
Mr. Olson is the editor of The Asset Advisor, a financial investment services proven strategies for no - load mutual fund investors . He brings 26 years of training and experience of the Stanford University , Ernst & Young financial advice , personal wealth management , and venture capital investing .
Thursday, 5 December 2013
Asset Allocation: Critical to Your Investment Success
Asset allocation is a critical component of investing success . Both research and academic studies show asset allocation to most important factor in determining your financial goals . Allocation affects both the overall long-term risk and return of your investment portfolio . Other factors such as security selection and market timing accounts for a very small percentage of your investment returns. Unfortunately , the most important decision for achieving financial success is also the least understood .
What is asset allocation ? Most people confuse asset allocation and diversification . They believe that similar assets has something to do with making multiple investments between groups. Ask investors to list the assets which they would consider investing . Typical answers include " growth stocks " , " bonds" , " large caps " and sometimes " international equities . " But their distribution is limited to selection within an asset . For example , a person can opt for technology stocks to buy invest in five or six companies - but all within the technology industry . This reduces risk as one of the companies would fail, but is useless when the technology industry (or the entire stock ) slumps.
Asset allocation continues diversification to limit all types of financial assets ( cash , stocks, bonds , commodities, real estate and even venture capital or hedge funds ) . Risk Investments and risks can be further divided into sub-classes of shares, including large-cap , mid - cap , small - cap , value versus growth and international versus domestic . Similarly, bonds are divided into subcategories of short-term and long-term , tax - free , high yield , convertible, emerging markets , floating rate , and international versus domestic . Several combinations allows investors to allocate their portfolios in a number of asset classes and categories .
Adding a high-risk asset classes and investments for a portfolio may seem risky. But the combination of assets that behave differently , or even opposed, both increases efficiency and reduces the risk of an entire portfolio. Thus, international stocks considered ' riskier ' than domestic stocks Yet we often see the prices of U.S. stocks rise on the same day the prices of international equities go down - . And vice versa We call this negative correlation Gains from one asset. . balance the losses of another. a combination of international and U.S. equities actually reduces investment risk by reducing the daily price fluctuations of our entire portfolio .
History shows many markets exhibit similar negative price correlation . In a collapsing economy , strong performance bonds than stocks when interest rates drop . In an overheating of the economy, inflation helps generate stellar returns in the commodities market . But the timing of such events is unpredictable , and the variability of returns is risk for an investor . Choose only stocks, but bonds , or a single asset class to buy increases the risk to lose if the market underperforms money.
The strength of the asset allocation comes from reducing risk while increasing efficiency. Reducing risks by combining , however , multiple asset classes is not a simple process . While each has its own unique active measure of risk , many assets share the same pricing behavior ( their prices go up and down together in each market ) . Combine like free investments increase the risk of wild changes in price. Trade - offs between active risk and expected return should also be taken into account . High-yielding assets typically experience high volatility or material change in the price. These assets must be offset by protecting against large declines in value . Investments with lower returns
Successful asset allocation requires finding the right mix of assets to reward it with a level of risk acceptable balance. Good distribution planning requires research assets and investment analysis. Fortunately, tools are available to help the independent investor . Popular financial websites provides independent investors help with educational software and links to the portfolios based on a survey of financial questions to build . For sophisticated investors , many books written to carefully explain the theory and practice of asset allocation - also called MPT ( Modern Portfolio Theory ) . Casual investors can fund specifically designed to asset allocation based on an expected retirement automate buying . Pragmatic investors can explore the many financial planners and advisory asset allocation portfolios that are specific to their needs to offer.
Carefully consider your options . Each solution has its own set of advantages and disadvantages . Choose a style that closely reflects your own . How important is asset allocation ? It is the biggest determinant of your long term financial success .
Tim Olson
TheAssetAdvisor.com [ http://TheAssetAdvisor.com ] Subscribe to our free newsletter .
Mr. Olson is the editor of The Asset Advisor, a financial investment services proven strategies for no - load mutual fund investors . He brings 26 years of training and experience of the Stanford University , Ernst & Young , personal wealth management , and venture capital investing .
What is asset allocation ? Most people confuse asset allocation and diversification . They believe that similar assets has something to do with making multiple investments between groups. Ask investors to list the assets which they would consider investing . Typical answers include " growth stocks " , " bonds" , " large caps " and sometimes " international equities . " But their distribution is limited to selection within an asset . For example , a person can opt for technology stocks to buy invest in five or six companies - but all within the technology industry . This reduces risk as one of the companies would fail, but is useless when the technology industry (or the entire stock ) slumps.
Asset allocation continues diversification to limit all types of financial assets ( cash , stocks, bonds , commodities, real estate and even venture capital or hedge funds ) . Risk Investments and risks can be further divided into sub-classes of shares, including large-cap , mid - cap , small - cap , value versus growth and international versus domestic . Similarly, bonds are divided into subcategories of short-term and long-term , tax - free , high yield , convertible, emerging markets , floating rate , and international versus domestic . Several combinations allows investors to allocate their portfolios in a number of asset classes and categories .
Adding a high-risk asset classes and investments for a portfolio may seem risky. But the combination of assets that behave differently , or even opposed, both increases efficiency and reduces the risk of an entire portfolio. Thus, international stocks considered ' riskier ' than domestic stocks Yet we often see the prices of U.S. stocks rise on the same day the prices of international equities go down - . And vice versa We call this negative correlation Gains from one asset. . balance the losses of another. a combination of international and U.S. equities actually reduces investment risk by reducing the daily price fluctuations of our entire portfolio .
History shows many markets exhibit similar negative price correlation . In a collapsing economy , strong performance bonds than stocks when interest rates drop . In an overheating of the economy, inflation helps generate stellar returns in the commodities market . But the timing of such events is unpredictable , and the variability of returns is risk for an investor . Choose only stocks, but bonds , or a single asset class to buy increases the risk to lose if the market underperforms money.
The strength of the asset allocation comes from reducing risk while increasing efficiency. Reducing risks by combining , however , multiple asset classes is not a simple process . While each has its own unique active measure of risk , many assets share the same pricing behavior ( their prices go up and down together in each market ) . Combine like free investments increase the risk of wild changes in price. Trade - offs between active risk and expected return should also be taken into account . High-yielding assets typically experience high volatility or material change in the price. These assets must be offset by protecting against large declines in value . Investments with lower returns
Successful asset allocation requires finding the right mix of assets to reward it with a level of risk acceptable balance. Good distribution planning requires research assets and investment analysis. Fortunately, tools are available to help the independent investor . Popular financial websites provides independent investors help with educational software and links to the portfolios based on a survey of financial questions to build . For sophisticated investors , many books written to carefully explain the theory and practice of asset allocation - also called MPT ( Modern Portfolio Theory ) . Casual investors can fund specifically designed to asset allocation based on an expected retirement automate buying . Pragmatic investors can explore the many financial planners and advisory asset allocation portfolios that are specific to their needs to offer.
Carefully consider your options . Each solution has its own set of advantages and disadvantages . Choose a style that closely reflects your own . How important is asset allocation ? It is the biggest determinant of your long term financial success .
Tim Olson
TheAssetAdvisor.com [ http://TheAssetAdvisor.com ] Subscribe to our free newsletter .
Mr. Olson is the editor of The Asset Advisor, a financial investment services proven strategies for no - load mutual fund investors . He brings 26 years of training and experience of the Stanford University , Ernst & Young , personal wealth management , and venture capital investing .
Tuesday, 3 December 2013
Wit and Wisdom on Money, Wall Street and Success - Part #4
Can you briefly summarize your investment philosophy in a few sentences ? My experience is that most people can not . The quotes that follow are diamonds that offer a real powerful education in the world of Risk Management . They have had a profound influence in my life . I give them in the hope that they achieve a similar effect on your investments . Enjoy!
1 ) " Rule No. 1 : Never lose money Rule No. 2 : Never forget Rule No. 1 .. " -
- Warren Buffett
2 ) " Large profits can be made into ordinary shares. Large losses can be made into ordinary shares. "
- Peter Lynch
3 ) " A fool and his money are soon parted . "
- Unknown
4 ) " A fool and his money were lucky to get in the first place together. "
-W.C. fields
5 ) "You have to invest in a business that even a fool can run , because someday a fool will . "
- Warren Buffett
6 ) " The most important thing in life is to find out who the bat boy for . Figure "
- Warren Buffett
7 ) "Let Wall Street have a nightmare and the whole country to help them back to bed . "
- Will Rogers , The Autobiography of Will Rogers
8 ) "There are two fools in every market . A little too specific , the other asks too much. "
- Russian proverb
9 ) " The elements of good trading : .. ( 1 ) cutting losses , ( 2 ) cutting losses , and ( 3 ) cutting losses if you can follow these three rules, you can have a chance "
- Ed Seykota
10 ) " The fact that the market does not care whether you are IN or OUT! And if that's the case , my question is who you are competing against ? Most people will ' everyone else ' response to my response is ' look in the mirror ." "
- Harald Anderson Analyst at eOptionsTrader.com
Harald Anderson is the founder and Chief Analyst of eOptionsTrader.com a leading online resource of Options Trading Information. He writes regularly for financial publications on Risk Management and Trading Strategies . His goal in life is to become the kind of person that his dog already thinks he has become .
1 ) " Rule No. 1 : Never lose money Rule No. 2 : Never forget Rule No. 1 .. " -
- Warren Buffett
2 ) " Large profits can be made into ordinary shares. Large losses can be made into ordinary shares. "
- Peter Lynch
3 ) " A fool and his money are soon parted . "
- Unknown
4 ) " A fool and his money were lucky to get in the first place together. "
-W.C. fields
5 ) "You have to invest in a business that even a fool can run , because someday a fool will . "
- Warren Buffett
6 ) " The most important thing in life is to find out who the bat boy for . Figure "
- Warren Buffett
7 ) "Let Wall Street have a nightmare and the whole country to help them back to bed . "
- Will Rogers , The Autobiography of Will Rogers
8 ) "There are two fools in every market . A little too specific , the other asks too much. "
- Russian proverb
9 ) " The elements of good trading : .. ( 1 ) cutting losses , ( 2 ) cutting losses , and ( 3 ) cutting losses if you can follow these three rules, you can have a chance "
- Ed Seykota
10 ) " The fact that the market does not care whether you are IN or OUT! And if that's the case , my question is who you are competing against ? Most people will ' everyone else ' response to my response is ' look in the mirror ." "
- Harald Anderson Analyst at eOptionsTrader.com
Harald Anderson is the founder and Chief Analyst of eOptionsTrader.com a leading online resource of Options Trading Information. He writes regularly for financial publications on Risk Management and Trading Strategies . His goal in life is to become the kind of person that his dog already thinks he has become .
Sunday, 1 December 2013
Remembering TEOTWAWKI and Learning from It
Its only been about 5 years since we had great panic in the market regarding Y2K . You might recall that many computer systems were not programmed to be able to understand from 1999 to 2000 the change. There was a huge amount of panic created by those who were convinced that the clock hit midnight on New Year's Eve in 2000 that we were going to enter the Middle Ages .
Through my analysis, this never happened .... unless I slept through it and no one bothered to wake me up ! ( Note to self : Make Staff me up when Y2K happens! )
The word that we are supposed to learn and understand ; TEOTWAWKI .... ( The End Of The World As We Know It ) It was a word created by the Y2K scare .
I think there is a very profound lesson from the Y2K scare to be learned . Namely that forecasting is virtually worthless . The real problem with the trade as with life itself is to manage risks. Risk can be defined many ways , but usually it is not prepared for the future and embracing an opinion .
One advantage of living in a free society is that we are fortunate enough to be exposed to numerous positions on a daily basis . As traders we must learn to continually distinguish the difference between facts and opinions and determine how new data may affect us.
For those who never learn to do , the end of the world as we know this will be reflected in their portfolios . For the rest of us all we can do is learn to manage risks. It is the only trade secret.
There are two schools of thought on the market .... TEOTWAWKI and Risk Management . You make the choice.
The only constant in life is change. Not predict . Manage your RISK.
Dowjonesfully ,
- Harald Anderson
Harald Anderson is the founder and Chief Analyst of eOptionsTrader.com a leading online resource of Options Trading Information. He writes regularly for financial publications on Risk Management and Trading Strategies . His goal in life is to become the kind of person that his dog already thinks he has become .
Its only been about 5 years since we had great panic in the market regarding Y2K . You might recall that many computer systems were not programmed to be able to understand from 1999 to 2000 the change. There was a huge amount of panic created by those who were convinced that the clock hit midnight on New Year's Eve in 2000 that we were going to enter the Middle Ages .
Through my analysis, this never happened .... unless I slept through it and no one bothered to wake me up ! ( Note to self : Make Staff me up when Y2K happens! )
The word that we are supposed to learn and understand ; TEOTWAWKI .... ( The End Of The World As We Know It ) It was a word created by the Y2K scare .
I think there is a very profound lesson from the Y2K scare to be learned . Namely that forecasting is virtually worthless . The real problem with the trade as with life itself is to manage risks. Risk can be defined many ways , but usually it is not prepared for the future and embracing an opinion .
One advantage of living in a free society is that we are fortunate enough to be exposed to numerous positions on a daily basis . As traders we must learn to continually distinguish the difference between facts and opinions and determine how new data may affect us.
For those who never learn to do , the end of the world as we know this will be reflected in their portfolios . For the rest of us all we can do is learn to manage risks. It is the only trade secret.
There are two schools of thought on the market .... TEOTWAWKI and Risk Management . You make the choice.
The only constant in life is change. Not predict . Manage your RISK.
Dowjonesfully ,
- Harald Anderson
Harald Anderson is the founder and Chief Analyst of eOptionsTrader.com a leading online resource of Options Trading Information. He writes regularly for financial publications on Risk Management and Trading Strategies . His goal in life is to become the kind of person that his dog already thinks he has become .
Friday, 29 November 2013
Options Education: Financing the Calendar!
As a trader , one of the most important things I try to do is to consciously cultivate my instincts by talking with other traders and investors as often as possible . It still amazes me how big the differences of opinion that exists about what people believe will unfold as we are in the new millennium. Many highly respected names are literally predicting an economic earthquake that a 10 on the Richter scale will measure , while others have looked at the exact same research claim that will be very mild. Effects As a trader I have to evaluate the data and develop a strategy that I feel not only gives me an edge , but provides a great deal of error while still being low risk !
In his book , "Business Without Economists " author William J. Hudson explains a theory worthy of any consideration traders . ( Especially now with Y2K just around the corner ) He explains :
1 ) The demand for answers will always be greater than the supply .
2 ) Therefore, the price will be high for answers .
3 ) therefore a very wide range of answers will emerge .
4 ) Therefore most answers are false , especially when tested against reality .
I have this statement on my computer as a reminder to myself that markets are very humble mechanisms . The main question we must constantly ask ourselves regarding all trading strategy that we enter as traders : " What if I'm right And what if I miss ? ?
As I assess the economic landscape and scan the marketplace for trading options , there is a fact that I should pay attention to : The name of the game is Managing RISK !
With this in mind , let's evaluate some of the important facts :
Many of the Commodity Markets bounced strongly from their twenty to thirty year lows .
When I cross reference this fact with the reality that inflation is back in the economy , it creates some very interesting commercial opportunities for the savvy trader OPTION . The key to a trading strategy in my opinion is that it is a low risk , because there are so many possible outcomes that may occur.
The purpose of this strategy is the need to eliminate the timing of minimizing the development of a method of my risk of loss. Before I provide you with the mechanics of these tactics leave me a weird possibility so we can get clearly illustrate a definition of traders RISK . Let's say you are convinced that on March 1, 2005 , you think that gold is trading at $ 3,000 dollars to be . Ounce ( I said weird ! ) Based on this scenario , even if you wholeheartedly agree , how could you trade this point and still takes very little risk ? Most people think that RISK is defined as being right or wrong on the outcome of a trade. , Is , however, a risk-sensitive trader only concerned with their exposure to chance of LOSS .
If you thought that gold would be traded $ 3,000 per ounce would enter the market and
very cheap to buy a pair of call options that would give you the right to buy at $ 500 per ounce gold. In this case , the most you could lose is the money you the options to buy and you but the obligation to buy at $ 500 between now and March gold would not have . Entitled However , only limited risk because you 're still a great deal of exposure LOSS . The reason for this is that if GOLD does not get to $ 500 you would lose all the money to buying options.
The way a professional would trade this scenario is that he would finance from OPTION SELL trade. When you SELL an option you are essentially creating an obligation that you are forced to stick to contract . For example, if you sell a $ 500 December Gold Call and receives money you have in fact agreed to deliver to the buyer's option at a price of $ 500 between now and December 2004 gold.
As a seller of this option , the most you can make is the premium you collected and you RISK upside is theoretically unlimited . If Gold is trading at $ 800 per ounce in December 2004 and you will have this option you are required to offset the supply of gold to the Option buyer at the originally agreed price of $ 500 per ounce . If this happens you would have in effect a loss of $ 300 per ounce on each contract you sold . Not very attractive , especially since each Gold contract is 100 grams in size . The loss is $ 30,000 per contract . That's a lot of risk !
The way to minimize risks is to SPREAD against other OPPOSITE options positions .
In the above example , let's say that a trader bought March 1 $ 500 Gold call option for a premium payment of $ 6.00 per ounce ( $ 600 ) . Each Gold contract is 100 grams so this trader would have to pay $ 600 per option . The RISK here is very clearly defined as $ 600 . However, if these same dealer now SOLD ( 1 ) GOLD December $ 500 Gold Call Option ( PLEASE NOTE THAT THE December OPTION is applied before the March Option ) and collected a premium payment of $ 300 , they have in fact reduced their initial risk for difference between the $ 600 they paid and the $ 300 he collected , or $ 300 .
Let me outline what this trader did. They have committed themselves to a price of $ 500 per ounce between now and December and the supply of 100 ounces of gold they have the right but not the obligation to hold 100 ounces of gold at $ 500 an ounce between now and March simultaneously. They have a bullish CALENDAR position by selling a call option on a nearby month and using the money they collected in the sale of the ability to finance their purchases of the Call Option in the month deferral option.
What this strategy is actually saying is that the traders believe that gold will make his move after December but before March. Although it does not seem very exciting now , this anticipated disruption occur in that time frame a trader who is positioned in this style would sit in the driver's seat . In essence, they would look at a maximum exposure of $ 300 with the possibility of unlimited upside potential . (Yes , I realize that with gold at $ 430 right now that possibility seems extremely small. ) It is this kind of trading tactic that makes much sense in markets that trade at a historical low .
The key to successful trading is to minimize if you want to get more information. Your Risk The closer you get to expiration the more information you have about the feasibility of this tactic . Most importantly, you played the game without exposing yourself to a lot of DOWN SIDE . That my friends is the path to long-term success in any highly leveraged transaction. As William J. Hudson mentioned ,
"Most answers will be false, especially when tested against reality ! " Worth thinking about .
Still another way to swing for the fences , without taking a large portion of the risks.
STUDY AWAY and let's be careful out there!
Dowjonesfully -
- Harald Anderson
THE RISK OF TRADE IS IMPORTANT , SO ONLY " RISK " funds should be used . The valuation of such may fluctuate , and as a result , customers can lose their initial investment . Under no circumstances should the content of this website be construed as an express or implied promise , guarantee or implication by someone you will benefit.
Harald Anderson is the founder and Chief Analyst of eOptionsTrader.com a leading online resource of Options Trading Information. He writes regularly for financial publications on Risk Management and Trading Strategies . His goal in life is to become the kind of person that his dog already thinks he has become .
In his book , "Business Without Economists " author William J. Hudson explains a theory worthy of any consideration traders . ( Especially now with Y2K just around the corner ) He explains :
1 ) The demand for answers will always be greater than the supply .
2 ) Therefore, the price will be high for answers .
3 ) therefore a very wide range of answers will emerge .
4 ) Therefore most answers are false , especially when tested against reality .
I have this statement on my computer as a reminder to myself that markets are very humble mechanisms . The main question we must constantly ask ourselves regarding all trading strategy that we enter as traders : " What if I'm right And what if I miss ? ?
As I assess the economic landscape and scan the marketplace for trading options , there is a fact that I should pay attention to : The name of the game is Managing RISK !
With this in mind , let's evaluate some of the important facts :
Many of the Commodity Markets bounced strongly from their twenty to thirty year lows .
When I cross reference this fact with the reality that inflation is back in the economy , it creates some very interesting commercial opportunities for the savvy trader OPTION . The key to a trading strategy in my opinion is that it is a low risk , because there are so many possible outcomes that may occur.
The purpose of this strategy is the need to eliminate the timing of minimizing the development of a method of my risk of loss. Before I provide you with the mechanics of these tactics leave me a weird possibility so we can get clearly illustrate a definition of traders RISK . Let's say you are convinced that on March 1, 2005 , you think that gold is trading at $ 3,000 dollars to be . Ounce ( I said weird ! ) Based on this scenario , even if you wholeheartedly agree , how could you trade this point and still takes very little risk ? Most people think that RISK is defined as being right or wrong on the outcome of a trade. , Is , however, a risk-sensitive trader only concerned with their exposure to chance of LOSS .
If you thought that gold would be traded $ 3,000 per ounce would enter the market and
very cheap to buy a pair of call options that would give you the right to buy at $ 500 per ounce gold. In this case , the most you could lose is the money you the options to buy and you but the obligation to buy at $ 500 between now and March gold would not have . Entitled However , only limited risk because you 're still a great deal of exposure LOSS . The reason for this is that if GOLD does not get to $ 500 you would lose all the money to buying options.
The way a professional would trade this scenario is that he would finance from OPTION SELL trade. When you SELL an option you are essentially creating an obligation that you are forced to stick to contract . For example, if you sell a $ 500 December Gold Call and receives money you have in fact agreed to deliver to the buyer's option at a price of $ 500 between now and December 2004 gold.
As a seller of this option , the most you can make is the premium you collected and you RISK upside is theoretically unlimited . If Gold is trading at $ 800 per ounce in December 2004 and you will have this option you are required to offset the supply of gold to the Option buyer at the originally agreed price of $ 500 per ounce . If this happens you would have in effect a loss of $ 300 per ounce on each contract you sold . Not very attractive , especially since each Gold contract is 100 grams in size . The loss is $ 30,000 per contract . That's a lot of risk !
The way to minimize risks is to SPREAD against other OPPOSITE options positions .
In the above example , let's say that a trader bought March 1 $ 500 Gold call option for a premium payment of $ 6.00 per ounce ( $ 600 ) . Each Gold contract is 100 grams so this trader would have to pay $ 600 per option . The RISK here is very clearly defined as $ 600 . However, if these same dealer now SOLD ( 1 ) GOLD December $ 500 Gold Call Option ( PLEASE NOTE THAT THE December OPTION is applied before the March Option ) and collected a premium payment of $ 300 , they have in fact reduced their initial risk for difference between the $ 600 they paid and the $ 300 he collected , or $ 300 .
Let me outline what this trader did. They have committed themselves to a price of $ 500 per ounce between now and December and the supply of 100 ounces of gold they have the right but not the obligation to hold 100 ounces of gold at $ 500 an ounce between now and March simultaneously. They have a bullish CALENDAR position by selling a call option on a nearby month and using the money they collected in the sale of the ability to finance their purchases of the Call Option in the month deferral option.
What this strategy is actually saying is that the traders believe that gold will make his move after December but before March. Although it does not seem very exciting now , this anticipated disruption occur in that time frame a trader who is positioned in this style would sit in the driver's seat . In essence, they would look at a maximum exposure of $ 300 with the possibility of unlimited upside potential . (Yes , I realize that with gold at $ 430 right now that possibility seems extremely small. ) It is this kind of trading tactic that makes much sense in markets that trade at a historical low .
The key to successful trading is to minimize if you want to get more information. Your Risk The closer you get to expiration the more information you have about the feasibility of this tactic . Most importantly, you played the game without exposing yourself to a lot of DOWN SIDE . That my friends is the path to long-term success in any highly leveraged transaction. As William J. Hudson mentioned ,
"Most answers will be false, especially when tested against reality ! " Worth thinking about .
Still another way to swing for the fences , without taking a large portion of the risks.
STUDY AWAY and let's be careful out there!
Dowjonesfully -
- Harald Anderson
THE RISK OF TRADE IS IMPORTANT , SO ONLY " RISK " funds should be used . The valuation of such may fluctuate , and as a result , customers can lose their initial investment . Under no circumstances should the content of this website be construed as an express or implied promise , guarantee or implication by someone you will benefit.
Harald Anderson is the founder and Chief Analyst of eOptionsTrader.com a leading online resource of Options Trading Information. He writes regularly for financial publications on Risk Management and Trading Strategies . His goal in life is to become the kind of person that his dog already thinks he has become .
Wednesday, 27 November 2013
Understanding The Real Rate of Return!
There is an indicator more than any other which determines the health of an economy and this is the real rate of return . Moreover, this is the simplest of all indicators to understand because it determines the security of the assets. Next time you hear the talking heads discussing the nuances of the markets , filter what they say through your own understanding of the Real Rate of Return .
The Real Rate of Return is a number that determines the safety of principal . It is calculated by the current yield and subtracting the expected inflation . The result is the REAL return on giaranteed money from the government .
Interest rates are on the rise as we expected and this pressure has a huge amount of pressure on the stock market . The essential simplicity at work here is very , very basic. As interest on bonds yield 5.14% and inflation is estimated at 5 % . The difference is the real return (in this case we speak about 0.14 % ) . The real return is what sparks major rallies and declines on Wall Street.
The reason is that the Bond market is the largest financial market in the world . There are literally billions of dollars invested in debt denominated assets . These investors are primarily interested in the safety of their principal and take as little risk as possible . They historic welcome REAL Prices of returns that would be in the 2 % - 5 % per year. During the 1970s this indicator NEGATIVE went for a while indicating inflation was faster than the interest rate and bond investors actually had substantial rise. Negative return During this time there was a lot of " screaming and gnashing of teeth . "
It is always my estimation that the Federal Reserve chairman , Alan Greenspan 's main task is to maintain . Real return as high as possible HE has been very successful to do so. If you would WISE display its events through this indicator . More than a history of financial markets to read back The economic climate is remarkably different and change drastically as the real return on the safest investment is threatened . Opinions of people
An understanding of this simplicity is necessary for success in any kind of investing as IT is the basic building block from which all other analysis is based . Although it is always difficult to predict what will happen in the future , the one factor that you can count on is that when the real return there is a lot of sweat on the forehead of Money Managers who oversee the billions of dollars entrusted to them .
At present, keep your eye on this indicator and make your own forecast of inflation . You will realize that your ANALYSIS can be. Better than the big boys
Let us be careful other there !
Dowjonesfully ,
- Harald Anderson
Harald Anderson is the founder and Chief Analyst of eOptionsTrader.com a leading online resource of Options Trading Information. He writes regularly for financial publications on Risk Management and Trading Strategies . His goal in life is to become the kind of person that his dog already thinks he has become
Monday, 25 November 2013
Investing 101: Risk Terminology - BETA
About thirty years ago , statisticians armed with all their statistical theories began to confront the financial markets. A handful of useful tools emerged that the average investor should know when they look at buying shares .
A secret that people "in the know " use " BETA " . " Beta " is a number that indicates the relative share of the market has been . However fleeting This number is also listed on most services offer so it is easy to get , but I often find that it is never defined . A BETA of 1.00 means that on average a stock has historically attuned to the markets swings both on the top and at the bottom . A BETA greater than 1:00 reflects above average market volatility , and a BETA of less than 1.00 indicates below average market volatility . When a BETA is less than zero , it shows that the stock moves in contrast to the general market , is in bull markets and increasing in the market bear .. It used to be that gold mining stocks would have negative betas . For example, Internet stocks have high betas .
Many of the analysts who stabbing your TV screen and recommendations BETA use as their primary screening device in the search for suitable investments . So the next time your broker calls with an investment recommendation , ask him what the BETA and enjoy the silence on the other end of the telephone . Send him a copy of this article !
Dowjonesfully ,
- Harald Anderson
Harald Anderson is the founder and Chief Analyst of eOptionsTrader.com a leading online resource of Options Trading Information. He writes regularly for financial publications on Risk Management and Trading Strategies . His goal in life is to become the kind of person that his dog already thinks he has become
Saturday, 23 November 2013
Wit and Wisdom on Money, Wall Street and Success - Part #2
Here are ten more WISDOM packed GEMS that ooffer very unqiue insights into the world of trading and investing .
These quotes promote a philosophy that is easy to understand and sometimes hysterical.
In my 25 + years of investing I have hundreds of quotes related to Wisdom , Wall Street and Success collected . I submit this small selection with the hope that it will ease . Forces necessary for your future financial success Enjoy!
1 ) " If 40 million people say a foolish thing , it is not a wise man . "
- W. Somerset Maugham
2 ) " A thousand dollars on to earn an 8 % annual interest will grow to $ 43 trillion in 400 years , but the first hundred years are the hardest. "
Sidney Homer , A History of Interest Rates
3 ) " Everytime history repeats itself, the price goes up . "
- Anonymous
4 ) " In all recorded history , there is not an economist who has to worry about where the next meal would come from . "
- Peter Drucker
5 ) " A good trader must have three things : a chronic inability to accept at face value , to constantly feel restless , and humility have things .
- Michael Steinhardt
6 ) " to be confused with a bull market . Not brains "
- Humphrey Neill
7 ) " Financial genius is a rising stock market . "
- John Kenneth Galbraith
8 ) " The purpose of a market is to facilitate trade. "
- J . Steidl Peter Mayer
9 ) "Buy high , sell higher. "
- William O'Neil
10 ) "Managing your risk or it will manage you ! "
- Harald Anderson - Analyst at eOptionsTrader.com
Harald Anderson is the founder and Chief Analyst of eOptionsTrader.com a leading online resource of Options Trading Information. He writes regularly for financial publications on Risk Management and Trading Strategies . His goal in life is to become the kind of person that his dog already thinks he has become
These quotes promote a philosophy that is easy to understand and sometimes hysterical.
In my 25 + years of investing I have hundreds of quotes related to Wisdom , Wall Street and Success collected . I submit this small selection with the hope that it will ease . Forces necessary for your future financial success Enjoy!
1 ) " If 40 million people say a foolish thing , it is not a wise man . "
- W. Somerset Maugham
2 ) " A thousand dollars on to earn an 8 % annual interest will grow to $ 43 trillion in 400 years , but the first hundred years are the hardest. "
Sidney Homer , A History of Interest Rates
3 ) " Everytime history repeats itself, the price goes up . "
- Anonymous
4 ) " In all recorded history , there is not an economist who has to worry about where the next meal would come from . "
- Peter Drucker
5 ) " A good trader must have three things : a chronic inability to accept at face value , to constantly feel restless , and humility have things .
- Michael Steinhardt
6 ) " to be confused with a bull market . Not brains "
- Humphrey Neill
7 ) " Financial genius is a rising stock market . "
- John Kenneth Galbraith
8 ) " The purpose of a market is to facilitate trade. "
- J . Steidl Peter Mayer
9 ) "Buy high , sell higher. "
- William O'Neil
10 ) "Managing your risk or it will manage you ! "
- Harald Anderson - Analyst at eOptionsTrader.com
Harald Anderson is the founder and Chief Analyst of eOptionsTrader.com a leading online resource of Options Trading Information. He writes regularly for financial publications on Risk Management and Trading Strategies . His goal in life is to become the kind of person that his dog already thinks he has become
Thursday, 21 November 2013
Wit and Wisdom on Money, Wall Street and Success - Part #1
I love to collect them as concisely promote a philosophy that is easy to understand quotes.
In my 25 + years of investing I have hundreds of quotes related to Wisdom , Wall Street and Success collected . I submit this small selection with the hope that it will ease . Forces necessary for your future financial success Enjoy!
1 ) "Money is really not so important . Is a guy with fifty million dollars happier than a man with $ 48 million ? "
- Milton Berle
2 ) "With money in your pocket , you are wise and you are handsome and you sing well too. "
- Yiddish proverb
3 ) "Money is always there, but to change the bags. "
- Gertrude Stein
4 ) " Spend at least as much time researching a stock as you would choosing a refrigerator . "
- Peter Lynch
5 ) "Wall Street has a unique hysterical way of thinking the world will end tomorrow, but will be fully recovered in the long term , then later to believe a few years the immediate future is bright , but it stinks in the long term . "
- Kenneth L. Fisher , Wall Street Waltz
6 ) " central bankers have been brought up pulling the legs of ants . "
- Paul Volker , former Federal Reserve Chairman
Quoted by William Grieder , Secrets of the Temple
7 ) " Good judgment is usually the result of experience and experience is often the result of poor judgment . "
- Robert Lovell
Quoted by Robert Sobel , Panic on Wall Street
8 ) " When you realize that you are riding a dead horse the best strategy is to dismount . "
- Sioux Indian Proverb
9 ) "To know and not to do is not to know . "
- Zen Saying
10 ) " Amateurs Focus On Rewards ! Professionals Focus on risk! "
- Harald Anderson - Analyst and Founder eOptionsTrader.com
Harald Anderson is the founder and Chief Analyst of eOptionsTrader.com a leading online resource of Options Trading Information. He writes regularly for financial publications on Risk Management and Trading Strategies . His goal in life is to become the kind of person that his dog already thinks he has become
In my 25 + years of investing I have hundreds of quotes related to Wisdom , Wall Street and Success collected . I submit this small selection with the hope that it will ease . Forces necessary for your future financial success Enjoy!
1 ) "Money is really not so important . Is a guy with fifty million dollars happier than a man with $ 48 million ? "
- Milton Berle
2 ) "With money in your pocket , you are wise and you are handsome and you sing well too. "
- Yiddish proverb
3 ) "Money is always there, but to change the bags. "
- Gertrude Stein
4 ) " Spend at least as much time researching a stock as you would choosing a refrigerator . "
- Peter Lynch
5 ) "Wall Street has a unique hysterical way of thinking the world will end tomorrow, but will be fully recovered in the long term , then later to believe a few years the immediate future is bright , but it stinks in the long term . "
- Kenneth L. Fisher , Wall Street Waltz
6 ) " central bankers have been brought up pulling the legs of ants . "
- Paul Volker , former Federal Reserve Chairman
Quoted by William Grieder , Secrets of the Temple
7 ) " Good judgment is usually the result of experience and experience is often the result of poor judgment . "
- Robert Lovell
Quoted by Robert Sobel , Panic on Wall Street
8 ) " When you realize that you are riding a dead horse the best strategy is to dismount . "
- Sioux Indian Proverb
9 ) "To know and not to do is not to know . "
- Zen Saying
10 ) " Amateurs Focus On Rewards ! Professionals Focus on risk! "
- Harald Anderson - Analyst and Founder eOptionsTrader.com
Harald Anderson is the founder and Chief Analyst of eOptionsTrader.com a leading online resource of Options Trading Information. He writes regularly for financial publications on Risk Management and Trading Strategies . His goal in life is to become the kind of person that his dog already thinks he has become
Tuesday, 19 November 2013
How to Analyze the Veracity of Investment Newsletters
When trying to analyze whether a promotional ad for an investment newsletter or a market timing investment trading system is worthy of investigation , the following questions:
Does the strategy have a track record ? Without really making you to be in the game your emotions. All of us want to believe that if someone says something it must be true. Yet the sad fact is the truth is probably the exact opposite . Most advertisements and promotions are put in print for self interests first , and everything else second . One needs to look on the web with a skeptical eye something. The minimum that an investment that should give you a track record . The longer the track record is better . Something that has worked for a matter of months is usually not long enough to be considered . Successful in the trading world Some promoters do not release their track records because they say that " past performance is no guarantee for the future." This is true, but certainly no returns are no guarantee for the future too . Some promoters do not release their track records because they saying " we used to do a track record , but subscribers got upset if the strategy lost money when they registered although it made money over an annual period . "That may be the case , but it is also part of the game . Subscribers can not expect to make money from day money one in trade a long-term strategy . This may , however, obvious record in track . And some not initiators their track records just loose because they do not have one or they have poor . it's as simple as that no matter what they say .
Is the track record that they promote in real time or was simulated in a computer based on data from the past? What does this really mean ? Real time means that the trading signals that were used to record the track results actually in the time were generated at that time. In reality . Most track records on investment websites are not real-time , even if they say they are . Even if they do not use a computer and it was done by hand , as the data from the last five years , but the website is only a year old then it can not be. Why is this so important ? Because trading is not trading as human emotions are removed . No greed , no complacency , no panic, no hysteria . Almost all computer - generated trading programs fail miserably when actually implemented or because the data was too short a period or the human factor was ignored . That is assuming that the person who input the data did it without human emotion . I once had a friend who told me he had a system that is 80 % per month for the last 6 months . He said he implemented six months in real time. I asked how much he had invested in this strategy . He said nothing because he paper trading . I said there is no such thing . He went on to tell what paper was trading me. I replied that I knew what he thought was paper trading , but it is not trade , because if you paper trade your emotions are not in the game . Human greed and ego has a way to make you believe something to be objectively without really looking at the data . But once the actual real money has drastically changed the complexion of the risk situation .
How can you tell if the job is in real -time as they lie about the fact that in real time ? This is not always easy , but there are some basic tell tale signs . If it is a short term system that very few transactions and often risking say 10-50 times a month. However, a 80-90 % commercial success rate , which is almost statistically impossible. Most day traders and position traders do well if they win 40-50 % of the time . If they risk more and do not use tight stops , then the win loss ratio goes up , but the size of drawdowns or the size of the biggest loss has to go up. Longer term trader a slightly better win loss ratio , but only if their risk is also greater . To submit a general statement the greater the income ratio is the more I would be skeptical .
What if the track record is a combination of partly historical and partly tested back signals realtime signals . How do I analyze it? The first thing to look at is if the win loss ratio is changed by the track record period drastically. For example, if a 5 year period , and the promoter claims that the trade signals went live two years ago, the win loss ratio changed dramatically just six months ago , beware . The most difficult to detect on the web when you are being scammed on a hypothetical track record , because there is no real way to tell when a track record websites removed has been edited or revised. Some websites use an independent tracking site , but there are no real ways for a consumer to know other than that .
I hope the previous ideas will help to determine fact from fiction in the world of investment newsletter promotions.
John McKeon
Rye, NH
Does the strategy have a track record ? Without really making you to be in the game your emotions. All of us want to believe that if someone says something it must be true. Yet the sad fact is the truth is probably the exact opposite . Most advertisements and promotions are put in print for self interests first , and everything else second . One needs to look on the web with a skeptical eye something. The minimum that an investment that should give you a track record . The longer the track record is better . Something that has worked for a matter of months is usually not long enough to be considered . Successful in the trading world Some promoters do not release their track records because they say that " past performance is no guarantee for the future." This is true, but certainly no returns are no guarantee for the future too . Some promoters do not release their track records because they saying " we used to do a track record , but subscribers got upset if the strategy lost money when they registered although it made money over an annual period . "That may be the case , but it is also part of the game . Subscribers can not expect to make money from day money one in trade a long-term strategy . This may , however, obvious record in track . And some not initiators their track records just loose because they do not have one or they have poor . it's as simple as that no matter what they say .
Is the track record that they promote in real time or was simulated in a computer based on data from the past? What does this really mean ? Real time means that the trading signals that were used to record the track results actually in the time were generated at that time. In reality . Most track records on investment websites are not real-time , even if they say they are . Even if they do not use a computer and it was done by hand , as the data from the last five years , but the website is only a year old then it can not be. Why is this so important ? Because trading is not trading as human emotions are removed . No greed , no complacency , no panic, no hysteria . Almost all computer - generated trading programs fail miserably when actually implemented or because the data was too short a period or the human factor was ignored . That is assuming that the person who input the data did it without human emotion . I once had a friend who told me he had a system that is 80 % per month for the last 6 months . He said he implemented six months in real time. I asked how much he had invested in this strategy . He said nothing because he paper trading . I said there is no such thing . He went on to tell what paper was trading me. I replied that I knew what he thought was paper trading , but it is not trade , because if you paper trade your emotions are not in the game . Human greed and ego has a way to make you believe something to be objectively without really looking at the data . But once the actual real money has drastically changed the complexion of the risk situation .
How can you tell if the job is in real -time as they lie about the fact that in real time ? This is not always easy , but there are some basic tell tale signs . If it is a short term system that very few transactions and often risking say 10-50 times a month. However, a 80-90 % commercial success rate , which is almost statistically impossible. Most day traders and position traders do well if they win 40-50 % of the time . If they risk more and do not use tight stops , then the win loss ratio goes up , but the size of drawdowns or the size of the biggest loss has to go up. Longer term trader a slightly better win loss ratio , but only if their risk is also greater . To submit a general statement the greater the income ratio is the more I would be skeptical .
What if the track record is a combination of partly historical and partly tested back signals realtime signals . How do I analyze it? The first thing to look at is if the win loss ratio is changed by the track record period drastically. For example, if a 5 year period , and the promoter claims that the trade signals went live two years ago, the win loss ratio changed dramatically just six months ago , beware . The most difficult to detect on the web when you are being scammed on a hypothetical track record , because there is no real way to tell when a track record websites removed has been edited or revised. Some websites use an independent tracking site , but there are no real ways for a consumer to know other than that .
I hope the previous ideas will help to determine fact from fiction in the world of investment newsletter promotions.
John McKeon
Rye, NH
Sunday, 17 November 2013
Is a SEP Plan Right For Your Business
A September, a special type of IRA . Under a September, the plan the employer creates an IRA account for each eligible employee, hence the name SEP - IRA . A September financed exclusively by contributions from the employer. Employees do not contribute to their SEP - make IRA retirement account . All the money that goes into a Sept. automatically belongs to the employee. Thus, the employee is entitled to his SEP IRA account to take money when it stops working for the company .
Any size business can a Sept. fix, but the September pension is usually used by the self-employed and small businesses with few employees . The SEP IRA rules dictate that if the company contributes to an employee , ( ie , the owner ) , then the company should contribute proportionately to all employees. With few exceptions , anyone who works included in the Sept. However , for now you can exclude from participation in the plan in September everyone :
o Has not worked for the company for three of the last five years .
o Has not reached the age of 21 during the year for which contributions are paid.
o Received less than $ 450 in fees ( depending on the cost of living adjustments ) in the course of the year .
SEP IRA contributions to each employee for 2004 may not exceed the lesser of $ 41,000 or 25 % of wages for W2 recipients ( 20 % of income for sole proprietors ) . Limiting the Sept. IRA contribution goes to $ 42,000 for 2005 , and is subject to cost of living adjustments for later years . SEP - IRA rules do not provide for additional catch-up contributions for those 50 years or older .
A growing number of self-employed people are leaving the SEP - IRA for a newer type of retirement plan called the Solo 401 ( k ) or Self-Employed 401 ( k ) . The two main reasons for the switch are 1 ) they are generally much more contribute to a Solo 401 ( k ) then they can include a Sept. IRA , and 2 ) Loans are allowed under a Solo 401 ( k ) , while loans are prohibited under a SEP - IRA .
Example : Henry , age 52 , a broker received compensation of $ 60,000 income as an independent in 2004 . In 2004 he was able to contribute to a Solo 401 ( k ) versus a maximum of $ 11,152 under a Sept. IRA . A maximum of $ 27,152
However , the Solo 401 ( k ) do not work for companies with employees . So , if your company is planning to hire employees or currently has a few employees , the SEP IRA may be your best choice as a retirement plan that is inexpensive and easy to operate .
Daniel Lamaute , CEO of Lamaute Capital , Inc. specializes in setting up retirement plans . You can visit to access a free calculator that will help estimate your maximum contribution may be under different plans.
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