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Forex Myths

2008-01-16T08:49:00.001-08:00

Don’t Believe These Forex Myths!
95% of traders lose when trading currencies and they don’t need to – in many cases they believe various myths that are spread by vendors, using hyped advertising copy which appeals to greedy and naive traders to buy courses and forex trading systems, which simply don’t work.
Below you will find the six common myths that cause the bulk of currency traders to lose and if you believe any of them - you will lose too.

1. You should always be in the Market
Many traders love excitement, and their view is, if they are in the market they will catch the big move. Well they may - but chances are they won’t.

The really big trends only come a few times a year in each currency - and you should stay out the market until they come, otherwise you will take losses, as you will be trading low odds trades, with little chance of success.

You don’t earn a reward in currency trading for effort or how often you trade – you earn your reward from being right.

Be selective in your trading and you will see your profits soar.

2. Diversification Reduces Risk
Diversification simply dilutes your profit potential if you have a small currency account.
You catch a big move, and your other trades lose, or give you only marginal profits, reducing your overall profitability.

You need to have confidence to go for the big moves, when they occur, and hit them hard with as much as you can afford.

Currency trading success is all about taking calculated risks when the odds are in your favor.
If the trade looks good, then you need to have the courage and conviction to go for it and risk as much as you can afford.

3. Day Trading Makes Money
This is perhaps the biggest myth in currency trading – Forex day traders DON’T make money!
Many vendors spread this myth, as it makes a good story.

It’s a good story and they make their money from course sales NOT trading.

All short-term volatility is random – prices can and do move anywhere in a day and support and resistance levels are meaningless.

In forex day trading you 100% guaranteed to lose over time as you cant get the odds in your favor – PERIOD.

4. Predicting is the Correct Way to Make Profits
Trying to PREDICT where prices are going to top and bottom will see you lose.
Why?

Because, you are relying on hope and guessing and that’s not a good way to make money in any venture, especially currency trading.

The only way to trade is to wait for the market to CONFIRM a trend is under way, and then execute your trading signal.

You will not buy the bottom or sell the high, but you can’t do that anyway, so there is no point in trying.

By trading with price momentum on your side, you have the odds in your favor.

So Remember:
Don’t predict confirm all your trading signals with momentum before you enter a trade and trade with the odds.

5. Buy Low sell high Is The Best Way To Make Money
This point is related to the above. You cannot do it as you are involved in prediction. Always keep this point in mind:

Most big trends start from new market HIGHS NOT market lows.

So if you fail to trade these moves you will miss a lot of the best moves waiting for pullbacks that never come.

6. Markets Move Scientifically
Again this is related to the myth of predicting currency moves.

You will see many vendors saying they can trade market tops and bottoms with scientific accuracy – RUBBISH!

If markets moved to a scientific theory, we would all know the price in advance and there would be no market!

It’s the difference of opinion and unpredictability of price direction that makes a market – this is common sense.

Despite the above, many Forex traders still believe in scientific theories such as - Elliot Wave and The Fibonacci Number Sequence.

These theories don’t work and never will.

Elliot made no money from his theory and neither will you.

As for the Fibonacci number sequence – This was devised in the 12th century, to solve a problem to do with the copulation of rabbits and has nothing to do with finance.

Leave the above theories to the dreamers and traders who believe it’s easy to make money.
When you trade you are involved in trading odds NOT certainties, don’t believe anyone who tells you otherwise.

7. Markets are the Same Today as they Were Hundreds of Years Ago
No there not!
Trends now are much more volatile than they were even 50 years ago.
Why?

Today, with the Internet, price information and news reaches traders in a split second.
This increases volatility as everyone has the same information at once - and everyone tries to enter and exit the market at the same time.

This was not so even 20 years ago - the trends are still there, but volatility is much higher - traders get the direction of the trend right, but they find themselves stopped out by the volatility of the market and watch as the trade they were stopped out goes on to pile up huge profits.

How often has this happened to you?
It happens to all Forex traders.
Dealing with volatility, is one of the major challenges of any trader wanting to develop a successful Forex trading strategy.

8. You Can Buy Success From Someone Else
You cannot buy success from someone else.
Some vendors can help you but success comes from within.
Even if you follow someone’s advice, always make sure you know the logic it’s based upon.

You need to do this to have the confidence and discipline to stick with your trading plan when you hit a losing period

In conclusion, someone can help you achieve currency trading success but you need to know how and why their methods and not follow them blindly.

The above myths are commonly accepted - avoid them or you will join the majority of traders that lose in currency trading.

Forex News - a Tip For Massive Gains and an Opportunity Right Now

2008-01-16T08:43:00.000-08:00

The true value is about 80.00 a barrel. Every time sentiment has pushed it up toward the psychological $100.00 we have sold it - look at our other articles.

If you would sold on the last two pops to this level, you will have seen the decline is $20,000 based upon 1 contract.Its only sentiment that drove prices up - greed and fear drove the market NOT Supply and demand.

A CURRENCY TRADE EXAMPLE
Now let's look at a currency that is overbought and a huge profit to be made. The euro against the dollar is the trade. Regular readers again will know that 1.50 is the psychological number that traders want to target. 1.50 is too high just like $100 in crude is. This is simply sentiment driving prices near these levels and the euro will not trade above this level in our view.

The last time it got up we sold (see our other articles) and said it would target 1.46 it did and that's a tidy 600 pips profit. It's up testing the highs again - but the bad news for the dollar is discounted in the price and its now only greed and fear driving the euro. All the arguments you here for dollar weakness are discounted: A 50 bps rate cut, a housing market in trouble, sluggish growth etc and there is no more bad news that's not known.

Now throw into the equation that the euro zone has problems of its own (which traders seem not to bothered about) and you could see a break in the dollars favour. How far?We expect the dollar to trade back to 1.46 and if this level gives way target 1.40 The majority don't agree with us (they didn't in crude either) but we won't let that bother us, were sticking with our euro short view to give us another thumping profit.

When looking for extreme bullish or bearish news to break a price always get confirmation of weakening momentum on your forex charts, so you are trading the reality and not getting in to soon. Will Rogers once said:"I only believe what I read in the papers" He was joking but many traders simply take it as gospel when a news story says the dollar is going to fall into oblivion. Hold your head, look at the facts and if prices gone too far to soon, get ready to trade against the losing herd. Can you do the above? Of course you can - it simply means standing back, examining the facts and then looking for trading signals on your forex charts.

Key Terms To Stock Market

2008-01-08T08:25:00.000-08:00

Market Capitalization
A company's market capitalization (or "market cap") is calculated by taking the number of outstanding shares of stock multiplied by the current price-per-share. It is the amount of money you would have to pay if you bought every share of stock in a company.

The price that an investor pays for a security. This price is important, as it is the main component in calculating the returns achieved by the investor.

For example, if an investor buys XYZ at $35, then this would be the purchase price. When looking at the return on the investment, the investor would compare the purchase price of $35 to the price the investment was sold at or the current market price for XYZ.

Share
Certificates representing ownership in a corporation. Shares are also known as stocks or equities.

P/E Ratio
The P/E ratio is how much money you are paying for $1 of the company's earnings. If a company were currently trading at a P/E of 20, an investor would be paying $20 for $1 of earningsThe P/E looks at the relationship between the stock price and the company's earnings. You calculate the P/E by taking the share price and dividing it by the company's EPS.

In other words, if a company is reporting a profit of $2 per share, and the stock is selling for $20 per share, the P/E ratio is 10 because you are paying ten-times earnings [$20 per share dividend by $2 per share earnings = 10]In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. However, the P/E ratio doesn't tell us the whole story itself. It's usually more useful to compare the P/E ratios of one company to other companies in the same industry, or to the market in general, or against the company's own historical P/E.

It would not be useful for investors using the P/E ratio as a basis for their investment to compare the P/E of a technology company (high P/E) to a utility company (low P/E) as each industry has much different growth prospects.

Price / Earnings To Growth - PEG
RatioA ratio used to determine a stock's value while taking into account earnings growth. The calculation is as follows:PEG Ratio = Price to Earnings ratio / Annual EPS GrowthPEG is a widely used indicator of a stock's potential value. It is favored by many over the price/earnings ratio because it also accounts for growth. Similar to the P/E ratio, a lower PEG means that the stock is more undervalued.

Keep in mind that the numbers used are projected and, therefore, can be less accurate. Also, there are many variations using earnings from different time periods (i.e. 1 year vs. 5 year). Be sure to know the exact definition your source is using.

Short Selling
The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short. Selling short is the opposite of going long. That is, short sellers make money if the stock goes down in price.

Beginner Stock Market Tips

2008-01-08T08:23:00.000-08:00

You can handle your new investments in the stock market by getting a good broker who you trust, by reading and studying up about it - which includes learning lots of economic thought or you can dive into it without adequate information and get creamed. And no one wants their beginner stock market to result in them losing lots of money.

The point of this article is to help you to the next level and show you what this amazing subject has to offer.

The unruly is, as rapidly as you beginning your beginner stock market you will be practically bombarded by guidance. You can get ironic hurriedly if you invest here, you can make money practically risk limitless if you buy that book. It is all nonsense. Your beginner stock market is no safer than someone bedside’s stock market and each knows at slightest one self who is an practiced at the stocks and has still full a tremendous dive. No one wants that to transpire, but you're no different from someone besides just because you're just beginning. Don't be a mark. Don't let your beginner stock market front you to pecuniary ruin.

Investment clubs can grant some help with being a beginner in the stock market because they can put you in feel with a group of people who might be more weathered and experienced at investment. That can give you the competitive verge you must, by allowing you to profit from the gear that they already know.

Seminars can also be valuable for your beginner stock market, but memorize there is no wealth without risk. They are regularly gifted wealth without risk at these tutorials, but that is completely bogus any effort involves risk, and your beginner stock market is one of the riskiest of them all, so memorize: a tutorial which promises wealth without risk is perhaps a dodge and should be avoided. Bond to your books of classical and then useful economics, and rapidly you will be investing like a pro. Your beginner stock market will be a bizarre fancy of the previous as you are swept up by ever compounding investments haulage you away to fancy lands of unchecked and unimagined wealth. That is, if you are blessed. But for now, keep fancying, and keep studying, and keep developing your beginner stock market selection.

Principles Of Investments In The Stock Market - Part 1 Of 4

2008-01-08T08:20:00.000-08:00

People have been asking me lately if they should invest in the Philippine stock market or not. Majority of them also wanted to know how they should start. I am not sure if they are really serious about it. They could just be curious considering that it is all over the news that the stock market's performance is very positive.Investing in the Philippine stock market is not for the faint hearted.

As an investor you must have expectations as to how much you are going to earn for a certain vehicle of investment. Such is expectation is measured in terms of how much your money will grow at a certain period of time. (Most usually this is measured in interest per annum) Because the Philippine Stock market is in its all time high for several months now, people think that they should join the band wagon. They do not even understand the basic principles involved nor do they understand how the stock market works. I am not saying that you should be an economist before you should invest in the stock market.

What you should understand is that you must know the basic principles involved first before you can achieve a level of success in investing in the stock market. Fortunes are made on the Stock market. But take note that huge losses are also incurred. Those who just plunge into the stock market without a grasp of the basic principles of investment end up convincing themselves that the stock market is no good at all, does not make them any money and finally quit after some time.

Before I would even begin to tackle the ins and outs of the how to invest in the Philippine stock market you should first understand the basic principles of investment in order that you might enjoy trading and possibly succeed in the stock market. I will be discussing ten of them. We will discuss the first one here. The other points will be tackled on coming articles. If you wish to see the entire article please visit my blog.

1.) You must realize that the stock market is just another vehicle of investment - There are several investment vehicles where you could place your money. One is not more superior than the other. They have their advantages and disadvantages, but this will not be discussed in depth here.

In economic parlance, the stock market is categorized as belonging to the "Capital Markets." Even in the Capital market category there are different types of investment vehicles. You have several alternatives here. Aside from the stock market, you could place your investment in pension funds, bonds, insurance, real estate, time deposit accounts different types of savings.

It is important to know this because it will help you determine whether or not you should invest in the Stock Market considering that there are other alternative vehicles of investment in the Capital markets.Bear in mind that each vehicle of investment has their own advantages and drawbacks. The secret here is not to place all of your eggs in one basket. Even if most of my investments are in the Capital Markets, I diversified by placing investments in the stock market, bonds through mutual funds, pension, deposits and insurances.

Forex Foreign Exchange Spreads

2008-01-02T08:37:00.000-08:00

Forex trading is one of the most popular and fastest growing financial trading opportunities. Exchange rates for currencies in the forex market are quoted as 'bid/ask' rates. The difference between the purchase (ask) and the sale (bid) rates is called the 'spread'. Forex spread is one of the most important single parameter to make the difference between a successful and losing trading.

Forex spread is expressed in percentage in point (pip) which is the smallest measure of price move. For example, if the currency pair EUR/USD is trading at 1.3000 and then changes to 1.3020, the pair is said to move by 20 pips. A pip in most currencies is 1/10,000 of an exchange rate, but in USD/JPY, it is 1/100.

The bid/offer spread is the difference between the buying (bid) and selling (offer) price. The ask price is the immediate execution prices for quick buyers or traders and bid price is for quick sellers.

In forex market brokers generally do not charge any commission from you. But they get their money by charging you a spread. As the spread is the difference between the bid price and the ask price for any currency being traded, the broker adds this spread onto the price of the trade and keep it as their fee for service.

Therefore, for you, lower the pips and spreads, higher the forex profits. If the spread is big, you have to pay more when you buy and get less when you sell. Forex spread is charged only on one side of the transaction, usually on the "buy" side of the trades. So, as a forex trader your aim should be to buy low and sale high.

If the quote between EUR/USD is said to be 1.2222/5, the spread equals 3 pips (5-2). Although it seems to be small, forex spread difference of one pip can make significant difference in your profit. You may find the difference to be as high as 25% on your trading costs.

Therefore, we advise you to choose a low spread forex broker. Most brokers offer different spreads for different currencies. For the most popular currency pairs like the EUR/USD or GBP/USD, you get the lowest spreads, while less popular currencies are traded with higher spreads.

The forex trade can also vary with the type of your account and volume of trades. But there are brokers who offer same spread to all accounts and any trade volume. You can even opt for fixed foreign exchange spread, but they are generally higher than floating spreads.

It should always be remembered that spread is the difference between bid prices and ask prices as determined by the free market and therefore can never be guaranteed. Spreads are generally tighter when there is good market liquidity but it widens as liquidity goes down. Find a forex broker, who is honest and transparent with the operations. Make sure there is no hidden spread and the execution is fast and accurate.

Spot Forex Trading Part 3: Parallel And Inverse Analysis

2008-01-02T08:35:00.000-08:00

This article is Part 3 of a series of 9 articles dedicated to help anyone to trade the foreign exchange.

Very few spot forex traders conduct any form of parallel and inverse analysis of the major pairs and exotics to determine the best way to trade the forex on a day-to-day basis. Even though it would be nearly impossible to trade the forex successfully not knowing where the overall strength and weakness was in the spot forex across multiple pairs.

Lets look at some examples. Many people like to trade the GBP/USD they spend countless hours losing sleep waiting to trade this pair even when no trend or parallel/inverse confirmation is available. Losses occur. They could increase their odds dramatically by setting up some entry rules and examples like the ones shown below.

Only buy the GBP/USD if the GBP/CHF and GBP/JPY are strengthening as well. This would be parallel confirmation on the GBP strengthening across the board.Only buy the GBP/USD if the EUR/USD is strengthening and the USD/CHF is weakening. This would be confirming the entry with two other pairs and across the board weakness in the USD. In either situation you have confirmed the entry with at least two other pairs. Both of these entry rules would include a stop order, and you can enhance the rules further by examining the EUR/GBP for weakness. This is inverse confirmation.

But this is not what traders do. They want to trade the GBP/USD so badly that they manufacture a trade, or the they want to use indicators, or trade the news. This is a mistake and is equivalent to betting or gambling. There is no logic to support the entry, the forex works in a logical way. Lets look at some other examples. Lets say you prefer to hold carry trades and prefer to trade the GBP/JPY, you could set up rules for entry as follows:
Only buy the GBP/JPY if the GBP is strong across the board based on parallel and inverse pairs, or only enter the GBP/JPY if the GBP/USD and USD/JPY are both strengthening somewhat or a lot.

In the second scenario the GBP/JPY will slingshot upward at a very fast pace.Or another scenario is to only buy the GBP/JPY if the EUR/JPY, CHF/JPY and AUD/JPY are all strengthening as well, in this case the USD is not in the picture because of across the board weakness in the JPY. Either way you have confirmed the entry with other pairs.Another example would be to buy the USD/CAD only if the EUR/CAD and AUD/CAD are also strengthening.

Similar rules can be applied to any major or exotic pair and easily monitored upon entry. In the case of the three CAD pairs, if you also do a careful analysis of support and resistance, you can trade the pair with the most potential rather than just trading the USD/CAD.

But this is not what traders do, they get stuck trading the same pair and wind up justifying a trade when a trade is not there. These trade entries are not based on logic they are based on emotional needs. This leads to losses. The forex works in a very logical process and you must let the logic work for you. Stop looking at indicators and start looking at other pairs to support your entries, these are the best indicators available.

Across the board strength and weakness in groups of pairs occurs weekly in the forex. But if you search the internet far and wide you will see that it is rarely and in fact never discussed by traders, analysts, and trade planning services charging hefty monthly fees. People are too busy looking at indicators and absolutely no discussion of the market forces governing the spot forex ever occurs.

It is very rare if nearly non-existent for one forex pair to move strong without other pairs to confirm the move. This is true for any major or exotic pair. If you are stuck trading the same pairs while other pairs and exotics are making strong moves its time to look at all of the pairs every night then pick the best opportunities based on parallel and inverse analysis.

In order to trade the spot forex daily and weekly, you must analyze 15-20 pairs every day to determine the current market forces, this will lead to less entries, more logical entries, and better confirmation of entries when the movement starts. Parallel and inverse analysis is the logic behind the spot forex.

Forex Day Trading And Scalping - A Guaranteed Way To Lose Your Money Quickly

2008-01-02T08:33:00.000-08:00

I have been involved in trading forex for 25 years and still amazes me how many people think forex day trading or scalping makes money - it doesn't its simply the dumbest way to trade and will lose you your money. Let's examine why.

Countless millions of traders trade trillions of dollars each day and it is impossible to determine what this mass of people will do within such a short time span as a day or a few hours.

Support and resistance levels are meaningless, as volatility can and does move prices anywhere in a day session. If you don't believe me lets look at the proof.

The first question you need to ask yourself is if forex day trading really did make money why is there no real track record of gains to show the success? There are thousands of day trading systems promising gains and none of them have a real track record - what do you get? A lot of hype and a track record that is simulated (not traded for real) in hindsight (knowing the closing prices). Here is the normal one you will see which is a CFTC standard one:"cftc rule 4.41 - hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading.

Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

Put the above disclaimer on a track record and you can say anything you want and vendors do. They appeal to lazy or greedy traders and the trader buys and gets a guaranteed loss and the vendor makes a guaranteed profit from the sale. Day trading is simply the dumbest way to trade and sensible knowledgeable people fall for it all the time - maybe the don't stop to think or simply miss the disclaimers when they buy these systems. You can if you want to prove me wrong try and find a track record ( that's real dollars and audited) I saw one day trading system show his bank balance of evidence of his success - success in selling day trading courses, NOT trading that's for sure!

So if you find one be sure to let me know. I have been looking for a day trader to prove me wrong for 25 years and I Haven't found a long term track record of profits and know I never will. So avoid day trading and pick another method that will help you gain currency trading success by trading the odds.

Forex Education - 3 Vital Tips To Make Money Fast In 2008

2008-01-02T08:31:00.000-08:00

As we turn into the New Year it's a good time to make changes and take action - if you are trader who is not doing well or a potential trader then these 2 tips will help you make money fast not just in 2008 but at anytime and they should be a cornerstone of your forex education.

The first point I want to make needs serious thought 95% of traders lose money not because they can't learn forex trading (anyone can) but because they believe certain myths and commonly accepted wisdoms that are wrong.

The tips below are not conventional but don't let that worry you the bulk of traders don't make money so being in the minority is good so here are your 3 tips

1. Be Patient Trade Less
Many traders think the more they trade the more they will win but this is simply not true in forex trading in fact the opposite is true - the more you trade the greater the chances are you will lose. You don't get paid for the effort or amount of trades you make - you get paid for being RIGHT that's it. I know traders who trade every day and make nothing and others who trade a few times a year and make over 100% annualized gains!

The majority of novice traders believe the day trade and make money myth and that's all it is a myth. Day traders don't make money period. If you don't believe me, try and find a real track record on a day trading system and you will be looking for ever. You have to catch the big high odds moves and they can ONLY be spotted by looking at longer term data and data within a day is meaningless. If you like the buzz of trading you will lose - if you are patient and wait for high odds trades you will win.

2. Diversification
You will have heard it countless times diversify; don't put all your eggs in one basket etc. On a small account of $1,000 or less you don't have enough to diversify and make big gains at the same time. All diversification does is dilute gains - wait for the big moves and load them up with as much as you can afford.

3. Take Bigger Risks
You will hear many give you the advice of only risking a maximum of 2% on a trade - well on 1,000.00 that's $20 you won't make much doing that!Wait for the good trades and load them and risk up to 20% on a small account. You can only diversify and risk less per trade if you have enough cash and that's $10,000 + if you don't you need to risk more - period!4. Have Courage Learn to accept big gains! Hang on you may say all traders can do that because that's why their trading currencies.

They are - but they don't understand accepting a big gain is harder than taking a loss. Why? Because as soon as a trader sees a profit he wants to take it and the bigger it becomes the harder the temptation is to resist. As open equity swings keep eating his open profit it becomes too much and he snatches a mediocre or minor gain. What happens next? The trade goes on to make 10,000 20,000 or more and he's not in.

If you want to make money you need to have courage and accept that open equity will eat into your profits and have confidence to hold for a bigger longer term gain. If you want to make more money from your forex trading and you are starting off with a small account make the above part of your forex education and you will see your profits increase dramatically.

Forex Education - No Trading Experience, 2 Weeks Training To Millions In Profit

2008-01-02T08:27:00.000-08:00

This story is about a famous experiment in 1983, when trading legend Richard Dennis wanted to prove anyone could learn to trade so he taught a group of people who had never traded before then set them off to trade - the result? They made $100 million in 4 years. There is a lot you can learn from this story and use in your own forex education.

The turtle experiment proved ANYONE can become a successful trader, with the right Forex education and everything about trading can be specifically learned by anyone with the desire to succeed.

This is Of course true - but still 95% of traders lose their money and the turtle experiment can give you an insight into why and how you can enjoy currency trading success.

The Experiment
The people Dennis selected represented a variety of different people of all ages, both sexes and from all walks of life including:An actor, security guard, a couple of professional card players, an auditor, a boy fresh from school and a female exchange clerk - so a diverse group of people! They then went on to make annualized 70% returns and make $100 million and many went on to become trading legends.

Dennis taught a Trend Following simple trading methodology - but also the confidence and the discipline to follow it through periods of drawdown, to long term currency trading success.

What You Can learn
The reason most forex traders fail is simply they cannot adopt the right mindset to succeed. Having a sound method is only part of the equation for success - you must have the confidence and the discipline to follow your system through draw down periods to win longer term. If you can't follow your method with discipline, you really have no method at all.

Dennis proved that a simple system that traders could understand, applied with discipline, could lead anyone to success and he was proved right. This logic of course still applies today.

The way to make money in forex trading is based upon the following:
A Simple Logical Method + Understanding of It = Confidence = Discipline = Forex Success.

Most traders however use methods that are not logical with good examples being day trading or scientific methods, or they follow someone else. Of course if you use a method that's not logical you stand no chance but if you try and follow someone else without believing or testing their logic you will fail as well. You are going to get losses (don't let anyone tell you won't) and its here the correct mindset is so important your discipline is based on confidence and you need this to stick with your method.

Discipline is vital to success and this is based upon inner knowledge and understanding.The turtle experiment is part of trading history, the story should act as inspiration to anyone who wants to learn currency trading and enjoy currency trading success. It imspired me to start my trading career 25 years ago and has inspired countless traders over the years, as it shows that anyone has the oportunity to achieve success if they learn the right knoweledge. If you understand the above then you to could become a successful trader and make the income you desire from trading global forex markets.

Forex Trading - 6 Character Traits That Cause 95% Of Traders To Lose

2008-01-02T08:23:00.000-08:00

Forex trading is all about having the right method but also the right attitude. Here we will look at 10 character traits that the losing 95% of traders have and if you want to enjoy currency trading success you need to avoid them.

Here they are in no particular order of importance.

1. I am not responsible
A symbol of losers - they think success will come with no effort on their behalf and blame everyone else for their failure from the tip they got from friend, newswire or broker, to the market being against them. These people make up a surprising amount of the losing majority and they fail to see that no one can give them success but themselves. Instead of seeing this they do the following.

2. I Like to take expert advice
If you do be very careful as most of the people who put themselves out as experts on the net are anything but - their marketing companies and have never traded in their lives. Again a vast amount of traders buy systems with unbelievable track records and then are surprised when they fail in real time (they never look at the disclaimer that says the track record is a simulation and not real). If something looks to good to be true it probably is and this is very true in forex trading.If you follow an expert and have not done your homework on the logic they base their views on, then you are unlikely to have the confidence to follow their method with discipline when it hits a losing period. If you don't follow a method with discipline then you have no method at all.

3. I don't like being wrong
Well in forex trading your going to be wrong a lot of the time, as only you can be wrong and the market price is always right - no matter what you or I think. Most traders hate taking a loss and looking stupid but the markets do that to everyone and even the best traders lose at times. If you try and argue with the price and justify your position, you will run up losses and lose and your emotions will take over.

4. I deserve to win I am smart
I have met some very clever people in forex trading and the majority of them lose - if you think that being smart helps you then it won't. In forex trading you get paid for being right with your trading signal that's it and it's a fact that the best forex trading systems are simple. They work far better than complicated ones as they have fewer elements to break. Clever people tend to over elaborate their trading and think the more they put in the more they get out but this does not apply in forex trading. If you want to make money keep it simple and remember forex trading is probably 20% method and 80% mindset.

5. I am not a patient person
If you are an anxious or nervous person then you are unlikely to win at forex trading. You need patience to wait for the right opportunities and you need patience to hold positions through short term volatility to bigger profits. If you are an anxious trader you will probably let your emotions get the better of you trade too much, engage in revenge trading etc and lose.There of course other losing traits but the above are very common ones and hold anyone of them and you will lose.

Forex trading is not hard to learn anyone can do it but most fail because they don't realize that correct mindset is the key to success. To be successful at forex trading you need to rely on yourself, have a deep understanding of why your method works, so you can have the confidence to apply it with discipline. If you understand the above you can avoid these common losing traits and get a mindset for forex trading success.

Different Kinds Of Bonds

2008-01-02T08:21:00.000-08:00

Investing in bonds is highly insured, and the returns are most often extremely credible. There are four basic Kinds of bonds on tap and they are sold through the Government, through corporations, state and local governments, and foreign governments.

The paramount thing about bonds is that you will get your initial investment back. This makes bonds the flawless investment vehicle for those who are new to investing, or for those who have a low risk resistance.

The United States Government sells Treasury Bonds through the Treasury Department. You can procure Treasury Bonds with maturity dates ranging from three months to thirty years.

Treasury bonds include Treasury Notes (T-Notes), Treasury Bills (T-Bills), and Treasury Bonds. All Treasury bonds are acclaimed by the United States Government, and tax is only owing on the interest that the bonds earn.

Corporate bonds are sold through public securities markets. A corporate bond is mainly a company selling its debt. Corporate bonds most often have high interest rates, but they are a bit risky. If the company goes belly-up, the bond is valueless.

State and local Governments also sell bonds. Contrasting bonds issued by the federal government, these bonds altogether have higher interest rates. This is because State and Local Governments can indeed go bankrupt contrasting the federal government.State and Local Government bonds are free from income taxes even on the interest. State and local taxes may also be waived. Tax-free Municipal Bonds are common State and Local Government Bonds.

Buying foreign bonds is manifestly veritably difficult, and is often done as part of a mutual fund. It is often remarkably risky to invest in foreign countries. The safest type of bond to buy is one that is issued by the US Government.

The interest earned might be much less, but again, there is completely little or no risk involved. For first-rate results, when a bond reaches maturity, reinvest it into another bond.

The Bubble Really Does Not Burst

2008-01-02T08:18:00.000-08:00

"The bubble has bursted." You hear it stated whenever any investment market has been doing so well for so long and then all of a sudden is not a hot thing anymore. It happened during the internet/tech boom of the late 90's. It happened recently with real estate throughout the United States. It happens to just about every market at one time or another.

The internet/tech boom that we all recall, when just about everyone and their friends were throwing a majority of their money into technology stocks is a great example. Companies that we never heard of and had no idea how they even made their profits, suddenly became our favorite investments. Why not? Every other technology and internet stock was sky rocketing. After all the internet and computers were our future. When there is a wave, and your friends are surfing it, you're going to do the same thing. Investing in companies that were internet related was the "cool" thing to do.

When people see their friends and family making a fortune in a certain market, they tend to not want to be left out. I'm sure you know many people who invested in certain internet stocks that they had no clue whatsoever what the company actually did. Unfortunately these companies were relying mostly on their hype which caused their stocks to soar even though their earnings were not up to par. A few experts began looking at these companies P/E ratios (price per share divided by earnings per share), which showed that most of them were extremely overpriced. Companies that are considered to be "high growth companies" are usually allowed to have higher P/E ratios. However there was no proof that these companies were growing at a large enough rate to off set the high P/E's.

After these experts started criticizing certain internet stocks with extremely high P/E ratios, we saw the stocks for these companies fall enormously. In turn some of these companies were forced to go out of business, signaling a not so good future for similar companies. The bubble didn't really burst. The market didn't just collapse all at once, but it was a gradual process which took months. This is the business cycle in a micro economical sense. The sub market (internet technology) began to fall on a steeper then normal slope. People who had made literally millions in the stock market were now in the negative.

The same thing happened in the real estate market just recently (2006/2007/2008). Real Estate everywhere was soaring. Homes that were selling for just $300,000 in 2000 were going for over $600,000 in many markets just a year or two later. People took out mortgages that had arms on them, and invested their money in real estate. What these people were expecting was that the market would continue to go up for years to come, and that they would be able to sell for a significant profit before the mortgage arm would kick in. What these people didn't take into consideration is that real estate, just like any other investment market, has a cycle of it's own. What goes up much come down, and come down it did.

In this case again, the bubble didn't simply burst either. It rather deflated like a basketball with a slow leak in it. Slowly people could not afford to pay their mortgages because their rate increased (due to the arm). As their rate increased so did the rates of other investors. The price of real estate leveled off, so these people could not sell their investments for a profit. This began happening on a massive scale, and these investors had no choice but to sell at a price lower then they paid in order to make their mortgage payments.

This happens in just about every investment market. There is always hype when things are good, and people jump in at this point. There is a saying "Buy low, sell high", yet even the people that say this all the time buy when prices are high because of this hype. Usually when something seems too good to be true it turns out it is. Remember that. The Bubble will eventually deflate no matter what!

Matching Stocks And Strategies With Your Goals

2008-01-02T08:06:00.000-08:00

Various stocks are out there, as well as various investment approaches. The key to success in the stock market is matching the right kind of stock with the right kind of investment situation. You have to choose the stock and the approach that match your goals. Before investing in a stock, ask yourself, “When do I want to reach my financial goal?” Stocks are a means to an end. Your job is to figure out what that end is or, more importantly, when it is. Do you want to retire in ten years or next year? Must you pay for your kid’s college education next year or 18 years from now? The length of time you have before you need the money you hope to earn from stock investing determines what stocks you should buy.

Dividends are payments made to an owner (unlike interest, which is payment to a creditor). Dividends are a great form of income, and companies that issue dividends tend to have more stable stock prices as well. Every investor has a unique situation, set of goals, and level of risk tolerance. Remember that the terms large-cap, mid cap, and small-cap refer to the size (or market capitalization, also known as market cap) of the company. All factors being equal, large companies are safer (less risky) than small companies.

Investing for the Future
Are your goals long term or short term? Answering this question is important because individual stocks can be either great or horrible choices, depending on the time period you want to focus on. Generally, the length of time you plan to invest in stocks can be short term, intermediate term, or long term.

Investing in stocks becomes less risky as the time frame lengthens. Stock prices tend to fluctuate on a daily basis, but they have a tendency to trend up or down over an extended period of time. Even if you invest in a stock that goes down in the short term, you’re likely to see it rise and possibly go above your investment if you have the patience to wait it out and let the stock price appreciate.

Investing for a Purpose
When the lady was asked why she bungee jumped off the bridge that spanned a massive ravine, she answered, “Because it’s fun!” When someone asked the fellow why he dove into a pool that was chock-full of alligators and he responded, “Because someone pushed me.” Your investment in stocks shouldn’t happen unless you have a purpose that you understand, like investing for growth or investing for income. Even if an advisor pushes you to invest, be sure that your advisor gives you an explanation of how that stock choice fits your purpose.

An elderly lady who had a portfolio brimming with aggressive- growth stocks because she had an overbearing broker. Her purpose should’ve been conservative, and she should’ve chosen investments that would preserve her wealth rather than grow it. Obviously, the broker’s agenda got in the way. Stocks are just a means to an end. Figure out your desired end and then match the means.

Understand How the U.S. Economy Works

2007-12-29T09:35:00.000-08:00

This is in contrast to Microeconomics which looks at production and prices within specific markets.

When Macro-economists study an economy, they look at 3 major variables. These are output, the unemployment rate, and the inflation rate.

1. Output is the level of production in an economy as a whole. The measure of aggregate output in the U.S. is known as the Gross Domestic Product, or GDP. It can be thought of from 2 different perspectives, production and income.

From the production side: GDP is the value of the final goods and services produced in an economy during a given period. GDP is also the "value-added" that all the businesses added to the economy during a given period.

From the income side: GDP is the sum of incomes in the economy during a given period. This is the income or revenue that a business (a) is left with as profit, (b) pays to the government as taxes, and (c) pays to employees as wages.

2. The unemployment rate is the proportion of workers in an economy who are not employed but are seeking work. The total labor force is a combination of people who are working plus those who are not working but want to work.

In the U.S., the Bureau of Labor Statistics conducts the Current Population Survey or CPS. It interviews about 50,000 households each month to determine if the adults are employed.

The survey classifies an individual as employed if they have a job at the time of the interview and as unemployed if they don't have a job but have been actively seeking a job within the prior 4 weeks.

If someone isn't working and doesn't want to work, they are not counted as part of the labor force.

So the unemployment rate is the number of unemployed people seeking work divided by the total labor force. The lower the unemployment rate, the more people are working, and this results in higher economic output.

3. Inflation is a sustained rise in the general level of prices. The inflation rate is the rate at which the average price of goods in an economy increases over time.

And deflation is the rare opposite, a sustained decline in price levels. Deflation is also called negative inflation.

Here are some more economic scenarios: hyperinflation is extreme inflation and stagflation is when inflation gets combined with economic stagnation.

Macro-economists measure the cost of living by the consumer price index, or CPI. The CPI has been used since 1917 and is published monthly. It gives the cost in dollars of a specific list of goods and services over time.

U.S. Bureau of Labor Statistics employees actually visit over 22,000 locations in 85 cities to see what's happening to the prices of products on the CPI list such as cars, gas, clothing, food, etc.

As an index, the CPI is set equal to 1 in the base period chosen. This is so its level has no particular significance. The current base period are the years 1982 to 1984, thus the average for the period 1982 to 1984 is equal to one.

In the year 2000, for example, the U.S. CPI was 1.71. This means that when comparing prices for similar products, they were 71% higher in 2000 than they were in the time period 1982-1984.

When demand rises, this is called a Boom and it leads to inflation. Follow this:

When consumer demand increases, the goal of production is, of course, to keep up with that consumer demand. This entails paying workers overtime or hiring additional workers to beef up output. All this extra work means that labor costs rise because more people are being paid to do the work. These increased labor costs are passed on to the consumer in the form of higher prices. And higher prices, as we've said, are the definition of inflation.When demand falls, this is called a Recession and it leads to deflation. Follow this:

When consumer demand falls, workers get laid off or have their working hours cut back. If production needs decrease, fewer workers are obviously needed to fill the decreases in demand. The decreased labor costs are passed on to the consumer in the form of lower prices. Companies must reduce their prices to stay competitive in a shrinking marketplace. And lower prices are the definition of deflation.

Recession is a period of negative GDP growth. The time frame for a recession is debated. Many macro-economists insist that negative growth must last for at least 2 consecutive quarters.

Others define recession more loosely, as a significant decline in growth that lasts more than a few months. A sustained recession is called an economic depression."

A creative economy is the fuel of magnificence." -Ralph Waldo Emerson (1803-1882)

Finding a System to Day Trade the Futures Market

2007-12-29T09:29:00.000-08:00

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

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

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

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

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

For years now I had been studying charts every single day plus weekends and evenings.

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

I had a hard time learning to trade without a mentor. It actually took years of commitment, hard work, and a lot of wasted money. If you are new to trading Futures, or any market, and you don’t have a mentor with a good system that will give you consistent profits, then by all means that should be your first endeavor. It is said that 90% to 95% of everyone trading in the futures market loses. Make sure you’re in the 5% to 10% that are winners. Jim Canter is a S&P 500 e-mimi day trader and the developer of the Precise Day Trading System. For more information see http://www.futurecommodityonlinetradingsystem.com

Managing key information

2007-12-29T09:24:00.000-08:00

When planning an information management strategy, there can be an overwhelming volume of documents and other content to address.

Within even a single business unit of a typical organisation, thousands of documents are created in a given year. While it would be desirable to have all of these managed to the same high level, this is clearly impractical.

In practice, however, there are certain types of documents that need to be managed more tightly, while others can be ignored (at least in the short term).

This briefing identifies some key categories of documents that should be targeted as part of information management projects, and discusses a number of practical approaches that can be
taken.

Identifying key information
While thousands of documents are created within an organisation, many of these do not warrant close attention as part of an information management (or document management) project.
Instead, our experience in organisations has shown that there are three main categories of key information within many organisations:

Key corporate information
Information shared within an organisation
Information communicated externally
This is not an exhaustive list, but it does provide a starting point for identifying which information should be managed more rigorously within an organisation.

Key corporate information
There is some information that is clearly important within an organisation, such as corporate policies, strategic plans and annual reports. Key corporate information may also include reports generated to meet regulatory or legislated requirements.
This information is generally well-recognised, and is often already the focus of document and records management projects. That being said, there are many situations where even this important information is poorly managed.

Information shared within an organisation
In many cases, this is the most important information to manage. Where documents are used by multiple teams or business units, they must be stored and communicated in a way that is recognised and understood by all groups.

For example, multiple teams may be involved in delivering a large project. This requires a clear file structure, and a consistent naming of key documents.

Information communicated externally
It is often very important to closely track information that is communicated to external stakeholders, or to the public as a whole. This ensures consistency of communications, as well as mitigating the risks of disseminating incorrect information.
There are often serious consequences to having multiple areas of the organisation sending out inconsistent information, or having some areas of the business not knowing what others have sent out.

Ignoring some documents
Beyond the documents in the categories above, there is much information within an organisation that can (and should) be ignored by information management projects.

For example, project teams typically create a huge number of documents across the lifetime of a project. Most of these documents are used solely by the project team, with only a few key documents shared with a wider audience.

In this situation, efforts should be focused on those documents that are shared or reused, with the others left to the project team to organise as they see fit.

Targeting efforts
In practice, information management initiatives should target their efforts first on the key documents. Better managing this information will have the greatest impact on the organisation, recognising that only a limited amount of change management is possible in a given timeframe.

Eight Ways to Generate More Ideas in Groups

2007-12-25T07:21:00.000-08:00

The scene is repeated in meeting rooms around the world every day. A problem has been identified and a group has gathered to solve the problem. When ideas are needed, the group decides to brainstorm. And all too often this exercise leads to a short list of not-that-creative ideas.

We know that if we generate more ideas we have a better chance of finding better ideas. This leads us to the logical conclusion that if we can find techniques to create more ideas, we will find better ones. No one technique however will guarantee the perfect solution. Instead your goals should be to have a variety of approaches to help stimulate idea creation in your repertoire. By doing this you will improve the overall quality of ideas by virtue of having more to choose from.
Whether you are unhappy with the current creativity of your group or are having good success with brainstorming sessions, but would like them to be even better, any of the eight suggestions below can help.

Look at problems in different ways. Get the group to change their perspective on the problem. Once people “lock into” one way of looking at things the idea flow will slow to a tickle. Have people take a new persona. Ask them to look at the issue from the perspective of another group – accounting, HR, or sales for example. Ask them to think about how their Grandmother or an 8 year old would solve the problem. These are simple ways to force people into a new perspective and the new perspectives will generate more ideas.

Make novel combinations. The ideas that land on the flipchart or whiteboard in a brainstorming session are typically considered individually. Have the group look at the initial list and look for ways to combine the ideas into new ones.

Force relationships. Once a group is finished with their initial list, provide them with words, pictures or objects. The objects can be random items, the words can come from a randomly generated list (email wordlist@KevinEikenberry.com and we’ll send you such a list), or from pictures in magazines or newspapers. When people have their random word, picture or item, have them create connections between the problem and their item. Use questions like, “How could this item solve our problem?” What attributes of this item could help us solve our problem?”

Make their thoughts visible. Have people draw! Too often the brainstorming session has everyone sitting except the person capturing the ideas. Let people doodle and draw and you never know what ideas may be spurred.

Think in opposites. Rather than asking your direct problem question, ask the opposite. “How could we ensure no one bought this new product?” could be one example. Capturing the ideas on “the opposite,” will illuminate ideas for solving the actual problem.

Think metaphorically. This approach is similar to forcing relationships (and is another way to use your words, pictures or items). Pick a random idea/item and ask the group, “How is this item like our problem?” Metaphors can be a very powerful way to create new ideas where none existed before.

Prepare. Too often people are asked to brainstorm a problem with no previous thinking time. If people have time to think about a topic, and let their brains work on it for awhile, they will create more and better ideas. Allow people to be better prepared mentally by sharing the challenges you will be brainstorming some time before the meeting whenever possible.

Set a Goal. Research shows and my experience definitely confirms that the simple act of giving people a quantity goal before starting the brainstorming session will lead to a longer list of ideas to consider. Set your goal at least a little higher than you think you can get – and higher than this group typically achieves. Set the goal and watch the group reach it!

While these suggestions have all been written from the perspective of a group generating ideas, they all work very well for individuals too. The next time you need to solve a problem by yourself, use these techniques and you will be astounded by the quantity of ideas you will generate!

Finding a Legitimate Online Job

2007-12-25T07:12:00.000-08:00

Finding a needle in a haystack would be easier than finding a legitimate work from home job on the internet on your own. One of the first things you need to know about a vast majority of online businesses is that it involves a lot of advertising for whatever it is you are selling. So if you are not comfortable with this aspect, then you probably would not enjoy working online.

The Work At Home Group has found that most trustworthy work from home jobs have a fee that is paid up front, although many people believe otherwise. Free internet business opportunities involve a lot of work such as multi-level- marketing. Believe me when I say that if the job is free then you are doing all the work, for someone elses' benefit. "You get what you pay for", is very true in the work at home industry. You have to take into consideration that companies that charge a fee supply you with information and valuable knowledge. Before we go any further let me say that every online business with a start-up fee is totally legitimate, is not necessarily true, there are a lot of scams on the internet. One way to find out if a company is legitimate or not is to do a simple search on the internet with their web address. Another good method is to check the BBB on online scam sites.

There are a wide variety of online opportunities on the internet. Everything from free no cost jobs to large and small start-up fees. The most success I have seen people have had were the home typing jobs. I came across about one year ago and of course it involves marketing. This type of job is really good because they cut through all the hype other companies try to sale you and just tell you up front what you will be doing which is placing ads and marketing. What does a home typing jobs involve? It involves placing ads for companies that do business on the interent. You can do this for free or pay a service to do it for you. The way it works is for each sale that your ad generates you will be paid a commission. These commissions range from 50-75% of that sale which sometimes is more then the company profits itself. There are small requirements to be successful with this type of job because most of them will supply you with all free or paid resources and information you need to begin. Another aspect is the tech support you get with these types of jobs. Check for yourself how the support is by emailing the company with a question, and see how long it takes for them to get back with you.

Your only concern is to generate the sales and collect your checks, the companies take care of shipping, order processing, and any refunds. There are several ways to market a company online, the most affective ways of course includes a service fee but you can also choose to do it yourself. This can be very profitable but involves many hours and committment to be successful at it. Being able to sit at home in your pajamas, save gas money and be able to make the same amount of money (if not more) as an outside job from your home is one of the major reasons people want to work from home.

The Skinny on Forex

2007-12-20T07:49:00.000-08:00

What is FOREX?
The Foreign Exchange market, also referred to as the "FOREX" or "Forex" or "Retail forex" or “FX” or "Spot FX" or just "Spot" is the largest financial market in the world, with a volume of about $2 trillion a day. If you compare that to the $25 billion a day volume that the New York Stock Exchange trades, you can easily see how enormous the Foreign Exchange really is. It actually equates to more than three times the total amount of the stocks and futures markets combined! Forex rocks!

What is traded on the Foreign Exchange?
The simple answer is money. Forex trading is the simultaneous buying of one currency and the selling of another. Currencies are traded through a broker or dealer, and are traded in pairs; for example the Euro dollar and the US dollar (EUR/USD) or the British pound and the Japanese Yen (GBP/JPY).

Because you're not buying anything physical, this kind of trading can be confusing. Think of buying a currency as buying a share in a particular country. When you buy, say, Japanese Yen, you are in effect buying a share in the Japanese economy, as the price of the currency is a direct reflection of what the market thinks about the current and future health of the Japanese economy.

In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country's economy, compared to the other countries' economies.
Unlike other financial markets like the New York Stock Exchange, the Forex spot market has neither a physical location nor a central exchange. The Forex market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.

Until the late 1990’s, only the “big guys” could play this game. The initial requirement was that you could trade only if you had about ten to fifty million bucks to start with! Forex was originally intended to be used by bankers and large institutions - and not by us “little guys”. However, because of the rise of the Internet, online Forex trading firms are now able to offer trading accounts to 'retail' traders like us.

All you need to get started is a computer, a high-speed Internet connection, and the information contained within this site.

What is a Spot Market?
A spot market is any market that deals in the current price of a financial instrument.

When Can Currencies Be Traded?
The spot FX market is unique within the world markets. It’s like a Super Wal-Mart where the market is open 24-hours a day. At any time, somewhere around the world a financial center is open for business, and banks and other institutions exchange currencies every hour of the day and night with generally only minor gaps on the weekend.

The foreign exchange markets follow the sun around the world, so you can trade late at night (if you’re a vampire) or in the morning (if you’re an early bird). Keep in mind though, the early bird doesn’t necessarily get the worm in this market - you might get the worm but a bigger, nastier bird of prey can sneak up and eat you too…

Why Trade Foreign Currencies?
There are many benefits and advantages to trading Forex. Here are just a few reasons why so many people are choosing this market:

*No commissions-No clearing fees, no exchange fees, no government fees, no brokerage fees. Brokers are compensated for their services through something called the bid-ask spread.
No middlemen. Spot currency trading eliminates the middlemen, and allows you to trade directly with the market responsible for the pricing on a particular currency pair.

*No fixed lot size.-In the futures markets, lot or contract sizes are determined by the exchanges. A standard-size contract for silver futures is 5000 ounces. In spot Forex, you determine your own lot size. This allows traders to participate with accounts as small as $250 (although we explain later why a $250 account is a bad idea).

*Low transaction costs- The retail transaction cost (the bid/ask spread) is typically less than 0.1 percent under normal market conditions. At larger dealers, the spread could be as low as .07 percent. Of course this depends on your leverage and all will be explained later.

*A 24-hour market- There is no waiting for the opening bell - from Sunday evening to Friday afternoon EST, the Forex market never sleeps. This is awesome for those who want to trade on a part-time basis, because you can choose when you want to trade--morning, noon or night.

*No one can corner the market-The foreign exchange market is so huge and has so many participants that no single entity (not even a central bank) can control the market price for an extended period of time.

*Leverage-In Forex trading, a small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum. For example, Forex brokers offer 200 to 1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies. Similarly, with $500 dollars, one could trade with $100,000 dollars and so on. But leverage is a double-edged sword. Without proper risk management, this high degree of leverage can lead to large losses as well as gains.

*High Liquidity-Because the Forex Market is so enormous, it is also extremely liquid. This means that under normal market conditions, with a click of a mouse you can instantaneously buy and sell at will. You are never "stuck" in a trade. You can even set your online trading platform to automatically close your position at your desired profit level (a limit order), and/or close a trade if a trade is going against you (a stop loss order).

*Free “Demo” Accounts, News, Charts, and Analysis.- Most online Forex brokers offer 'demo' accounts to practice trading, along with breaking Forex news and charting services. All free! These are very valuable resources for “poor” and SMART traders who would like to hone their trading skills with 'play' money before opening a live trading account and risking real money.

*“Mini” and “Micro” Trading:- You would think that getting started as a currency trader would cost a ton of money. The fact is, compared to trading stocks, options or futures, it doesn't. Online Forex brokers offer "mini" and “micro” trading accounts, some with a minimum account deposit of $300 or less. Now we're not saying you should open an account with the bare minimum but it does makes Forex much more accessible to the average (poorer) individual who doesn't have a lot of start-up trading capital.

Learn Forex Trading

2007-12-20T07:46:00.000-08:00

Almost all internet marketers have heard of forex trading or online currency trading as it is sometimes referred to and many are curious about how the forex trading system works and where they can go to learn forex trading.

In order to become a successful forex trader you need to know what forex trading is and how to successfully trade forex. In order to achieve sufficient knowledge it is vital to learn forex trading from experts. This can be done in the form of a forex tutorial and there are literally hundreds of forex companies offering online tutorials and guides.

An online forex tutorial will explain how the foreign exchange market works and will also explain the types of forex orders that are available to you as a forex trader. A forex tutorial will also explain about technical indicators and what they mean, the economic indicators you will need to be aware of and the various options and strategies that are available to you as a forex trader.

If you are new to forex trading then it is essential that you learn forex trading before parting with any of your hard earned cash. Many online forex companies offer free training and demonstrations that resemble that of real time forex trading. There are also forex trading courses available and these are also a valuable way to learn forex trading as you can refer to these course time and time again.

The most important aspect when it comes to forex trading is to learn forex trading so that you understand how to trade and how to trade successfully. The more you learn forex trading the more understanding you will have and the more success. Finding a forex tutorial or forex trading course is simple. All you need to do is a brief internet search and you will have a great deal of tutorials and courses to choose from. If you are serious about succeeding as a forex trader, then it�s down to you, learn forex trading now and learn to succeed.

Gain Confidence and Boost Self Esteem in 5 Simple Steps

2007-12-16T07:49:00.000-08:00

We all want to become more confident and feel good about ourselves so we can live our very best life. Here are some ways to gain confidence and raise self-esteem:

1. Do something that requires a decision and a follow-through.

Have you been putting off writing that letter to aunt Martha? Is there a friend you’ve been meaning to call? Wash the car, tidy the garden or clean the house. You’ll gain confidence by setting goals (even small ones) and following through on them.

2. Enjoy something you do well.

Do you have any hobbies or sports that you enjoy playing? Some things like going swimming, painting or writing can hold your attention and get you into a state of ‘flow’. While you are in the flow you forget about everything else.Afterwards, you’ll feel competent and capable. It’s a great way to boost your self-esteem. If you don’t have any particular hobbies or pastimes that you enjoy make an effort to try something you’ve always wanted to try.

Picture yourself doing it, and then give it a try! It doesn’t have to be something big - it can be as simple as joining a walking club.You’ll find that you are more centered and happier if you do something that puts you in that flow at least once a week.

3. Shift the focus.

It’s been shown that low self-esteem develops hand-in-hand with individuals who put too much focus on themselves. You can gain confidence by doing something that focuses on someone else or even something else.You’ll find that when you are in a situation where you are meeting new people, you immediately become less nervous when you focus on the person you are meeting.At the end of the day, you’ve interacted with others and will notice that you feel much lighter.

4. Relax, already!

Learning to become more relaxed is a great life enhancer. People who are more relaxed have fewer problems with their memories and are more likely to take the bumps in the road of life in stride.The practice of meditation has gained popularity for this reason. You might want to look into Tai Chi, which involves physical relaxation techniques.Whatever method you decide on, take relaxation seriously. The benefits are just too great to ignore. If you’ve never considered relaxation important, think of it this way: if you can attend to something that results in feeling good, how can you not gain confidence in your personal abilities?

5. Make a list of everything you’ve ever accomplished.

Think small. An accomplishment is an accomplishment! Some things you could put on your list: passed my driver’s test and got my license, scored a goal when I played hockey, managed to save enough money to go on a trip and so on.These are just a few ideas you can use to gain confidence and boost your self-esteem. Use these ideas as a base point and add these things permanently in your life.

Keep in mind, people are not born with good self-esteem, most of us have to work at it. It develops from your thinking and the things you do daily to make yourself feel good.

Creating Wealth In Stock Market

2007-12-12T07:21:00.000-08:00

The 12 Rules of How to Avoid Losing and Start Making Money from the Stock Market

RULE 1: WHY DO YOU INVEST?

Make more money, this is the answer to most people.
If your reason is to make more money, then ask yourself these three questions:

1.Is your strategy making money?
2.Is your strategy safe?
3.How to increase the profit and minimize the risk?

RULE 2: HOW TO CREATE WEALTH IN STOCK MARKET WITH JUST $1,000

Let say we invest some lower price stocks with just $1,000 in the stock market, invest twice a year for short-to-medium term. If each time the return is double, you will make one million dollar cash within 5 years. If your starting capital is $20,000, after 3 years you will make one million dollar cash.

If you are using the same $1,000 capital, invest twice a year, but the return is only 50%, you will make one million dollar cash after 9 years.

So we can always start small. However, it is very important that we know how to select high profit and low risk stocks.

RULE 3: DON'T GET OBSESSED WITH STOCKS

Sitting and monitoring the market whole day long will not bring you profit. Instead, it increases pressure and misleads your judgment.

RULE 4: NEVER GAMBLE

95% of the people always buy at the highest price. They don’t really know when to buy, just relying on news, rumors and tips. Only 5% of the people knows how to trade at the lowest price. That’s why 95% are losing money, only the 5% are making money.
Investment Builds Wealth, Gambling Definitely Lose !

RULE 5: SAY GOODBYE TO NEWS

News used to be able to predict the market trend. But not anymore, it is difficult to judge which news could actually influence the market nowadays.

RULE 6: DO YOUR OWN ANALYSIS, FORGET ABOUT TIPS

Before investing, ask yourself these four questions:

1.How many people have already heard about the tips before you?
If many have heard about it before you, this news is already obsolete. The price is already high.

2.How long have the tips been spreading before it reaches you?
The next day?

3.Who told you?
Listed company director? Or friends?

4.Assuming that the tip is true, would you possibly know about it?
Normally insider news is not disclosed.

RULE 7: SELL YOUR STOCKS EVEN LOSING MONEY

It is easier to be said than done.

Sell at a loss is a difficult decision. Your heart will object, and your feeling will say "It is going to rebound, don't sell." Eventually price dropped further, causing a much tragic lost.

RULE 8: DON'T JUST FOCUS ON MAKING MONEY

How to protect your capital is much more important. Don’t try to make 100% profit. It is already good enough to have a 60% profit margin.

RULE 9: HISTORY WILL NOT ALWAYS REPEAT

Everyone expects to make some money from the stock market before Christmas, New Year, annual budget announcement or election, but the stock market is not always bullish during these events. We can say history is not always repeated.
The best way is “Let the Market Lead us”.

RULE 10: QUOTES FROM WARREN BUFFET

There are only two rules to make money in stock market:

The first rule: Never lose your money.
The second rule: Never forget the first rule.

RULE 11: TURN BAD STOCKS INTO GOOD STOCKS, DON’T JUST HOLD YOUR STOCKS

Don’t hold your stock too long, there is a value when stocks are sold.

How long have you been holding your stocks until now?
Since Year 1993? 1997? Or Year 2000?

Why didn't you exercise your stocks? Long term investment strategy is not practical anymore. Even the blue chips also crash when the market collapses.

The best strategy is to sell the stocks that are not earning money, and reselect some good counters. Buy low, sell high for several times will earn you more than enough to compensate the lost.

RULE 12: WAKE UP FROM MISTAKES

Stop investing if you are not sure of when to buy or sell.

Without the knowledge of investment, you are bound to lose again. This is an age of information. Investors are using knowledge, techniques and strategies to make money. Without investment knowledge, how do you protect your money?

Building wealth through investing starts with securing your capital.

Buffett's Big Bet

2007-12-12T07:09:00.000-08:00

Over the past few days, there have been several stories written about Warren Buffett�s $14 billion bet on global stock markets. I believe these stories are all in reference to this excerpt form Berkshire Hathaway�s annual report:

�Berkshire is also subject to equity price risk with respect to certain long duration equity index put contracts. Berkshire�s maximum exposure with respect to such contracts is approximately $14 billion at December 31, 2005. These contracts generally expire 15 to 20 years from inception. Outstanding contracts at December 31, 2005, have been written on four major equity indexes including three foreign. Berkshire�s potential exposure with respect to these contracts is directly correlated to the movement of the underlying stock index between contract inception date and expiration. Thus, if the overall value at December 31, 2005 of the underlying indices decline 30%, Berkshire would incur a pre-tax loss of approximately $900 million.�

It�s impossible to evaluate what exactly this means for Berkshire or what it tells us about Buffett�s thinking without knowing more details. But, there are a few things I�d suggest you consider when reading the news reports.

First, the $14 billion headline number makes this bet look larger than it really is. According to the above disclosure, a 30% decline in the underlying indices would only create a $900 million pre-tax loss. One article stated that a decline in the indexes to zero was highly unlikely given historical trends. It�s a lot more than highly unlikely. But, since we don�t know the details of Berkshire�s exposure, we can�t evaluate the real risk of a very large loss.

A lot of these news stories have called Berkshire�s �long duration equity index put contracts� a bet on global stock markets. A few individuals have been quoted as saying Buffett has become bullish long-term. Buffett�s always been optimistic about the very long-term insofar as he recognizes how better things are today than they have been at any other time in history, and how that is likely to remain true for some time. Despite Buffett�s concerns about nuclear war, he doesn�t see a return to the Dark Ages and those kinds of anemic returns on capital.

That�s important to keep in mind, because I�m not sure this bet is much more than that. If you assume returns on equity will be similar to those achieved in the years since industrialization began, and you assume central governments will continue to cause inflation, a long duration equity index put contract isn�t much of a stretch.

Equity will earn returns, much of those returns will be retained by the businesses, and inflation will increase (nominal) stock prices regardless of whether the underlying businesses� assets are increasing or remaining stable.

So, I�m not sure this is a bullish sign. In fact, it may be a bearish sign, because it suggests Buffett can�t find individual equities to buy, three of the four indexes are foreign, and someone wants to be protected against very large losses in a diversified group of holdings.

Remember, someone is paying for this protection. In my opinion, it�s not the kind of protection investors need. It�s long-term protection on an index. I suppose I can see why a pension fund might want this (to increase exposure to equities), but it seems like exactly the sort of thing an insurance company can make money selling. There�s fear of a very large loss, and a lot of factors that are hard to see that will tend to make that loss pretty unlikely.

We don�t know what premiums Berkshire is receiving, so we really can�t evaluate these contracts. If someone writes hurricane insurance it doesn�t mean they think hurricanes are unlikely, it just means they think someone is dumb enough to pay more than the protection is worth. Knowing the odds of a decline in global stock markets isn�t enough to evaluate Berkshire�s contracts, because we don�t know the price.

I�m not enamored with current valuations in the U.S., but looking out a couple decades it�s not all doom and gloom. Markets tend to overshoot in both directions, but there�s usually someone sane enough to buy when stocks get cheap enough.

What�s remarkable about the way investors move stock prices isn�t the magnitude of the truly major moves (up or down); it�s the frequency of meaningful moves when there�s no meaningful changes in underlying values. Think about the price range of an average stock in an average year � that�s the really irrational part of investor behavior. I wouldn�t want to have anything to do with a one-year contract on a single stock. That�s a very different situation.

Master your Time, Double your Success

2007-12-08T08:18:00.000-08:00

Time Management is an essential success skill

Practically speaking, time is constant: 60 seconds per minute, 60 minutes per hour, 24 hours per day, 7 days a week (24/7).

However, the usage of time differs among each individual. Some might give time the capacity to control their lives, and others may find themselves a slave of time. Some might have no time at all to relax and create a stress-free lifestyle.

But the bottom-line is not to make time an enemy. One must have time to think of things in order, to plan ways to minimize waste of time, energy, and valuable resources.

Effective time management involves patience and practical thinking. Time and the natural changes in the environment may be modified but, in the end, we should follow the natural order of things.

Remember "There's no day but today." We should use tools and ideas that can improve our efficiency in using time. Time is not renewable; and moments are irreplaceable. A thing done or a past experience cannot be recreated.

However, we can expect these changes and prepare ourselves for better or worse scenarios. We cannot control time but we can make adjustments based on a given moment.

Learning or studying something to achieve mastery is one good example where we can minimize errors or develop ourselves amidst the ever-changing times. During this period of learning, we must maximize the given resources (including time) to fully develop a skill or to acquire knowledge so that by the time we need such skill, we won't be wasting hours trying to figure things out.

One who is able to prepare for a number of possibilities upon entering a situation may have more time to think of the moves and decision to take to minimize the possibilities of errors.

Here are some tips:

1. Think of goals and aims as necessary achievements.
In achieving your desired goals, you should start with a positive outlook. You must be excited with the challenges and tasks that you have to do to give you the right start or motivation.

However, you should also see the path towards your goals in concrete terms. These achievements or aims can be reached by becoming realistic and by knowing your directions. Think of the scenarios of success but you should also recognize the fact that these roads have to be traversed in a given time.

This way, you are not only looking at the possibility of success, but you are also giving yourself the right motivation and the proper time to prepare for a fresh start and achieve your goals at the soonest possible time.

2. Think of the time frame in achieving goals and aims.

You are to do a task at a particular time. As you begin planning your strategies, you must also look forward and recognize your time frames in doing such tasks.

Time frames are the periods you are giving yourself to finish a task. These are just estimates or approximations since you are not the sole factor that will contribute in finishing the given task. Be wary of the processes in your environment; for example, if you are to write a book or an article, consider the time you are giving yourself for this activity in relation to your environment.

Finally, think of the flow of things or the movement of time in your daily life as you move forward in achieving your desired goals. Think of your other activities that might affect the time factor in finishing given tasks.

You might be spending too much time on a very idle activity (like too many late night parties or soir�es or a whole day in front of your computer playing online games) that will give you less time for your plans towards self-fulfillment and success.

3. Be realistic and expect changes.

Time Management involves flexibility and open-mindedness. Do not expect that you can finish a task in what you've considered as your time frame unless everything is laid down perfectly. You should allot some allowance in your time frame, probably for the sake of the unforeseen or unexpected circumstances.

Remember that contradicting factors bring development so don�t be upset with these changes since everything is undergoing a sort of a synthesis. For example, you already made your business plan and a lot of careful considerations have been completed, including the period in which you expect your business to give you financial and personal satisfaction.

However, during the course of application, there are other factors or changes, which you omitted in your feasibility study. In this case, you should have allowed some time for handling unknown variables.

Instead of becoming immobile or paralyzed with any situation, be flexible by making changes. Level the playing field with innovative strategies based on the situation and knowledge you will acquire from your experience in doing the task. Maximize your time by examining your errors and by moving on with solutions that will sustain whatever efforts you have given to traverse difficult situations and challenges.

4. Know your work style.

You are a time clock too. You work with your habits, your cycles, and bodily rhythms. You sleep, eat, exercise, read a book, or cook with either efficiency or a sloppy lifestyle. Give yourself some time to think about how fast you can work on things.

Your sleeping habits and work efficiency are based on what you've grown-up with as an individual. You may either stay up late at night or sleep early, unconsciously following past habits that no longer work for you. See what works for you and what needs to be changed.

Finally, examine yourself and know how fast you can work on things, like typing, filing office data, writing a term paper, or even reading a book. You don�t need to know the exact time a task takes but at least you will have an approximate measurement. When you are able to gauge how you spend your time and how long you take to do things, you can develop a meaningful schedule.

5. Know your environment or workplace

Your life at home has a time of its own, your office has schedules, and your neighborhood has activities to offer. You are surrounded by these time schedules. It would be better if you would be conscious of the time flow in your surroundings.

The daily tasks in your house determine your personal time. Your working hours are defined by the nature of your work and your workplace. And the activities by the people around you may affect your strategies and daily endeavors.

Finally, you are not alone in your workplace and other people are also wary of their time and schedules. All of these would affect your time frames and you must be in-synch with all of these to manage your limited time hassle-free.

6. Make Plans

Planning is a way of saving time for errors. Mistakes usually happen because of unexpected and unforeseen factors such as a wrong estimate of resources or new problems.

Add a small time allowance to your estimated time so that you may still finish the task in a given time-- even if things don't go as smoothly as initially planned. With the proper plan and preparation, these unforeseen circumstances can be expected as well as minimized.

Time management, then, is giving yourself a period to reflect on how time flows in your life. You are also recognizing the factor that affects time and its fluidity. If you manage your time, you'll find ways to have the time of your life.

Financial Analyst and Planning

2007-12-05T09:16:00.000-08:00

Finance Analysts and Financial Planning Career Highlights

College graduates with excellent communication skills make the best analysts and advisors.
The increase in personal investors will improve businesses for both analysts and advisors, particularly for advisors.
Competition for analyst positions is tough, particularly for high paying jobs at elite securities corporations.
Financial Analyst and Financial Planning Career Overview

Financial planners and financial analysts help guide businesses and individuals in making investment choices. Both carry out financial research and analysis, which they use to provide investment suggestions to clients. But analysts and advisors differ in their clientele and in the information they give out. Financial analysts evaluate the economic outlook of different sectors and industries for organizations that wish to invest. Personal financial advisors work with individual clients and focus on a wide range of personal investment needs.

Securities analysts are employed by insurance companies, banks, securities firms, pension and mutual funds, and other organizations interested in assisting their customers in the investment process. Analysts research industry statements and use company sales, costs, commodity prices, tax rates, and expenses to evaluate a firm’s current and projected value. Analysts also meet with executives to evaluate an organizations leadership and market outlook. In addition, analysts research whole industries, evaluating business strategies, product trends, and market competition. In order to correctly interpret a company’s success and value, analysts must also be familiar with and understand the market effect of industrial regulations and policy changes.

Using statistical software and spreadsheets, financial analysts evaluate data, identify patterns, and formulate predictions used to make recommendations about selling or buying various investment and securities products. Analysts with asset management responsibilities often make purchasing and selling decisions for their clients. Some Analysts focus on determining risk levels connected with different investment possibilities.

Some companies have investment banking divisions with teams of analysts dedicated to researching companies interested in making initial public offerings. These teams also make certain that all paperwork is filled out in accordance with the guidelines of the Securities and Exchange Commission. In addition, they present information to investors regarding the potential of new corporations. Financial analysts are also responsible for researching the pros and cons of possible company mergers and buyouts.

Ratings analysts assess the capacity of bond issuing company’s (or governments) to fulfill loan obligations. From their findings, the analyst team gives the company or government a bond rating that is similar to an individual’s credit rating. Often finance professionals also evaluate credit, analyze budgets, and assess costs.

Personal Financial Advisors (sometimes referred to as financial consultants or financial planners) combine their experience and understanding of tax laws, insurance, and investments to help clients accomplish their short and long range financial objectives. The items advisors typically focus on are estate planning, saving for college, retirement, as well as general investment. The typical advisor can provide recommendations in many aspects of finance, but there are some who concentrate on specific areas like asset protection, retirement, or estate planning.

Advisors start by sitting down with a client looking at their financial situation to help them identify financial goals. From this information an advisor creates a financial plan for the client that addresses problems and suggests ways to fix them, and then Identifies possible investment ideas that best meet the needs of the client. Very often these recommendations are verbal, although some advisors prepare formal reports. Once a plan is in place, advisors generally meet with their clients on a yearly basis to revise and adjust the plan to life changes and new investment opportunities. In addition, advisors respond to questions about the impact of life changes and benefit plans on their financial situation.

There are advisors who act as brokers, buying and selling stocks, bonds, and other investment products while others recommend the services of other professionals. For instance, an advisor may recommend a particular accountant or insurance agent or lawyer. In addition, many advisors act as asset managers for their clients.

The most essential skill a financial advisor can have is the ability to attract and keep customers. Happy clients are best resource for finding more happy clients. Some advisors use seminars and finance classes to attract new customers.

Career Training and Job Qualifications for Financial Analysts and Planners

A bachelor’s degree is essential for financial analysts and highly recommended for personal financial advisors. Analysts should probably have a degree in business administration, accounting, finance, or statistics. In addition to training in statistics, business, and economics, and understanding of administration and accounting are strongly suggested. Additional recommendations include courses on bond valuation, risk management, and options pricing.

While there is not a particular emphasis of study preferred for personal financial advisors, a degree in economics, law, business, accounting, finance, or mathematics offers a good footing for the position. Investment, risk management, tax, and estate planning classes are vital. Financial planning degrees are also becoming more common on college campuses. Still, a large number of advisors begin in other associated fields like insurance sales, law, financial services brokerage, auditing, and accounting.

Personal financial advisors and financial analysts must have computer, analytical, mathematical and problem-solving skills. Also, because analysts and advisors must explain their findings and recommendations to others, they must have excellent presentation skills, self-confidence, maturity, as well as the ability to work alone.

Among other skills a financial analyst must possess are a strong attention to detail, a drive for research, and an understanding of tax laws, money markets, and the economy in general. In addition, people skills and salesmanship are also very important.

While not necessary to work in finance, there are several certification organizations that offer professionals opportunities to increase their knowledge, understanding, and prestige through certification. The association of Investment management and Research offers certification as a Chartered Financial Analyst (CFA). Qualifications for certification include a completed bachelor’s degree, three years financial experience, and successful completion of three essay tests. The test, which includes topics like economics, accounting, portfolio management, asset valuation and securities analysis, is taken annually until all three are completed.

Certification for personal financial advisors includes the Certified Financial Planner designation offered by the Certified Financial Planner Board of Standards, Inc. Candidates must have earned the necessary education, have applicable experience in finance, pass an examination, and agree to and follow an established code of ethics. The Chartered Financial Consultant (ChFC) is another credential that is obtainable from the American College in Bryn Mawr, Pennsylvania. In addition to career experience, candidates must finish eight instructional classes to qualify for certification. Annual refresher courses are required to maintain status in each of these designations.

Though personal financial advisors do not need to be licensed, if they wish to provide services as an investment or real estate broker then they must be licensed to offer those respective services. In addition, legal advice cannot be given unless the advisor is licensed to do so. Many advisors who lack these qualifications offer clients the services of other licensed professionals.

Financial analysts can move up to positions as finance or portfolio managers that oversee all the investments of a corporation or customer. Upward movement for personal financial advisors is typically accomplished by expanding your clientele; however those who work for organizations can advance by filling management positions.

Job and Employement Opportunities

Because of the expansion of both individual and business investment, jobs for financial analysts and personal financial advisors will continue to grow through the next decade. As the number of people involved in investment increases, and as the next generation of retirees begins to think more seriously about the future both analysts and advisors will have the opportunity to provide them the financial services they need. The increased life expectancy also forced retirees to plan for more years of retirement. As the international securities economy expands, so will the need for advisors and analysts who understand it.

Another catalyst for growth in the financial services industry is deregulation. In the past few years insurance companies, banks and brokerages have been able to broaden the services they provide to include investment advice. Many banks are becoming involved in brokerage and investment activities and need qualified financial analysts to support new customers.

The demand for personal financial advisors will likely outstrip average demand for all other occupations over the next decade. The increase in 401(K) and other individually managed retirement accounts will likely persist. As investment activity of all kinds increase, people will seek out the expertise of qualified financial advisors to assist in their investment planning. Certified professionals are among those with the greatest outlook.

The demand for financial analysts will likely keep stride with the average demand for all other occupations over the next decade. Because of the expanding popularity of the mutual fund, mutual fund companies will have to hire more and more analysts that can make investment suggestions for the different funds.

Investment banking will also continue to require the services of qualified financial analysts to generate funds and assess mergers and buyouts. Although, the demand for financial analysts may be limited by the fact that more companies are outsourcing research to independent firms, which may lead to a reduction in internal research positions.

The need for financial analysts in investment banking is tied heavily to the performance of the stock market, and thus can vary widely. Likewise, corporate downsizing could possibly lead to the reduction of analyst positions throughout the industry. Elite job opportunities will be few and highly contested.

Students, Get Your Foot In The Door!

2007-12-05T08:29:00.000-08:00

In the 1970s, financial planners essentially had two career choices: they could become stockbrokers or insurance agents. The paths were set, and the expectations were simple. Much has changed since then. There are many more choices available, but this also means that students are expected to know more and do more than ever before in fierce competition. Preparing for a career in financial planning requires a great deal more training in areas that were traditionally relegated to other professions, such as accounting and psychology.

In this article we'll explore things that recent and soon-to-be graduates can do to decide where they want their financial planning career to go and to then get a leg-up on the competition. (If you're not sure planning is for you, take the quiz in Is A Career In Financial Planning In Your Future?)

Prepare before you graduate
Perhaps the first and most obvious course of action is to simply choose an appropriate major. These include business, economics, finance or accounting. Personal financial-planning programs are being offered at more universities, both at the graduate and undergraduate levels. These programs can be especially helpful because they also often cover a number of topics that other programs fail to include, such as consumer rights, the dynamics of finance within the family and the psychology of retirement. (If those topics piqued your interest, check out Kids Or Cash: The Modern Marriage Dilemma and Journey Through The Six Stages Of Retirement.)

Traditional financial-planning curricula will only cover material that is directly relevant to the Chartered Financial Planner (CFP®) Board exam, such as investments, insurance and taxes. Therefore, choosing financial planning as a major will provide students with a much broader base of knowledge from which to begin their careers. Understanding the psychology of finance and investing will be an invaluable aid when dealing with clients, and is in fact a skill that all financial planners must master to some extent. (For more on the education paths open to you, check out Finding Your Place In The Financial Industry.)

Extracurricular Activities
Of course, choosing the correct major is only one step that students can take to further their careers before graduation. There are a number of other options available to students that will look good on a resume to prospective employers. Here are some examples.

Preparing income tax returns.
This is a good practical skill that can greatly benefit the student in a number of ways. In addition to providing solid, hands-on experience with customers in the financial industry, it will also teach the student basic tax information that will be tested on the CFP® Board exam.

Working at a bank.
Student planners often find that working at a bank provides multiple career benefits. It's a job that easily fits around an academic schedule. The pay is better than many other after-school jobs. It looks good on a resume, gives practical work experience and shows you are responsible.

Sitting for the Enrolled Agent exam.
This exam is administered by the IRS every September. The test covers virtually all of the tax material found in the CFP® Board exam. Passing this test and earning this designation will be an impressive credential to present to prospective employers in any field of financial practice. You'll also gain a tremendous advantage over CFP® applicants that have had no previous tax training.

Internships.
Working as an intern at a financial planning firm will provide obvious benefits for any student. But while any internship can be beneficial, working at a smaller company will likely provide more hands-on experience with clients and the financial planning process than a larger firm, where interns are often relegated to administrative support or marketing roles.

Finding A Job
Graduates have a number of tools at their disposal that can greatly increase their exposure to the financial community. Obviously, a graduate who completed an internship at a local company has a substantial advantage over an unknown competitor in the job-selection process.

For those who do not have this luxury, the internet can be an indispensable resource. Websites such as brokerhunter.com continually list all available postings from many companies. Those who prefer to take a face-to-face approach and network themselves (and even those who don't) would be wise to join the local chapter of a financial planning organization, such as the Financial Planning Association or the National Association of Insurance and Financial Advisors. These groups offer many resources to both rookie and veteran planners and are well worth the cost of membership. Their websites often contain job postings, too. (For more examples of organizations to join, check out The Benefits Of Joining A Professional Association.)

After graduation
Knowing what job is the best fit for you can be a challenge. Here are some more items to consider when choosing your career path:

There are a number of different business models being used in the financial planning industry today. Stockbrokers and insurance agents generally work on commission, while Registered Investment Advisors tend to charge either an hourly fee or a percentage of assets under management as compensation.

The size of the company matters. Large companies will provide such amenities as office space, business cards and letterhead. However, larger companies may also have stiff production quotas, lower payouts on commissions and a highly regulated environment.

In turn, small financial companies offer a more relaxed atmosphere and a more comprehensive array of products and services. Working at a smaller firm can also provide a much broader range of experience for new representatives, who may have the freedom to implement a well-rounded financial plan for a client that could include such things as mortgage planning and income tax preparation. It's doubtful you would have this kind of responsibility at a large company. (To learn more, read What Is A Registered Investment Advisor? and Trying On Potential Employers.)

Training and support differ from company to company. Financial firms such as Smith Barney or Northwestern Mutual will provide their employees with all the necessary education and training that they need in order to pass the requisite tests, as well as thorough sales and product training. Many new advisors will benefit from the training programs offered by the large companies. Even if you ultimately lose out to the competition at a large firm, you will still have marketable skills that will be attractive to small firms who can't provide the kind of training and licensing you've received.

Finally, regulations from the Financial Industry Regulatory Authority require sponsorship by a broker/dealer in order to sit for any securities licensing exam.
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Conclusion
College students have many things that they can do to improve their marketability before graduation. Once you're out in the real world, remember that the initial key to success in the financial planning business is persistence. Some graduates will find their place in the field immediately, while others may have to try a few different working environments to find the one that best suits them. Hard work and perseverance will always pay off for those who are willing to risk failure to achieve their dreams.

Start With A Financial Plan

2007-12-04T08:34:00.001-08:00

Trading stocks should be treated as a business venture — it will require
time, knowledge and money to succeed. Your Financial Plan represents your
roadmap to success.

Decide Your Financial Objectives.
If you are a 60 year old looking for cash flow to fund your impending retirement, your priority would be to generate an income stream rather than large asset value growth.

If you are a 25 year old who wants to begin to invest, capital growth would be the priority, rather than income stream.

Your financial objectives will determine whether you trade liquid shares or not.

Decide Your Risk Level.
Decide on your risk level and the types of investments you can afford to make will be set. Remember, the higher the return you want to achieve, the higher the risk.

Low Risk Level
I am not very comfortable with risk and will invest
in fixed interest/capital guaranteed securities
(government bonds, bank term deposits).

Medium Risk Level
I can take on a moderate amount of risk (blue chip
Industrial and Banking and Finance sector shares).

High Risk Level
I am comfortable with risk. I am seeking a high return
and prepared to evaluate companies early in their
growth phase (recently listed resource companies).

How Do You Fund Your Investments?
For most of us, we do not have immediate access to a large pool of ready savings.
Using the equity you have in a property to fund your share portfolio is a common
approach.

EPF savings is also an effective vehicle for providing funds for investing and
the majority of Malaysians have access to these funds.
Most major banks and insurance groups offer margin loan facilities. This is where
you start a portfolio with savings and then use this portfolio as security to borrow
further funds to buy more shares.

In most instances, the problem is not acquiring funds to start a portfolio,
it is having the knowledge to invest with confidence.

Types Of Stocks

2007-12-04T08:28:00.000-08:00

What types of stocks are there?
Ordinary Stocks: When purchasing an ordinary stock, you own a share of the company. This entitles you to receive profits from the operations of the company in the form of dividends. At the annual general meeting (also referred to as an AGM), you have voting rights. Ordinary stocks are what you will start to trade in and most traders never venture beyond this.

There are, however, other types of securities and these are:

Preferential Stocks:
A preference stock is different from an ordinary stock. Preference stockholders receive dividends before dividends on ordinary stocks are announced. If the company is wound up, preference stockholders rank above ordinary stockholders in the distribution of assets. Preference stocks can often have a fixed dividend rate.

Bonus Issue:
This is a free issue of stocks to the stockholders based on the number of stocks already owned.

Rights Issue:
A rights issue can be granted to stockholders to buy stocks in the company, often below market price.

Derivatives:
There are also securities you can trade on the market that derive their price from the parent stocks. There are two types – Options and Warrants – and these are collectively known as Derivatives.

There are two parties involved in an options contract, the writer or seller and the taker or buyer. The writer writes the option and has the obligation of accepting or delivering the stocks. The takers have the right, but not the obligation, to buy or sell the stocks.

There are many advantages of options trading, the least of which is leverage. An option can be bought and sold for a fraction of the stock price, giving an effective higher return (or loss) on investment for a stock price move.

Warrants:
Warrants, like options, derive their price from the parent security. Warrants though are issued by banks and other financial institutions and are classified based on whether they have an investment or trading purpose.

Warrants may be issued over securities, a portfolio of securities, a stock price index, currency or commodities.

What Are Structured Warrants?

2007-11-30T08:36:00.000-08:00

What to look out for before investing in structured warrants

Action 1 – Understand the characteristics of warrants
As for other investment products, you should get a clear view and gain a better understanding of the nature of warrants, i.e. how it works, its benefits, as well as the risks involved. This is to ensure that warrants are the right investment product that matches your investment goals.

Action 2 – Identify the market direction
A warrant is a derivative product and its value is directly linked to the price of the underlying shares. If the price of the shares goes up (or down), the price of the warrants will move in tandem. For instance, if an investor anticipates that the market will do well, he can buy a call warrant to take advantage of price increases in the future. In the case of cash-settled warrant, if the current price of the underlying share is higher than the warrant’s exercise price and the warrant is exercised (before the maturity period), the holder will be entitled to the cash amount, i.e. the positive difference between the current price of the share and the warrant’s exercise price.

Action 3 – Determine the investment horizon
Set a deadline for the underlying share to reach its target level. Remember that structured warrants are a short-term trading instrument and will expire after the exercise period.

Action 4 – Comparing warrants
When you have narrowed down your choices to two to three warrants, you need to compare the warrant prices by identifying how the price of the underlying share fluctuates during a specific period of time. As a general rule, a warrant with a stable price fluctuation is a better choice for investment.

The Impact Of Currency Conversions

2007-11-28T08:30:00.000-08:00

The currency price of one country advances and retreats daily against another country's currency. But what exactly does that mean for those who don't trade in forex market? Currency exchange rates affect travel, exports/imports and the economy. In this article, we'll discuss the nature of currency exchange and its effect on people and the economy.

Before delving into the topic in more detail, we must first establish a constant; for demonstration purposes we will be talking about the relationship between the euro and the U.S. dollar. More specifically, we will be talking about what happens to the U.S. economy and to the economies of Europe if the euro trades markedly higher against the U.S. dollar. The assumption we will be making is that US$1 will purchase 0.7 euros.

The Impact on Travelers

If US$1 buys 0.7 euros, U.S. citizens will be more reluctant to travel across the pond. That's because everything from food to souvenirs would be more expensive - about 43% more expensive than if the two currencies were trading at parity. However, under these conditions European travelers would be much more apt to visit the United States for both business and pleasure. American businesses and governments (via taxes) in the areas that European tourists visit will prosper - even if just for a season. (To read more about traveling, see Travel Tips For Keeping You And Your Money Safe.)

The Impact on Corporations and Equities

The impact that this scenario would have on corporations (particularly large multi-nationals) is a little more complex because these businesses often conduct transactions in a number of different currencies and tend to obtain their raw materials from a wide variety of sources. That said, U.S.-based companies that generate the majority of their revenue in the U.S. (but that source their raw materials from Europe) would likely see their margins take a hit on higher costs. (To read more on this subject, see Commodity Prices And Currency Movements and Global Trade And The Currency Market.) Similar pain would be felt by U.S. companies that must pay their employees in euros. And by definition, these decreased margins would likely have an adverse impact on overall corporate profits, and therefore on equity valuations in the domestic market. In other words, stock prices may drop due to these lower earnings and forecasts for future profit potential.

On the flipside, U.S. companies that have a hefty overseas presence and draw in a significant amount of revenue in euros (as opposed to dollars), but pay their employees and other expenses in U.S. dollars could actually fare quite well.European companies that generate the lion's share of their revenue in euros but who also source their materials or employees from the United States as part of their business would likely see margin expansion as their costs and currency decrease. By definition, this could lead to higher corporate profits and equity valuations in some overseas stock markets. However, European companies that garner a significant amount of their revenue from the United States and must pay their expenses in euros are likely to suffer.

The Impact on Foreign Investment

Under these assumptions, it is likely that Europeans (both individuals and corporations) would expand their investment in the United States. They would also be better suited to make acquisitions of U.S.-based businesses and/or real estate. In fact, this has happened at several points in the past. For example, when the Japanese yen traded at record highs against the dollar back in the 1980s, Japanese firms made significant purchases of real estate - including the world-renowned Rockefeller Center.

Conversely, U.S. corporations would be less apt to acquire a European company or European real estate under US$1 for 0.70 euros scenario.

How can you protect yourself from currency moves?

When planning a trip, check the most up-to-date currency conversion before they book their vacations so they can plan their choice of locations appropriately. (There are many ways of finding out local currency rates, including looking in the business section of your local newspaper, checking with a travel agency or searching the internet.) Incidentally, one of the best tips for travelers making purchases overseas is to use a credit card. The reason behind that is that credit card companies tend to negotiate the best rates and the most favorable conversions because they do such a high volume of transactions. These companies take out all the guess work for you, paving the way for smoother (and probably less expensive) transactions. (For more information about foreign currencies, check out Get To Know The Major Central Banks.)

For small and large business owners operating in the U.S. that source some of their raw materials from Europe, one of the best moves can be to stock certain supplies if the price of the euro starts to climb rapidly against the dollar. Conversely, if the euro starts falling against the dollar, it may make sense to keep inventory at a minimum in the hope that the euro will decline enough for the company to save on its purchased goods.

Bottom Line

Over time, currency values can vary quite dramatically. However, individuals, investors and business owners can take steps to mitigate risks and take advantage of such currency movements.

Profits in Small-Cap Stock: Where You Have the Advantage Over Warren Buffet

2007-11-26T06:47:00.000-08:00

What if I said I could make you 50% a year? Scratch that. What if I told you that I know I could? Better yet, I'll do it using nothing more than publicly traded stocks that any retail buyer can pick up.

But there's a catch.
It can't be done buying Coca-Cola, American Express, or even Berkshire Hathaway. Instead, you have to back up the truck on lightly followed small cap stocks -- the very ones where retail investors have the advantage over institutions.

In fact, in this situation, you even have an advantage over Wall Street maven Warren Buffett. He may be the world's second richest man next to Bill Gates. Everything he's touched turned to gold -- Coca Cola, Berkshire Hathaway, GEICO, Gillette, The Washington Post, and American Express. He's regarded as godlike by Wall Street, with the power to move markets with his words.

Small-cap envy
But his billions are keeping him from buying the very stocks he wants to buy. And if you don't believe me, here's what he had to say in 1999.

"The universe I can't play in [small caps] has become more attractive than the universe I can play in [large caps]. I have to look for elephants. It may be that the elephants are not as attractive as the mosquitoes. But that is the universe I must live in."

What does that mean? It means Buffett may be a little jealous... well, just a little. He's the second richest person in America with the knowledge that mosquitoes are still producing 50% a year, as compared to large caps today. He's painfully aware that from 1925 through 2005, small cap stocks returned annual 12.6% returns, as compared to annual returns of 10.4% for large cap stocks.

Exponential profits in small caps
Truth is, exposure to small cap stocks is a necessity if you want to build a strong portfolio and accumulate lasting wealth. Even Buffett will tell you that after seeing how small cap stocks have performed from 2003 to present day.

Despite a YTD 125% move, Elixir Gaming (EGT) remains a relative unknown with exposure to the explosive Asian gaming markets. It's now trading just below multi-year highs after announcing agreements for another 700 electronic machines.

What's impressive is its exposure to Las Vegas and the growing popularity of Macau. While it's not yet profitable, buying now is the smart play. And here's what I mean: there are only two analysts covering this Asian gem.

This baby is well below Wall Street's radar.

Small caps profit from Asian gambling addiction
EGT is still a small and highly speculative name with a $162.3 million market cap and a float of 18.2 million shares. We're looking for additional investor interest once it shows up on the 52-week high lists again.

Just to give you some background on Asian gaming growth, take a look at Macau at the tail end of 2006. In less than a year, Macau saw visitor growth soar by some 12% thanks in part to a raft of casino openings in the region. And it's only expected to skyrocket even more as casino developers rain down on a region where 1.3 billion people live within a three-hour flight of Macau, and another 100 million people are within a radius of a three-hour drive, according to Macau Business News.

What does that mean for investors? Buy any company that'll be involved in Macau casino growth.

And how about the fast-exploding $900 million social networking market!

In fact, Visa, Mastercard, and American Express -- all the big players responsible for processing more than $6.6 trillion in annual credit card transactions -- have partnered with Concur. Even payment process behemoth Automatic Data Processing, has partnered up with them. Clearly, Concur has got something good going on here.

There's explosive growth appeal for Facebook, which will IPO one day along with LinkedIn and Classmates. U.S. visitors to Facebook have doubled inside a year to 33.7 million, as MySpace visitors grew 23% to 68.4 million.

But are there undervalued, under-the-radar-gems that already exist for small cap investors?
Israel's IncrediMail (MAIL) allows users to add thousands of e-mail backgrounds, Emoticons, Ecards, sounds, animations and 3D effects to e-mail. It's fun for the younger generations who are flooding the social networking scene. But here's why investors should pay attention.
IncrediMail Ltd. (MAIL) has been flying under the radar since early 2006, all the while posting impressive growth and profitability. Numbers prove it's just beginning to scratch the surface of long-term profitability.

Q2 2007 revenue increased 111% to $4.3 million. Six-month revenue soared 106% to $8.7 million. And net was up 59% to $600,000, thanks in part to advertising revenues, which just hit $1.9 million and growing. Insiders are loading up. There's no debt, and $28.7 million in cash on hand. And there's a severe shortage of analyst coverage.

For a profitable company to be growing its bottom line that fast, this is a steal. And it doesn't hurt that other Internet companies have shown real interest, including (from what I've heard), Facebook.

Let's Talk Shares!

2007-11-24T08:22:00.000-08:00

You would have heard adults talking about shares or the stock market. They are a favourite and frequent conversation topic among grown-ups - just as much as you would debate about the latest music or movie sensation in town. You probably don't know what shares are exactly, but you would have an idea from the reactions of the adults that they can bring tremendous joy or great grief - and it all has to do with making money (that's bringing joy) or losing money (that's bringing grief)!

Like when your mother is pleased with the stock market and nothing can spoil her good mood, not even when you accidentally break her favourite casserole dish. But if she has lost money in the stock market, you know to stay clear away or she would pounce on you for even the way you sit on the sofa!

Well, if you're slouching now, sit up! Read on so that you can understand shares. You already know the two smart moves you could do with your money - first, to start saving and second, to invest your savings to make your money grow. Well, buying shares is one of the ways to invest your savings.

What are Shares?
Ownership of companySo, let's get started with the basic question, "What is a share or what is a stock?" Stock or sometimes called equity, is ownership of a company. Shares of stock represent pieces of ownership of a company that are sold to the public (like your parents or any adult who is interested to buy them). Here in Malaysia, the words 'share' and 'stock' are sometimes used interchangeably to mean the same thing.

When you buy shares, you are buying a proportion of the ownership of a company, and you become a shareholder of the company, or part owner of the company. For example, let's say a Mr Bong owns a sports shoe company called Nikee Shoes where he has divided ownership into one million shares of stock. If you buy 1,000 of his shares, you thus own one-thousandth of Nikee Shoes. Likewise, if your mother has bought some shares of the real company KFC Holdings (Malaysia) Berhad, you can go around telling your friends that mum owns a slice of their favourite fast food chain KFC, and you will be telling the truth!

But for you to be able to buy some of its stock, a company must be willing to sell some shares. So the question that probably pops up in your mind is why would a company want to sell part of its ownership? We ask you, why would anyone sell something? To get money in return, right? So it is with a company selling its stock. A company needs money (or what is known as capital in economics) to carry out its business.

Raising money

Let's go back to the example of Nikee Shoes. After a few years making athletic shoes, Mr Bong wants to expand his business by manufacturing casual shoes that produce(can squeak out) the latest hip tunes. He thinks it is a great idea that will be a hit with the younger population but he needs more funds/capital to manufacture them. There are, of course, many ways to raise the additional capital that he wants: sell some property, borrow the money from the bank (the interest rate might be too high) or he could use savings that the company has set aside from
the profits earned earlier. If any of these options doesn't appeal to Mr Bong, he can opt for another way to raise the funds he needs - by selling a part of the ownership of Nikee Shoes through selling some shares of its stock. That's why a company would give up part of its ownership.

Initial Public Offering or IPO

When a company first decides to sell part of its equity, it determines a suitable price for that amount of shares based on the company's worth, and offers to sell those shares to the public through what is known as an Initial Public Offering or IPO. Thus the public first gets to buy the shares of a company or to first become shareholders of a company through an IPO. The money that these shareholders pay for the IPO shares - that is, the funds raised from an IPO - goes to the company for financing its operations. Referring to our example of Nikee Shoes, let's say that Mr Bong has worked out that he needs RM100,000 to manufacture the casual-musical shoes. So what does he do? He offers 10,000 shares of Nikee Shoes to be sold at RM10 a share in an IPO:
10,000 shares x RM10 a share = RM100, 000. (That's the amount of capital needed to manufacture the musical shoes).

In this way, Mr Bong gets the funds he needs to finance his musical shoes venture. However the sacrifice that he has to make to get those funds is that after the IPO, he no longer owns every inch of his company. Now 0.01 per cent (10,000 shares divided by 1,000,000 shares) of Nickee Shoes is owned by others. But the way Mr Bong has thought it out - giving up a tiny part of the equity is nothing compared to the tons of money that he fervently believes his musical shoes will rake in for him!

How Investors Often Cause The Market's Problems

2007-11-24T07:51:00.000-08:00

Sure, the economy sometimes hits a slump, whether because of a war (pick a year) or unforeseen natural disaster (say the drought in the 1930s). Of course, these things are beyond an investor's control. But turbulence in the market can often be linked not to any perceivable event but rather to investor psychology. A fair amount of your portfolio losses can be traced back to your choices and the reasons for making them, rather than unseen forces of evil that we tend to blame when things go wrong. Here we look at some of the ways investors unwittingly inflict problems on the market.

Following the Crowd
Humans are prone to a herd mentality, conforming to the activities and direction of others. This is a common mistake in investing. Imagine you and a dozen other people are caught in a theatre that's on fire. The room is filled with smoke and flames are licking the walls. The people best qualified to get you out safely, such as the building owner or an off-duty firefighter, shy away from taking the lead because they fear being wrong and they know the difficulties of leading a smoke-blinded group.

Then the take-charge person steps up and everyone is happy to follow the leader. This person is not qualified to lead you to the local 7-11, let alone get you out of an unfamiliar burning building, so, sadly, you are more likely to end up as ash than find your way out. This tendency to panic and depend on the direction of others is exactly why problems arise in the stock market, except we are often following the crowd into the burning building rather than trying to get out. Here are two actions caused by herd mentality:

1. Panic Buying - This is the hot-tip syndrome, whose symptoms usually show up in buzzwords such as "revolution", "new economy", and "paradigm shift". You see a stock rising and you want to hop on for the ride, but you're in such a rush that you skip your usual scrutiny of the company's records. After all, someone must have looked at them, right? Wrong. Holding something hot can sometimes burn your hands. The best course of action is to do your due diligence. If something sounds too good to be true, it probably is.

2. Panic Selling - This is the "end of the world" syndrome. The market (or stock) starts taking a downturn and people act like it's never happened before. Symptoms include a lot of blaming, swearing, and despairing. Regardless of the losses you take, you start to get out before the market wipes out what's left of your retirement fund. The only cure for this is a level head. If you did your due diligence, things will probably be okay, and a recovery will benefit you nicely. Tuck your arms and legs in and hide under a desk as people trample their way out of the market.

We Can't Control Everything
Although it is a must, due diligence cannot save you from everything. Companies that become entangled in scandals or lie on their balance sheets can deceive even the most seasoned and prudent investor. For the most part, these companies are easy to spot in hindsight (Enron), but early rumors were subtle blips on the radar screens of vigilant investors. Even when a company is honest with an investor, a related scandal can weaken the share price. Omnimedia, for example, took a severe beating for Martha Stewart's alleged insider activities. So bear in mind that it is a market of risk.

Holding Out for a Rare Treat
Gamblers can always tell you how many times and how much they've won, but never how many times or how badly they've lost. This is the problem with relying on rewards that come from luck rather than skill: you can never predict when lucky gains will come, but when they do, it's such a treat that it erases the stress (psychological, not financial) you've suffered.

Investors can fall prey to both the desire to have something to show for their time and the aversion to admitting they were wrong. Thus, some investors hold onto stock that is losing, praying for a reversal for their falling angels; other investors, settling for limited profit, sell stock that has great long-term potential. The more an investor loses, however, the larger the gain must be to meet expectations.

One of the big ironies of the investing world is that most investors are risk averse when chasing gains but become risk lovers when trying to avoid a loss (often making things much worse). If you are shifting your non-risk capital into high-risk investments, you're contradicting every rule of prudence to which the stock market ascribes and asking for further problems. You can lose money on commissions by overtrading and making even worse investments. Don't let your pride stop you from selling your losers and keeping your winners.

Xenophobia
People with this psychological disorder have an extreme fear of foreigners or strangers. Even though most people consider these fears irrational, investors engage in xenophobic behavior all the time. Some of us have an inborn desire for stability and the most seemingly stable things are those that are familiar to us and close to home (country or state).

The important thing about investing is not familiarity but value. If you look at a company that happens to look new or foreign but its balance sheet looks sound, you should not eliminate the stock as a possible investment. People constantly lament that it's hard to find a truly undervalued stock, but they don't look around for one; furthermore, when everyone thinks domestic companies are more stable and try to buy in, the stock market goes up to the point of being overvalued, which ironically assures people they're making the right choice, possibly causing a bubble. Don't take this as a commandment to quit investing domestically; just remember to scrutinize a domestic company as closely as you would a foreign one.

What Are Warrants?

2007-11-20T08:58:00.000-08:00

A warrant, like an option, gives the holder the right but not the obligation to buy an underlying security at a certain price, quantity and future time. However, unlike an option, an instrument of the stock exchange, a warrant is issued by a company. The security represented in the warrant (usually share equity) is delivered by the issuing company instead of an investor holding the shares. Companies will often include warrants as part of a new-issue offering to entice investors into buying the new security. A warrant can also increase a shareholder's confidence in a stock, if the underlying value of the security actually does increase overtime. There are two different types of warrants: a call warrant and a put warrant. A call warrant represents a specific number of shares that can be purchased from the issuer at a specific price, on or before a certain date. A put warrant represents a certain amount of equity that can be sold back to the issuer at a specified price, on or before a stated date.

Characteristics of a Warrant

Warrant certificates have stated particulars regarding the investment tool they represent. All warrants have a specified expiry date, the last day the rights of a warrant can be executed. Warrants are classified by their exercise style: an American warrant, for instance, can be exercised anytime before or on the stated expiry date, and a European warrant, on the other hand, can be carried out only on the day of expiration.

The underlying instrument the warrant represents is also stated on warrant certificates. A warrant typically corresponds to a specific number of shares, but it can also represent a commodity, index or a currency.

The exercise or strike price is the amount that must be paid in order to either buy the call warrant or sell the put warrant. The payment of the strike price results in a transfer of the specified amount of the underlying instrument.

The conversion ratio is the number of warrants needed in order to buy (or sell) one investment tool. Therefore, if the conversion ratio to buy stock XYZ is 3:1, this means that the holder needs three warrants in order to purchase one share. Usually, if the conversion ratio is high, the price of the share will be low, and vice versa. (In the case of an index warrant, an index multiplier would be stated instead. This figure would be used to determine the amount payable to the holder upon the exercise date.)

Investing In Warrants

Warrants are transferable, quoted certificates, and they tend to be more attractive for medium-term to long-term investment schemes. Tending to be high risk, high return investment tools that remain largely unexploited in investment strategies, warrants are also an attractive option for speculators and hedgers. Transparency is high and warrants offer a viable option for private investors as well. This is because the cost of a warrant is commonly low, and the initial investment needed to command a large amount of equity is actually quite small.

Advantages

Let us look at an example that illustrates one of the potential benefits of warrants. Say that XYZ shares are currently priced on the market for $1.50 per share. In order to purchase 1,000 shares, an investor would need $1,500. However, if the investor opted to buy a warrant (representing one share) that was going for $0.50 per warrant, with the same $1,500, he or she would be in possession of 3,000 shares instead!

Because the prices of warrants are low, the leverage and gearing they offer is high. This means that there is a potential for larger capital gains and losses. While it is common for both a share price and a warrant price to move in parallel (in absolute terms) the percentage gain (or loss), will be significantly varied because of the initial difference in price. Warrants generally exaggerate share price movements in terms of percentage change.

Let us look at another example to illustrate these points. Say that share XYZ gains $0.30 per share from $1.50, to close at $1.80. The percentage gain would be 20%. However, with a $0.30 gain in the warrant, from $0.50 to $0.80, the percentage gain would be 60%.

In this example, the gearing factor is calculated by dividing the original share price by the original warrant price: $1.50 / $0.50 = 3. The '3' is the gearing factor, and the higher the number, the larger the potential for capital gains (or losses).

Warrants can offer significant gains to an investor during a bull market. They can also offer some protection to an investor during a bear market. This is because as the price of an underlying share begins to drop, the warrant may not realize as much loss because the price, in relation to the actual share, is already low.

Disadvantages

Like any other type of investment, warrants also have their drawbacks and risks. As mentioned above, the leverage and gearing warrants offer can be high. But these can also work to the disadvantage of the investor. If we reverse the outcome of the example from above and realize a drop in absolute price by $0.30, the percentage loss for the share price would be 20%, while the loss on the warrant would be 60%!

Another disadvantage and risk to the warrant investor is that the value of the certificate can drop to zero. If that were to happen before it is exercised, the warrant would lose any redemption value.

Finally, a holder of a warrant does not have any voting, shareholding or dividend rights. The investor can therefore have no say in the functioning of the company, even though he or she is affected by any decisions made.

A Bittersweet Stock Jump

One notable instance in which warrants made a big difference to the company and investors took place in the early 1980s when the Chrysler Corporation received governmentally guaranteed loans totaling approximately $1.2 billion. Chrysler used warrants, 14.4 million of them, to “sweeten” the deal for the government and solidify the loans.

Because these loans would keep the auto giant from bankruptcy, management showed little hesitation issuing what they thought was a purely superficial bonus that would never be cashed in. At the time of issuance Chrysler stock was hovering around $5, so issuing warrants with an exercise price of $13 did not seem like a bad idea. However, the warrants ended up costing Chrysler approximately $311 million, as their stock shot up to nearly $30. For the federal government, this “cherry on top” turned quite profitable, but for Chrysler it was an expensive after thought.

Conclusion

Warrants can offer a smart addition to an investor's portfolio, but due to their risky nature, warrant investors need to be attentive to market movements. This largely unused investment alternative, however, can offer the small investor the opportunity for diversity without having to compete with large, market-influencing institutions.

Trading Currency: How To Easily Play Moves in the Dollar with Three Distinct Investing Choices

2007-11-18T04:16:00.000-08:00

We marvel at the way Warren Buffett and George Soros play the currency markets. But you can learn to trade currencies, too. And with very little time and effort.

In the book, Safe Strategies for Financial Freedom, we outlined a great strategy for diversifying some of your portfolio outside of the U.S. dollar. It's a strategy that he learned from self-taught currency guru Chris Weber. It's called "The Max Yield Strategy".

The Max Yield Strategy is a great way to put a portion of your money to work while protecting against dollar devaluation. And it's so easy, anyone can do it.

But before we get to the strategy itself, let's see why it works…

Currency Valuation - It's Simpler than We've Been Led to Believe
Understanding currency movements on a day-to-day or week-to-week basis is a complex mix of supply and demand plus trading psychology. But understanding longer-term currency valuation can be made much simpler.

There are only two issues that affect developed countries currency valuations in the long run:

Purchasing Power Parity
Interest Rate Differential
We talked about purchasing power parity in the last issue of Trader's U, but the basic idea is that the same item should sell for the same price in each country; if not, then the currency prices of the countries being compared are out of balance. As we explained last week, a McDonald's Big Mac should cost the same in every country.

Interest rate differential is also easy to understand. Money flows where it is treated best. If the same amount of money receives a higher interest rate in one country than another, money will naturally flow there, as people and institutions grab the higher rate of return.

Sending Your Money Where It Is Treated Best
Chris Weber's Max Yield Strategy is amazingly simple and very effective.
On January 1st of every year, you simply invest your "currency allocation money" (my term for money you'd like to put in a non-dollar denominated investment) into the developed country with the highest interest rate. We'll explain how to do this in the "Tips and Tricks" section below.

You make money in two ways with this strategy:
You get the benefit of the higher interest rate; and
You gain from the currency appreciation that is expected from the country that is treating money the best at the time.
How has this strategy worked? It was profitable for 26 out of 33 years from 1970 until 2003 (a table with the exact year-by-year returns is found in Safe Strategies for Financial Freedom.)

Who Is This Strategy For?
This strategy is for anyone who would like to make money in the long run. Don't invest money in this strategy if you must make a return this year. It has worked almost 80% of the time in the past, but it does lose money one out of every five years.

Diversifying outside of the dollar is not just for big institutions or the "rich and famous." Every trader and investor should consider putting an appropriate portion of his capital to work in an overseas investment or at least, somewhere else in the world.

Today's Trader's U Tips & Tricks
The best place that I know to invest in other currencies and implement the Max Yield Strategy is through certificates of deposit with EverBank. They offer CDs in a variety of currencies… For more information about their WorldCurrency Accounts, visit their website or call the EverBank World Markets Hotline at 800.926.4922, and mention that you're a Trader's U-Investment U reader. (Please note, the publisher of Trader's U has a marketing relationship with EverBank.)
Safe Strategies for Financial Freedom, The New York Times best-seller that I co-authored with Van Tharp and Steve Sjuggerud, has some really useful information on currencies, inflation and other macroeconomic issues affecting traders and investors. It has a full description of the Max Yield Strategy mentioned above and a table of the returns from 1970 to 2003.

Showing Up The Banks' Dirty Tricks

2007-11-18T04:07:00.000-08:00

When you read or watch ads of credit card companies, you are every time convinced in the fact that they lost sleep over thinking about your needs and problems. Plastics they issue have the lowest imaginable rates and fees, you will receive rewards that will double-cover your expenses. Do you usually believe that? And can this sometimes be really true?

It is a fact that even the most reputable banks can send their customers card offers with suspicious perks. On their way to big profit, credit companies locate their operation centers in such states as South Dakota or Delaware (known for having less restrictive consumer protection laws). Plus, they promote credit card offers which can at first attract you with the absent interest rates and breath-taking rewards. What are the tricks those dirty offenders use and how can one show them up? There are some tips for you to consider.* Fishy teaser rates. You may be offered a super-low or absolutely zero APR, but they in most cases come out of effect very soon. Such king of deals can be very appealing, especially for those who are eager to transfer the existing debt to a less expensive card. There are two most dangerous consequences of applying for these cards.

The incredibly low interest rate can end in several months quite unexpectedly, or can be applicable only under certain circumstances. So it is of vital importance to read the fine print. Besides, after the low APR ends, with a considerable balance on now expensive card, you can be offered another alluring deal. Regular balance transfers are sure to lower your credit score and are costly, as fees are often charged for this service.So, here is the conclusion: read the fine print and find out what interest is charged for purchases, balance transfers etc. After several minutes of calculation you will easily understand whether the deal is worth taking or not.* "You are pre-approved!" Mind it that credit card companies can be very tricky with their pre-approved offers.

On the one hand, a person with very bad credit can be pre-approved for a card with a sky-high interest rate and huge fees. On the other hand, you can be pre-approved for a credit card you are not eligible for: the bank looked through the credit reports, but not very thoroughly.* Fees that suddenly change or appear. Some lenders start to charge fees under certain circumstances you can find described in tiny letters. So, even if the application terms do not speak of a balance transfer fee, it can be charged is, for example, you transfer the balance from a card issued by another bank. Don't be lazy and read everything in detail.* You were cheated about the credit limit, grace period or the like. First of all, check the terms and conditions of your credit card deals – probably, your grace period is disabled in case you pay off the balance on a monthly basis. If you simply cannot receive the services you were promised, wait no longer and cancel the card.

Decision Making Without

2007-11-15T08:03:00.000-08:00

Think about it!
Decision making without critical thinking may seem ridiculous when you think about it. Because nowadays, thinking is something we do a lot of. To be able to think is valued in our society. In fact, you could be forgiven for thinking that most people only exist from the neck up!

Body of knowledge
But what about gymnasts, trapeze artists, top class athletes, mountain climbers and others who are involved in predominantly physical activities. These people make decisions, sometimes life or death decisions, without much thinking. Not that they can't think, but they simply don't have time to analyze, evaluate and reason. There is so little time between the input of information and the response, their actions, that there may be almost no mental cognition at all.

Another group in which this has been studied are elite performers. And this occurs in both physical performances and mental performances. It's almost as if there is no time delay between them taking in information and responding. Their systems are somehow organized for exquisite decision making without critical thinking. In fact this idea of decision making without critical thinking is often used as a marker for peak performance.

Brain or bodymind?
Most lay people consider that we actually think with our brains, that nervous tissue in our skulls. But remember that those nerves actually extend to the tips of your fingers and the ends of your toes. Now add in the fact that there are is a huge amount of nervous tissue in the gut and in the heart. And you begin to think that maybe it is possible that we're thinking with our whole system.

Most people are just not very aware of their bodies unless there is an ache or pain somewhere. Something that really grabs their attention. So how would they possibly notice the subtleties if their body was involved in decision making without critical thinking?

Emotional decisions!!
Another idea to add in here is the notion that we actually make our decisions emotionally.
Sure, we like to think that we make sensible, rational decisions. Our educational systems base their courses on rational decision making models. We want to know the steps of the latest decision making process because we want to know that we're making the best decision. We're warned about the dangers of letting our emotions take over, of decision making without critical thinking.

But what about when you hear somebody saying 'I know I really can't afford it, but if I buy it there will be this advantage and that advantage and I can justify it on that basis.' Hey, you may have even said something like this yourself!

What's happening is the decision-maker has already made up their mind that they want something (emotional decision), and now they use reasoning to justify it. This is the critical thinking part.

Many of the newer sales techniques make use of this idea that people decide emotionally first. Why would business people adopt this notion and pay lots of money for it? Because it works! They realize that if they utilize this natural mechanism, they will increase their profits. It's a very simple equation for them.

Nature programs for success
We have evolved over hundreds of thousands of years. We have a decision making process in place. If this decision making process did not work, we just wouldn't have survived.
And the critical thinking piece is not necessarily a part of our decision making process. If one of our ancestors found himself face to face with a big cat, his natural decision making process would lead him to run away. If he was to engage in some critical thinking as to what the best decision might be, chances are it would have been the last decision he ever made!

But our environment has changed, I hear you say. We don't have to make such decisions anymore. And I agree.

But it does not mean that we should give up our natural process, that of decision making without critical thinking. As we've moved more into our heads and lost our awareness of our bodies, we've also lost our sense of ourselves.

Our ability to tune into natural rhythms is now almost nonexistent. Daylight extends into nighttime with our electric bulbs, and many people even start work in the morning before it has got bright. We heat ourselves up in the winter and cool ourselves down in the summer. And our physical bodies are paying the price.

We've got to the stage where decision making without critical thinking rarely occurs. Not because people don't want to, but because they can't. They're so unaware of their physical systems that they end up overriding the internal signals. The result, of course, is poor decision making and it's effects. Obesity, heart disease, lung disease, arthritis, autoimmune diseases as well as rape, murder and abuse.

What's available is magnificence...
When people relearn how to pay attention to their own internal signals so that they can go back to decision making without critical thinking, the relief is enormous. They make decisions that improve their health, their relationships and their awareness of self.

They make different decisions about what to be doing in the world. Things that allow them to begin to manifest who they are in a way that's beneficial to themselves, to others and also to the environment. And they make decisions quickly and easily... decisions that allow them to have a life that actually works!

The Passion

2007-11-15T07:59:00.000-08:00

A great shift is in the making: A time for very deep purification and cleansing from the inner core within ourselves and within the Earth up to the outer manifest reality. How this will all play out is our choice.

Many will understand the need for inner and outer focus on unity and love. However, many others will remain under the grip of their programmed old ways and thus experience this world with much fear while focusing on dis-unity.

This is a time where our greatest force shall emerge from its hidden inner recesses as we face our greatest challenge: a transformation and trans-evolution of mankind when our thought processes transmute from a harsh concentration on lack toward a gentler constant awareness of the beauty and unity of all within the ONE that we all are here to manifest.

This is a time prophesied for eons where, in this world created around the notion of polarity, the "real" caring and nurturing Female energy is ready to interpenetrate each of our hearts and balance out the Masculine expansive powerful energy that has overtaken alone much of Creation and destabilized it. It is in the balancing and the unity of the two that our inner smiling probable future lays. Please allow this great and sacred energy in, and wish deeply for unity, for in that act lies the path to our happiness and salvation.

All great changes bring about in many much initial resistance, the degree of which will define the course of this Creation for a long time to come.

As many impacting events are about to happen, and even more unfold in the next months and years, often in an accelerated manner, one core issue will emerge as paramount in being the only real question to be asked and the only solution to be had."Where does your passion lay?"Does it lay upon a world where all thoughts and common efforts are on com-passion, forgiveness, unity, happiness, and the notion that we are all - without any exception -connected within the notion of ONE?

Is it your truest desire to unite the parts within yourself, the family without, and our greatest and most beautiful family: mankind?

Or does you passion lay upon events, stories, legends, and philosophies which evoke and trigger separation, elitism, fear, violence, control, gore, and the anti-force to the sacred notion of Unity of all and everything within the One and Only?

Do you want to unify all polarities to usher the proclaimed glorious era, or polarize even more? For this is the only question to be asked.

Please, I beg of you, watch carefully what you invite in your heart. If you invite within and resonate only with what unites us as one family and therefore exalts life, then the peace of the ONE, wondrous Creation, and life, longer that you can ever imagine, will be yours.

However, if you invite and resonate within upon visions of death, fear, and all that differentiates, divides, and separates us, then war, suffering, insecurity, and death will be yours. All great spiritual masters came to tell us of this choice and the two ways of seeing the same reality, and some even expressed it in their lives and experiences on purpose, in order for us to understand the consequences.

A glass is either half full or half empty depending on your focus of attention. Both are true at the same time. It is your focus which will determine which path you will experience. You can either focus on what is lacking, or what is wondrous. You can focus on the unity and common thread of all existence, see the spectacular awe-some reality of creation, and experience the miraculous, or focus on what is lacking and then experience nothingness.

Please do not fall into the trap of "passion" for death again. Please fall in love with yourself again, and with all your human brothers and sisters. For all are precious, magnificent, and sacred expressions of the ONE life force flowing through all living things.

How to Get Started with Google AdSense & Be Making Huge Cash Profits!

2007-11-15T07:55:00.000-08:00

Adsense is a popular type of advertising through the commonly used search engine, Google. This type of advertising allows website owners to earn money by advertising Google on their websites. The website will feature a link back to Google and the advertiser is paid based on the number of hits Google gets from that particular link. The advertisements can be text, images, or both. This is a very easy way for you to generate some extra revenue on your website without very much time or effort involved.

You may be saying this is too easy? It is easy, but... there is no catch. This is a great way for businesses to get exposure in various places all over the internet. It also helps them cut down on advertising expenses because they only pay each time a consumer takes a link from a website. Most other types of advertising cost a set amount regardless of if anyone looks at it or not. This is a great method for new businesses that have a low budget for advertising. The more traffic they can generate to their site, the more profits they will make. In turn they can afford to advertise more.

It is a winning situation for all. Companies use it as a low cost way of advertising, website owners use it as a way to earn money, consumers use it as a way to find other products and services they are interested in, and Google uses it as an way to earn more money. In fact, Adsense has become so common you will find it on numerous homepages just by surfing around the internet a little bit.

The amount of revenue you will generate with Google Adsense depends on how much each advertiser is willing to compensate you for a per-click from your homepage. It also depends on the amount of advertising you do on your website. There is no cost to you for placing the ads on your homepage though so any revenue you generate will be profitable. Avoid placing too many ads on your website though or it can become distracting to the consumer. You still want them to focus on making a purchase from your website first. It is very simple too. All you are required to do is paste a couple of lines of coding from Google and place it into the html for your website.

What Are You Planning to Achieve by The End of The Year?

2007-11-11T06:42:00.001-08:00

Fast forward yourself to the end of December and as the year closes, how are you feeling about your achievements during this past year? Really get in touch with your feelings, live them, breathe them and don’t let them pass by. Are you feeling any disappointment, regret or frustration for the things you haven’t done or achieved? Do you find yourself thinking, “This past year has flown by and what have I done”, “There is so much more that I wanted to do” or “Why haven’t I done the things that I’d said I’d do”.

Now bring yourself back to today. You still have time before the end of the year to get on a track to achieving what you want. Imagine starting the New Year knowing that you’ve been consistently moving in the right direction and will continue to take the necessary actions.

Lack of planning is one of the reasons why many people get to the end of the year and feel they haven’t achieved what they want. Planning often isn’t seen as a priority or much fun. Hold on! If it’s not fun, that’s the way you’ve chosen it to be. Instead you can choose to have fun with your planning and perhaps even make it into a game. If planning isn’t a priority for you, then have you considered the messages that you’re giving to yourself. Messages such as, “I’m not that important in my life”, “I don’t deserve these things” or “I’m not likely to do what I say I will”.

However, the people who do have plans often make them too rigid. Their plan is stuck to word for word, without any room for flexibility. A plan that you set today needs to be open to regular reviewing and changing. A clue that your plan needs changing is when you find it difficult to follow through with the actions and don’t feel inspired.

You’ve now got an opportunity to end this year with a feeling of achievement. Seize the opportunity and make the most of it.

Start by defining for yourself your vision, dreams and desires. Make this specific and exciting so that you feel inspired to follow through with action. You may need to break this down into smaller pieces. For instance, if you want to grow your business, there may be a number of different opportunities that you choose to explore. Now define the strategies that you’ll use, how you’re going to do it. In the example of growing your business, your strategies may include research, sales and marketing, increasing employee numbers or finance. Now go through each strategy and brainstorm possible action steps. Go for as many as you can, being open to different and creative action steps, rather than sticking with what you would normally do. Sometimes the most outrageous actions steps turn out to be the best and most productive.

Then at least once a day visualize your dream; the achievement that you want to make and see what you feel is the next thing to do. Visualizing keeps your plan alive and you inspired, and allows you to see the right actions to take. Taking committed and inspired actions every day moves you towards your desires. At the same time give yourself the opportunity to step back and review what you want and what it will take to get it. Time spent regularly stepping back and re-evaluating your plans can save you a lot of time as you see what no longer needs doing, doesn’t serve you or needs to be done differently.

What I want for you is to be achieving and on the right track to your dreams by the end of the year.

How to Invest For High Returns & Avoid Losing Your Original Investment

2007-11-11T06:42:00.000-08:00

How Can I Get the Highest Return While Minimizing Risk?
This is the $64 million dollar question—the holy grail of investing. Every investor seeks to maximize his return while minimizing risk (mainly the risk of losing his original investment, but also the risk of looking dumb by making unwise and foolish investments). Generally speaking, the higher the return, the higher the risk. "He who bears the risk reaps the reward." This is true in mortgage banking, small business, the financial markets, personal relationships, and many other areas of life.

The corollary, of course, is that the risk-bearer must also suffer the consequences if there is no reward, but rather a penalty (loss of money, time, reputation, etc.). If you want to decrease your risk, realize that you will be limited (usually) to investments that generate lower returns.
There are, however, some exceptions to the "risk-return correlation." Risk can be lessened by skill, knowledge, or access to opportunities & resources that the majority of investors do not have access to.

The First Rule of Investing
The first rule of investing is that you should never invest money that you can't afford to lose. The money you invest should not significantly change your lifestyle, if it were lost. If you invest with "scared money"—money that you can't afford to lose—it may affect your judgment and cause you to make poor financial decisions. People who invest with money they can't afford to lose usually make emotional decisions (based on fear of loss) that negatively affect their investment returns.

How Do I Determine the Best Investments?
The best investments for your particular situation will depend on several factors: your age, your risk tolerance, and the amount of time you want to spend managing your investments.

Your Age
If you're young (20's, 30's), then you can afford to take more financial risks, because you have more time to recover from potential losses. If you're older (40's, 50's, 60's), then you will generally make more conservative investments, since you have less time to recover from large financial losses.

How Can Paid Surveys Diversify Your Work At Home

2007-11-08T08:24:00.000-08:00

So many of us have to spend time working at home either raising kids and taking care of the house, or working as freelancers. No matter how much you like to spend time with your family or enjoy having a flexible career, you are always prone to fall victim of tedious routine. Taking paid online surveys can really change your perspectives and diversify your work at home learn why.

First, taking paid surveys is really easy. Even the lengthiest surveys are a few pages long. Survey designers take care that online surveys are easy to navigate, complete, and submit. Therefore, even if you are not an Internet junky, you can very well deal with survey taking. Online surveys are targeted to large consumer segments, and are, therefore, made for the computer proficiency even of the least skillful. Once you get started with paid surveys, you will be able to shorten the time needed to complete and submit them. That will help you complete more paid surveys, and earn more cash and prizes.

Paid surveys are a very responsible job, because the market research industry relies on consumer opinion to improve the products and services on the market. Therefore, what you write and express is really important. If you think that nobody cares about what you think, paid surveys can make the difference. Your opinion and experience are truly meaningful and significant, and you can contribute them to creating a better consumer world. Paid surveys not simply diversify your work at home routine, but give you a different perspective on the significance of your personal contribution to the quality of your consumer environment.

Paid surveys have one undisputable quality they apply to all. No matter where you live, how much you earn, what gender or social group you belong to paid surveys test your consumer opinion, and we all qualify. Of course, different surveys can be target to consumer groups that are smaller or larger, depending on how many people use the particular product or service. For instance, surveys on cat food will be targeted only to cat keepers only, because they will have direct experience with feeding their cats particular foods. Paid surveys are designed for a great variety of products and services; therefore, there will always be surveys that will target you as a consumer and you can participate to earn cash and win prizes.

Paid surveys can also be fun for people from different income brackets and educational levels. People from all walks of life find purpose and motivation to take surveys from students, retirees, stay-at-home moms, unemployed, low-skill workers, to software engineers, teachers, librarians, and nurses. Some take paid surveys for the extra cash and bonuses that they get in the form of freebies, discounts, vouchers and gift certificates. Others find it interesting to complete surveys on different topics and learn about new products and services that are just being launched on the market.Free Online Surveys are also a source of information on upcoming products, and you may be among the first to preview and try new stuff. Moreover, surveys help you evaluate the purchases you made in the past, and decide on the purchases you are planning. You may be surprised to find out that you werent as happy with a past purchase as you think you are, and even decide to change the brand, the timing of the purchase, and the credit source.

Taking surveys is more than just diversity in your work. Doing surveys at home or at the office brings you additional bonuses and cash that you can spend immediately or save to make a bigger purchase. Paid surveys help you reconsider your purchasing decisions, and improve your consumer stance. You help marketing companies improve their services, and contribute to having a more customer-oriented marketplace of the future.

Finding a Legitimate Online Job

2007-11-08T08:22:00.000-08:00

Finding a needle in a haystack would be easier than finding a legitimate work from home job on the internet on your own. One of the first things you need to know about a vast majority of online businesses is that it involves a lot of advertising for whatever it is you are selling. So if you are not comfortable with this aspect, then you probably would not enjoy working online.

The Work At Home Group has found that most trustworthy work from home jobs have a fee that is paid up front, although many people believe otherwise. Free internet business opportunities involve a lot of work such as multi-level- marketing. Believe me when I say that if the job is free then you are doing all the work, for someone elses' benefit. "You get what you pay for", is very true in the work at home industry. You have to take into consideration that companies that charge a fee supply you with information and valuable knowledge. Before we go any further let me say that every online business with a start-up fee is totally legitimate, is not necessarily true, there are a lot of scams on the internet. One way to find out if a company is legitimate or not is to do a simple search on the internet with their web address. Another good method is to check the BBB on online scam sites.

There are a wide variety of online opportunities on the internet. Everything from free no cost jobs to large and small start-up fees. The most success I have seen people have had were the home typing jobs. I came across about one year ago and of course it involves marketing. This type of job is really good because they cut through all the hype other companies try to sale you and just tell you up front what you will be doing which is placing ads and marketing.

What does a home typing jobs involve? It involves placing ads for companies that do business on the interent. You can do this for free or pay a service to do it for you. The way it works is for each sale that your ad generates you will be paid a commission. These commissions range from 50-75% of that sale which sometimes is more then the company profits itself.

There are small requirements to be successful with this type of job because most of them will supply you with all free or paid resources and information you need to begin. Another aspect is the tech support you get with these types of jobs. Check for yourself how the support is by emailing the company with a question, and see how long it takes for them to get back with you.

Your only concern is to generate the sales and collect your checks, the companies take care of shipping, order processing, and any refunds. There are several ways to market a company online, the most affective ways of course includes a service fee but you can also choose to do it yourself. This can be very profitable but involves many hours and committment to be successful at it. Being able to sit at home in your pajamas, save gas money and be able to make the same amount of money (if not more) as an outside job from your home is one of the major reasons people want to work from home.

A 5-Point Focus on Quality

2007-11-08T08:19:00.000-08:00

Henry Ford said that, quality means doing it right when no one is looking. What is doing it? And how well must it be done?

In every industry, competitors find themselves fighting price wars or positioning themselves as the low-cost provider only to find out that in many instances, quality is as important to customers (if not more so) than the cost they pay. Quality can be defined as the acceptable standard of excellence determined by the receiver. But, having a quality product and getting it to market is only part of the challenge; especially if you see quality as one action or an end result.

You cant give lip service to quality. Anytime that there is a handoff, a deliverable, a discussion or even a decision to be made, quality is key. It has to be factored in and measured throughout the organization and considered in all activities of design, development, production, installation, servicing, customer interaction and documentation. The goal is to continually identify standards of quality, evaluate performance, monitor results and make adjustments that will improve the customers perception.

When it comes to improving quality in your organizations you have five points to consider: the product, the processes, every transaction and the thinking that leads to overall performance quality. Achieving quality in an organization is an ongoing pursuit and has to be adopted as a mindset before any significant gains will be realized.

FOCUS #1 - Product Quality is measured by workmanship and reliability. It includes the raw materials, assemblies, products and components; as well as the function or services related to production. To have a quality product output means that you have to continually improve the inputs.

FOCUS #2 - Process Quality includes the quality of work in developing, making, and selling products and services. It is measured by adherence to performance standards, fewer mistakes, fewer rejects and less rework.

FOCUS #3 - Transaction Quality is measured by the effectiveness and efficiency of human interaction. When a products fails to meet the expectations of customers and they in turn seek remedy from the organization that creates a transaction (Ronald Coase, a British economist). Poor quality increase the number of transactions needed to resolve an issue and increases the cost of doing business. Once a customer picks up the phone or walks into your offices to seek resolution, the quality of the transaction itself becomes important.

FOCUS #4 - Performance Quality is within the control of every employee. It is achieved when transactions are handled in a way that delivers ever-increasing value to internal and/or external customers. Performance quality begins with quality of thought. How your people think about their jobs, their roles, your products, and your customers will determine the effort that they will expend.

Quality is achieved only by understanding current needs, future needs and then effectively and efficiently correcting errors and finding solutions that add value. Every internal handoff or customer exchange creates a learning opportunity for the employee involved, the organization, and the system. Employees often detect the first indication of a problem and are in the best position to eliminate it before the situation grows. How they make those decisions is indicative how they think.

FOCUS #5 - Quality of Thought- Rigid, habitual thinking makes product, process, transaction, and performance quality impossible. Without the ability to think strategically, laterally, or critically employees in organizations can never develop the creative ideas that spawn innovation and lead to quality improvements. Stale thinking overrides any opportunity that a company has to outwit the competition or get ahead of change. Breakthrough thinking is needed if organizations are to deconstruct challenges, set goals, construct workable real-time solutions, and accurately identify the right solution for the right situation at the right time.

In a competitive marketplace, quality is the great differentiator that pays impressive dividends. It is never a final destination but an ongoing pursuit to achieve maximum customer satisfaction in the shortest time and the lowest cost.

Quality products and processes begin with quality thinking but here is a list of ten more things that you can do to increase quality:
-Understand the nature and communicate the importance of quality to every employee.
-Know what matters most to your clients and why.
-Develop products and processes that help your clients meet their business goals in the most
efficient way.
-Make what your customers care about your top priority.
-Make sure that dollars spent to improve operations, systems, and products relate to the needs
of your current and targeted customers.
-Set, enforce, and revise standards to deliver your best (product, process, transaction,
performance and thinking) to the marketplace.
-Work collaboratively to establish quality in all internal processes and interdepartmental hand
offs.
-Create self-managed teams that focus on continuous improvement strategies.
-Increase the learning opportunities and challenge the habitual thinking of employees.
-Eliminate the waste and non-value added activities from your processes it will reduce your
product development and process cycle-times.

3 Steps To Understanding Your Home Based Affiliate Business Opportunity

2007-11-08T08:16:00.000-08:00

If you've recently joined a home based affiliate business opportunity on the internet, then the chances are that you have alot of new information about the company that you should read over and learn if you want to be successful. While you might not be able to grasp all of the features of your new business venture overnight(let alone make tons of cash), you can start the foundation of long term success.

Step 1:
The first thing you should understand about making money online is that it's never going to make you rich overnight. It can make you rich, and you can make money overnight, but the odds of you getting rich overnight are about equal to you getting sent to prison for fraud, embezzlement or the like. Knowing this right off the bat is going to put you in a better mind set than most people who try to start a business online.While you may be desperate for cash, desperation is not going to change these facts. If you need a large amount of cash overnight, look somewhere else. But you can start earning income quickly with affiliate programs.

Step 2:
After you've joined an affiliate business program you will be given a user name and a password so that you can login to your member's area where all of the important information about the company is stored. Information such as your sales totals, how much money you've earned, the companies compensation plan, frequently asked questions, and marketing aids to help you advertise can be found here. Take your time and read over everything your affiliate company makes available to you. Don't only skim through it once, but read it in detail often or until you feel comfortable that you understand what your responsibilities are when it comes to making your business profitable for yourself, so that you know where your payments go, and so you know how the compensation plan works.

Step 3:
Do independant research on how to promote your affiliate business on the internet(start with google). Most affiliate companies that you join will have alot of ready made marketing and advertising tools ready for you to use in your online promotions. Don't just stop there though, take the time to research the basics of affiliate website marketing and even go as far as creating a file for all of your new discoveries so that you can start to put together ideas. There are many free resources and step-by-step guides that practically teach you how to succeed if you only practice the teachings on a consistent basis.

At the end of the day, the proper use of time and a long term mind set are the keys to success when you are just starting with an affiliate business opportunity. The best ways to make money with affiliate programs are not at all hidden, it's only that some people don't take the time to fully commit to the process of learning how to make money with them, even if it's only on a part time basis. Using the tips and tools provided by your affiliate company is enough to realize your goals in this business. As a beginner relying heavily on them is a great way to start. Over time you will realize that you are in the middle of growing a very lucrative internet business.

Different Types of Stock That You Should Know

2007-11-03T08:15:00.000-07:00

I bet you can’t tell me the detailed meaning of stocks. Well if that’s the case, I have compelled this good stock information list with brief descriptions for you.

Stock Classes
Although common stock usually entitles you to one vote for every share that you own, this is not always the case. Some companies have different “classes” of common stock that vary based on how many votes are attached to them. So, for example, one share of Class A stock in a certain company might give you 10 votes per share, while one share of Class B stock in the same company might only give you one vote per share. And sometimes it is the case that a certain class of common stock will have no voting rights attached to it at all. So why would some companies choose to do this? Because it’s an easy way for the primary owners of the company (e.g. the founders) to retain a great deal of control over the business. The company will typically issue the class of shares with the fewest number of votes attached to it to the public, while reserving the class with the largest number of votes for the owners. Of course, this isn’t always the best arrangement for the common shareholder, so if voting rights are important to you, you should probably think carefully before buying stock that is split into different classes.

Large Cap, Mid Cap and Small Cap
Stocks can be classified according to the market capitalization of the company. The market capitalization of a company represents the total lilangeni value of the company’s outstanding shares. This is equal to the current market price of its stock multiplied by the number of shares of stock that it has outstanding. That number gives you the market value of the company, which is one measure of the company’s size. Roughly speaking, there are three basic categories of market capitalization: large cap, mid cap, and small cap. The definitions for each of these might vary somewhat depending on whom you’re talking to, but usually they are as follows:
• Large cap: market cap highest valued
• Mid cap: market cap mid range value
• Small cap: market cap lowest valueIn general, the larger the cap size, the more established the company and the more stable the price of its stock. Small cap and mid cap companies usually have a higher potential for future growth than large cap companies, but their stock tends to fluctuate more in price.

Sector Stocks
Stocks are often grouped into different sectors depending upon the company’s business. Standard & Poor’s breaks the market into 11 different sectors. Two of these sectors, utilities and consumer staples, are said to be defensive sectors, while the rest tend to be more cyclical in nature. The other nine sectors are: transportation, technology, health care, financial, energy, consumer cyclical, basic materials, capital goods, and communications services. Of course, other groups break up the market into different sector categorizations, and sometimes break them down further into sub-sectors.

Cyclical Stocks
Stocks can be classified according to how they react to business cycles. Cyclical stocks are stocks of companies whose profits move up and down according to the business cycle. Cyclical companies tend to make products or provide services that are in lower demand during downturns in the economy and higher demand during upswings. The automobile, steel, and housing industries are all examples of cyclical businesses.

Defensive Stocks
Defensive stocks are the opposite of cyclical stocks: they tend to do well during poor economic conditions. They are issued by companies whose products and services enjoy a steady demand. Food and utilities stocks are defensive stocks since people typically do not cut back on their food or electricity consumption during a downturn in the economy. But although defensive stocks tend to hold up well during economic downturns, their performance during upswings in the economy tends to be lacklustre compared to that of cyclical stocks.

Tracking Stock
A tracking stock is a type of common stock that is tied to the performance of a specific subsidiary of the company. This means that the dividends and the capital gains for the stock depend upon the subsidiary rather than the company as a whole. Owning a tracking stock does not give the owner voting rights in the corporation, nor do owners of tracking stocks have a legal claim upon the general assets of the corporation. A company will sometimes issue a tracking stock when it has a very successful division that it feels is under appreciated by the market and not fully reflected in the company’s stock price.

The stock categories discussed apply to the two stock fundamental categories, common stock and preferred stock. And is of use no matter how small or big the company maybe and which is very useful information that you may apply on to your business or to expend your stocks knowledge.

What's the Best Home Based Business for You?

2007-11-03T08:11:00.000-07:00

Have you ever wanted to start a homebased business, and need to decide what's the best home based business for you?

You're not alone!

Many, many people have wished for their own work at home business. But of course the "dreaming" is easy. Choosing exactly which and what kind of business to start is quite different.But it's not really that hard. It's much easier when you can examine the many choices by examining the advantages and disadvantages of each.If you haven't decided yet here are a few factors to consider that might make your task a little easier.

1. Startup Costs
One of the disadvantages of many home based business opportunities is the initial expense. No doubt you've seen lots of "business opportunities" that claim to get you started for "free."Don't believe it for a minute! There are always costs involved. Look for a possible home business with low initial expenses. But veer away from those opportunities where initial costs seem unrealistic. Examine these offers carefully.

2. Time to Become Profitable
A new home business isn't like to be profitable immediately. In fact just recovering your initial investment can sometimes take months.Of course the time needed to recoup your investment will also depend on just how great that initial investment was. But in any event you'll usually do better to choose a business that will begin turning a profit sooner rather than later.

3. Ability to Start While Maintaining Your Current Job
The problem with a lot of business start-ups is they put you in an untenable situation money wise. No matter how quickly a new business becomes profitable, there's still a period of time when there'll be no profits coming in.If you're depending on your job to pay the bills, you can't quit your job until your business lets you earn enough money to pay your living expenses. But at the same time your job doesn't allow you the free time necessary to start your business!The best home based business option then is to find a business you can start and operate part time while continuing your job, until your business becomes successful enough to quit and devote full time to your business.

4. Operating Costs and Profit Margins
Not only will you need startup capital, you'll also need money to operate the business. Do a careful analysis of what it will cost you to operate the business of your choice. Choose one that will allow you a comfortable profit margin AFTER operating expenses.

5. Demand for the Product or Service
Regardless of any other advantages a business may offer, you'll never enjoy success if there's little or no demand for the product or service you're selling.Make sure there's a sizable market for your product or service.

6. Continuing Demand and Economic Conditions
Our economy is always changing. Businesses sometimes fail because of changes in the economic "climate."You could be making good profits one day, and the next day be watching demand for your product "dry up."It's best to select a business that's not prone to fluctuations in the economy.

7. Learning Curve
Depending on your choice, it could take a long time to acquire the knowledge needed to conduct your business.Look for a business with a short "learning curve" or for one that you already know something about.

8. Income Potential
Every business "opportunity" promises you high earnings potential. But sometimes those promises just aren't realistic.Always remember the old adage "If it sounds too good to be true ... it probably is!" Try to evaluate every opportunity dispassionately and choose a business that offers high but REALISTIC earnings potential.

9. Time Freedom
Starting new home business can place a great deal of demands on your time. Lots of entrepreneurs work 10 - 12 hours a day at least, as well as weekends and holidays, getting their business up and running.Realistically assess the time demands whatever business you choose, and make certain you'll have enough time to devote to running it.

10. Satisfaction
"Satisfaction" is a personal matter, and one you should carefully consider.Whatever business you pick, you're more likely to be successful if you take personal satisfaction in what you're doing, to feel that what you're doing is worthwhile, something you can feel good about and be proud of.In conclusion, you should start your search by listing of all the potential choices that appeal to you. Then look at each one subjectively based on the factors mentioned above. The best home based business for you is already out there ... you just have to find it!

How Many Times Can Your Heart Be Broken

2007-10-31T08:13:00.000-07:00

How does one with a broken heart after losing a child or that of being a victim of domestic violence or that of being struck down with a disabling condition that was to affect the way they lived for the rest of their life - carry on, well let me tell you, heartache has to one of the most painful experiences a person could ever have to endure, however with counselling and medicinal treatment people are coping with loss and pain and putting their past behind them, however still never forgetting the misery in their life. Sharing your sorrows with another who is willing to give a shoulder to cry on is a positive way to release whatever you are feeling inside, never bottle up agonizing emotions because this can only cause more misery or encourage your health to deteriorate.

I would like to share with you this heartbreaking true story of a young girl very close to my heart that had her fair share of upset in her life. The heartache in her early years of womanhood was enough to put those to shame who complained over a headache.

June Bridget was her name, mother of two young children a boy and girl, it was not long after setting up home with her partner when he began to show his true colours. June Bridget suffered immense suffering caused by flying fists and kicks to the head. With being so young 20 years old, June found it hard to make that vital decision to get away from the mental and physical torture, why did she not leave, could it have been the punches had numbed her way of thinking or could it have been the elation felt after finding out she was pregnant again, as much as she loathed the beast she lived with, did not mean she would ever stop loving his kids.

Happiness prevailed for June after the birth of a baby girl a daughter Mary Ann, happiness was soon to be taken away from June when at three months old Mary Ann died a victim of cot death. Sadly it took the death of her beloved daughter that made her see sense and walk out of the abusive relationship, thanks to having many brothers her partner never followed through with his threats to come looking to harm her. One never really gets over the heartache involved with losing a baby but for the sake of her other two children June got her life back on track only to collapse with a brain haemorrhage of which took nine hours on an operating table to save her live. After months and months of treatment and being prescribed medication that she was to take for the rest of her life to help with her epileptic fits June carried on regardless trying to put everything behind herJune found happiness and had everything to live for when she met Rob who cared for her and her children. Both Rob and June sat down to plan their future together and thought a having a baby would be the icing on the cake to make their relationship a strong bonding one in closeness and into the bargain a little brother or sister for the other two much loved children who had taken to Rob from day one of their meeting. Heartache was to come to the fore once again for a girl that had suffered so much in such a short space of time in her life. It was eighteen months after her operation when Rob and June had an appointment with June’s doctor to clarify that she was well enough to carry another child. As they both approached the hospital entrance Rob collapsed at June’s feet only to be pronounced dead.

I ask you, how any person can suffer so much heartache in a period of over five years and carry on for the sake of others; however it was those others (family) that got June through the hard times, if you suffer heartache remember that your family are there for support.

June eventually found happiness when she married Benny. June and Benny accepted that they were never to have a child together but they were compensated by the way of grandchildren who helped fill the void in her life of her lost baby Mary Ann. I hold my hand up to a very brave niece of mine who has made me so proud. If you are one of these people who fly in gods face and fake an illness for attention or think the pain from a headache is disabling then think again. Heartache comes from a broken heart and believe me Junes heart was broken more times that you could ever imagine possible.

Prospering with Mutual Funds: How anyone can “Afford” an Investment Advisor

2007-10-28T08:46:00.000-07:00

“How to evaluate Load vs. No Load Mutual Funds.” (You can read that article on http://www.successful-investment.com/articles21.htm)

As the producer and I were working out the logistics of my appearance, she mentioned in passing that “most people can’t afford an investment advisor.”

While that wasn’t the time or place for me to discuss this, I realized that many people might have a similar misconception. Had conditions allowed, I would have pointed out the following to her.

There are only two ways an individual can invest in mutual funds: Selecting and investing themselves or using outside help. If they use outside help they’ll have a couple of choices again: A commissioned salesperson (broker, financial planner or Registered Representative) or a fee-based investment advisor. Most people don’t know the difference and often start with a broker who charges about 6% commission off the top to purchase a mutual fund. The fund is usually from a limited selection of fund families the broker has a relationship with. He, of course, would never recommend a no load fund or an exchange traded fund (ETF), since it is not in his best interest -- although it might be in yours.

Having a fee-based investment professional handling your portfolio will get you as close as possible to receiving advice that is based on nothing but the advisor’s best knowledge and evaluation of the market. They advise only what they consider top performing funds since sales commission is not a consideration and does not create any conflict of interest for them. But, how can you "afford" an advisor? First off, the advisor's fee is usually in the range of 1% to 3% per year depending on portfolio size. This amount is billed in advance on a pro-rated quarterly basis and charged directly to your investment account. This creates an initial savings right off the bat.Most fee-based advisors offer complete service as far as your portfolio is concerned. That means that they don’t simply “sell” you a mutual fund and disappear until you call again. Since investors evaluate advisors based on the performance of their portfolio, advisors are keenly interested in maximizing your bottom line. In the long run, your gain should outweigh their fee.

Many advisors utilize an investment discipline or methodology that keeps you not only invested during upswings in the market, but also in the appropriate funds for the current economic environment. For example, at one time, tech funds were hot. Now, generally, they're not. An advisor watching market trends could have been able to assist you in avoiding the bursting bubble. (In fact, my clients were advised to pull out of the market and into the safety of money markets in October, 2000, just before the market plummeted. What they didn't lose because of this will more than cover my fees for the rest of their lives!)

Most advisors don’t have lengthy agreements and you usually can cancel by giving 2 weeks notice. The advisor never has access to your money because he is affiliated with a custodian who handles the money, the monthly statements and fulfills the proper legal reporting requirements. With this arrangement an advisor can actually save you money. How?

1. The advisor will use only no load funds. Because of his affiliation with a custodian (often a major brokerage firm), he’ll have access to some 10,000 mutual funds, not just to one or two fund families as most commissioned brokers do. This allows him to pick the best available, which potentially means a higher return for his clients.

2. At times there are superior load funds available, especially in the international arena. I have used a couple of those in my own practice because they were available to me as “load waived funds” and my clients got the advantage without paying a sales commission.

3. Custodians many times also offer “Advisor only” funds. These are usually high performing mutual funds where the fund family wishes, for whatever reason, to deal only with investment professionals, so they set high minimum dollar requirements.

Such was the case in my practice during our most recent buy signal (4/29/03). I purchased the NAMCX fund, which was only available to advisors through my custodian. This fund rewarded us with a cool 47% over the following five months. Most independent investors would not have had access to such a fund on their own.Keep in mind that markets fluctuate and starting with an advisor in the middle of a downturn will not likely yield high profits at first. However, over time, an advisor will most likely produce results better than what you would reasonably expect yourself to do, even with the advisor's modest fee. Choosing the right advisor and watching how your portfolio performs with their advice will almost always prove that it doesn't cost you to have an investment advisor, it pays.

How to beat the mutual fund companies at their own game

2007-10-28T08:39:00.000-07:00

You'd have had to be living on a desert island with no TV, newspaper or internet connection to have missed hearing about the great mutual fund scandal of 2003.

The issue was that some mutual fund companies allowed certain hedge funds to engage in after-hours trading, sometimes incorrectly referred to as market timing. Unfortunately, some companies have used the confusion about the term "market timing" to further their own cause. How?

They have used this issue to pretty much ban all forms of trading their funds, and some companies are imposing hefty short-term redemption fees—penalties for all intents and purposes—in the name of avoiding impropriety. But the real idea behind it all is: Buy our fund and never sell it!

These companies advocate a stubborn Buy & Hold philosophy despite the devastating effects that approach had on investors’ portfolios during the recent bear market. Performance is immaterial to them—they want your money in their fund whether it's going up or down.With all of the negative press over the months you'd think that mutual fund companies would have cleaned up their act and started giving more consideration to the individual investor. Not so.

This was brought home to me when a fund manager of an $800 million mutual fund called me to see what my plans were in respect to holding our positions with his fund (about $2 million). I explained my trend tracking methodology and he got very angry when he heard I would protect my clients' accumulated profits by selling his fund if it were to drop 7% off its highs.

His blustering made it quite clear that he did not like anyone managing for the benefit of their clients; he only cared about what was best for him and his company.

So, what can you do to prevent being taken advantage of? For one thing, do what your mutual fund company does — not what they tell you to do. Adopt a strategy for following trends, such as I do, and use the mutual fund manger’s superior stock picking ability to your advantage by buying and holding only as long as the fund is performing well.

Remember, the fund manager has one big disadvantage over you: He always “has to” be invested so that the public can purchase shares in his fund. You don’t! If market conditions dictate that you are better off in the safety of a money market account because we are in a severe downtrend, then you can take your money and run for cover. He can’t. He is constantly trying to adjust his portfolio to ever-changing economic conditions so that his potential losses are minimized. At the same time you are being told that his fund is the investment for all seasons. Don’t fall for it!

You as an individual investor are really in the driver’s seat. Unfortunately, you have probably been conditioned to think that Buy & Hope is a good investment strategy, when in fact it is a losing proposition.Bottom line is, use a well performing mutual fund during strong up trends and get over to the sidelines during trend reversals. (That's exactly what I did for my clients in October, 2001, and we retained the lion's share of their profits while Buy & Holders kept insisting the emperor was wearing new clothes.) Pretty soon you will feel that you are in charge of your financial destiny and any chosen mutual fund is merely a tool to bring you closer to your goals of maximizing your gain and minimizing your losses.

Should You Choose Stocks Or Bonds

2007-10-25T07:43:00.000-07:00

The difference between stocks and bonds isn't clear to those just starting in the wonderful world of investing. While stocks give investors part ownership of a company, bonds are loans made by investors to corporations or governments. Rather than benefiting from company profits the way that stock holders do, bond holders receive a fixed rate of return – a fixed interest rate. Bonds only last for so long and have a termination date called the date of maturity. Also, they can take decades to mature, whereas stock exchanges happen with lightning speed every day. If you are just looking to make a quick buck with high risk, go for stocks. In comparison, if you need stability, say, for a retirement, you might choose bonds.

1. Risks Versus Rewards
As hinted at earlier, stocks have a higher rate of risk whereas bonds are more secure. Of course to say bonds are safer than stocks doesn't automatically mean that you will always make money on bonds. A bond is an investment - and as such it may not be paid back. US government bonds are considered to be the safest type of bonds. Blue chip corporations (those with established performance records that span over many decades) are also very safe bond investments. Smaller corporations have a greater risk of defaulting on their bonds, but if the business goes bankrupt bond-holders are preferential creditors and will get compensated first.

2. Trading Bonds
Traditionally, bonds were the exclusive trading realm of huge corporations and banks. Not any more - even a savvy investor can begin trading bonds with as little as $5,000. Bonds bought and sold after the initial issues are quoted in increments of $100. A bond that is listed at 96 is selling for $96 per $100 face value.

3. Stocks Or Bonds?
Given what you have read so far, you might think that stocks are better for the short term and bonds for the long term, but the statistics do not lie. Bonds offer greater security and return on your investment than stocks, overall. The situation changes, however, when time spans of longer than 10 years are considered. The stock market has consistently outperformed bond investments by a large factor. This is because companies continue to increase in value and any short term fluctuations in the stock market become smoothed out. Overall, you should never put all your eggs in one basket - consider a bond as part of your portfolio to help cushion against market fluctuations. A mixture of investments is always the best choice.

The Role of the Business Model and Strategy for Business

2007-10-25T07:35:00.000-07:00

People will always stress that having a well researched business plan is key before you start your business. Although creating a business plan is often an important step in the evolution of a business, particularly if you need financing or you are not experienced at running a business, it is not necessarily the essential first step. There are two key elements that should be completed prior to the business plan:

The business model
The strategy

What is a Business Model?
While the word model often stirs up images of mathematical formulas, a business model is in fact a story of how a business works. In general terms, a business model is the method of doing business by which a company can generate revenue. Both start-up ventures and established companies take new products and services to the market through a venture shaped by a specific business model. In their paper, The Role of the Business Model in Capturing Value from Innovation, Henry Chesbrough and Richard S. Rosenbloom outlined the six basic elements of a business model:

Articulate the value proposition – the value created to users by using the product
Identify the market segment – to whom and for what purpose is the product useful; specify how revenue is generated by the firm.

Define the value chain – the sequence of activities and information required to allow a company to design, produce, market, deliver and support its product or service.
Estimate the cost structure and profit potential – using the value chain and value proposition identified.

Describe the position of the firm with the value network – link suppliers, customers, complementors and competitors.

Formulate the competitive strategy – how will you gain and hold your competitive advantage over competitors or potential new entrants.

Joan Magretta in her article Why Business Models Matter took the concept of the business model a little further. Magretta suggests every business model needs to pass two critical tests, the narrative test and the numbers test. The narrative test must tell a good story and explain how the business works, who is the customer, what do they value and how a company can deliver value to the customer. The numbers test means your profit and loss assumptions must add up. At the most basic level, if your model doesn’t work, then your model has failed one of the two tests.

To begin the modeling process you need to articulate a value proposition on the product or service being provided. The model must then describe the target market. The customer will then value the product on its ability to reduce costs, solve a problem or create new solutions. A market focus is needed to identify what product attributes need to be targeted and how to resolve product trade-offs such as quality versus cost. You also need to identify how much to charge and how the customer will pay.

Think of business modeling as the managerial equivalent of the scientific method - you start with a hypothesis, which you then test in action and revise when necessary. The business model also plays a part of a planning tool by focusing managements on how all the elements and activities of the business work together as a whole. At the end of the day, the business model should be condensed onto one page consisting of: a diagram outlining how the business generates revenue, how cash flows through the business and how the product flows through the business and; a narrative describing the product/ service components, financial projections or other important elements not captured in the diagram.

Business Models and Strategy
It is important to note that completing a business model does not constitute strategic planning. Strategic planning factors in the one thing a business model doesn’t; competition.

What is strategy?

According to the Collins English Dictionary, strategy is “a particular long-term plan for success”. For our purposes, we will consider the essence of strategy as a formula for coping with the competition. Competitive strategy is about being different and the goal for a corporate strategy is to find a position in the industry where the company is unique and can defend itself against market forces. To do this the company must choose a set of activities that can deliver a unique mix of value.

Market Forces and Strategy
The determination of a strategy is rooted in determining how a company stacks up against basic market forces, how it can defend itself against these forces and how it can influence these forces. Fortunately, Michael E. Porter in his article How Competitive Forces Shape Strategy defined these market forces for us. Known as Porter’s 5 forces they consist of:
The industry – this is the jockeying for position among current competitors, this can consists of price competition, new product introduction or advertising slugfests.

The threat of new entrants - the seriousness of the threat of entry depends on the barriers to entry and reaction from existing companies. There are 6 major barriers to entry:
1) economies of scale
2) product differentiation
3) capital requirements
4) cost disadvantages independent of size
5) access to distribution channels
6) government policy.

A new company will generally have second thoughts about entering an industry if the incumbent has substantial resources to fight back, the incumbent seems likely to cut prices or industry growth is slow.

The threat of substitute products/services - substitutes can place a ceiling on prices that are charged and limit the potential of an industry.

The bargaining power of suppliers - suppliers can squeeze profitability by increasing prices or lowering the quality of the goods.

The bargaining power of buyers (customers) - customers can force down prices, demand better quality, more service or play competitors off on each other.

Once you assess how the market forces are affecting competition in your industry and their underlying causes, you can identify the underlying strength and weaknesses of your company, determine where it stands against each force and then determine a plan of action. Plans of action may include:

Positioning the company – match your strengths and weaknesses to the company’s industry, build defenses against competitive forces or find a position in the industry where forces are the weakest. You need to know your company’s capabilities and the causes of the competitive forces
Influencing the balance – take the offensive, for example innovative marketing can raise brand identification or differentiate the product.

Exploiting industry change – an evolution of an industry can bring changes in competition. For example, in an industry life-cycle growth rates change and/or product differentiation declines; anticipate shifts in the factors underlying these forces and respond to them.

The framework for analyzing the industry and developing a strategy provides the road map for answering the question “what is the potential of this business?”

Reconciling the Business Model and Strategy
I will use a short example to illustrate the difference between a business model and strategy. Although you may think that Wal-Mart pioneered a new business model on its road to success, the reality is that the model was really no different than the one Kmart was using at the time. But it was what Sam Walton chose to do differently than Kmart, such as focusing on small towns as opposed to large cities and everyday low prices, that was the real reason for his success. Although Sam Walton’s model was the same as Kmart's, his unique strategy made him a success.

Choose A Model Of Excellence

2007-10-25T07:29:00.000-07:00

Many of us dream about financial freedom and being able to live and work anywhere in the world. Very few however realize their dream. We know that the internet offers a world of opportunities for business and learning. The amount of information can, and does, overwhelm. Where does one begin?

My experience in the field of personal development goes back to 1988. More specifically, I was drawn to Neuro Linguistic Programming (NLP) and have been practicing NLP to create the type of results I want in my life. NLP is a study of excellence and how we use the language of the mind to consistently achieve the results we desire. Before we can actualize success in the physical world, we must develop the mindset for success. An empowering belief to hold is that people have all the necessary resources within themselves. Anything someone else can do, I can do too, as long as I know how they do it internally in their mind and externally in their behavior or actions. If you are going to put your effort into modeling someone, you might as well choose a model of excellence, rather than one of mediocrity.

Imagine yourself setting out to bake a cake for the first time. Imagine how hard it is, if you had to start everything from scratch, including finding a recipe, shopping for the ingredients, putting them together in the right sequence and then baking it, when you have never ever seen or tasted that type of cake before. What if you have an expert to give you simple, step-by-step instructions and all the necessary ingredients are laid out in front of you? There is also a finished product there so you know what the final excellent outcome looks, sounds, feels, smells and tastes like. You just have to do the work and may be make a few decisions here and there about optional ingredients, e.g. walnuts or choc chips. You have to believe that you can produce an excellent cake, then follow instructions and work through them.

Could it be that simple in affiliate marketing in the internet world too? Yes, and you must choose a model of excellence. Find an established expert, someone who has done the hard yards and knows exactly what works and what does not. Make sure the person consistently produces successful results over time, not just a flash in the pan. Check his/her track record. Select a proven, turn-key internet marketing system which you can follow easily and which also provides prompt support if you get stuck.

There are three elements which are crucial to the profitability of an internet based business: volume of targeted traffic, effective sales copy, and efficient product or service delivery. All three elements must be working highly effectively for it to succeed. That means you need to have a good marketing system to bring prospects to your website, useful content and sales copy to convert prospects to customers, and the means to accept payment and deliver the goods or services. If you were to start from scratch, you would to ensure all parts are developed in parallel and ready to work seamlessly together. The beauty of starting with a proven turn-key marketing system that is already linked to established products or services is that you can concentrate on learning and mastering the art of affiliate marketing, which is only one of the three elements. The other two are already taken care of. In this way, you can fast track your internet business towards being profitable and sustainable in a relatively short period of time. It makes the learning curve less steep and shorter.

What if you passionately wanted to create an internet business based on your own original ideas? If you do not know how to market it effectively on the internet, I would strongly recommend that you sign up for proven, turn-key affiliate marketing system because you will be learning by doing. It is like being taken through a worked example in a standard textbook, except that it is not simulation; you will be earning real money while you learn. Once you have mastered it, you can plug another business into the same system and fine tune it for your new business.

It is very important that you first master the model of excellence you have chosen to emulate, by following the instructions faithfully and be fully committed to it. If you are the type of person who loves to experiment or just want to do it your way, do that after you have mastered it and you have profits flowing in. Believe that if others can, so can you. Prepare the cake mixture as per instructions, bake it in the oven, and enjoy it. You really can have your cake and eat it too.

Trading Tip 21: What You Need to Know about Currency Day Trading

2007-10-23T09:03:00.000-07:00

The world currency market is not only one of the biggest trading markets around with a massive turn over of $3.6 trillion traded per day, it is also a market that travels fast and can be very exiting. One minute you can be flying high, the next minute you could already face a loss. There are ways however to increase your chances of making money with currency day trading.

What exactly is currency trading?

Online currency trading means dealing with exchange rates. In finance, the exchange rate (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specifies how much one currency is worth in terms of the other. For example an exchange rate of 120 Japanese yen (JPY, �) to the United States dollar (USD, $) means that JPY 120 is worth the same as USD 1. The currency trading market, also called "Foreign Exchange Market" or "FX Market", is one of the largest markets in the world. By some estimates, about 3 trillion USD worth of currency changes hands every day.

Advantages of Online Currency

Trading Online Currency Trading is appealing to many traders because of

- its trading volume,

- the extreme liquidity of the market,

- the large number of, and variety of, traders in the market,

- its geographical dispersion,

- its long trading hours

- 24 hours a day (except on weekends).

- the variety of factors that affect exchange rates.

Don't make these mistakes when trading currencies

Here are the top six reasons why traders lose money with online currency trading

1. Lack of a Trading Plan

2. Lack of Discipline to Follow the Plan

3. Failure to Control Emotions

4. Failure to Accept and Limit Losses

5. Lack of Commitment

6. Over-Trading

How to Make Money with Currency Day Trading

The easiest solution to avoid all these mistakes is using a currency trading system. Trading a system will eliminate almost all of the top reasons why traders lose money. Since it can be automated and places the trades for you, it will help you overcoming emotions and lack of discipline. It will get you out of a trade when you're losing, and it will take profits when you are winning. And as long as you don't override the system, it will automatically places the trades for you no matter what.

How to Find a Good Currency Trading System

Finding a good currency trading system is not easy. Experts estimate that only 10% of all available trading systems actually make money. �For every one profitable trading system that is �discovered� through back testing and optimization, there are nine others that lose money,� says Matthew Klein, CEO of Collective2.

Beginning Forex (Currency) Trading

2007-10-23T09:02:00.000-07:00

Foreign exchange (forex) currency trading, the largest financial market in the world, requires a minimum of capital to invest and the profits can be substantial. Once you have learned the basics of forex, you�re on the way to making money through the simultaneous buying or selling of currencies. Forex trading is instantaneous; as soon as you click the mouse, it�s done. The most commonly traded currencies, easiest to liquidate, are the U.S. dollar, Japanese yen, British pound, Swiss Franc, the Canadian dollar, Australian dollar, and the Eurodollar.

Unlike the stock market, forex trading has no central exchange. With forex, you can make a profit whether the market is up or down vs. only making money when the stock market is on the rise. By taking the long position with a pair of currencies, the forex trader buys at one price and sells when it reaches a higher price. The other option for the forex trader is to go short by selling currencies, anticipating depreciation, and then buying back when the value falls. The forex trader can pick either direction, long or short, and if correct, he will generate a profit. You can also set up a certain point (limit order) based on the amount of profit you want to earn to automatically limit the order. In the same way, you can stop or close an order to automatically liquidate if the currency trade is going against you.

In general, the strength of a country�s economy determines the value of its currency. Other factors to take into consideration in forex trading are the political and social status of the country, interest and employment rates, and the overall stability of its government. You will learn to see patterns or trends as you become more familiar with the in�s and out�s of forex trading.

The Forex market is a 24-hour trading place, Sunday through Friday, giving you the option of trading at any time of the day or night. Unlike the stock market, it doesn�t close with the ringing of the bell. Forex online firms provide demos, guidance, and market news for the beginning investor. You can practice your skills in forex trading before actually investing real capital. Once you�ve learned the basics, a minimum investment is made, sometimes as low as $200.00. These �mini-trading� accounts are a good way to begin forex trading and often there is no commission attached to your trading. You don�t have to be a seasoned market analyst or economist to learn, enjoy, and make money with forex currency trading.

Forex Trading System: How to Read a Forex Quote

2007-10-23T08:57:00.000-07:00

Forex is an abbreviated name for "foreign exchange." The Forex market is a non-stop cash market where the currencies of nations are bought and sold, typically via brokers. For example, you buy Euros, paying with U.S. Dollars, or you sell Euros for Japanese Yen.

The value of your Forex investment increases or decreases because of changes in the currency exchange rate or Forex rate. These changes often result from economic and political factors, such as the price of oil or political unrest. To better understand how the exchange rate can affect the value of your Forex investment, this article shows you how to read a Forex quote.

Forex quotes are always expressed in pairs. In the following example, your "pair" of currencies are the U.S. Dollar (USD) and the Euro (EUR). The Forex quote, USD/EUR = 265.50, means that one U.S. dollar is equal to 265.50 Euros. The currency to the left of the / (USD in this case) is referred to as base currency and its value is always 1. The currency to the right of the / (EUR in this case) is referred to as the counter currency. In this example, one USD can buy 265.50 EUR, since it is the stronger of the two currencies.

Because the U.S. dollar is regarded as the central currency of the Forex market, it is always treated as the base currency in any Forex quote where it is one of the pairs. Incidentally, the U.S. Dollar is involved in nearly 90% of all Forex transactions.In this example, your "pair" of currencies are the Japanese Yen (JPY) and the Euro (EUR). The Forex quote, JPY/EUR= 175.10, means that one Japanese Yen is equal to 175.10 Euros. The currency to the left of the / (JPY in this case) is referred to as base currency and its value is 1. The currency to the right of the / (EUR in this case) is referred to as the counter currency. In this example, one JPY can buy 175.10 EUR, since it is the stronger of the two currencies.

The goal of any Forex trading system is to profit from foreign currency movements. This requires adequate training in basic Forex principles, such as performing a Technical Analysis, using Forex charts and Stop/Loss tools, and keeping up-to-date with economic and political events. In a sense, Forex training never ends.

The Asian Financial Crisis of 1997

2007-10-23T08:47:00.000-07:00

Prior to 1997, many economists referred to an Asian “economic miracle”. Countries such as Japan, South Korea, and Singapore had experienced extraordinary economic growth for several decades (although by 1990 growth had slowed in Japan). In 1997 an economic crisis hit Asia that led to a severe recession in several countries.

The crisis began in Thailand, Indonesia, and Malaysia. Although these countries had not experienced the same success as Japan or South Korea, they had been growing rapidly prior to the crisis. Their economies shared several characteristics:

1. Central to their economic growth was the exporting of labor-intensive manufacturing goods. This pattern had been very successful for Japan and South Korea.

2. To ensure a high price for their exports, and to encourage economic stability, these governments had pursued a policy of a fixed exchange rate pegged against the dollar.

3. These governments had managed to keep exchange rates very stable for several years.

4. Encouraged by high rates of return and an apparently stable currency, foreign banks and investors had issued a great deal of debt to Asian firms.

5. These loans allowed governments to finance significant budget deficits.

6. To defend their fixed exchange rate, these governments had to expend reserves of foreign currency to make up for the difference between supply and demand in exchange rate markets.

To maintain a fixed exchange rate, the government must constantly spend some of its reserves of foreign currency. Eventually, it is inevitable that the government will run out of reserves and will be unable to make up the difference between supply and demand. At this point, the government must abandon the fixed exchange rate and the currency will depreciate. This is known as a balance of payments crisis.
Balance of payments crises had been common before 1997. Latin America had suffered several and Europe had been hit in 1992. Although they produced significant macroeconomic effects, the results had never been as catastrophic as they would be in Asia.

It is not generally the case that reserves will dwindle down to zero before there is currency devaluation. Suppose that investors notice that the government is running low on reserves and that a devaluation will occur shortly. If investors hold on to the currency, they will lose out when it depreciates. They therefore will instigate a run on the currency before reserves reach zero. The government may not have enough reserves on hand to defend the fixed exchange rate and they will have to let the currency depreciate.

In June 1997, several large investors began to sell large quantities of Asian currencies. The governments held enough reserves to accommodate these sell-offs without creating a balance of payments crisis.

Many economists believe that other investors were not acting rationally. Instead of evaluating the actual strength of their investments in the Asian economies, the adopted a “herd mentality” and followed the lead of the original investors who disinvested in the Asian economies. The governments did not hold enough reserves to accommodate this sell off and several currencies collapsed.

Thailand was the fist country hit. It was forced to abandon it peg on 7/2/97. For the remainder of 1997, the baht fell by 33%.

Malaysia abandoned its fixed exchange rate on 8/17/97. For the remainder of 1997, the ringgit fell by 23.3%.

Indonesia abandoned its fixed exchange rate on 8/14/97. For the remainder of 1997, the rupiah fell by 40.4%.

Reasons to Fire Your Mutual Fund Company - Better, Cheaper, Less-risky Alternatives

2007-10-18T08:08:00.000-07:00

As I have said many times in this series, active management would be palatable and worth the outsized fees charged by mutual fund companies if they consistently delivered superior performance compared to a pre-defined benchmark, but they do not. Less than forty percent of actively managed funds beat their benchmarks in any one year. Over several years, that percentage becomes infinitesimal. The point of this article is to outline the vehicles that enable you to get these results. While I admit that I am biased, I will attempt to be balanced in the discussion by explaining the drawbacks.

Separately Managed Accounts (SMA�s)
At First Sustainable, this is the vehicle we recommend for investors with $50,000 or more to invest. An SMA is an account that is set up by your investment advisor, which allows you to hold your own portfolio of well diversified instruments. The advisory makes its money by either charging a fee as a percentage of assets under management, a flat fee per year, or an hourly fee for the advisor�s time. Trading commissions are either nominal or free. Your adviser should take into account your needs and then arrive at a portfolio that is, for lack of a better term, the �YOU� Index.Benefits. I love this vehicle, and here is why:

1) Your portfolio is completely tailored to your needs. You do not need to study every prospectus that comes to your door to see if a fund�s strategy has changed without your knowledge. Periodic rebalancing is all that is required when your financial situation changes.

2) You and your adviser can be patient. Because the adviser is getting paid from assets under management, there is no incentive to churn your account, which as I�ve demonstrated, destroys portfolios.

3) At least with First Sustainable, you can buy fractional shares of individual equities, enabling your portfolio to be spread among dozens, if not hundreds, of instruments. This factor accounts for why this vehicle is only now catching on. Until technology enabled this feature, an SMA only made sense for the very wealthy.

4) The above factor means that you can still invest periodically without messing up your asset allocation. Before, indexing in an SMA was only good for investing a lump sum. Now, you can set up a disciplined savings program.

5) Because your turnover should be lessened, your annual tax bill should be decreased.

Drawbacks.
Your adviser will likely not have a published track record. Even if one was available, it would not necessarily be an adequate measure of your adviser�s competence. This account should be tailored to your specific needs, and thus, not comparable to anybody else�s portfolio, thereby making a comparison useless. At First Sustainable, we overcome this aspect by making available indexes that we subscribe to. These indexes do have track records and professional oversight.

What to Watch Out For.
Do not let your adviser place you in this account if he is going to, in turn, recommend vehicles that also have high expenses. For instance, paying the SMA fee for the privilege of getting placed in other actively managed funds is not a good deal, as you are paying twice. Advisory firms get paid twice this way, and it should be outlawed. Yet, this is a common practice among our less dutiful competitors. The ONLY time this would be an acceptable practice is if your portfolio is small enough that the adviser recommends VERY LOW COST index funds or ETF�s. Even then, you should insist on a reduced SMA fee.

Index Funds
As investors have awakened to all the drawbacks of active management, these funds have exploded in popularity. They are essentially mutual funds that attempt to mirror the performance of an index. The most common indexes are the S&P 500, Russell 3000, Dow Jones Industrials, and a Total Market Index comprising all of these indexes. However, there are dozens of indexes for which funds are created. It is important that you and your adviser are capable of assessing the suitability of this index for your situation.

Benefits.
1) These funds have the lowest expense ratios around. The largest funds have expense ratios in the .05 percent range (that is .0005). A typical actively managed fund charges 3500 percent more.

2) They offer instant diversificationThey require less research up front and less ongoing research.

3) They are ideal for investors who are just starting out with a small, disciplined savings plan.Because indexes do not have high turnover, they are usually more tax efficient than actively managed funds.Drawbacks. Not all index funds are created equally. First, some funds still claim to be low cost, but still charge well more than the stingiest funds. Many S&P 500 funds still get away with charging .

5 percent, or ten times what the largest funds charge. Second, most indexes are created on a market capitalization basis. This means that their weighting is based on the company�s total market value. This could lead to an overweighting of the high PE stocks that are most likely to retreat in a correction.

Exchange Traded Funds (ETF)
An ETF is a closed-end fund that is comprised of an index and trades like a stock on an exchange. Like their open-ended counterparts, there are dozens of alternative indexes than the most popular Spiders (S&P 500), Diamonds (Dow Jones Industrials), and QQQ (Nasdaq 100).

Benefits. Because they trade on an exchange, they are continuously priced. Most open ended funds are priced once a day. This allows an investor to take advantage of short term moves. Some (including me) would say this is a drawback.

Drawbacks. Closed end funds still carry an expense ratio. Theoretically, this should be less since the management company does not have to deal with inflows and outflows. The largest ETF�s are less expensive for the most part. The less famous ETF�s still carry a high expense ratio, which is not as well disclosed.

In Business Presentations Sometimes Less Is Morph

2007-10-16T10:22:00.000-07:00

How many times in your business have you heard the question, “Can we do that?” Sometimes the answer is, “No that’s too technical”, or “We could if only…” With today’s technology you can make sophisticated, high-power multimedia presentations. A sweet little suite of audio/video software from AVnex Ltd (downloadable at www.audio4fun.com) might just enable the ‘yes’ answer you are looking for. While the products they market are primarily aimed at the younger demographic and their leisure activities, their software tools are really powerful audio and video editing suites disguised as fun software. The applications for businesses are almost endless.

Let’s say you have a new service you want to introduce to your current clients. It’s an easy appointment to make; they like you and they like your products and services, so of course, you will probably be able to get them to sit down long enough to make a persuasive presentation; but how will you do that? Will it be the same old PowerPoint silent, slow-moving slideshow, with your guy either reading a script or winging it, slide by slide? What if you had a professional voiceover to guide the viewer, to add that extra dimension of presentation? Well, AVnex offers a voice morphing program that can do that.

A morphing program has many different filters and effects that can be applied to an audio file or audio stream (read: live recording) to enhance and alter the output. In fact, you yourself can be the narrator, the great orator, representing the company and with your new voice, you can put the presentation over the top. Their Voice Changer Software Diamond 4.0 (detailed at www.audio4fun.com/voice-over.htm) comes with fun built-in voices like The Terminator, and Sexy Woman, and who knows, maybe they’d be appropriate for your application; however, the controls for this program are able to make less radical modifications to your voice, with rather astounding results. You can easily make subtle shifts in the timbre and pitch of your voice to add resonance and presence. You can add a filter to enrich the overall sound of your recordings. With the aid of a simple set of headphones and a mike you can, in real time, make adjustments to your ‘new’ voice. You can make it deeper or higher or older or younger, not by jamming the slides all the way over, but by the tiniest of adjustments, you can turn your own ordinary business voice into a polished narration. It all happens in real time, and you will be impressed with how different, how much better you can sound with just a few simple adjustments to the controls.

Once you have the audio down, you can easily combine it with the video. You can also, with software from AVnex, or even the built-in movie maker software in XP, create your videos and slide presentations with interesting transitions and effects, and import the narration you have created to go along perfectly with the visuals. Think about the impression you can make with a multimedia, high quality presentation with only a laptop and perhaps an LCD projector for equipment. You can also make these projects available for viewing by invitation on your corporate website. They make you look big, professional, sophisticated and cutting edge; just the perception that can lead to increased after-market activity for your company.

Think about this too; once you’ve prepared your creation in the right format, you can copy it to a memory stick, drop it in your pocket and walk into a meeting virtually empty-handed and still make a blowout presentation; just borrow one of their computers for the show. This way you can make the same creative impression one-to-one or to a room full of potential buyers, or conceivably the entire industry could view it on your website. Don’t ever underestimate the power of multimedia. We are a culture of commercials and marketing, and when it’s done right and presented professionally, it can make all the difference in your bottom line.

Ways to make big $$$ in Japan.

2007-10-16T10:07:00.000-07:00

As you're probably already aware, Japan is a very unique place. No where else in the world will you find the same outrageous opportunities to make money that are open to just about anyone.

English Teaching.

The most common job for new foreigners is teaching English. Despite the thousands of English schools and 12 years of study at school, the English level in Japan remains at lower intermediate, ensuring strong demand for teachers. Every type of class and situation exists from Elementary schools right through to Flight Attendant Colleges. It can also be a great way into a previously non-existent position. I know of one teacher at a top Advertising agency who later became an English copywriter. He had no experience whatsoever in copywriting, they just liked him and enjoyed his lessons.

Acting/modeling/voice overs.

Without a doubt, the epicenter for entertainment work is Tokyo. There are around 60 major freelance agencies that offer all kinds of work to foreigners living in the area. It is not uncommon for first timers to walk into $1000 plus jobs, while their friends back home fight over $120 extras work. Experience is not expected - simply being foreign and having the right look is enough. In fact, most highly skilled dancers and actors would be appalled at how easy it is to get work and how the jobs are selected. Actual talent is very rarely considered - it is all about the look.In many ways, the entertainment scene in Tokyo is a big break and a way to escape the comfort zone and limitations of home. Many foreigners living in Japan, doing the work, return home to find their friends are just as broke as they were 5 years ago, fighting over the same tiny piece of the entertainment pie, hoping desperately for a break. They are not seeing that Tokyo is that break! Ewan McGregor, Edward Norton, Ashley Judd and Cameron Diaz are among some of the current stars to have worked in Japan.

Dancing/hostessing.

Japan was long considered one of the best places for working Dancer/hostess types in the world. Whilst it still can be very lucrative, the rules have changed regarding visas. Whereas once a 90 tourist visa was adequate, immigration crackdowns have led to the introduction of entertainment visas for all women employed in the industry. The Japanese culture remains one of meetings and drinking, and corporate types still prefer to do both in the company of attractive, polite, western women. In the past, women simply had to be attractive and turn up, now they need to be just as adept at being charming in order to make the big money.Wedding minister.The white wedding business is huge in Japan. It is the most popular type of ceremony from Sapporo to Okinawa and all those weddings create a demand for clean cut pastors to conduct the 20 minute ceremonies. In some cases, 20,000 yen for the 20 minute ceremony and performing 20-30 per month on the weekends is normal, making this one of the best ways to make yen. There are some properly ordained ministers out there, but for the most part, basic Japanese and rudimentary training is all it takes to move one man from the classroom to the pulpit.

Headhunting.

The Headhunting industry in Tokyo continues to flourish unabated. New companies emerge quarterly and are still able to bill fees of 30 - even 35% in some cases. Most of the "recruiters" start out teaching English and usually have very little in the way of professional experience. As English speakers though, they are considered to be experts in dealing with foreign companies, which is more than enough to qualify them for the job. Here you will find recruiters - both male and female making 6 figures when many would struggle to hold down simple jobs back home. This truly is an extraordinary opportunity open to anyone with some professionalism and knowledge of Japan.

Japanese language skills.

For teaching English and Headhunting, Japanese is almost not required at all. Speaking with the students in Japanese is strongly discouraged - they are there to learn English after all, and in Headhunting, 95% of the candidates need to be effective communicators in English. That leaves Wedding Ministers - the ceremony is read in Japanese, dancing/hostessing - where some basic Japanese will be looked upon favorably and Acting/modeling/voice overs, where in most cases there will already be a translator and the pronunciation of 10 words in Japanese is more important that speaking ability.

An active interest in Japanese culture and the language will assist in daily life, but for the people simply interested in Japan as a way to make as much money as possible, it is simply not required.

3 Biggest Time Wasters

2007-10-15T05:44:00.000-07:00

Have you ever stopped and consider how much time you have during the day? How about during the week? How much of this time do you spend on activities and people that waste your valuable time? What are your time waster during the day? Sometimes we go through life surrounding ourselves with activities and people that take away our time. Once time is gone. It is gone forever. Only by realizing what and who takes away are time will we move forward to the next level.

Time wasters are poor decisions or not making a decision during our day. They cost time and also money. It is a vicious cycle. Poor decision making and being indecisive is like a tornado. It goes round and round. It destroys everything goals, dreams in your path. It becomes a habit. Look at you life right now. What were you doing 1 year ago? What were you doing 3 years ago? Does it look about the same? It is based on the decisions that you made.There are 3 biggest time wasters. Your ability to deal with them will determine where you will be in the next year.

1.Procrastination.

Procrastination is one of the biggest time waster of them all. You probably have heard or even know people that live their lives in quiet desperation and end up retiring poor. Have you meet people that go through life that find every reason or excuse not to do it today. They do it over and over. They make excuses day after day. Then one day their lives are OVER.

2.Not making decisions.

Not making decisions rob more time than you realize. It cost you money too. It can produce unnecessary tasks. Decision making requires courage and moving forward. When you are wishy-washy, you are unable to make decisions with family, kids, or careers. Nobody likes to follow someone that is indecisive not even kids.

3.Putting out fires and taking care of emergencies.

This is a huge time waster. When you are about to settle down to do a task or go to work. Something unexpected happens and pulls you away from that task or work. This sometimes rolls from minutes into hours and hours. The greatest leaders throughout our history thought ahead and determine all the things that maybe go wrong. Then they would plan in advance. If something did happen, they could move quickly or delegate it. They would get it done. Poor leaders trust in luck.Crisis will happen just don’t pitch a tent next time. Most valuable skill you can develop is a sense of urgency. Get on with it. Make things happen. It is the most powerful factor. It can move you forward no matter what situation we are in right now. Most important way to improve your decision making is you are not perfect. A not perfect decision made immediately goes far then not a decision at all. When fires do occur think before you act. Action without thinking leads to failure.

Just be objective. Live your life if it was your last day here on earth everyday!

Master Time Management with One Question

2007-10-15T05:37:00.000-07:00

Time management advice is found in great abundance on the Internet. You can determine how to schedule your day, how to set your priorities, how to delegate, and how to tackle your to-do list.

As a service business owner, you face an enormous number of tasks and responsibilities each and every day. What I've come to realize in my years of self-employment that my most valuable asset isn't my contact database or my marketing materials or my business plan.

Most entrepreneurs are time-starved. It seems everyone wants a piece of you -- your clients, your family, your prospective customers, your friends, your employees or subcontractors. For most service business owners, there always seems to be too much stuff to fit into too little day.

The most valuable time management question that time-starved entrepreneurs need to ask themselves before agreeing to do something is, "How will this serve me?" A business coaching colleague asks the same question a little differently, "Is what I'm about to do going to increase the confusion/complexity in my life?" That's it -- pretty simple, isn't it? So, before I'm about to embark on joining a new organization or committee, or before I'm about to think of another sideline path for my business, I just ask myself this one simple question. The answer leads me to my next step.

Now, a word of caution here---don't get caught in the "but crack". If your answer is, "Well, yes, it'll be good for my business but it's.....", you've just fallen into the "but crack", which means that you've negated everything that came before the "but" in your thinking. If there's a "but" attached to your sentence, more than likely what you really need to do is the opposite of what you're saying.

So, in the example above, "Well, yes, it'll serve my business well but it's going to take the next 8 weekends to pull it off," it may not be the great opportunity you think if you already are concerned about the havoc it might bring to your life.What if you're unsure of how this opportunity/task/chance will serve you? How do you make that determination?

I borrow a page from life coach Cheryl Richardson's book, Take Time for Your Life, and create what she refers to as an "Absolute Yes List." This is your list of the top 5 priorities in your life. For most of us that would include spouse/significant other, family, work or business, hobby, volunteer effort, and yourself. You did remember to include yourself, didn't you?Remember, your time is your most valuable asset. If you don't create time for yourself and make that your #1 priority, I will guarantee you that no one else will do that for you. When I used to deliver my work/life balance speech to various women's professional organizations, I would have the participants create their "absolute yes" list and then take a survey of hands to see how many had included themselves on the list. Typically less than one-third of any group put themselves on their list, and less than 5% of that number listed themselves first.

If what you're considering doesn't fit on your "absolute yes" list, then it's an "absolute no." If it does match your top 5 priorities, then give it the, "How will this serve me?" test.Creating your list of your top 5 priorities and applying the "how will it serve me" question are the two best tools at your disposal as a service based business owner to regain control of your most valuable asset -- your time.

Here's The One Thing That Will Guarantee You Success

2007-10-15T05:34:00.000-07:00

There is one thing that can make or break your journey to success.

As Samuel Johnson said: "Great works are performed not by strength, but by perseverance.

"Perseverance is the key to reaching your goal.Be honest: how many times have you given up in the past? Once? Ten times? Dozens of times? You are not alone! Each of us has at some time ended up feeling like we were fighting a losing battle and thrown down our sword.As you well know, giving up means admitting defeat. It means failure. No one likes to think about that, but it's true.

Have you ever asked yourself what might have happened if you'd continued on instead of quitting? Would you have been successful eventually? Did you give up too soon, or was your goal really not meant to happen?

Imagine running a marathon and getting mad because the finish line still hasn't appeared. So you sit down, take off your running shoes and brood. It sounds funny, but that's what many of us do when pursuing our goals. And in that little example is a hidden gem of wisdom: we give up because we can't SEE the finish line, so we mistakenly assume it doesn't exist. We throw our hands up in frustration and quit.

If you can change this one tendency, your life will never be the same.Perseverance literally means: to persist in spite of difficulties. It doesn't mean persist until you run into an obstacle, or persist until it becomes easier, or persist only when you feel like it. It means keep going no matter what. No matter how rocky the road becomes, you just keep moving forward.

What will determine your willingness to persevere? How badly you want your goal. If you're not willing to persist in spite of difficulties, then perhaps your goal isn't as important as you think it is. Perhaps it's not what you really want, after all. Only you know for sure.

If your goal is vitally important to you, you will do what it takes to achieve it no matter what obstacles you may encounter.Make the choice to succeed, moment by moment.When it comes right down to it, success is a choice, just like failure. It's not a choice you make just one time either; it's a constant, ongoing series of choices you will continue to make for the rest of your life. The results you get will be in direct proportion to the effort you give.

Your journey won't always be easy, but will it be worthwhile? Only you know for sure.

Online Investment

2007-10-11T09:17:00.000-07:00

Tips for new investors

Online Stock trading for new investors
Stock market operations are very insidious and difficult to understand. However, there are many investors who invest and gain from stock trading. Stock market is wonderful investment system, which can reap high profits and make you wealthy in a very less time. Well, if you look upon those who have earned loads of money with their smart investment plans and wondering what has been the secret. Here is the answer.

Analyzing the market is very essential step before making any investment in the stock market. If you are new investor and are willing to invest in stock market, you need to first learn the working of the stock market and then carefully analyze which company has been rated down but that company is likely to move up on stock exchange scale. Stock brokers are of great help in such matters. Fluctuations are an integral part of the stock exchange; however, investors are unable to make a sound decision. Fluctuation and oscillations should be carefully analyzed to predict the forthcoming market trend, which will actually affect the investors’ decisions. One should try to be in contact of the stock brokers to get the right or rather the authentic information of the stock market conditions. It is often found that many investors end up facing loads of loss due to wrong interpretation and false information.

There is often dissatisfaction among investors because they feel that the brokerage fee is actually an obstruction in their investment plan. In such a case online stock trading is very good option this is not only easy but is less expensive as compared to the traditional stock marketing.
Online stock trading is a new opportunity for all stock market investors. It not just eliminates the mediators but it is easy. All you need to this to log in to the Internet account. An individual can sign in the account by paying a little price for the account registration. Online stock trading is best opportunity for people who are unable to invest in stock market because of the unavailability of funds.

There are many investor sites for small investors to enter the stock market trading and turn their dreams into reality. Although these websites are safe and easy to use, people must make sure that the place one is logging on for stock trading is a safe place. Since, these websites ask for few financial details, so you must have done a bit of research regarding the authenticity of the site.

While you are searching about the company, you must look for details. For example, the reputation of the trading host and the in-built security system of the company. These things are of topmost importance while you have planned for online stock trading. So, play with safe hands and then you will surely make loads of money.
So, what are you waiting for? Just log to Internet and set your eyes to the stock market trend and make sound investments for yourself.

7 Things Every Trader and Investor Should Know About the Market, But Usually Doesn

2007-10-11T09:15:00.001-07:00

Anytime that you make a trade in the market, you need to know what you're up against. Knowing the following seven points will not only help you in your trades, it will put you in the right frame of mind in order to be successful trader for the long term, which is what we all desire, and what really counts.

1. Don't Throw Good Money After Bad - If you've got a losing stock, don't make excuses or say things like "now it's really become a bargain" or "it can only go up from here." Those arefamous last words. If you own an underperforming stock, sell it - today! Don't wait, and certainly do not add to your shares of that stock. That is a recipe for full-blown disaster. There's a reason that the stock you own is underperforming. That reason may not be obvious to you now, but eventually the reasons will come out. Your money can be put to much better use buying a stock that is in an uptrend and can make you money right now (see point #2).

2. Don't Buy Low and Sell High - We've heard this phrase all of our lives: "buy low and sell high." You can't go wrong with that advice, right? Actually, that's wrong, because buying low implies buying a stock that has been on a losing streak, or one that is underperforming. Those are usually the worst kind of stocks to buy. The best stocks to buy are those that have firmly established a definite uptrend. So a more appropriate phrase might be, "buy high and sell higher." Another piece of advice that goes along with this is as follows: don't try to pick the bottom. Let someone else try to figure out what the bottom is. It could be that the stock has a few more weeks to go before it completely bottoms out. No use wasting your money guessing on where that point might be.

3. Don't Swing for the Fences - Everyone wants to hit a home run once in a while, but making that your primary trading aim means you are risking your capital and your sanity. The only way to have long-term success in your trading career is by taking many small gains instead of a few big gains. Home runs are few and far between. They are a nice bonus when they happen, but don't expectthem every time. If a stock has made you some gains, take them. Don't get greedy or expect a doubling or tripling in price, because you could end up losing what you have already gained, and sometimes a lot more. Take your profits, and move on to the next stock.

4. Know the Best Times of the Day to Trade - The best times of the trading day are the opening and the closing. More specifically, these times are the first hour and a half (9:30 to 11:00 am) and the last hour and a half (2:30 to 4:00 pm) that the stock market is open. That is when there is the most price movement and the highest volume. This is also why the opening and closing price quotes are used in mapping out stock charts. The volume around midday generally dies down quite a bit for one major reason: too many traders, especially the big institutional players (the ones who can noticeably move the market) are out to lunch. Some may take earlier lunches, and some may take later lunches, but there are always big players who have gone to lunch during this time. The people who they have left in charge are usually younger associates with less experience who don't have much say in decision-making. So it's best to avoid both buying and selling during this period of the day, as any price movements could be false signals or fake-outs.

5. Do Not Buy or Sell Before the Market Open - Buying or selling a stock before the open (8:00-9:30 am), in what is known as a pre-market trade, is usually not recommended. During the pre-market period, there is a considerable lack of volume. As a result, a few small traders can quickly bid up the price of a stockto a fever pitch. If you try to buy this stock during this time, it will usually come back down after the market opens. Conversely, if you try to sell a stock pre-market, often times you would have sold for a better price if you have waited a minute or two (or five) after the opening bell. Because of the lack of volume, along with a real dearth of institutional investors, it's best to avoid pre-market trades altogether.

6. Sometimes No Trade is the Best Trade - When markets are falling and volatility is running rampant, staying "on the sidelines" in an all-cash position is often the best policy. Now it's true that opportunities do arise when market volatility starts going crazy, but this is not the time to be a hero. Wait out the storm. When there is blood in the streets, stay out of the way of the stampeding masses. Once the market sorts itself out, and volatility dies down, it becomes safe to get back in the market. That is also why you should never feel bad about getting your stops hit (getting "stopped out" of a trade). Those stops, which often indicate small losses, save you from much bigger losses later on, bigger losses which can stop you from trading altogether. In fact, what may appear as a small loss at first, may actually be a "gain" in your favor; for example, if you sell a stock for a $1 loss, but the stock then continues to lose another $5, you should not consider that trade as a loss.

7. Is Paying for Advice Advisable? - If you are not getting the results you hoped for in your trading, should you get professional assistance? Being human beings, we are all susceptible to the ebb and flow of our emotional states. One of the hardest things to do is to disengage your emotions when trading, whether those emotions involve fear (when your stocks are falling) or greed (when yourstocks are rising), or just the everyday emotions that stem from your personal life. If you can find a trusted and reliable stock-picking advisor, you are then able to bypass a lot of your own emotional baggage, and follow the lead of someone who is experienced in the discipline of trading. But be careful: Free advice is usually worth what you pay for it. However, you shouldn't have to pay thousands of dollars, either. Also, be wary of stockbrokers who are trying to sell you a sure thing: usually, it's stock that their company bought, and now must get rid of.

Short Term Profits versus Sustainable Long Term Gains

2007-10-11T09:13:00.000-07:00

It’s a market obsessed with making short-term returns. As a result, the past decade of what is perceived as ‘regeneration’ has been dominated by speculative investor bulk-buying, killing off any chance of creating vibrant communities resulting in a legacy of absentee owners, and an oversupply of one and two bedroom identikit apartments.

You can’t blame the house builders, developers or agents; after all, they represent the private sector which has to answer to shareholders who want to maximise annualised profit. But what about the next 20, 50 or 100 years? Is such a short-term approach really the best financial model? Does it create vibrant and healthy communities and great urban places? The answer to these questions has to be no.

Until we adopt a long-term approach to creating communities and vibrant places rather than an obsession with buildings and short-term profit, the property market will not deliver sustainable city living in line with the European approach. I believe the answer lies with the larger financial institutions and the public sector. Both can afford to think long-term, as they don’t answer to private shareholders. Currently, property only represents a small percentage of pension funds’ total investment. Traditionally, the financial institutions have avoided more exposure to property perceiving it to be volatile and management intensive. However, the city’s financial institutions are now starting to look at property as a long-term alternative for the creation of excellent returns. Morley, one of Europe’s largest property fund managers, set up The Igloo Regeneration Fund in 2002. This is the UK’s first urban regeneration fund investing for a commercial return in mixed use, environmentally sustainable, well-designed regeneration projects on the edge of the top 20 cities in the UK. The fund is managed by Morley on behalf of Norwich Union without pressure from shareholders.

The public sector is also starting to recognise that it can take a long-term approach to value creation and the generation of public benefit through quangos like Communities England (English Partnerships and the Housing Corporation) and British Waterways. For example, British Waterways established ISIS Waterside Regeneration at the 2002 Urban Summit held in Birmingham in order to use its assets to create long-term returns and sustainable new waterside destinations. ISIS is now revitalising more than 170 acres of land in seven towns and cities across the UK, designed to attract a wide range of occupiers, including families. Icknield Port Loop, one of the most significant regeneration opportunities this decade is one of these sites.

When the public sector take this long term approach, they often are faced with a dilemma given the need to cover short term costs, for example British Waterways are responsible for a 200 year old system that constantly needs to be maintained and suffers from years of under-investment. The current costs are more than British Waterways receive. British Waterways require consistent funding to be able to maintain the waterways for public benefit and as a catalyst for regeneration without having to sell off the family silver. Over the past weeks the national news has reported that it may be privatised; this would be a huge shame. British Waterways has the opportunity to continue to act as a force for good in regeneration, rather than being forced to dance to the tune of the shareholder.

We need to encourage the government and financial institutions to get behind the property market and set up more of these funds. We only need to look to northern Europe for an example of how this can work very successfully.In the UK, young people have a stark choice – 25 year mortgages are likely to be replaced by much longer terms and if the idea of creating huge debts for others to inherit is not attractive they are forced to rent average quality and poorly designed apartments from private, relatively unregulated landlord. If pension funds invest in well designed apartments built as part of a thriving community and well managed by responsible investors such as Morley, places with long-term value can be created, which occupants can then buy-in to as part of their pensions.

This will be a challenge, as we need to overcome the stigma of renting on a long-term basis. In addition, if pension funds do invest in developers like ISIS, which puts sustainability at the heart of its approach, there is an opportunity for large numbers to acknowledge and address the challenge of climate change. If there were more communities living in residential schemes like ISIS ones which have sustainability built-in to the very fabric of the development, then a critical mass could develop into combating the effects of climate change.An excellent case study of how the public sector can work with long-term funds, as I have described, is represented at Icknield Port Loop. Birmingham City Council, Advantage West Midlands and ISIS together with other key stakeholders are bringing forward plans to put this long-term approach to community and value creation into practice. It can’t come soon enough.

Better Trades and Stability Vs. Profitability

2007-10-11T09:06:00.000-07:00

Previously Earlier, we began a to investigate the need for stability in our trading business. We agreed that an important purpose for stability was having a more or less consistent ability to pay our bills, enabling our trading business to survive. Additionally, we outlined a strategy which had the ability to maintain our initial value (our emergency money) and the potential for making profits as well. The strategy; a 'balanced' straddle; amounted to finding a stock whose price 'oscillated' above and below a particular value. If that value was also a strike price for that stock, then we could straddle it, buying puts and calls at that strike with several months before expiration. As the price moved up and down, the value of our calls and puts moved up and down inversely, keeping the total value of the position roughly the same. In this way, our 'emergency fund' was more or less kept intact. In this discussion, we see how to draw a profit from such a position. Stability Implies A Constant Value If I have a minimum of six months required cash on hand much of the 'production stress' is removed from me. That is, if a budget of $5,000 per month is required to support my household, then having around $30,000 cash on hand goes a long way toward making me feel secure financially ... for about six months! Whatever we decide to do with that money once we've accumulated it, we have to insure that the underlying value is not subject to erosion. To that extent, then, those strategies and/or trades set aside for our 'stable money' should more or less insure that what ever amount of money we begin with is available to us at any time in the event of a financial emergency. Let's continue with our SLAB example. If we buy a $55 put and a $55 call when the stock price is at or very near $55, we're buying AT the money options and should expect to pay around $5 or $6 for those options having expirations about 4-6 months hence. If we buy 10 contracts each, we have about $10,000 - $12,000 invested in the position. We need to be very sure that money will REMAIN more or less intact and available to us should we need it. To meet MY requirements for six months 'budget-in-the-bank', I'd need three such positions. I would certainly NEVER put ALL $30,000 into a single position! Owning a put and a call (at the same strike price & expiration month) is called a straddle, an inherently 'neutral' position. To understand how a 'neutral' position can provide the safety and stability you need, refer to the chart of Silicon Laboratories stock above. During the last week of January, you'll see the stock gapped up, touching $55 that day. We'll assume that we entered a $55 straddle at that point. Follow the chart as the stock moves down. If we paid say, $5 for the puts and calls, then we can reasonably expect their premium to change in value as the stock moves. For example, around February 2, the stock has fallen to around $50. Those puts we bought for around $5 are now worth around $9 or $10. However, the calls we bought for around $5 are now worth around $1. No matter, the POSITION value is still worth around $10,000, what we PAID for it! So, Though the stock has fallen significantly in value, our STABILITY money is still there, ready to be used in an emergency. In other words, we could close the position and take our initial investment back at ANY time we wanted or needed to do so. Continue to follow the stock price. Notice near the end of February, the stock price has risen to around $60. At that time, our calls have risen to be worth around $9 or $10 while our puts have fallen in value to around $1. Again, we see that our emergency money is STILL intact, despite an almost $10 oscillation in the value of the stock. We can continue to do that for as long as the stock oscillates ... AND our options haven't expired. Stability Induces Safety, Not Profits . . . Unless . . . Up to this point, we've learned about the importance of having some emergency cash set aside. Additionally, we've learned about how straddles work and we've seen how the strategy produces a 'safe-haven' for some of this stability cash. But wouldn't it be nice if we were to figure out a way to make this money produce a profit in addition to the stability. Well, strictly speaking, a neutral position will not produce a profit unless the stock moves violently and a long way in either direction. Closing the position at either such 'extreme' (up or down) can produce enough profit in the one option to more than pay for the remaining option. That requires volatility, a concept not closely tied to the idea of stability. The biggest benefit of these stable positions is that stability itself, not the lure of profits. That said, there IS a way to pull profits from these positions, and LOTS of it! However, it requires us to temporarily LEAVE the safety of neutrality by closing out one side of the straddle, remaining in a now "directional' trade. If you sense a bit of increased risk and danger here, you're absolutely correct. Keep in mind that we can ill afford to gamble with this money! We can chase profits in one of two ways; short term and/or medium term. We'll begin with the least time-intensive method; medium term next time in part V. See ya then! If you think that I might be of help to you in sharpening up your trading skills, please give me a call at my support line, toll free 1-800-206-3935! Make it a great day! Bob Eldridge

Consciously Be This One That You Are

2007-10-11T09:00:00.000-07:00

Heart in motion is the movement of this "you" that you truly are, flowing through this mindbody that you find yourself flowing through. It is the beyondness of the alive and indescribable "that" - which gave birth to and informs everything with itself - moving through and incarnating into its own manifestation.

This one is true of you right here and right now. You can consciously "be" this one - and "be" this one you must for there is no other way of realizing this "you" of you; you will not realize "you" through your attempt to be who you think you are; you will not realize this "you" by thinking about it - because this is who "you" are.

To be who you already are is going to have you surrendering, letting go and leaving alone this activity of trying to be what you are not - this unconscious and veiled attempt to try and be who you think you are.

You will start being led out of this prison of your own making through attraction and attention. You are attracted to being happier than who you think you are can deliver. You are attracted to the freedom of your heart because you know yourself to be not living this clarity on a momentary and daily basis.

No matter how happy you think you can be it can never come anywhere close to the enrichment of the one that is already true of you - this "you" of you that is already flowing through the eyes of this mindbody that you find yourself so intimately involved with.

Of course, not realizing this one leaves you drowning in the ignorance of not seeing the sheer beauty of the heart that you are busily being distracted from noticing as being the "you" that you already are; it leaves you drowning in the inattention of what you are up to on a daily basis.

Consciously "be" this one that you are - by bringing your conscious attention to the finding of this "you" of you that is currently flowing through the eyes of this mindbody that you find yourself flowing through and stopping at and as this one - and open to the changelessness and endlessness of such a magnitude that it will simply transcend the level of mind that you currently suffer, or carry on as you are.

All realizers have come to recognise that they are not who they thought they were; that there is no one to become anything - enlightened, awakened or otherwise. Who you are already is - right here right now. It is currently flowing through your eyes. To be this one requires your surrendering and letting go of who you think you are. It is a huge relief to no longer have to perpetuate the struggle of trying to be who you think you are. It allows you to simply get on with being "that" which is already and always right here; to be what is already true of you; the being of this "you" of you that is flowing through your eyes - the seer, the heart of existence itself, the divine one; and "that" is immense joy, freedom and delightfulness - despite the continuing cycles of arising that the mindbody may be going through.

The one that you are is not wracked by desire, fear, doubt and guilt - it is completely and momentarily free of all these and of everything; it is freedom itself.

Economics and Decision Making.

2007-10-10T07:28:00.000-07:00

How do individuals and businesses in society make decisions? From the viewpoint of an economist there are three basic assumptions. Rationality, maximization and costs & benefit analysis.

Rationality: Economists start by assuming that economic decision makers act in a rational manner. What this means is that decision makers act according to reason, rather than in any odd way. For instance, if a person wanted to increase his or her income, it is assumed that he or she would try to work longer hours, rather than shorter hours. Equally if there were two identical products of washing detergent on the supermarket shelf, one price at $5.00, the other on sale at $3.00, it is assumed the shopper would buy the cheaper packet.

Maximization: A second economic assumption is that economic decision-makers attempt to maximize. This means that they try to get the best out of any economic situation. If a person chooses to work for 38 hours a week instead of 40 hours, everything else being the same including the wage, then he or she will choose to maximize leisure time by working 38 hours. Equally, a business will prefer to earn as much profit as possible, rather than a lower profit as possible.

Costs and benefits: In order to decide what is biggest in any economic situation, a decision-maker has to asses the costs and benefits of any particular course of action. For example what would be the costs and benefits of a decision by workers to buy a factory that they worked for if it was about to close down? The costs would be the money they had to put up to buy the factory from its owners. However, costs could be even greater. If the factory started to make a loss, they could not only loose all their money they had put in the firm but may have to commit more money to keep it going. Another cost would be the lost opportunity to find a new job. The benefits would be that they would still be in a job. They would get a salary. What’s more if the company were successful, they

These costs and benefits relate to the individual workers who are making the decision about weather to buy the factory. The economic model of decision maker than assumes these workers would decide to support buying or not buying by weighing up these costs and benefits and making a rationale decision about how to maximize their individual utility. This is the basis of an economic decision making model.

Profitable Forex Trading Strategies

2007-10-05T09:53:00.000-07:00

By far regarded as the largest and the busiest market, the Forex market has tremendous profit potential. The Forex currency market is a lot different from the stock market and you need to have a very good understanding about the way this market functions. Its not surprising that there's a lot being said and written about Forex currency trading. In fact, those who are keen on mastering Forex trading skills can actually take up a Forex trading course and get formal Forex education. Before you set out to trade in the Forex market or the Foreign Currency Exchange Market, you must make sure that you have done plenty of research, studied historical trends, analyzed existing trends, and worked out profitable Forex trading strategies that can boost your Forex trade.

There is no standard strategy that can be safely applied when it comes to Forex currency trading. Basically, what may work for one may not necessarily fit your trading needs and you must therefore devise your own strategies that can guarantee success in the long run. You need to first analyze the market using a technical analysis approach or the fundamental analysis approach to plan your moves. While technical analysis refers to forecasting future movement based on past performance, fundamental analysis refers to studying current accounts and impact of imports and exports on currency flow.

Understanding how volatile this market is, every experienced trader understands that it is not practically possible to generate profits from every trade. However, as you study this market closely, you will be able to work out better strategies that can minimize your risk levels.

Use surplus money for trading
This market is speculative and "timing a trade' is crucial. Even a slightest mistake can cost you a lot of money. So, make sure that you use only surplus money in order to save yourself from financial wreck. One of the biggest mistakes many traders do is staking all their money in a single trade. If you are not sure, go for margin trading to enjoy more leverage.

Do some market research
Consult your financial advisor or a Forex broker who can tell you the exact status of the Forex market. You need to understand whether current trend is upwards or downwards, is it strong or weak, and how long has this trend been going on or is a new trend in the making. A trade without prior market research can lead to financial disasters.

Decide the time frame for trading
As a smart Forex trader, you must have a time frame in mind beyond which you wont like to trade and also decide an approximate exit price. This gives you a proper perspective and helps you to plan your Forex trade more efficiently. You need to therefore decide whether you would like to go for long term trading or intra-day trading. This will help you to determine which approach you must adopt for research and analysis. For instance, for someone trading several times a day, a daily graph analysis will be useless and the trader will require thirty minute or hour graphs to plan his exit. Another important factor that you need to take into account is the time periods when different financial companies enter and exit the foreign exchange market in order to study the market trends.

Choosing the right time to trade Timing is everything when it comes to Forex trading and once you have understood the market trends you need to immediately plan an entry. Rely on technical analysis to time your move and predict market movements.

If you are not sure about which Forex trading strategy to use, find a good Forex broker who can handle your financial portfolio for you

Self-Improvement and Success Go Together

2007-10-05T09:47:00.000-07:00

How do you know if someone is willing and ready to work on self-improvement?

Obviously, you can't actually answer this question directly for everyone, because each individual is different and each will approach self-improvement differently. However, self-improvement is definitely something that every person can work on. How do you do this?

Each of us has individual goals, dreams and ambitions. However, we just don't know how exactly to go about it. In fact, if you’re like just about anyone, you might even have thought about this and wondered what exactly you can do. However, you still probably don't know just how to make a plan and take the actions you need to in order to achieve your goals.

Maybe you're someone who just has a very indistinct idea as to how you can improve yourself. Maybe you think you just need a better job, better opportunities, or a loving relationship. Whatever it is, you may think that if you attained your desire, you'd be happy.

If this is you, then it's obvious that what you are currently focusing on at least to some extent is external rather than internal, as it should be. In short, you think external factors rather than your own thoughts and actions are what make the biggest difference. However, this is not true.

Let's say that one of your biggest goals in life has been to "make more money". Maybe you think that if you're rich, you can relax, do whatever you want to, and "then" focus on self-improvement. However, this doesn't do anything to actually help you establish real goals and think about how you can actually achieve what you want in life by taking specific, concrete actions. In short, what you really need is a plan.

First, think about what you really want from life. Don't focus on broad-based "goals" such as a vaguely fuzzy idea that you want "more money," without truly defining what you really want in clear and concrete terms. And don't simply drift along day-to-day, just getting by, with no real defined path.

Now, if you're happy with your life just as it is, of course you shouldn't change it. Maybe you're happy earning "just enough" and getting by, with a relatively comfortable life and a relatively secure job. But for most, this isn't enough and they need something with more passion and more meaning. If this is you, self-improvement should be your goal.

It might surprise you to know that in fact, no matter what you do, you are constantly changing. We each face circumstances that make us grow, develop and learn new skills, even if we don't consciously decide to do so. Up until a certain age, most of us learn through some kind of formal education, at least through the end of high school. After formal education is over, we still continue to learn through informal "educational" experiences that occur for the rest of our lives. Everyone has to learn and grow in order to deal with ever-changing challenges we all must face as we go through life.

In years past, this type of ever-changing "education" happened at a relatively slow pace, and this meant that we could incorporate changes as we needed to and as we became ready for them. Now, however, modern life moves very, very fast and we often aren't ready to deal with the pace at which things come to us. We're overwhelmed, even though the changes we experience are beneficial as well as stressful. For example, we have more opportunities, but also more stress and change in today's modern life compared to previous years.

One thing that is much more apparent today than ever before is the presence of competition. Technology has meant that few jobs exist anymore that are simply skilled labor types. Jobs also usually do not last for someone's entire lifetime, as jobs in the past did. Very often, people have to change jobs once or more during their lifetimes, instead of staying in one career during their whole working lives as past generations did.

Because of this, today's working adults need to be able to stay competitive by regularly acquiring new skills and new knowledge, so that they stand out from the crowd. As one of those adults, if you want this to happen, you need to continually focus on self-improvement. If you do so, you'll be more likely to keep your job, acquire promotions within your given field, and/or be able to change jobs or even fields of expertise if necessary to stay employable.

If you commit to self-improvement and personal growth, you will go a long way toward determining your own future success.

How to Unlock Effective Communication Skills and Make a Great Impression

2007-10-05T09:39:00.000-07:00

Effective communication skills are essential in all scenarios, whether in business dealings, romantic entanglements or family affairs, and being misunderstood is often a huge embarrassment. Do you find that you are often being misunderstood, or that you have difficulties getting your point across, when it comes to effective communication skills it is as much what you say as how you say it, while it is equally important that you learn what not to say. Being a good listener will also determine hoe effectively you are listened to, while of course the image that you portray will also impact how effectively you communicate in many if not all situations.

Empathy and listening are the initial steps to work on when developing effective communication skills. When you can actively listen and empathize or show understanding when being spoken to you stand a better chance of receiving the same courtesy when you speak. It is important not to interrupt a speaker even if you don’t understand of disagree. Take a mental note and wait until it is your turn to reply to discuss your query. Respect is a factor not often mentioned when discussing effective communication though when acting and receiving communication with respect and an open mind you are showing that you are keen to improve and you will better listened to when it’s your turn to speak.

Speaking clearly and cohesively will increase your chances of being understood. Use appropriate language for the situation and person. You will not be understood if you speak Japanese to and Irish man, so ensure that even your academic level of speech is fitting to the person you are directing a conversation with. Try to cut out unnecessary and over wording in sentences be concise and to the point. If it’s an important meeting where a certain number of topics need to be covered quickly, bullet pointing major points is a handy guide to lessen the amount of time wastage and make you look more professional, therefore keeping more people interested and listening to what you say.

When you enter a conversation with someone you are inadvertently encountering a person’s barriers to communication whether you are aware of this or not. Each person brings with them their own decisions and ideas concerning effective communication and when in a situation where you may be unfamiliar with the crowd you are directing it is necessary to effectively read and monitor the body language of your audience, if people are looking bored or uninterested this may be a clue that you are talking to much and need to reduce and simplify your message, while in other situations you may need to exacerbate a point several times to have your voice heard. The key is to read people well and this takes time but the more you try it the better you will get.

Communication is never as simple as simply speaking or writing you must be aware of personal opinion, taste and understanding, you must be able to read every situation and person perfectly so if you’re anything like me you have a long way to go but in the meantime listening and watching people who you admire for their communication is a good idea, this can help you by allowing you to compare and analyze how well others can articulate their messages and in turn lead you down the path to great communication skills so that you will learn to effectively utilize your communication skills in many if not all situations.

Are You a Good Negotiator?

2007-10-01T09:56:00.000-07:00

We can tell that you're one of life's persuaders. We're not saying that you could sell ice to Eskimos, but you could probably spin a good story about the designer status of your ice. Perhaps you would stress that it makes the perfect accompaniment to a G&T, as this would allow you to offer a deal on the gin as well! We can tell that you're a sociable person and, whether you've noticed it or not, you probably have a well developed understanding of human nature, not to mention body language. If you want people to follow your lead you need to give them a good reason. "We should do this because…" could be your opening line, but you're not afraid of using your imagination to find ways to draw people into the rest of the sentence. However, be careful not to overdo it, as this approach can appear to be manipulative or deceptive, especially if presenting data that is biased to your cause. The good thing about your negotiating style is that you always make sure that the other side sees the full picture and feels positive about the deal.

Always focus on the other side's goals:

Typically people focus only on what they want to get out of a negotiation for themselves and about their own benefit. Try to focus only on why the other party is negotiating with you. What are they trying to achieve? What are their constraints? What would make them agree to your terms? What pressure are they exposed to? Let's say you're negotiating a new lease for your office space or apartment. Don't focus too much on what you're willing to spend. Find out if the landlord has lots of un-rented space, how much it will cost him to get a new tenant, how much it will cost him if the building is empty for a couple months while he's looking for new tenants. What's his risk that another tenant may not pay the rent on time while you are very good with your payments? Make a list of all those items before you start negotiating. Use them during the negotiation by asking probing questions if the situation allows for it.

Higher Authorities:

The higher authority approach is often used, especially when you are negotiating with bigger companies. Let's say you want to get a discount on a brand new designer jacket. The salesperson will probably say that he/she is not authorised to give that to you. Or they will tell you that it's the company's policy never to give a discount. Always question higher authorities and policies. People created those policies and all it takes is to find the person within an organisation that can change the policy for you. Ask to speak to that authority or to talk to someone who can change a policy. On most occasions a manager will come to speak to you. That manager will probably not want to waste much time and will also try to play out his power position and thus give you a discount – if only to show the poor salesperson how it's done by the big boss. Be persistent in your requests to speak to the so called authority or policymaker. On the other hand, you can use the "that's our company policy" approach yourself in a number of different situations, as it stops most people arguing. To pick up on the apartment lease example, you might say something like "I always get the first month free of charge when renting a new flat."

Never split the difference:

A very common and often used technique in negotiations is to split the difference. There is no reason why you should do this. If the other side suggests splitting the difference, use the authority approach to say that you never split the difference. The other party has already given up half way; there is no reason that should keep you from pushing them a little farther. Just make it your own policy to never split the difference. If the other party moves a big step towards you, give up a little space yourself, but not as much as they did. Always move towards the other person in little steps. It's important to give up a little to avoid a stalemate. But never give up more than you need to at once.

Be creative:

People often get stuck in a stalemate. You might need a better price while the other party cannot give up any more. Move away from the price entirely and focus on other areas. Let's say, you're buying a house but simply can't agree on a price with the vendor. Find out if there are other areas where both sides can give up a little that might benefit the other party a great deal. If you weren't under pressure to move within a certain time, you could allow the current owner to stay in his house for one or two extra months after you've paid your deposit. This might be very valuable if the other party needs to get some cash for a deposit on their new house, or if they need time to organise the move. Try to really understand the other party's situation and come up with creative ideas which create a win – win scenario.

Why Creating a Resolution Fuels Motivation

2007-09-30T08:22:00.000-07:00

By means of something different, everybody is motivated. For any kind of goal, that is the similar. Since their high school reunion is around the corner, someone may want to lose weight, while another may want to discard those extra pounds to get into the mood. Some reasonable goals, incentives, or even the character of the person is typically, what motivates a person to do what he or she does. In order to get good grades, one person may be motivated, or strive, because they need a high GPA, while another person may be motivated to earn high marks since they will get money from a parent.

Whether you are looking to lose a few pounds, exercise more to get in better shape or to get your house structured, creating a sense of purpose is the key to motivation. Motivation is difficult without having a sense of purpose. Without a reason, your goals are not clear and your outcome that you are working towards will be harder to reach. Many different things may motivate a person, but the reason why they are motivated is typically because they have some kind of purpose.

Oftentimes, when a person creates a firm sense of purpose, or a clear reason, then the end result is easier to reach. Clear goals and understanding why you want to motivate yourself can often be the simplest way to get motivated to do nearly anything. When you get ready to work on achieving a goal and understand your purpose for doing so, it will make easier you achieve you goal. Think about what motivates you and then you can easily find ways to help yourself along the way.

Make a list of small things that you could use for motivation. These could be rewards or incentives that could range from a new book to a new dress. On creating a sense of purpose that can help you motivate yourself, there are a few key tips. When you do not feel motivated to do something, you can create a sense of purpose by thinking of want you want to achieve.

It could be something very small, such as washing your car, or something much bigger, such as purchasing a new house. Whatever your idea is, you require having a clear purpose in mind. Perhaps your purpose for achieving this goal is to better yourself, many it will improve the lives of others or perhaps it is a way to be more efficient or make more money. Your purpose is a significant way to motivate yourself.

In addition, without a clear purpose, your motivation will drop when your work becomes difficult. You lose sight of why you are doing whatever it is that you are striving to accomplish. You can easily give up and you no longer have in sight what your end result can or will be.

Understanding your goals, your reason for what you are working for all creates a clear sense of purpose. This makes motivating yourself so much easier and helps you reach your mission much faster and easier than without a clear purpose.Another great motivational tool is by rewarding yourself for reaching your small goals along the way. After you have thought about your reason for wanting to do something, consider what you would get pleasure from a reward. Often, small rewards can motivate and help make your end goal easier to achieve.

Having a clear purpose for an outcome gives you the clearness you need to become motivated. Motivation is near impossible to achieve without this clarity. Understanding purpose which means, who, what, where and why of your motivation gives you the key self-assurance needed to meet your goals.Writing a list or journal of goals will help you reach your end result is another way to keep your purpose in mind and to keep yourself motivated.

If you want to exercise more, possibly keeping a journal of what kind of exercise you do and how long will help you maintain a clear picture in your mind. By looking at your exercise log, your motivation and purpose could be spurred each day. You will start by making small changes each day, if you are trying to attain a large goal, such as losing twenty pounds. These small changes are your goals that will cause you to your successful weight loss.

Keep Your Eyes on a Goal to Stay Motivated

2007-09-30T08:18:00.000-07:00

What will keep you motivated toward your goal? The answer, keep your eyes on it. Never lose site of what you are working toward. Look at the picture and the reward you will reap when you finally reach your goal. Goals seem so far in the future and so hard to reach unless you break them down into small steps that allow you to track your progress.

Action creates motivation, so if you want to stay motivated, stay actively working on that goal. The more you work on it, the more motivated it keeps you. In addition, remember, there is an attractive prize at the end, whether it�s weight loss, better health or a project you want to accomplish.

Setting goals in small steps can keep you motivated to continue toward the big project. Make the goals so they can be charted and you can watch the progress of what you�re working toward. Make concrete goals that are measurable. If you�re writing a book, set a goal to complete a chapter a week, or a day if you have the time to do it. Set a goal for the month such as I want to write 15 chapters this month. At the end of the month, you can look at your manuscript and see if you made your goal. If you did, make it a little higher for the next month. Stretch yourself but be practical. If the coming month has two holidays, three birthdays and two public appearances, then cut back on the goal so you can reach it. If your goals are set too high, it can be frustrating if you are not reaching them and you are more likely to give up. They also shouldn�t be too easy, a challenge will keep you motivated to keep typing away on those pages with the end of the book in mind.

Are you having fun while working toward your goal? We need a break from a project, even if it�s something we want with all our heart. If you are working on a weight loss and exercise goal, vary what you�re doing. If you always use a stationary bike each day, why not change the routine and map out a mile or two to walk in your neighborhood. They say variety is the spice of life and it can keep your motivation going if you change your timetable around a little bit. Are you used to studying or writing in the evening? Try waking up early in the morning and spending quiet time before the busyness of the day takes over.

Involve your friends and family in your project. You are more likely to stay motivated if you have told someone what your goals are. If you are exercising or walking, find a partner. It will make it much more probable that you will continue to walk at a specified time and go to the gym. If you fail to show up, your partner will motivate you to come the next time. You are held accountable to someone else. If you are working alone, if you decide to not exercise or not write, you will only have yourself to shake things up and give you the push you need to get started again.

Don�t let discouragement take your eyes off the final goal. Sure, if we�re dieting there are going to be times when we fall off the eating plan. Instead of getting mad or discouraged, simply accept it as something that happens to everyone and go on to the next day. Don�t get down on yourself or feel guilty or ashamed. Enjoy that dessert and remind yourself of the bigger goal of being in the perfect bathing suit by summer. Have you not worked on your graduate thesis for a week? Enjoy your time off, remember what you�re working for, and work harder when you start up again.

Expect to reach a point when your plateau on a weigh loss program, get bored with the great American novel you are writing, or get tired of depriving yourself of some wants to save for that dream vacation. When you reach that point, accept it, know that it happens to everyone and if you don�t allow discouragement to set in, you can soon pick up where you left off.

Don�t beat yourself up if you don�t make your goals, set new ones, and keep your eyes on the final prize, that one big goal you have been working for and then enjoy your life.

Focus On What You Really Truly Want

2007-09-28T08:29:00.000-07:00

Do you fully appreciate the role of “focus” in your life? I invite you to examine a few aspects of your habits with your focus. You may be thinking to yourself, “I didn’t realize that I had habits with my focus. Isn’t focus a function of seeing? Isn’t focus a calibration of clarity? Isn’t focus something I do as a part of perception?” Yes, but there is more. You also, quite literally,” Bring things into focus”. Consider:

* We are what we focus upon. The Law of Attraction teaches us that our thoughts are things. They are measurable vibrations of energy. Thoughts are as much a tangible object as your house, your car, or the computer screen on which you are viewing these words. Thoughts are conduits that bring form to our focus, and attract more of the same vibration into our energy field. This is science.

* Our focus is our connection with our future. When we give anything our focus, we are engaging vibrations that will bring it toward us. Nothing finds us that we do not first focus upon. It is critically important that we pay attention to our focus. It is the vehicle we ride into events to come.

* We can not help moving in the direction of our focus. Isn’t it interesting that what we fear most appears in our reality with such regularity? Isn’t it curious that the very things we try diligently to avoid, always come to us? This is the science of energetic attraction at work, and it works for you, or against you, but work it will! When we fully comprehend this aspect our focus, we are able to sculpt our existence in alignment with our purpose. When we shift our thinking to what we do want, it comes to us! Pay attention to the fact that whatever you think about and focus your energy upon, is on its way to you. With careful attention to your thoughts, you can develop the habit of positive focus! Your reward is literally the life of your dreams. Allow this acronym to assist.

R- Realize the power of the vibration of your focus.
E- Embrace the possibility of living a life by your own design.
A -Allow your thoughts to move to the most enticing of scenarios. L- Let go of the anxiety and attention you are giving to the things you do not want.
L- Love the view of your existence, resplendent with all of your deepest desires manifested. Y- Yesterday’s focus attracted today’s reality!

T- Think about the most enjoyable, loving, appealing thing your mind can imagine.
R- Re-program your mind by replacing each negative image with an excellent alternative.
U- Utilize the science of attracting energy by luxuriating in feelings of gratitude!
L- Listen to your own inner dialogue, and self-correct your focus on that which is appealing to you.
Y - Your focus is finding you, every time, always, no exceptions.

W- Walk in trust, away from anything that feels uninviting.
A- Astonish yourself with the beauty that is yours to behold.
N- Navigate a true course with joy on your horizon.
T – Thank your personal spiritual source for the abundance of your experience now.

Devote 5 minutes before you retire to pondering deeply the happiest existence you can imagine. Hold your heartfelt happiness in your feeling place, habitually. Smile and lift your spirits! Consciously live in joyful gratitude! Laugh at every opportunity! Make a delicious reality your constant focus!

You are what you focus upon.
Your focus is your connection with your future.
You can not help moving in the direction of your focus!

Make Every Day Your Most Productive Day

2007-09-28T08:25:00.000-07:00

Do you remember the most productive day of your life --- a day when all the pieces fit together perfectly, just like a jigsaw puzzle? You checked things off your to-do list in a fury, focusing on each task until it was complete, moving swiftly to the next task on your list. Ever had a day like that? If so, you're either a masterful time manager or you were getting ready to go on vacation!

The most productive day in my life was just like that. I was excited and enthusiastic, even though my to-do list had over twenty-one items on it. I was motivated and focused, even though all twenty-one plus items had to get done that day. I had a clear non-negotiable deadline --- the plane was leaving at 8:30 AM the next day whether I was on board or not. And I had the ultimate reward for getting it all done --- a four day get-away to Napa Valley with my dear husband. I checked more off my to-do list that day than in any other day up to then, and I'm talking about time consuming things. Take the dogs to the kennel forty-five minutes away from my home. Mow the front lawn (I did this running!) Pack -- myself and my two kids for their stay at Grandma and Grandpa's. Plus eighteen more!

So why was this day so productive? I've thought long and hard about this, knowing that by creating this on a regular basis, I'd have much more checked off my to do list in a day, week and month. I'd be happier and have more time to do fun things, which in turn would make me even happier. It's a wonderful upward spiral. You can create this, too! Read on to learn how.

Be in a Great Mood.
The day before my trip to Napa I was in a great mood. And who wouldn't be? So be in a great mood to get more done. I know what you're thinking, "how can I choose to be in a great mood?" I'll admit it, some days it's harder than others to be in a great mood. And sometimes a bit of a grumpy mood can work in our favor. But certainly, there are things you can do to be more likely to be in a good mood.

Think about days that get off on the right foot for you. What do they have in common? Maybe you feel better when you exercise in the morning. Maybe you need to start slow ... with a cup of coffee and some inspirational reading or a nice conversation with a significant other. Maybe you're in a better mood on days you meditate, do yoga, or go to Starbucks. Maybe for you, you can create a good mood simply by telling yourself "I'm in such a great mood today!" There certainly is a thing or two you do in the morning that makes you happier --- gets your day started on the right foot. Do these things more often and create a great mood.

Be Focused and Purposeful.
The day before leaving for Napa, I was very focused. If something came along that needed to get done, but didn't move me in the direction of pulling out of the driveway and heading to the airport, it didn't get done. There was no debate. No second thought given. If it could wait until after the trip --- it did. Easy call. Now imagine doing this everyday. You know exactly what must get done ... and you do it. Something else comes along and it's not in the plan ... it gets delayed. Most certainly this is easier to pull of if you work all by yourself in complete isolation free from coworkers and bosses (or kids and spouses), telephones and email. But you get your to-dos done in the real world with all of those built in distractions. I'm right there with you.

Let me ask you this: if you're getting ready to go on a vacation and have twenty-one things on your to do list, are your conversations with people shorter, more efficient and more focused than on regular days? Are you more likely to let voice mail pick up your calls until it's convenient for you to talk (or to see if it's something that can wait until you return from your vacation?) Are you less tempted to check email every single time that dinger dings? Yes, yes and yes ... because pulling out of the driveway on time depends on it. So how do you create this atmosphere on a regular day?

Have a Non-negotiable Deadline and a Carrot.
Oh, I'm not talking about the orange kind of carrot. Sure a healthy snack helps keep you productive but what I'm really talking about is an incentive. Something you'll reward yourself with only when you meet your deadline. Your carrot is something compelling, a treat. Something you wouldn't normally do for yourself if you didn't meet your deadline. In the case of my trip to Napa, the carrot was Napa. The deadline was the flight taking off at 8:30 in the morning. It's completely non-negotiable. Create a firm deadline with yourself, with a clear and defined carrot that you will reward yourself with when you meet your deadline.

Here's an example. I will send out my newsletter by 10 PM Central, June 29, 2006 at which time I will treat myself to an hour of complete relaxation doing whatever I want to do ... perhaps a bubble bath, catching up on reading, maybe some T.V! Whatever I decide, it's an hour just for me!

Healing Power of the Mind - Using Mind Power to Heal Illnesses

2007-09-26T08:29:00.000-07:00

Do you ever wonder why some cancer victims heal and recover from their illnesses while some don't? Do you ever wonder what defines the difference between these two kinds of cancer-afflicted people? It is true that those who have been healed have a secret: the healing power of the mind. The healing power of the mind is not a mysterious thing that can be activated by gibberish and mumbo-jumbo rituals and words. The healing power of the mind is actually based on one thing: positive thinking.

Maybe you're thinking that these people are super-optimists. No they are not. They too, have had their share of discouragement and had reacted accordingly. They too had felt that life had been unfair to them.

But what is crucial to their recovery is the realization that they can actually choose not to continue to feel the negative way that they do. You too can make use of the healing power of the mind. Let me show you how.

1) Accept that you have an illness.

Seem absurd? Actually, it's not. Life's problems are not solved by denying their existence. On the contrary, they are made worse through denial, because they aren't being dealt with. The most important step you can take in healing would be to accept your present circumstance, but to positively expect that you can heal yourself using the powers of your mind.

2) Do something about it.

Get treatment; research your options for the treatment of your illness. Getting treatment lets you assume control over your life again. This diminishes the feeling of helplessness; thus, you can start to think clearly, do what needs to be done, and make the most out of your days.

3) Take comfort in a Higher Power.

Studies have proved that those who believe in a Higher Power tend to heal faster. The trust that though they are helpless, someone has control over their lives and He ultimately would see them through, makes people less anxious, freeing their system to self-heal faster.

The mind is a terrible thing, some people said. Actually, as you've seen here, the healing power of the mind can be unlocked so easily. Follow these steps, and you can harness this power.

You Can Create Wealth

2007-09-26T08:22:00.000-07:00

Yes, I'm talking about YOU - you can create wealth.

In the first place, it would be useful to understand the definition of wealth.

To the bankers and accountants, wealth simply means money in the bank, properties or shares investments.

I would like to give you a different perspective.

Donald Trump, who was in millions of debt, flipped his position over night.

Mother Theresa, who walked the streets of Calcutta with zero dollars in her pocket, can call for millions in donations.

So what exactly is wealth?

Wealth is a form of energy - energy you emit if you have the right thinking and association with the right people.

Let me explain further.

Right thinking means having the right mindset. It starts from believing in yourself and your idea.

Remember the saying "you reap what you sow". What you sow in your mind, you reap in your life. Your outer world is a mere reflection of your inner world. The reason is simple: You take action based on you what believe; you get the results based on what you act on.

Knowing this simple logic of belief, action and result, it is apparent that our belief system plays a vital role in our success - whatever success means to you. If you believe that you can be successful, if you believe you can be rich, than you will take action to work towards your goals. Though the result is not guaranteed, your effort will improve your chances of getting it.

The reverse is also possible. You believe you cannot be rich for whatever reason (maybe you did not have a great education). Hence you will not work on your goals and because of the lack of effort, the likelihood is that you will not get what you wish for.

Therefore, the first step to wealth creation is having the right beliefs, or changing your beliefs if your existing beliefs are not serving you. Although most people easily understand this, it is perhaps the toughest step in practice. A belief system takes years, if not decades to build up. It takes great determination to change what has been ingrained in our minds, and more often than not, many will not persist, especially if they do not see immediate results.

Right thinking also means having the right attitude, including being grateful for what you receive in life. Start by having gratitude for little things, such as having the food on your table.

Life is kind. The more grateful you are, the more you will receive.

Association with the right people means making a decision to be in a community of people with positive mental attitude. These are like-minded people; they are ready to support you in your quest for bigger things in life.

The right people will also inspire you, both with their results and lifestyles.

They inspire you because you see that your limit is not your limit. From what they have achieved, you realise there is so much more you can do. You realise that you can get what you deserve if you don't compromise but instead set high standards for yourself.

You will also learn their habits - habits for success. You begin to develop routines that bring you closer to what you want.

Being in a circle of successful people means you can model after them. Some of them may even become your mentors or coaches. Success leaves clues. You can observe carefully what brings them success, and duplicate their formulas into your life. In other words, you don't have to re-invent the wheel. You can learn from their mistakes as well. Anyway, life is too short for you to make all the mistakes by yourself!

When you have both the right thinking and association, you have what it takes. You will begin to see results. As you advance, it becomes easier because success breeds success. At this point, the law of attraction comes into play. You become a magnet, not only to money, but also to other successful people and good things in life. Yes, you or anyone can create wealth, BUT, only if you have both of these - the right thinking and association with the right people. Start by making the decision to take that path... and you will be surprised what you will attract into your life. It's your life - LIVE IT TO THE FULL!

How to Start a Personal Skin Care Routine

2007-09-23T09:41:00.000-07:00

One of the most necessary things for any person is skin care. Depending on a person’s beliefs they will have different personal skin care routines. For some their personal routine involves going to their favorite parlor to beautify their skin. Some would prefer to do their personal routine through facials and body scrubs, which they use, skin care products for. When it comes to personal skin care individuals have their own convictions. Contrary to what many think skin care doesn’t have to be complex or expensive. Considering the benefits you can get by developing a personal skin care routine the cost you may pay out is well worth it.

The first step in determining your personal skin care routine is to find out what your skin type is. You skin is dry, sensitive, normal or oily. Finding your skin type is the most important step in starting a routine. Buying products that aren’t suitable for you skin won’t work well. The basis of all your skin care product purchases should be those that match your skin type. The following example is of a routine for people with normal skin.

The first and most essential part of a skin care routine is cleansing. Using water that is too hot or cold will only dry your skin and cause damage so during cleansing your should use warm water. The three major components of cleansers are called wetting agents and they are typically oil, water and surfactants. The oil and surfactant help to remove dirt from the skin while the water washes the dirt away. You should take the time to find a cleanser that works well with your bodies chemistry. When shopping for cleansers it is a good idea to use a cleanser that is soap-free since over cleaning the skin can also cause additional damage.

The second step is the removal of dead skin cells through exfoliation. Renewing the skin and removing the dead skin cells is the bodies’ natural continuation process. The efficiency of skin care products will be increased by the exfoliation process. After cleansing the skin you will perform the exfoliation. If you have normal or oily skin then you should exfoliate your skin at least four to five times a week. If you have sensitive or dry skin then you should exfoliate your skin only one to two times a week.

After showering or bathing while your skin is still damp you should apply a moisturizer. Every person no matter what their skin type should use moisturizers, even if their skin is oily. Moisturizers are play an important role in attracting moisture from the environment to your skin and then locking it in the skin. However, harm can result if you use too much moisturizer on your skin.

The last step in your personal skin care routine is the use of sunscreens. One option you can choose is finding a moisturizer or lotion that has a SPF or UV protection built in so that you can get two benefits from one application.

You will have to do some testing first in order to find the best personal skin care product for you. Not all skin care products are going to work for every individual so you can’t determine a product is good until you find one that works with your skin. If you have skin disorders it is a good idea to get advice from a dermatologist before starting a personal skin care routine.

Things to Consider When Looking for an Opportunity to Make Money Online

2007-09-23T09:34:00.000-07:00

If you are looking for an opportunity to make money online, there are some important things you are going to want to consider that will have a significant impact on weather you will be successful in making money online. So many people join opportunities and programs without taking the time to answer some very important questions and as a result are setting themselves up for failure. Understanding your skills and having an accurate idea of the resources you have at your disposal will greatly enhance your ability to find an opportunity that makes sense for you.

The first thing you absolutely must consider when looking for an opportunity to make money online is what type of marketing skills you have. Do you understand the marketing process and know how to market? The fact is your ability to have success online is directly linked to your understanding, knowledge, and ability of HOW TO MARKET! If you do not know how to market, you will fail online. Therefore, if you lack the understanding and knowledge of the overall marketing process and how to market, it is imperative you find someone who can mentor you and teach you how to market. There are programs out there where individuals offer quality training, support, and mentoring aimed at teaching people how to market. In order to be successful in making money online, you must know how to market. If you don't know how, your best bet is to find someone to teach you.

When looking or an opportunity to make money online, you are also going to want to consider the time your advertising budget as well as the time you can commit to your business. The fact is if you do not have any type of advertising budget, you are going to have to rely on free marketing techniques and methods in order to drive traffic to your sites. To successfully implement free marketing mediums, they require an investment of your time. Therefore it is critical to asses the amount of time you can devote to a business and what type of marketing budget you have in place. These factors will have a significant impact on what marketing strategies you will be able to implement and have a direct impact on your success.

One last area you want to look at when trying to find an opportunity to make money online deals with your goals and expectations for the business. What type of expectations and goals do you have? What type of money are you looking to make? These are important questions you should answer. If you're looking to make 1,000 per week, you would be hard pressed to do so selling affiliate products where you earn a commission of 10 per sale. The fact is some opportunities are more expensive but have greater upside in terms of the income they can generate. You will want to figure out what your goals are how they relate to the amount of money you can invest and make a decision accordingly.

In looking for an opportunity to make money online, you should address the above key questions. Doing so will better enable you to make a good decision with respect to the opportunity you decide on and ensure that it is a fit for your situation with respect to the skills you possess and the resources you have available to you.

Information for Novice Traders

2007-09-20T07:47:00.000-07:00

Are you interested in stock trading? If so, this is an industry that may intimidate you for one reason or the next. But remember, everybody started trading somewhere. By obtaining the proper information, you will be able to trade like a professional in no time at all.

As a novice trader it is very important for you to learn as much as you can about this industry. Not only do you want to do some research on your own by talking with others, but using the internet should also be at the top of your list. Believe it or not, there are many great resources available online which help to teach novice traders how to move forward with success.

When searching online you will come across a lot of information on trading. Novice traders will want to start out by searching for information on how to get started, basic terms, and other ground level details. From there, you can begin to dive into money making techniques, reading quotes and charts, and more advanced theories.

The biggest mistake that novice traders make is that they get caught up in the money. They know that they can make a lot of money by trading stocks, and of course, this clouds their vision of the future. Instead of learning the basics, these novice traders try to jump right ahead to the money making part of the deal. More times than not, this is going to end up in failure.
All in all, every trader was a beginner at some point in his or her career. As a novice trader, take the time to learn the basic details before moving forward with anything more advanced. When you get off to a good start, it is much easier to carry this momentum forward in the future.