Selling Stock - It's All About Timing
By Amit Malhotra
Perhaps selling your options in the market is the decision taker for all the profits and losses. Selling, when talking as activity, is actually the most important aspect for any business and the same applies to this market. Each trader trades in different options of different companies, whether they are purchased for day trading or options have to be sold according to market conditions. However, selling of those options demands a better timing and great coordination to the market conditions.
Well, it should be noted that timing for sale of stocks is never perfect and satisfactory. Most of the traders, before they sell, keep a hold of them for some time. They seek that as soon as the profit line starts to decline, they can sell that and when they are at their minimum price, they try to grab their ownership looking for the increase in the price in the near future. However, for long-term investors, his decision for buying and selling is comparatively easier as they have a whole lot of analysis with them on the movements of stocks.
The selling part of trading is especially not easy. There are two conditions in the process of selling despite the ups and downs of the market. In the first case, there is always a probability that the trader might hold them, and in respect to its future down coming, he may end up selling them. However, most of the times, they feel that holding the stocks for some more time would fetch them some more profit. This situation must however, be avoided because a sudden downfall might have brought the trader losses.
When the stock is going down, some traders sell them and end up having less profit or no profit. But some traders hold that options with them with the hope that it might increase in the next future. This trading technique, here, completely turns out to be a failure most of the times. It should be noted that there are rare cases that they go down and shoots up in next future. Here, a trader who holds them might have to bear heavy losses. Hence, it is advisable to sell those options as soon as possible when it goes down.
However, a trader might hold that stock but this decision should accompany a well-calculated approach. The past trend of the particular ones must be well studied and if it shows better recovery aspects than there is no harm holding them for the future growth. Hence, it can be concluded that selling stock is all about timing, though, timing is never perfect but proper calculations can fetch a day trader better returns.
Open an account with sogoinvest If you are new to sogoinvest: Online stock trading investment Article Source: http://EzineArticles.com/?expert=Amit_Malhotra |
A Stock Day Trading Tip To Select Symbols With Sufficient Intraday Range
By Matthew Mc Dermott
You may day trade small share size amounts for whatever reason. It could be that you are starting out in day trading, you have to reduce your trading size for any number of reasons (e.g. trying to break out of a slump so you want to get some "small winners under your belt"), or your money management rules state that you must trade a smaller share size for now. If you are in this position, yet you still want to have respectable profit potential, consider this day trading stock tip to help you focus your time on those symbols with sufficient "intraday range."
In day trading, the "intraday range" is defined as the day's High Price minus the day's Low Price. This value will tell you much about the stock's movement during the day and how market participants (including fellow day traders) perceived the stock's value for that particular market session. It also shows you how much profit potential you "theoretically" could have made if you had bought at the day's Low Price and then sold it at the day's High Price; the inverse would be true for shorting a stock.
Since you do not know how much of a range any particular stock will have tomorrow, take a look at the stock's "character" to determine if it should be a symbol you add to your "watch list" the next day. Many software packages offer a value for the 20-Day "Average Daily Range" which takes the previous 20 intraday range values and averages them. You may get this value from other websites and add-on software packages if necessary.
Assuming you already filtered your universe of possible day trading stock candidates by price, minimum (or, in some cases, maximum) Average Daily Volume, exchange on which the symbol is traded, and any other filtering methods you use, get the 20-Day Average Daily Range values for the symbols which are still in your universe of possible day trading candidates. For each symbol, take the 20-Day Average Daily Range and divide it by the previous day's Closing Price. Convert this value into a percentage.
Then do the same calculation with the symbol's corresponding sector index (or even a broader index like the S&P 500). Those symbols with the largest percentages, especially those which have larger values than the sector/broader index, will be the symbols with possible (although never guaranteed) chances of having significant intraday range the next day. If you employ intraday trend trading strategies using smaller share sizes this could be a useful tool to help you narrow your focus.
Of course, you are welcome to use another time frame instead of the 20-Day Average Daily Range. Also, be careful of intraday "air pockets" where you may not be able to get out of a trade at the price(s) you wish due to a lack of liquidity at the time you wish to exit your position. Day trading stocks with significant intraday volatility can result in significant slippage and impact to your trading accounts, so be disciplined if you use this suggestion. Finally, all standard trading/investing disclaimers, including the one at DayTradingStockTip.com, apply here.
Did you find this day trading stock tip to be helpful? If so, you are welcome to visit http://www.DayTradingStockTip.com for more useful articles to help you with your trading. Links to other resources are included for you on the site as well.
Article Source: http://EzineArticles.com/?expert=Matthew_Mc_Dermott
Focus On Momentum Stocks- Utilizing Movements For Profit
Recently, the stock market has been performing, but not at very high levels. There has been a simultaneous increase in the focus on momentum stocks. This focus on momentum stocks is easy to understand when you consider their history: in the past, they have proven that they are a reliable system for generating income in the stock market.
Trade big, this is the key to stock market success. Any stock market strategy's success hinges on using the trading system to your advantage. There are several different strategies utilized by people today with focus on momentum stocks being one of those strategies.
The concept behind the stock market is to purchase shares of a company that is doing well or just starting off new. When you purchase them at a certain price you hope that the market will go up around that company's shares. At that time you are able to sell the stocks at a higher market price and make a profit on that sale.
Momentum stock strategies require that you more fully define both stocks and company types that you are willing to consider trading on. You will determine a stock or a particular market that is performing well, then take a certain stock on that market that appears to be moving with more momentum than other stocks in its industry group.
By taking this action, you put yourself in the position to own the best stocks that have the greatest likelihood to perform well within their group. You give yourself the best possible chance to succeed. Owning a stock that is in a state of positive momentum allows your stock shares to continue their positive direction of growth and achieve higher profits.
The momentum strategy in stock investment is one that frees you from the need to constantly buy and sell many shares and spread your investment funds among as many diverse stocks as possible. Instead, you ride the momentum of the market when it urges your company's stocks higher, and this is likely to be sustained when the momentum stock strategy is used.
Article Source: http://www.articlesnatch.com
About the Author:
For smart investors, the trend is to focus on momentum stocks. They have been proven to be useful in generating income in the stock market. This strategy requires that you fully define both stocks and company types that you are willing to consider trading on. By having a stock with momentum your market is encouraging your shares to continue to ride that momentum into higher levels of gain.
Tips about investing in technology transfer
By: Ganesh_SEO
Of all the investment options that are floating around in the market waiting for a good investor’s eye, technology transfer is the most lucrative one. It was a yesteryear trend for big companies to acquire licenses for products which were new and did not have an established market and customer base. Most big companies like GE have been active in the process of technology transfer and have acquired several licenses. But now this trend is fast changing. Big companies today wait for the product to enter the market and if possible prove itself and generate a good market value. Then they buy the start up company itself. In come cases they wait until the start up has a good distribution system as well.
For the investor
If you are an investor and are looking to invest in technology transfer, then you might just be a bit confused. It is not as easy as you think as there are innumerable technologies out there. How do you identify which technology is better for a start up and which one for a license to a larger company? Fortunately there are many companies who help you in selecting the right technology. These companies have an experienced team who has the right knowledge and expertise to identify a potential winner in the market. They look into several factors and completely analyze both the scientific as well as financial aspects of forming a company. Do the people in the company have the potential to take the company to the next level of success?
Seek help if you are new
If you are new to the field of investing in technology transfer, then it is recommended that you seek help. You need to analyze the risks, look into the returns and then take an informed decision.
For more Information on Investing in technology transfer Visit Investing in technology transfer.
Article Source: http://www.eArticlesOnline.com
Is the Superfund Capable of Restoring Confidence?
By: dane
The M-LEC, as it is called, has been created in order to restore investor confidence in some areas of the economy that are neccesary for credit to maintain its liquidity, or ease of transference from one entity (a bank) to another. This loss of liquidity comes in the wake of the discovery of high-risk, sickly subprime mortages that have been sold off in pieces, often in the form of supposedly secure money market funds to thousands of investors. Over the past several years, those funds have changed hands so many times that their spread is difficult to chart for the average investor, who therefore loses confidence investing in a potentially tainted company or financial institution, which, over time, results in a credit crunch, which is a surefire recipe for recession.
In order to avoid such an outcome, this superfund aims to selectively buy large number of securites from what is called Structured Investment Vehicles- or SIV's, which sell so-called "commercial paper" to finance themselves. Commercial paper is sold at most of what it is worth and matures quickly (over a period of months rather than years) which, although a risky investment (because it has a smaller percentage of the investment reserved in case of a drop in value), means it can quickly be converted into a more stable form, most often in a money market fund. Bond rating institutions rated the money market funds as being much safer than they actually were, because SIV's transfer the securities through commercial paper before they make their way to the stable funds. Since it became more apparent that these small conduits only appeared to be trustworthy investments, they have lost popularity and have few potential buyers.
Although this is not inherently bad, it reflects two scenarios. The first possibility is that the market is functioning improperly due mostly to a loss of investment confidence, which depends on the perception of the average investor that the economy is stable and therefore worth investing in. The other possibility is that the economy is unstable due to real underlying debts that cannot be avoided, and therefore this new conduit is just a smokescreen for the big banks to pay lip service for making so many bad loans in the first place. The second scenario is unfortunately the more likely one, which means a recession could be unavoidable. The reason the conduit functions ineffectively is twofold: because it depends on the bank's promises that they will buy the SIV's assets even if no one else will, thus placing an artificial incentive in place for investors, and because the bank's guarantee is also dependent on their securities maintaining a certain amount of their value. This means that the financial institutions can take fees from the securities in exchange for an incomplete guarantee, thus justifying their purchase. The fund could theoretically have a positive impact, if willful suspension of disbelief takes hold of the globe, or if you view a slowdown in the US economy as a positive outcome.
Living in Austin, Texas Ki works to help clients interested in the Austin real estate market. If you are looking for a home in Austin his site provides a search of the Austin MLS along with more general information on his Austin Real Estate Blog.
Article Source: http://www.eArticlesOnline.com
Traders - How To Avoid Tripping Yourself Up!
By:Nazy Massoud
Have you been in situations where you had several winning trades which were wiped out by one losing trade?
Have these become a pattern?
Like some of my clients, you may be saying, I have spent hours creating my plan. Then you start the day with every intention of following it. After a few losing trades, you lose your control and with that, your plans go out the window. You try to make up for your losses by chasing after deals and increasing the size of your trades. So you get in at the wrong entry point and the size does not warrant the risk.
The other scenario I have heard is that you have started the day by following your plan. You are making money. Then you feel that you are on a roll and you do not have to follow any plans. You know what to do and you go for a trade which was not on your plan, with bigger sizes than other ones. Then it happens. You wipe out all of your winnings.
You wonder what happened. Where did I go wrong?
You might start blaming your system. Therefore, you go from one system to another. With each system producing similar results, you get more and more frustrated and angry. Not only are you losing money on your trade, you are losing money and time on all the new systems that you are buying
Next, you might say to yourself, I do not know enough. Therefore, you are buying one book after another. You attend one seminar after another to get more familiar with trading. Yet you are not seeing that much of a difference in your results. You are wondering what has happened. Why am I not getting the results that I want?
You might even think, It is the type of security that I am trading. This is not the market for me. So, you change markets. Yet you go through similar frustrations, headaches and results
No matter what you do, your results are still not what you expect them to be. So, you might throw your hands up and not know what to do.
Any of these scenarios sound familiar? If so, you are not the only one. Lots of traders go through these.
The most successful traders know the secret. They know what it takes to be successful. They know that their secret to success lies in their mindset. It is the mental edge that they develop which separates them from the rest of the traders.
So what are 7 steps that you can take when your trades go against you?
1. When the trade goes against you, get out of the trade Do not move your stops.
2. Clear your mind before doing another trade. Then you are not reacting to your loss. You can concentrate and find the right trade for you.
3. Look at each trade individually. By doing this, you are not influenced by the result of previous trades and are not taking unwarranted risk. Hence, when you are up, you are not risking all of your wins. Similarly, when you are down, you are not increasing the size of your trade to make up for what you have lost.
4. Have a Trading budget and stick to it. Only invest the amount that you can lose.
5. Think about trading as a game similar to Monopoly. As you know, each game has its rules and as you become more experienced in it and become more comfortable with the rules, it becomes more fun
6. Stick to your plan One of the best ways that I have heard someone defining trading is: Trading is simple, but not easy. And the greatest difficulty is to accept the simple rules and obey them with discipline.
7. Remember, it is a process You have to stick to your plan for a while, before jumping from one thing to another. As Michael Jordan says:
"I have missed more than 9,000 shots in my career. I have lost almost 300 games. On 26 occasions, I have been entrusted to take the game-winning shot...and I missed. I have failed over and over and over again in my life. And that's precisely why I succeed."
By following these simple steps, your career as a trader will become more effective, more rewarding and ultimately more successful.
Remember: Perseverance is key! Like Albert Einstein said:
It's not that I'm so smart, it's just that I stay with problems longer.
To Making Success Your Habit,
Nazy Massoud
source:users.search-o-rama.com/
Investor Relations, Global Markets and Reg NMS
We are constantly refraining the three reasons why market structure matters to investor relations practitioners right answers to questions, right places for IR time and effort, right IR measurements. Now, lets apply options expirations to these actions.
Last week marked the expiration of monthly options. We noticed that overall market structure changed in advance on Monday October 15. We also saw how European, Asian and American markets behaved like pistons, going up and down in small increments. Market gurus would have us believe these swings are indications of fear and greed tied to credit or economic concerns. Whether investors are engaged in continual bipolar reaction or not, we dont think this explanation has much merit.
Why does this matter to IR efforts? Because its important to understand the thinking of your shareholders if youre to accurately answer questions, effectively expend effort and correctly measure results. Poring over the data, heres what we think: Regulation National Market System (Reg NMS) in the U.S. markets has moved the search for arbitrage beyond individual market centers onto the global stage (its not fully possible yet, but the data tell us its getting easier). This comes as little surprise. But the degree to which volume distributes among big American broker-dealers, and big European broker-dealers and Asian structured-products specialists is quite remarkable.
And no matter what traders may say, options expirations are like Santa Ana winds for equity values these days. Derivatives are very liquid and constantly in motion. Still, swings of a percent or two each day played out over a yearthe opportunity for gains and losses is both alluring to investors and difficult to measure. Its not 5-10% at a whack, but little pieces done fast and continuously. These actions impact availability of liquidity to fundamental investors, and the transactional nature of equity markets reshuffles sellside priorities.
If you want to be an investor relations star these days, you need to know this stuff. In conclusion, lets go back to the three hooks.
Did your stock react to news or events or to a derivatives imbalance? This goes to correct answers.
Which sellside shops moved your stock price, and when? That addresses how and where, and even when, you spend your IR time.
How did money not volume respond to your calls and one-on-ones? This goes to measuring your IR activities.
The truth isnt in market structure alone, but if you dont know yours, you are taking a big chance with all three of the hooks.
About Athour
Tim Quast is a fifteen-year Investor Relations veteran and founder and managing director of ModernIR.com, which parses and categorizes over a half-billion shares per week with its trading intelligence system, Equity Analysis. For more information please visit: modernir.com.
Successful Forex Trading is Based on This Equation Understand it or Lose!
Kelly Price
What moves currency prices? - Sounds an easy enough question but most currency traders have no idea and that's why 95% lose. Let's look at the equation for market movement and see how and why prices really move.
A simple equation for currency market movement is:
Supply and Demand Fundamentals + Investor Perception = Price
SIMPLE BUT ...
This equation is simple but its also deceptive - lets look at the equation in more detail.
Prices move in line with the long term fundamentals and that's why the longer term trends last for months or years because they reflect the health of the economy - the fundamentals.
The facts are there for us all to see but we all see the facts in our own way not logically or as group, but blurred by our greed, fear and opinions which we hold.
If you try and trade news stories you will lose as what may seem obvious to trade is already old news and discounted in the market price. In today's world of instant communications the facts are available in a split second at the click of a mouse.
Will Rogers once said " I only believe what I read in the papers" he was joking of course but its surprising how many people trade they see on the net TV or radio and are surprised when they lose!
If you could make money by trading the news a lot of traders would be rich and their not they lose.
It's a common investment fact that markets collapse when the fundamentals are most bullish and rally when their most bearish.
This is human psychology at work where prices have been pushed to far away from the fundamentals by the emotions of greed and fear.
You therefore need to see both sides of the equation we covered earlier.
This is where forex charts can help.
If you trade off forex charts you see the reality of price and only have to follow and act upon it.
The fundamentals.
Forex technical analysis simply assumes that they will show up instantly in price action so you don't need to guess their impact - you can see it.
Investor Psychology
Forex charts also tell you how humans perceive the fundamentals as well.
All short term price spikes are due to human psychology and they don't last long and are quick and easy to spot on a forex chart.
While forex traders make mistakes about news and trading it, they also don't see the limitations of technical analysis and its strengths.
They assume that as human nature is constant, chart patterns can be predicted in advance with scientific accuracy - They can't.
If you try and predict with forex charts you will lose your equity quickly - on the other hand, if you get confirmation and trade with the odds you will win.
What is confirmation?
This means following moves AFTER they have occurred. Sure, you miss the start of the move but you can't catch that anyway, so don't try.
If you get just get a major chunk of the trend (60 - 70%) you will build big gains over the longer term.
The forex markets are hard to trade but you can trade them and the rewards are massive for traders who trade them correctly.
If you use forex charts and simply follow and act on the confirmation of price changes without listening to opinions or trying to predict, then the equation we have looked at can make you a lot of money.
It sounds simple and in essence it is, but you need to get the right forex education, find the best technical tools and trade when high odds trades present themselves with confidence and discipline.
If you do the above you are well on your way to currency trading success and making big FX profits.
BECOME A PROFESSIONAL FOREX TRADER FROM HOME
GRAB: 2 X CRITICAL PDFS AND MORE
For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive Forex Trading Course visit our website at:
http://www.learncurrencytradingonline.com/index.html
Source: http://www.articlesbase.com
A Simple Investment Trading Approach
Some people call Forex the "Best Kept Secret in the Investment World" because even though the Forex market is the largest and most liquid financial market in the world, the average person doesn't even know it exists.
Unlike stocks or futures, investment trading in the Forex market is a 24 hour market. With the ability to trade during the US, Asian, and European market hours, you can customize your very own trading schedule.
Investment Trading is not a Get-Rick-Quick scheme. It is a skill that takes time to learn. Here are a few ways you can participate in Forex trading
1. Hiring Someone to Trade for You
By doing this, you hire a money manager to make the trades for you, pay them a commission, and pretty much relinquish control of your money
2. Learn Investment Trading On Your Own
This can be quite expensive if you enroll in a workshop, not to mention time consuming. To get you started, I would recommed you get my Free Forex Investment Guide. This guide explains how the currency pairs work, the interest you will earn from your trades, and most importantly what to do and when to do it. This free guide is a good way to introduce yourself to investment trading.
3. Subscribe to an investment trading software package.
In many cases, there will be a monthly fee to use the software but it will also give you access to the tools and education you need to setup your own investment trading account.
Our Forex Investment Trading Strategy
It's important to understand that our investment trading strategy does NOT teach people how to be directional traders. This means you will not learn how to "guess" which direction the market will move next. Neither do we provide you with a signal service.
What you will receive from our investment trading strategy is unlimited access to the internet-based software and unlimited access to training webinars that will show you exactly how to use the program and how to place your trades on various broker platforms. We will show you how to set up your own account and in just a few minutes a week, you can manage your very own portfolio.
There are no charts or graphs to read and no research or signals to follow. You will trade currency pairs which, historically speaking, move in opposite directions and decide when to enter or exit your positions. Our investment trading strategy relieves you from having to watch the markets all night, when they are most active, waiting for a trading opportunity. After you make 3 basic decisions based on your personal preferences, the program will calculate the number of lots to buy along with the corresponding buy and sell points for each currency pair you choose to trade.
3 Ways to Generate Revenue
Buy Low & Sell High
Our investment trading strategy will use the amount of money you plan to invest, the currency pairs you choose to trade, and the level of volatility that you are confortable with to give you a preset price point to enter into a free brokerage account of your choice.
Once your account is set up, it will buy or sell a certain number of lots of each currency pair, even while you're at work or asleep. Since we don't know which way the market will go, the price points are preset to either buy low or sell high. You also have the option to receive a cell phone text message or email letting you know that one of the price points had been reached. What you need to do next is tell the program what happened so that it will give you new buy and sell points to set up again.
Collect Daily Interest
By using our investment trading strategy, you can earn passive income on the difference in interest rates. After your portfolio is set up, you will be paid daily interest on the money you control in the market. When you buy a currency pair, you receive interest from the first currency listed in each pair, and pay out interest on the second currency in the pair.
For example, interest on the dollar swiss would be: USD 5.00% minus CHF 1.36%. The net difference of 3.64% is what you would earn annually. These calculations are done automatically by your broker without any intervention from you. This interest is paid on the money you invested and also on the number of lots you own.
The Power of Leveraging
Leveraging means that for every $1 you use to buy currencies in your investment trading account, the broker you are trading through will make available to you as much as $400 to control in the open foreign exchange market.
Without question, the potential returns from investment trading in the Forex market are great. The decision you need to make now is how you would like to participate.
About the Author
Adrianne Geyer has a Computer Networking degree and has been a full-time Internet Marketer since July 2000. To learn more about the Investment Trading approach she's currently working with, click the following link and Take a Free Tour.
Read More......Overcoming Trading Fears
by Frank Topino
It's been said that trading is 90% emotional, and 10% technical. Never is this statement truer than when you are in the first stages of your trading career. Do you often find yourself (or used to) thinking, "Damn, why didn't I take that trade. Chart setup was perfect. What was I thinking! I was so afraid of pulling the trigger". Well, if that's the case, you have probably entered the "trading mental block" zone.
Let me tell you a bit about the early stages of my trading career. Back in '99, I was in my senior year of college, studying Finance and Investments in NY. Since I was planning to embark upon a trading career as soon as I finished college, I decided to give myself a head start. I decided to start doing a little bit of trading on the side, to get a feel for how trading worked, to test the waters!
So I armed myself with a Tradescape account, took some college money(note this as it will be crucial) and dumped it into the account, and off I was, trading in the early to mid morning, and going to classes afterwards. I remember I "liked" trading JDSU which, in those days, was trading well over $100. I emphasized I "liked" because the first 2 months I didn't really place that many trades. In fact, I was very busy watching my stocks fly away and, much to my chagrin, in the direction I originally predicted. I was afraid of pulling the trigger. And it was getting worser and worser. Almost every time I was about to place a trade, I had some kind of weird mental block and my index finger froze on the mouse. I had to do something about it.
First of all, I decided to go back to paper trading for a while. That would give me some time to clear my mind a bit and do some situation analysis. Sooner than later, I realized I had made several medium to large size mistakes in my early trading career, both emotional and technical.
Technical mistakes
- No newbie should trade a high priced - high flyer stock such as JDSU at that time. Those stocks shouldn't even be paper traded!
I fixed this by choosing lower priced stocks trading around $50 at maximum. Later, I fell in love with NITE, which was trading right around $50 in those days.
- I was not keeping a trading journal of my actual wins and losses, and my trading setups in general.
I started keeping a daily journal of all my trading activities. I took notes of all the trades and their outcomes. I filed every chart or trading setup and the reason why I liked/disliked it. I wrote down everything. This helped me a lot figure out whether I was right in my predictions or not. Thus, it helped build more confidence in myself.
Emotional mistakes
- Earlier in the article, I mentioned that my initial trading stake was taken from money originally apportioned for college expenses. This was a major flaw in my trading approach. Never ever play with scared money. Scared money is funds you cannot afford to loose. Be it college money, retirement money, or whatever monies which was not originally regarded as risk funds. That kind of money weighs heavily on the amount of pressure traders have to already go through. It's money you just can't loose. As a result, you tend to sit on the sidelines on most trades, you exit too early on good trades, or stay too long in loosing ones.
I was able to solve this major flaw in my trading plan by postponing any live trading to a later time. That is, as soon as I would finish my college studies. In the meantime, I saved a few hundred dollars every month and divoured every trading related material I could put my hands on. And of course, I paper traded a lot! This way, I was able to stash away a little risk capital and have a fresh start again, free of any financial related worries.
Of course, other causes might be playing an important role in your trading state of mind. For example, having a mentor can sometimes help overcome any fear you may have at the beginning. However, most times trading fears stem from an increased pressure to either make money or not loose money. Solving this issue first is of paramount importance for new and seasoned traders alike.
About the Author
Frank Topino is a full-time trader specializing in US equities. He is also the founder of Trading-Lab a high quality trading content portal catering to the investing and trading world.
www.trading-lab.com
Article Source: http://www.trading-lab.com/forums/overcoming_trading_fears-t38.html
Read More......
Lies, Damn Lies and Mutual Fund Returns
How many times has this happened to you? You're at a social function and the conversation turns to investing. Pretty soon, people are comparing how well their investments are doing. As you might imagine, being an investment advisor this happens to me a lot. However, I recently had an experience with it that startled me.
Bob, one of the guys I was chatting with at a party, asked what kind of returns I had made for my clients with my methodical no load mutual fund strategy during the past year. I replied that they had unrealized gains of slightly over 29%, after management fees, for the 8 months that we were invested.
Bob countered with a smirk that he had made a 40% return. I raised my eyebrows and told him that was darn good—and suggested that maybe he ought to be managing my money. At that point we were interrupted and, as the evening went on, I began to wonder exactly how Bob had gotten his great return.
I cornered him a little later on and, upon digging a little deeper, the story looked somewhat different. Yes, he had made a 40% return on a mutual fund he had some money invested in, however, we were comparing apples and bananas.
He had a total portfolio of $100k. Being cautious, he had invested only $10k into a mutual fund, from which he profited $4k after he sold it. The balance of his portfolio ($90k) was sitting in a money market fund earning some 0.35% per year.
So, while he had made 40% on 10% of his investment, he had only made 4.35% on his whole portfolio. My methodology was also focused on protecting my clients' investments and it had increased their entire portfolio 29% (unrealized). That would be an apple to apple comparison when measuring my returns against his. Bob's one fund realized 40% return. However, had I approached it the same way Bob had, I could have described one of the funds I used that had realized over 49% for the same period.
Actually, Bob's not-so-good-news story didn't stop there. Bob admitted to having followed the losing Buy and Hope strategy through the bear market of 2000 and had finally sold out at a 50% loss a year ago, before committing $10k to a mutual fund investment.
I was pleased to be able to tell him that my methodology had gotten my clients out of the market before the bear took his big bite, and they suffered only minimal losses before finding safety in money markets accounts. And when my trend tracking figures directed us to move back into the market, they still had most of their money poised to start earning for them again—which it did and very nicely, thank you.
The moral of the story is to look past the surface and don’t take any numbers thrown at you at face value. Remember, most people returning from a weekend in Las Vegas will shout about their winnings and mumble about their losses.
Source: http://www.articlesbase.com
Ulli Niemann is an investment advisor and has been writing about objective, methodical approaches to investing for over 10 years. He eluded the bear market of 2000 and has helped countless people make better investment decisions. To find out more about his approach and his FREE Newsletter, please visit: www.successful-investment.com.
Share Trading Techniques
Share Trading Techniques.
While perusing through one of my trading books, I came upon some fascinating facts that were very thought provoking, so I will pass them on to you.
The author is “Daryl Guppy” a well established author and successful trader as well.
He stated, that over time he noticed that once a share magazine was published that the stocks that were recommended by the magazine went into an uptrend, because the readers took notice of the tips given and bought them. Here are the statistics.
1. One month after publication 90% of the stocks mentioned were still in an uptrend.
2. Two months after publication 80% were still in an uptrend.
3. Three months after publication only around 45% were still in an uptrend.
Obviously it pays to buy the magazines each month and buy the shares mentioned.
But I personally would be watching them very closely and would be hanging on to them only till my preset profit level had been reached and I definitely would be out after a 5-6 weeks.
They would still have to qualify to my buying strategy in the first place if not I would not touch them at all.
Now a hint for you here, How I trial my” New Ideas” out is by “Paper trading.” That way I am not risking any of my money in something that I am not 100% sure of.
If you want to paper trade the places I use are www.asx.com.au and www.sharecafe.com.au both are free sites and you can find free information there as well.
Becoming a “Dividend Stripper.”
An interesting thing I found out was that apart from being share trader I have also become a “Dividend Stripper.” I shall explain this further as to what I do occasionally.
A dividend stripper is a trader who buys shares to qualify for the oncoming dividend and then sells shortly afterwards.
You buy before the “Ex Dividend” then you can sell the next day. Making sure of course you have the dates right in the first place.
But to qualify for the “Franking Credits” you need to own them for 45 plus 2 days.
1day for buying, 1day for selling plus 45 days = 47 days. Anything less and you miss out on those franking credits.
An interesting thing to note is that a stock’s share price invariably falls usually by the amount of the dividend paid after the ex dividend date expires.
Another trick is to buy the stock 2-3 weeks earlier in the hope that the share price goes up prior to ex = dividend.
A Warning About IPO’s.
The market seems to be inundated with IPO’S (Initial public offering) these new companies all seem predominately to be in the mining sector.
All eager to get in on the current “minerals boom”
A few opened up higher than the initial entry price. Most seem to be exploration of some sort or other. The flavors of the month are usually oil or uranium.
These are of course classified as “Speculative Stocks.”
Which can mean that once the cash has dried up and they haven’t found anything, they then have to either raise more cash or shut shop? And your cash has gone with them.
The rags to riches stories are many, but the road is littered with the crushed hopes and dreams of the unwary investors.
All are searching for that elusive pot of gold at the end of the rainbow.
So be wary, do your research, and don’t jump in blind. Be an informed investor.
If it looks to be too good to be true then it usually is.
Christopher Strudwick is a keen amateur share trader on the Australian Stock Market Visit his weblog for more free articles and useful information at http://www.asxnewbie.com
source:www.articlesbase.com
Banks Are Financing Life Settlement Investment Accounts, Diversifying Their Loan Portfolio Risks
By Dave Yelken
Banks are beginning to acknowledge the elephant in the room, that many of their loan portfolios are too heavily weighted with real estate as collateral. Nationwide property sales slowdowns, a decline (sharp decline in some markets) in real estate values, and the recent subprime mortgage meltdown have led more and more banks to look for other asset categories to diversify their loan portfolios.
Enter investors who want to leverage portfolios of life settlements. Life settlements are discounted cash settlements paid by investors to life insurance policyholders. In exchange, investors later receive the full amount of the life insurance policy upon the passing of the insured; a win-win transaction. Policyholders, who choose to sell their policy, receive cash now to enhance the quality of their remaining days. Investors receive an excellent return on investment, historically a double-digit return.
Along with that, investors also receive something quite rare in today's increasingly interconnected investment world; returns that are uncorrelated to market, economic, and geo-political forces. According to a review of the Life Settlements Fund Limited (Series I) in April 2006, "Life settlements...are not correlated to any traded market - whether stock, bond, currency or commodity markets - nor to political or economic upheaval. Once invested the only variable affecting a Fund's return is the life expectancy of the policies held."
The July 30, 2007 cover story of Business Week, Profiting From Mortality states "Moreover, [life settlements are] 'uncorrelated assets,' meaning their performance isn't tied to what's happening in other markets. After all, death rates don't rise or fall based on what's happening to commodities, say. Uncorrelated assets like these are highly prized in an increasingly connected global financial system." Life settlements bring a true measure of diversification to investment portfolios at a time when most other investment asset categories are increasingly operating in parallel.
Banks have taken notice. An asset that diversifies an investment portfolio also diversifies a loan portfolio. A life settlement is essentially a contractual obligation of the life insurance company to pay a predefined amount in the future. Naturally, the big question is, when? Holding life settlements from many different individuals mitigates the risk of "when" (just like the insurance company that sells thousands of policies, not knowing exactly when any individual will pass away). The more life settlements an investor holds, the more predictable the portfolio's rate of return will be.
In the past two years, aggressive investors have pursued financing to leverage their life settlement holdings, for two good reasons: 1) to increase their return on equity, and 2) increasing their holdings further mitigates life expectancy risks, and improves the predictability of their rate of return.
Banks, just like investors, are becoming attracted to the uncorrelated nature of risks associated with life settlements. Risk to principal is low, and the likelihood of a profitable outcome is quite reasonable. Payouts are backed by insurance companies with strong reserves. Combine the recent real estates shocks, and now we have an environment where more and more loan committees are prepared to entertain an, until now, uncommon collateralization for financing. It does not fit into any pre-existing lending "box". But the need to diversify their banks' loan portfolios, the quest for secure loans, and the desire for new high net worth clients, have, however reluctantly, forced banks to look outside the box. This author's agency has participated in negotiations for investors in Texas, Arizona, Illinois, and Nebraska to arrange such financing with commercial banks.
Wall Street firms are grabbing up life settlements in bundles, securitizing them, (siphoning a bunch of value out of them for themselves), and offering them to the public with mediocre returns (reference the above mentioned Business Week article). Savvy investors have learned to hold fractional life settlements outright, finance their holdings for leverage, and achieve the "institutional rates of return" that some on Wall Street would prefer they be excluded from.
Dave Yelken is a life settlement expert and the owner of Accelerating Wealth, LLC, a financial services agency based in Bedford, Texas. To learn more, and to receive Dave's free newsletter, please visit http://acceleratingwealth.com/
Article Source: http://EzineArticles.com/?expert=Dave_Yelken
Can The Superfund Restore Confidence in the Market?
Dane Smith
The subprime mortage sector of the U.S. economy has taken huge losses over the past several months as many high-risk loans have defaulted. A new fund aimed at stabilizing this sector unfortunately just repackages the same problems under a new name- the "Master Liquidity Enhancement Conduit." Can this fund have a positive impact?
The M-LEC, as it is called, has been created in order to restore investor confidence in some areas of the economy that are neccesary for credit to maintain its liquidity, or ease of transference from one entity (a bank) to another. This loss of liquidity comes in the wake of the discovery of high-risk, sickly subprime mortages that have been sold off in pieces, often in the form of supposedly secure money market funds to thousands of investors. Over the past several years, those funds have changed hands so many times that their spread is difficult to chart for the average investor, who therefore loses confidence investing in a potentially tainted company or financial institution, which, over time, results in a credit crunch, which is a surefire recipe for recession.
In order to avoid such an outcome, this superfund aims to selectively buy large numbers of securites from what is called Structured Investment Vehicles- or SIV's, which sell so-called "commercial paper" to finance themselves. Commercial paper is sold at most of what it is worth and matures quickly (over a period of months rather than years) which, although a risky investment (because it has a smaller percentage of the investment reserved in case of a drop in value), means it can quickly be converted into a more stable form, most often in a money market fund. Bond rating institutions rated the money market funds as being much safer than they actually were, because SIV's transfer the securities through commercial paper before they make their way to the stable funds. Since it became more apparent that these small conduits only appeared to be trustworthy investments, they have lost popularity and have few potential buyers. Although this is not inherently bad, it reflects two scenarios. The first possibility is that the market is functioning improperly due mostly to a loss of investment confidence, which depends on the perception of the average investor that the economy is stable and therefore worth investing in. The other possibility is that the economy is unstable due to real underlying debts that cannot be avoided, and therefore this new conduit is just a smokescreen for the big banks to pay lip service for making so many bad loans in the first place. The second scenario is unfortunately the more likely one, which means a recession could be unavoidable. The reason the conduit functions ineffectively is twofold: because it depends on the bank's promises that they will buy the SIV's assets even if no one else will, thus placing an artificial incentive in place for investors, and because the bank's guarantee is also dependent on their securities maintaining a certain amount of their value. This means that the financial institutions can take fees from the securities in exchange for an incomplete guarantee, thus justifying their purchase. The fund could theoretically have a positive impact, if willful suspension of disbelief takes hold of the globe, or if you view a slowdown in the US economy as a positive outcome.
Living in Austin, Texas Ki works to help clients interested in the Austin [/a> real estate market. If you are looking for a home in Austin his site provides a search of the http://www.escapesomewhere.com > Austin[/a> MLS along with more general information on his http://www.escapesomewhere.com Austin[/a> Real Estate Blog.
source:users.search-o-rama.com/
Fortified Holdings Corporation (OTCBB: FFDH), Featured in an Audio Interview at SmallCapVoice
The overall mission of Fortified Holdings is to build shareholder value through the acquisition and profitable growth of early stage technology driven companies which have successfully demonstrated proven expertise in the design and implementation of next generation products and solutions for the growing law enforcement, defense, homeland security, C4ISR, emergency response, corrections, and security markets.
Fortified Holdings transforms early stage market focused companies into synergistic business units offering increased capabilities, access to new markets, shared services and the ability to deliver breakthrough products and industry changing solutions in the areas of; Deployable Command Control, Mobile Rugged Server Technology, Sensor and Surveillance Technologies and Force protection.
Their subsidiaries include:
Fortified DataCom – Who delivers solutions that transfer the latest in voice and data communications, mission command, security, surveillance, ‘blue-force’ tracking, rugged data storage and mobile mesh networking technologies into tactical command solutions for deployment anywhere in the world.
Fortified DataCom recently shipped its NOMAD C4XSB Command & Control communications package to the Department of Emergency Management for the Town of Coventry, RI (pop. 34,672) The NOMAD Incident Control Platform along with the rest of Fortified’s products are designed for interoperability, scalability and are priced affordably for organizations both large and small. This sale represents clear indication to the emergency services marketplace that the product meets the requirements for alternative funding sources.
Company CEO Brendan T. Reilly commented, "We are extremely excited to see that even smaller municipalities are now able to access advanced emergency communications capabilities. With nearly 5 billion dollars of grant funding available, virtually every town across the nation could take advantage of this opportunity to ensure their operational capability is intact in virtually any emergency, especially those situations where local power and infrastructure is knocked out. We see this as an extraordinary opportunity for municipal emergency managers from coast to coast to improve their operational readiness with little impact on budgetary restrictions."
FFDH’s subsidiaries also include:
Fortified Intelligence – Who specializes in the design and integration of software for enhanced situation awareness and field based decision support.
Fortified Labs – Who will oversee research programs and development of new products as well as the management of licensing agreements and joint venture opportunities.
Fortified Holdings Corp. aims to become a diversified internationally focused holding company with a portfolio of dynamic and rapidly expanding industry leading subsidiaries servicing the needs of first responders, the military, relief organizations, high-risk industries and similar sectors. It completed the acquisition of its first such business, Z5 Technologies, in September 2007. The proposed subsidiaries and the portfolio companies within them will all share a common goal of designing, developing, manufacturing and globally marketing products and solutions designed to enhance the ability of personnel in this sector to collaborate, to provide improved security services, and to respond to individuals and communities in need at times of crisis.
About Small Cap Voice
SmallCapVoice is a recognized corporate investor relations firm, with clients nationwide, known for its ability to help emerging growth companies build a following among retail and institutional investors. SmallCapVoice utilizes its stock newsletter to feature its daily stock picks, audio interviews, as well as its client's financial news releases. SmallCapVoice also offers individual investors with all the tools they need to make informed decisions about the stocks they are interested in. Tools like our stock charts, stock alerts, and our investor fact sheets can assist with investing in stocks that are traded on the OTC BB and Pink Sheets.
Article Source: http://www.articlesnatch.com
About the Author:
Contact:
Stuart T. Smith
CEO of SmallCapVoice
Small Cap NewsletterorSmall Cap Stock Investing
Article written by Stuart T. Smith
Article Submission by Small Cap Stocks
Trader Psychology Is More Important Than Mastering The Art Of Stock Picking
by Tom Sanders
I'm sure the title of this article will seem like heresy to many, but l truly feel that to be successful as a trader doesn't require that you be an expert at picking stocks. Far too many people spend all their time worrying about what stock to trade only to blow the trade due to poor discipline.
Obviously no one can be successful in the markets if they can't pick a winning stock, but that doesn't mean they need to pick it themselves. There are sources of penny stock picks with a reasonably high success rate to make anyone with self discipline and good risk and money management a fair chunk of change over time. One of these that I currently take advantage of is the Doubling Stocksnewsletter which provides penny stock recommendations based on Marl, the stock trading robot.
Having said that, regardless of how good your stock picks are or where they come from, if you don't have the discipline to trade the stock properly then it really doesn't matter how good the stock pick is. How often have you been in a trade that starts to move against you but rather than getting out you talk yourself into staying because you're "sure" it will turn around again. And why are you so sure? Because you've convinced yourself that you are right and the market is wrong and it will correct itself if you just hang on a little longer. If you've been trading for a while then you've been there. I know you have. We all have.
How about this one; the stock is moving in the right direction but because you are greedy you fail to take profits when you should, even though you told yourself you would before you entered the trade. You failed to do it because you were sure it would go higher. You were greedy and you broke your own rule, whatever that rule may have been. Then the stock drops back by 10% before you bail out. You've just lost some cold hard cash because you didn't have the discipline to follow through on the rules you made before the trade.
It's always easy to decide what your rules of engagement are when you're not exposed in an actual trade. In fact this is the right time to make trading decisions, when you're least emotional about it. Once we enter the trade we're immediately invested, both financially and emotionally, and it's very difficult to behave rationally. This is true for beginners and experts alike. If you're a poker player you probably understand this very well. Mastering the calculation of odds in poker is actually relatively simple, mastering your emotions about a hand is not so simple at all.
I believe if the average trader took advantage of a successful stock picking service or newsletter, like the Doubling Stocks newsletter, and spent their energy mastering their own psychology they would see a much bigger bang for their effort.
There are other successful penny stock picking newsletters than the Doubling Stocks newsletter, but this is the one I'm currently using and finding great success with. In addition to personal trading psychology is the art of risk and money management for traders which can also receive much more focus if you're not weighing yourself down with trying to pick the big winner.
I highly encourage traders to spend more time working on their psychology and less time worrying about how to pick a winning stock. After all, picking a winning stock is something you can offload to an expert, but executing the trade properly is something you have to deal with yourself.
If you'd like to learn more about Marl the stock trading robot and the Doubling Stocks newsletter please see my review
Is Doubling Stocks a Scam or a Godsend?
If you'd like to learn more about the risk and money management techniques I use be sure to sign up for the Doubling Stocks Bonus Pack, your FREE Trader's Guide to Money Management
Tom Sanders
http://www.MrAutomate.com
About the Author
I have a degree in physics and a minor in computer science. After two years developing software for particle physics research I found my true passion in the markets. For nearly a decade now I've been developing automated trading systems for both the stock market and the Forex market. Currently I make my living trading from my home Canada.
Swing Trader - Moving Averages
by Chad Surges
Moving averages are one of the most popular technical analysis tools. A moving average is an average stock price given over a specific period of time. Many swing traders will use moving averages as guide to tell them when the best time is to buy and sell stocks. Swing traders are always looking to avoid the downswings in the market that hit the typical buy-and-hold investors hard at times. Many investors prefer to use candlestick charts along with moving averages in an attempt to predict the future movement of a stock.
So moving averages are definitely more important for the short-term swing trader. Of course there are simply no guarantees when it comes to the future movement of any stock. However, with some practice and knowledge the use of moving averages can definitely give you a leg up when it comes to getting into and out of stocks with better accuracy. If you plan on being an active short-term swing trader then learning the basics of how to use candlestick charts and movings averages is a must.
For more information visit: www.lucky-dog-investing.com/moving-averages.html and www.lucky-dog-investing.com/candlestick-charts.html
About the Author
Chad Surges has a Bachelor's Degree in Business. He invites you to visit his website: www.lucky-dog-investing.com
Tips about investing in technology transfer
By Ganesh SEO
Of all the investment options that are floating around in the market waiting for a good investor’s eye, technology transfer is the most lucrative one. It was a yesteryear trend for big companies to acquire licenses for products which were new and did not have an established market and customer base. Most big companies like GE have been active in the process of technology transfer and have acquired several licenses. But now this trend is fast changing. Big companies today wait for the product to enter the market and if possible prove itself and generate a good market value. Then they buy the start up company itself. In come cases they wait until the start up has a good distribution system as well.
For the investor
If you are an investor and are looking to invest in technology transfer, then you might just be a bit confused. It is not as easy as you think as there are innumerable technologies out there. How do you identify which technology is better for a start up and which one for a license to a larger company? Fortunately there are many companies who help you in selecting the right technology. These companies have an experienced team who has the right knowledge and expertise to identify a potential winner in the market. They look into several factors and completely analyze both the scientific as well as financial aspects of forming a company. Do the people in the company have the potential to take the company to the next level of success?
Seek help if you are new
If you are new to the field of investing in technology transfer, then it is recommended that you seek help. You need to analyze the risks, look into the returns and then take an informed decision.
About the author:
For more Information on Investing in technology transfer Visit Investing in technology transfer.
Source: http://www.Free-Articles-Zone.com
Problems With Technical And Fundamental Analysis
So are you more of a technical or fundamental investor?
A technical investor will simply rely more on stock chart patterns to decide when to get into or out of a stock. Of course the problem with this approach is it is by no means full proof. Although many investors like to talk about chart patterns the truth is they are very unpredictable. If you just base your stock picks on chart patterns alone you will probably have quite a few poor trades.
A fundamental investor tends to be more of a long-term investor who looks at the underlying variables related to a particular stock such as the earnings and profits. The one big problem of only using fundamentals is that many times a fundamental investor is relying on future estimates related to a stock which can be very inaccurate. Another issue is that investors have to rely on numbers being provided by a company; which are not always displayed in a truthful manner.
So which method is better?
Well a technical investor is probably a bit more of a risk taker than a fundamental investor. However, the rewards of a successful short-term technical trader can greatly outweigh those of a long-term fundamental trader. This is because short-term technical traders try to only catch the upswings in the market while eliminating the downswings. Where as fundamental long-term traders tend to hold onto stocks during both the upswings and downswings in the market.
With all things considered the best method for being successful in the stock market is simply knowledge and experience. When you first start out you will definitely find out there is more to investing in stocks than buying low and selling high.
For more information please visit: www.lucky-dog-investing.com/problems-with-technical-analysis.html and www.lucky-dog-investing.com/problems-with-fundamental-analysis.htmlAbout the Author
Chad Surges has a Bachelor's Degree in Business. He invites you to visit his website: www.lucky-dog-investing.com
source:www.goarticles.com
Read More......
Why Is A Great Investment Adviser So Hard To Find?
Great experts are always hard to find. They're always too busy working for others. Then it's not what you know, but who you know. Or you wait in line. The old expression used to be that "...when you're hot, you're hot!" Hot actors, accountants, doctors or ad agencies are always in demand.
Some say it's just one of those facts of life. Actually, it's basic economics: when demand is specifically stimulated in one area, it highlights the dearth of supply for similar quality. There are only so many great experts to go around.
Why would it be any different with investment advisers? Like architects, accountants, or actors, they come in all shapes and sizes. The problem of finding and keeping a good one seems to be magnified by how much money one has to invest. It logically follows that if an investment adviser is paid strictly by commissions, the more money he manages, the more money he makes.
What would you do? 'Show me the money!' is the old expression. This is not to say that there aren't investment advisers who won't work with you because you don't have millions to invest. Investment advisers come with different sets of motivation. There are IA's who would rather work only with women, others who like to specialize with those under 40, those who focus only on professionals, or independent business owners; some zero in on seniors, or mature adults, those older than 55.
Each of these respective target groups has its own dynamics and challenges. There are IA's to fit every single market segment's needs. It seems that the most important factor to some might simply be the amount of money you have to invest; or how much time it might take to service that client's account.
After all, the only two things any IA has to offer are her ‘time' and ‘expertise'...or access to it. Time is the one constant. Every expert or investment adviser has only so much available ‘time' to spend on his profession. Each investment adviser has only so much time to dedicate to the servicing and management of each client's portfolio. Naturally the larger the portfolio, the more time that might be allocated.
Some are very efficient and make the best use of this scarce resource. Others are not so fortunate. Which one you get depends on how you shop around, how diligent you are in your choice; what questions you ask during your search. Research has shown that one of the ways IA's greatly improve their efficiency and the accuracy of their work is to use as many digital, automated tools as they can.
These digital and automated 'tools' help speed up the task, save time and greatly improve the accuracy of the stock research results generated. This is where the advantages of the Internet come into play.
It's no secret today that the majority of investors use the Internet to research, educate themselves and calculate potential returns on their market moves. I personally know of one investor who decided to see if he could put together a multiplicity of information sources – in a much different format than usual – so that folks like him could work either by themselves or more closely with their own IA, in the management of their portfolio.
As part of his overall research, in late January of this year, he did market research and learned some things that readers may find very interesting. Because he is particularly interested in independence and objectivity, he asked the question: "...How concerned are you that your Investment Adviser might not be totally objective – i.e. that he/she might be influenced by other incentives vis-à-vis the investment advice he/she gives you?"
Some might say that the answers he got were to be expected. It was also surprising to learn that 80% of investors with more than $100K in the market spend up to 10 hours per month online -- some much more -- researching their stocks. To me, this begs a new question: why are they spending this much time online if they have an IA?
Roy MacNaughton is a niche marketer and business adviser. He offers new ideas and insights to all investors and marketers alike. His more than 30 years of international experience bring expertise and experience to each client. Learn more at: http://www.stockresearchddblog.com or email him: roymacnaughton "at" gmail.com
Article Source: http://www.ArticleBiz.com
Read More......Investing in Hard Money Loan Specialists
Author: Tim Doscher
If you are flush with funds and are seeking to find a good investment venue where you could deposit your capital, you should be looking at investment opportunities that would surely provide good and secured returns. Why not invest in a hard money specialist? Check out Coastal La Jolla Funding and see how the company could provide you with a good investment chance. Coastal La Jolla Finding is specifically known as a provider of hard money loans. The business is at the bullish side because more borrowers are filing loans at the company.
You know that hard money personal loans and poor credit loans are implementing significantly higher interest rates. That is a usual market practice and is legitimate. That is because such loans are posing greater risks to the lenders. Borrowers of such loan facilities are usually on the desperate side to accept and conform to the high interest rate provisions. That is why hard money loan specialists are also earning more than conventional loan providers. In fact, among the fastest growing financial firms not just in the United States but all around the world are hard money or poor credit loan providers.
That is a good reason why investors flock to hard money loan providers. Like most financial firms, such entities are welcoming investments because doing so is helping them expand and broaden their overall capital. Hard money loan providers know that to be able to attract and motivate investors, good investment rates and returns must be secured and provided. As an investor, it is logical that you aim to place your investments and resources at venues where they can grow to the fullest.
At Costal La Jolla Funding, you can be rest assured that your money would be productive. Some current investors even assert that their investments in the company are earning better that in any other venues. Investments in such loan providers are comparatively faster paced and more yielding than those at equities and other opportunities.
The sub prime mortgage lending sector is problematic during the current times. But Coastal La Jolla Funding sees this slump not as a setback but as an opportunity to further grow businesses. By sticking to such loans and to hard money loans, the company is proving that bad times could be converted into the best profit generating moments.
How can you be assured that the company would not fail? First, Coastal La Jolla Funding has strategies to secure itself and the hard money loans it provides. The company takes some equities to the mortgage loans and several other assets of the borrowers. Thus, no matter what happens, the company is holding security and is ensured that losses on loans even if borrowers become delinquent would not be incurred.
There are also existing legal contracts that are binding the company and its borrowers. Thus, there is a great assurance that the loan facilities are tenured and secured. Before making and placing the investment, you would be oriented to the basic company operations. If you would have any queries or doubts, you could easily raise your concerns and the company would be quick to address those issues.
There would also be secured contracts between you and Coastal La Jolla Funding to give you peace of mind over your investments. You will have the option on the frequency and terms of your investment. If you want, you could opt to collect returns annually, bi-annually or whatever term period you may like.
Investing in Coastal La Jolla Funding can also be considered a good deed and advocacy. If you want to help out financially needy people, investing in the company could be a good revenue and at the same time profitable. You know that most consumers nowadays are finding it hard to secure much needed and necessary loans. Hard money loans providers like Coastal La Jolla Finding is are somehow helping them raise money for their urgent needs for investments, startup businesses and even personal matters.
Coastal La Jolla Funding specializes in providing California real estate loans , California residential loans and California construction loans.
Source: http://www.articlealley.com/article_229757_19.html
The Low Down On Active Residual Passive Income
by JScerry
Do you want to make money?
Try this...
The Low Down On Active Residual Passive Income
You may have heard, or even possess, the dream of making money while you are active with your leisure time. And, if you are one of those people that believe it is impossible to make money while doing favourable activities (e.g., golfing, fishing, traveling, et cetera) then it is time to dissolve that thought process right now. Many people are making millions of dollars over the Internet everyday and they are doing things that they want to do while making that cash. If you are still in disbelief then continue reading and I will try to guide you toward a brand new perspective.
The method to obtain money while active with your leisure time is through a term I call, "active residual passive income," or ARPI. What is this term that I speak of? Well, ARPI is working on, or making, something once and then living off the royalties that that "something" has accumulated for you. A good example would be writing a song, getting it registered with the Government (for proof of ownership) and then getting paid every time a company uses your song in one of their commercials/advertisements. Another example would be writing a book, getting it published, and getting paid every time someone purchases your book. So basically, you make money from something that you create (And, the labour happens only one time, but the income is potentially forever!!!).
If you are having trouble grasping the concept of ARPI then here is an excellent way to remember that term. Think of the earth. There are many rocks that are created on its surface, and thus, earth is basically one of the things that create rocks (To convert the analogy so far; the earth is you while the creation of rocks is like you creating a book). The rocks that reside on this planet can collect moss, or "residue" (residue as in RESIDUAL...you follow?) over time. The moss, in this analogy, is the money that is made. So, the earth (you) creates rocks (a book) that, in time, create moss (money). That is an analogical perspective of ARPI. Hopefully that helps you remember.
NOTE (A very important one): By accumulating many different streams of ARPI, you increase the chance of making so much income (passive income to be more specific) that you will no longer need your tiresome day job (It is so nice to not have to work for someone else)!!! Think about it. If you are selling, let us say, books, songs, t-shirts, pictures, et cetera (which can all be forms of ARPI if you so happen to choose), the grand total income will most likely be even greater than the amount of money you make at your day job! Therefore, my point is always create multiple streams of ARPI and then you will surely find your financial freedom.
A legendary way (a way that has been used for years now) to achieve any form of ARPI is through the labour of other individuals. Now, do not understand this statement in a negative way. I am not saying go out and make people do all your work through unethical means. For instance, make individuals pick cotton unwillingly for you in the hot sun while you reap the benefits from the cotton that is collected. In that sense, it would be considered slavery. The idea that I am hinting toward is to get people that are willing (that is the key) to do your work. In that light, it would be deemed as a more ethical means of making money. This is because the individual would get some reward (e.g., money) for his or her labour, and thus, both you and the other person are happy with the outcome. This notion falls under the category of "reciprocity," which means you get a little and in return I get a little. The idea of "making other people work for you" may still not sound that great to you, but that is the way it has always been. Your day job is a perfect example of people using your labour to make there lives a hundred times easier. Think about it.
NOTE: It may be easier for you to get individuals to sell a product for you, which does allow you to open a stream of passive income (ARPI). However, you will have to reward these people (with money). Remember, the more people you have working for you, the more people that you will have to reward. Note this saying, "Eliminate the middle men." Therefore, have a small amount of people working for you. By doing this, you increase the chances of expanding the size of your profits by not having to pay-off labour fees. Thus, with this knowledge you can get a few steps closer to going out and purchasing that expensive car in the near future!!! Sound good?
RECAP:
- Create something that will generate some income for you. (e.g., write a book, song, et cetera)
- Get other people to sell what you have created (e.g., touch base with publishers who will sell your book/song)
- Create as many streams of ARPI as you can
- Relax
- Collect revenue (e.g., put money in your wallet/purse!)
Okay, so you have this information lingering in your head. That is a really good thing, but it will be no use to you if you do not execute it. If you procrastinate do not expect any results to befall. Therefore, to see the opened door that leads you to your new future execute the strategies mentioned. EXECUTE, EXECUTE, EXECUTE!!!
About the Author
JScerry is a freelance writer and the founder of The Internet's Library of Finance, JScerry.com (http://www.jscerry.com/)
Check out his blog at http://jscerry.blogspot.com/
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