All about investment

By Frank D. Miller

Historically, the world's biggest offshore tax havens have been in Switzerland. Although this reigning title may have now moved to other offshore banks. A Swiss Bank Account still offers benefits that few other offshore banks can offer. No longer just for the wealthy, a Swiss Bank Account can offer the individual investor many advantages.

1. Swiss banks offer some of the most secure and safe holdings in offshore banks.

Switzerland has a well developed reputation of staying neutral in times of serious world conflict and aggression. The result is it has become one of the world's top banking centers and is recognized by all offshore financial professionals as an ideal location because of its ability to avoid political and social upheaval. This translates into more security for your money in the form of strict privacy laws. These are very beneficial for those who are looking to keep their money and transactions private.

2. Starting a Swiss Bank Account is a simple process.

The application processes for a Swiss Bank Account is very straight-forward. Generally, you must prove you are at least 18 years of age by providing a passport or other form of identification. In addition, you will need to provide documents which explain your livelihood, your professional licenses, proof of the origin of the money to be deposited, your date of birth, proof of your residence etc. However, beyond this paperwork, all that is needed is to meet the minimum balance standard for the specific Swiss Bank. This can vary from bank to bank so do not be afraid to look around.

3. It offers an embarrassment of globally banking investment options.

Due in part to the well respected reputation of Swiss banks, you will have no difficulty finding a number of different investment tools at your disposal. These can range from mutual funds, stocks, bonds, buying different currencies, precious metals, purchasing foreign companies to a basic Swiss Bank Account. The key here is to recognize that a Swiss Bank Account offers you a virtual passport that allows you access to global economy in ways you would not have access to domestically.

By keeping these advantages in mind, it is easy to see why so many have opted to get a Swiss Bank Account. If you haven't begun your initial research into Swiss Bank Accounts, we strongly suggest you begin as soon as possible. Once the initial research is completed, you can rest easy knowing the hard work is over. Setting up an offshore bank account will be a breeze in comparison.

For more information and tips on a Swiss Bank Account, try visiting http://www.theoffshorebankaccount.com - it is a website offering solid tips and information on offshore banking and investing.

Article Source: http://EzineArticles.com/?expert=Frank_D._Miller

Author: barryloughran@live.co.uk

House prices are falling by £83 a day in some places in the UK which is more than the average person takes home in wages a day which currently stands at £69.65 after tax. The average prices of homes in the UK are falling at £45 per day since the beginning of the year. This has totalled to a massive £35 billion.

This recent slump in the housing market has seen prices fall at its fastest ever, since records began nearly 25 years ago. Experts predict that house prices in 2011 will be as much as 35% lower than last year's peak.

This is a u turn compared to last years prices as they were on the increase of around 30%, many believe that house prices are being restored to what they should be worth.

Many people would believe that now is the time to buy property but if you are a first time buyer, you will struggle. Mortgages are becoming harder to obtain, especially for first time buyers with the economy seeing an all time low for new buyers taking out mortgages.

This is down to the lenders tightening their lending policies and increasing their interest rates. First time buyers are really struggling and with times only getting harder, new measures need to be introduced to salvage the sinking housing market.

The government have proposed to cancel stamp duty in a bid to lure buyers back into the market but only time will tell if we can bounce back from the devastating credit crunch.

You will need to research the thousands of mortgages out there to find the best mortgage deal for you. You will also need to shop around when you need to remortgage your property.

By: Leroy Rushing

Professional traders are confident in their approach and trading plan, and they make no compromise. It takes this kind of dedication and trading discipline to produce consistent profits in some of the most volatile markets of the world. Professional traders are backed with profitable trading strategies and a complete trading plan which gives them guidance and the ability to produce profits in any market.

The mentality of a professional trader

A glance into the mind of a professional trader demonstrates many truths. Professional traders have a confident aura about them because they know they are able to beat the market, both in returns and on a trade by trade basis. However, professional traders must not get egotistical in their own earnings, as the mentality of winning all the time will weigh negatively on their own trading decisions. Those that get caught up in themselves and their success are even more likely to give it all back when the market turns against them.

A professional trader doesn’t get caught up in trading plan secrets or complex trading algorithms, but instead focuses on the basics: eliminate the role of emotions, stay positive, and always follow your trading plan. A trading plan is one of the few things that remain consistent in trading. The price changes, and the goal may change, but your own plan should never yield to the market.

Secrets of Profitable traders

Profitable traders have a different way to calculate the rationale behind trades. While some enjoy day trading, swing trading, or long-term investing, profitable traders calculate positions based on risk to reward rather than the eventual return. It is common for amateur investors to look at the payoffs rather than the risks and possible losses that may come out of it. A professional trader isn’t profitable because they know when to trade, but rather that they have a trading plan that beats the odds over the long term to produce consistent profits.

How to think like a professional

A mindset in any example is set by the shaping of experience over time. Experience is something that has shaped everyone into who they are today and is no different in the realm of trading the markets. Trading seminars and programs allow traders to meet other traders and learn about new strategies and profitable techniques. This interaction is also a great way to learn from the mindset of others while making money with your own strategy. The best way to do something is to become one, switching to a full-time career in trading is a great way to learn, earn, and shape your mind.

Leroy Rushing is an active, professional day trader; trading coach; and author. He is the Founder and CEO of Trading EveryDay, a provider of educational trading products and services that are available worldwide. Trading EveryDay has complimentary/FREE products, a Tools of the Trade eBook and a Trading Room Report, that are downloadable for your convenience.

Article Source: http://www.ArticleBiz.com

By: Mark Crisp

The momentum trader jumps on and rides the momentum of the stock train until a profit is reached. The trader sells his stock and looks for the next momentum trading opportunity. It can be quite the roller coaster ride.

Where does a momentum trader find his information? There are a variety of sources that traders use, and most of them are online. The momentum trader is always searching for the latest company information and follows all of the online chat rooms devoted to trading and momentum trading in particular. Day traders and Mytrader are excellent sources for online trading data gathering.

The successful momentum trader is looking to find out which companies are releasing their earning statements and whether the release will be positive or negative. The trader needs to find out what the forecasters are thinking will happen based upon the earnings release because whether it is really good news or really bad news for the company, it is all good news for the momentum trader. The momentum trader is looking for stocks that are going to skyrocket or plummet, and both are just as good.

The morning equity options pages must be examined to see whether there are a lot of written calls out for a particular company. This indicator is a significant factor in whether a stock price increase or decrease is anticipated to occur. The momentum trader is also monitoring online news channels to see if any one company is generating a significant amount of buzz. Those are companies that he will want to watch closely.

The trader will make of list of companies to watch for the day to see whether the stock prices of his companies are increasing as the market prices are going down. He will compare how the stocks are doing in comparison of how they were expected to do for the day. The stocks that are moving quicker than any of the other stocks are the ones that the trader will focus on because they represent the biggest potential for profits.

The next step is to look at the stock charts to examine the momentum of the stock as to how it performed between open and closing prices. The momentum trader is looking for a breakout stock. Once that stock has been identified, the momentum trader will buy. This is where you need to have nerves of steel. Once the stocks have been purchased the momentum trader is betting that the stock continues on its fast ride, but that doesn’t always happen. Sometimes momentums fizzle and sometimes continue their ascent or descent. When the stock orders start backing up or when the bidding slows down, the trader sells his stock and turns a nice profit.

The Rumpled One is the Creator of the Trapline Day Trading Method. Make six figures per annum day trading just one stock. Get his free system of "Fading the Daily Gaps" at :

Article Source: http://www.ArticleBiz.com

by liu

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Doubling Stock

About the Author

i am a simple man

Finally, one of the most extraordinary weeks in stock market history is coming to an end. The week began with Lehman Brothers (LEH) filing for bankruptcy, followed by an $85 billion dollar government bailout of insurance giant American International Group (AIG), and concluded with the federal government announcing plans to take bad loans off of private company's balance sheets as well as halting short selling in financial stocks for 10 days (with a possible extension). The market reaction was deep depression followed by euphoria, with 2 days of 4% drops mixed in with 2 days of similar gains. With such massive federal intervention, did we just witness a failure of capitalism, or can we not afford to let it work? Who's to blame for this mess and are these the right steps to prevent a redux? What does all this mean for investors, particularly Magic Formula investors?

A Quick Synopsis of the Problem

First, a quick synopsis. As we know, banks got lax on lending standards, and for some reason believed that a below-prime borrower that could barely afford an introductory rate on an adjustible rate mortgage (ARM) was magically going to be able to afford rates 5-6% higher in 3 or 5 years. Now that those loans are resetting at higher rates, foreclosures are rising leading to increased loan defaults. When 15% of a bank's loans default, and the bank had only provisioned for 3% of them, that's bad news.

Exacerbating the problem is the incredible amount of financial "innovation" that occurred this decade. Investment banks greedily bought up these mortgages from lenders, and then went to financial culinary school, slicing, dicing, and combining them into alphabet soup derivative securities like MBSs (mortgage backed securities), CDOs (collateralized debt obligations), and so on. These securities were then bought by all sorts of companies, from banks to insurance companies to electric utlities. In effect, the mortgage crisis is putting all of those buyers at risk now. It's clear why Warren Buffett referred to these securities as "financial weapons of mass destruction" back in 2003.

The daisy chain doesn't end there. AIG got into trouble because it sells credit default swaps. In effect, this is insurance against another company going bankrupt. You can see where this is going. With so many firms exposed to this mortgage mess, bankruptcies may skyrocket, leaving the insurers like AIG with a tidal wave of claims to cover. If it can't meet those obligations, bankruptcy is imminent.

Why Not Let the Market Solve It?

So that's the synopsis. It's disturbing how fragile the financial pillars of the economic system really are. Is this a failure of capitalism? I don't think so. In a pure capitalistic system, the banks holding the mortgages would certainly fail, and some of the insurers and other firms exposed to them would also go belly-up. In theory, the conservative lenders would survive, and the firms that relied on cash flow instead of debt, or invested in non-exotic securities, would also live on. In effect, the companies that made the mistakes would pay for them, while the strong survive. Theoretically, allowing the market to function should solve the crisis.

But does the theory match reality? Human nature says no. Mass failure of huge companies causes widespread panic. Stock markets plunge, destroying personal and business savings. This fear leads to irrational behavior, such as pulling bank deposits, which leads to more bank failures. The downswing would likely feed upon itself, and it's not unfathomable that another period similar to the Great Depression could have been the result. This crisis is that serious. People rely on government to protect them, and this is the reason behind the extrodinary steps being taken to alleviate the public's fear.

Who is to Blame for this Mess?

There is plenty of blame to go around here. In order of most aggregious to least, the top 3 offenders are:

1. Lenders and Investment Banks: These were the folks making loans to people who could not afford them. Instead of researching creditworthiness and value of collateral, the dollar signs in their eyes did just the opposite. "You can afford it! The value of your house will go up, allowing you to refinance!" "No money down and no documentation required!" "Low payments for the first 3 years!" It looked great for a few years, but when the tide went out, quite a few were swimming naked. Long term, successful banks have always been conservative lenders. This mess reiterates that fact.

2. Government Oversight: The government likes to stay out of the market when things are going well but step in when they are going bad. In effect, this privatizes profits but socializes losses, and all taxpayers should be furious at this. Government should play a role by limiting both the wild upside and downside of pure capitalism. After all, deep depressions always follow euphoric bubbles. Where was the government oversight when these ridiculous loans were being made? Preventing this at conception would have been a hell of a lot cheaper for us taxpayers. Now we foot the bill while the CEO's of Freddie Mac and Fannie Mae get paid 7 million dollars each. That's failure of oversight.

3. Over-their-head Borrowers: The people that took out loans they couldn't afford can't escape without blame for this either. When you make a financial committment, you should be damn sure you can live up to it (extenuating circumstances aside, of course). I put these people 3rd on the list because they will be punished properly, while the other two will not.

Does the Solution Prevent a Redux?

I agree that the government had to step in. Allowing a potential depression when there are the means to prevent it is not acceptible. But does the solution of public bailouts and buying bad assets prevent this from happening again?

A somewhat similar solution, the Resolution Trust Corp., was used in the early 1990's to clean up the bad assets of the Savings and Loan companies that failed in the 80's. The new plan appears to be a little different. The government will buy bad assets on the cheap from banks that want to get them off of it's books. This provides liquidity that is needed to function. The bailout for AIG is really just an expensive loan that allows the company to liquidate in an orderly fashion. The solutions themselves are not terrible ideas. The companies at fault are being punished, the government is just preventing a frenzied free-for-all asset auction while they are largely dismantled.

To consider the case closed, there will have to be stricter regulations on these "creative" loans and securities. Finance has to be a conservative undertaking.

What Does All This Mean for Magic Formula Investors?

This is a site about finding the best Magic Formula stocks, and while I've gone off on a tangent here, there is a coorelation. First of all, we are lucky - the Magic Formula by definition avoids traditional and investment banks as well as insurance companies. That's a huge break. Just being a MFI investor in the first place has kept you out of Bear Stearns, Freddie and Fannie, AIG, and Lehman Brothers (not to mention all other financial institutions which have been roundly pummeled). Regardless of strategy doctrine, there are plenty of reasons that banks are difficult investments and should be avoided.

MagicDiligence picks are always financially healthy and sport great management teams. This helps to avoid investing into the greed of managements who are in it for themselves. Do you think the CEOs of Fannie and Freddie care much about the shareholders that collectively lost billions? With strong financial health, the Top Buys can easily survive economic downturns, and come out stronger on the other side. Finally, with durable competitive advantages, they can maintain sales and profits better through a downturn than MFI stocks that rely on sales that can disappear overnight.

Most importantly for investors, DON'T PANIC! Those that sold en masse early in the week missed the big gains towards the end. If you are holding good stocks, continue to hold them. If you have the cash, now is a good time to go shopping. This has always been the successful investor's way, and it will continue to be going forward.

About the Author

Steve Alexander is the editor of MagicDiligence.com, a website dedicated to finding the best stocks on the Magic Formula Investing screen.

by: mogama
http://www.colormarriage.com

It's midway through September 2008, and Lehman Brothers has filed chapter 11 bankruptcy already? Wasn't it just last month that Lehman Brothers told the world that they would come out of their seeming troubles just fine? Last year, didn't some executives of that firm earn salaries and bonuses in excess of $22 million? And didn't Mr. Dick Fuld, CEO of that company, earn $100 million in the last three years?

Doesn't the current fall of Lehman Brothers bear much resemblance to that of Enron 6 years ago? How about the wrecking and bailout of Bear Sterns just weeks ago? Don't forget how Uncle Sam nationalized Fannie Mae and Freddie Mac, with a $200 billion price tag for American taxpayers. Add to that how Merrill Lynch sold itself to Bank of America in a $50 billion stock deal, just like a hooker standing by the street and saying to a passerby, "You can take me home for 50 bucks."

What in the world is going on? How in the world could the world's best economic model get us to this point? What went wrong? Is this really the way Mr. Adam Smith thought capitalism would work?

Capitalism is an economic system in which private owners control a country's trade and industry. Terms like free enterprise, private enterprise, or free market are just other ways to describe capitalism.

The one word that is the driving force of capitalism is profit. Take away the profit motive, and capitalism breaks down, because there would be no incentive for private citizens to take risk.

For the profit drive to remain a good thing, those seeking that profit must be people of character. Integrity is the cornerstone of capitalism that gets a rare mention in the financial news, but it is no less crucial to the success of a free market system. In business school, they call it 'business ethics', and it should not be an oxymoron, though it seems to be just that these days. Without integrity in every important sector of the free enterprise system, there will be no reason for the public to trust the institutions of the free market. And without this public trust, the foundation of capitalism will crack, its pillars will crash, and its walls will crumble.

When the number of honest men and women declines among those who control the engine and wheels of free enterprise, the untamed beast of raw greed leaps out of its cage and takes to the streets. Randomly, that brute beast tears innocent investors and consumers to shreds on its rampage. Sadly, re-capturing renegade, runaway greed is no small task, as we are painfully finding out.

The pushers of Enron, Bear Sterns, Fannie Mae, Freddie Mac, Lehman Brothers, and Merrill Lynch lied to us all. They kept telling us that things were fine just before they declared bankruptcy or begged to be bailed out. To put it plainly, these guys are dishonest. They were and are liars, deceivers. And they deceived investors because of their greed, which saw and knew no limit.

All this reminds us of one important lesson: Capitalism MUST be closely supervised and regulated, because the private controllers in the system are not angels. They are humans, often greed-driven people, who care very little about their clientèle. And they will deceive and lie to cover their tracks. They do not deserve investors' faith and trust. No, we do well to harbor eternal suspicion about these money handlers.

Furthermore, constantly looking over the shoulders of the private controllers of capitalism must be a responsible government that is ever vigilant to hold the wheelers and dealers accountable, and if they insist on blind greed, to make them pay dearly, not bail them out for their despicable money games. What the American government is doing is like handing the oxygen masks to the pilots and crew, while leaving the paying passengers to fend for themselves aboard an aircraft doomed to crash.

Yes, capitalism is a better system of economics than communism and socialism, but it is by no means a flawless system. Greed, coupled with lack of character, remains the weakest link of capitalism. That raw greed must be tamed by appropriate regulation by a responsible government. "Let the free market handle it" just won't fly anymore. The whole system is littered with too many totally selfish financial gurus plagued with the disease of unrestrained greed that craves million$ or billion$, with families left shattered, homes foreclosed, retirement accounts wiped out

When stated in a mathematical sense, RSI seems more difficult than it actually is to both use and understand. To evaluate the relative strength by hand, the trader must know the formula for doing so. The RSI is simply 100 minus the quotient of 100 divided by 1 plus the relative strength. Relative strength is equal to the average gain divided by the average loss. The average loss should be stated in a positive number to make this work.

After looking at the math, it’s no wonder that professional traders use computers to decipher the RSI. Short, quick trading, such as scalping or day trading, would never allow the time needed to make these calculations on each bar.

Understanding RSI and how it works though is very important; it is one of the most popular oscillators and even one of the most profitable indicators, if used correctly. Many professional traders use the RSI in the form of convergence or divergence, momentum trading, or to show trends and produce consistent profits.

Best kept secret

The RSI might just be one of the best kept professional insider secrets. Relative strength is nothing more of an idea, but its refinement by J. Wilder kept the index very popular, especially after computerized trading began. There are many profitable ways to use the Relative Strength to Price to give you an idea of future movement.

Use the RSI to find breakouts

Many traders like divergence as a good way to predict new trends. Depending on your personal trading style, you may find interest in following divergence while scalping or investing as it applies to any timeframe. The idea is that when the RSI diverges with the chart, the price is likely to soon follow in the direction of the RSI. Weakening strength, but a higher stock price, means that the price is going up on weakness and the market direction will change when momentum fades out.

Trading plan secrets

Others like to trade RSI as simply an oscillator. Developing a trading plan is made easier with at least one oscillator for conformation. Professional traders like to use oscillators as the indicator to seal the deal – if all the other requirements of a short position are made clear AND the oscillator is indicating a sell, the trader should follow through with the short position.

RSI is simple but should be considered

The RSI is a very simple indicator. It feeds on momentum and shows weakness before other back testing models. Any trader can find a way to fit the RSI into their own trading style, as it has so many applications for forecasting stock prices.

Author

Leroy Rushing is an active, professional day trader; trading coach; and author. He is the Founder and CEO of Trading EveryDay, a provider of educational trading products and services that are available worldwide. Trading EveryDay has complimentary/FREE products, a Tools of the Trade eBook and a Trading Room Report, that are downloadable for your convenience.

Article Source: http://www.ArticleBiz.com

The Secular Bull Market in Gold Investments corresponds directly to the Secular Bear Market in Financials. We explain why this trend will continue and why a short-term buying opportunity in Gold presents itself.

Central Banks are in all sorts of a pickle.

With overwhelming evidence that the global economy is slumping badly:
* UK Retail Sales see Worst Slump in 20 Years
* Business confidence in Germany is at lowest level in 2 years
* New Zealand's central bank cutting interest rates saying slowing economic growth will curb inflation.
* Japanese exports decreasing YoY, and imports climbing on record Oil prices.
* US unemployment at 4-year highs

The knee jerk reaction by central banks is to man the printing presses and hit the accelerator. And whilst this medicine has worked well over the last 25 years, Central Banks are now hitting a brick wall that they haven’t encountered since pre-Keynesian 1930s.

Freshly minted fiat currency is falling into the hands of a crippled banking sector with little capital, ability or desire to carry out the multiplier effect and make loans to real people in the real economy. In a debt laden global economy with no reverse gear this headwind is possibly the biggest threat the Federal Reserve and its ilk aka the establishment have ever faced in carrying out monetary policy

Point #1 – Gold investors are well aware of the risks inherent in the current financial system.

The beauty of capitalism and the associated free movement of capital is that smaller more focused entities aka Hedge & Private Equity funds can and are rapidly moving into long held banking preserves.
* Direct lending to mid and small cap entities is now a well worn hedge fund territory.
* Extracting value through Shareholder activism.
* A much larger pool of capital available for short selling.
* Private Equity funds increase investment time horizons.
Highly secretive and operating out of non-transparent domiciles these entities are by and large out of the reach of the central banking system.

Point #2 – Hedge Funds and Private Equity Funds do not benefit from Fed handouts and would be better served by a currency that acts as a stable store of wealth – Gold!

The transfer of the financial system is akin to the explosion of information on the internet. The players that used to have a monopoly on information become less effective. There will be winners and there will be losers. But right now a bet on Gold Investments like Gold Stocks and Gold ETFs is a bet against the Establishment and the out-dated mega-banking system.

Slower growth will continue to cause problems for financials as bad debts soar, and as a result Gold investments will continue to propel higher in its multi-year Secular trend.

The above trend stretched too far technically over the last 3-months and there has had a rapid reversal over the last 2 weeks. This is a technical pullback only and the above fundamentals have not changed. There’s more to come in this fundamental story and Gold investments (we use GLD gold Exchange Traded Fund) and we could be getting close to another buying point for gold soon.

Gold Investment GLD Fund Prices - $85 is strong support as a confluence of lateral support and the 50-week Moving Average converge. Its just a matter of time before we have another entry point to add to our positions and or make another profitable gold investment.

By Chris Vermeulen
chris (AT) thegoldandoilguy.com

Chris Vermeulen is a veteran trader of gold and oil who makes his methods and insights available to others via his website at The Gold and Oil Guy "My strategy makes your trades extremely accurate with very little downside risk," he said. He provides traders with unparalleled gold and oil trading analysis, signals and 24/7 trading email support.

Article Source: http://www.ArticleBiz.com

By Jeffrey P. Snider

The headline said it all, the unemployment rate increased to a five-year high in August. In the finer print the news was even more ominous. Job losses for June and July were worse than first thought, and in the blink of an eye 58,000 jobs disappeared. And the job losses were not limited to construction or manufacturing jobs. The professional services sector, the one sector many economists have pinned their hopes on, shed 53,000 jobs.

Our economy needs to create between 80,000 and 100,000 jobs each month just to keep pace with workforce growth. The economy has lost jobs for the last eight months, pointing to severe weakness that is just beginning to show itself in a tangible fashion.

For stock investors this means the optimism that sprung from a decline in oil and gas prices was misplaced. And it points to the one event that has been conspicuously missing from the bear market of the past ten months: a panic.

Here are five myths that have fueled optimism and kept the market from panicking:

1. The worst is over for the credit crunch. That may be true for write-downs of illiquid mortgage assets, but the credit crunch is far from over. Trouble started with mortgage-related securities but now is found throughout the credit markets. Witness the Wall Street settlements with municipalities over auction-rate securities. The destruction of that market, and the losses it has created, have little to do with mortgages and everything to do with a malfunctioning credit market. Our economy needs credit to grow.
2. The global economy will bolster exports and keep the US economy afloat. That argument flew out the window on September 3, 2008, when the European Union showed a contraction in the second quarter (-0.2%). That came on the heels of the British government's announcement of zero growth in the UK (which is separate from the European Union). The Chancellor of the Exchequer, Alistair Darling, warned that British economic conditions "are arguably the worst they've been in 60 years".
3. The weak dollar will also boost the export sector. See #2 above. The weak European and Asian economies have helped the dollar strengthen significantly, 8% against the Euro and 13% against the Yen. Slower foreign growth and a stronger dollar will mean slower US export growth, the only sector to show any strength in 2008.
4. The stock market is down over 20% and has a historically low P/E based on 2009 earnings estimates. This is the biggest pillar in the optimists' argument in favor of a stock recovery. Based on bottom-up 2009 "operating" earnings estimates from Standard & Poor's, the market, using the S&P 500 index, is trading very cheaply at 11.4 times earnings. But that multiple is built on a 34% recovery in earnings for 2009, including a decidedly ambitious turnaround of $27/share from the financial sector. Analysts missed their estimates by a wide margin during the 2000-2002 bear market and everything we have seen since last July has shown that they are doing it again. If we use "reported" earnings estimates as a benchmark, which factors in the economy using a top-down approach, we calculate earnings estimates that are 37% less! The P/E on the S&P 500 is almost 20 using this earnings estimate, still well above its historical average.
5. Stock market pain is focused in the financial sector and is not likely to affect other economic sectors. This one is just like Federal Reserve Chairman Bernanke's pronouncement in February 2007 that there would be no spill over from the subprime mortgage area. The bond market is screaming a huge warning to stock investors. Standard & Poor's estimates that 4.9% of all speculative grade bond issuers will default in the next 12 months, with a 20% chance that the default rate will exceed 8%! With a record 23% of all high-yield bonds rated as speculative that is a huge amount of defaults. For stock investors, a bond default is usually the precursor to bankruptcy. A substantial increase in bankruptcies will put real fear into stock investors, a fear that there is no safe place in any stock market sector or industry.

In the past five recessions the S&P 500 has declined an average of 36% peak to trough. It has taken an average of 1.6 years to find that bottom. We are only ten months from the October 2007 peak and the S&P 500 is down only 21%. Previous recession bear markets also featured more than a few panics. Based on those averages, and the five points above, investors should be very cautious in the months ahead.

Jeffrey P. Snider is Vice President and Portfolio Manager for Atlantic Capital Management. For more economic and market analysis sample our research at http://www.client-centered.net

Article Source: http://EzineArticles.com/?expert=Jeffrey_P._Snider

by Paul Liew

If you ask me what is the major difference between a novice and a professional trader, the difference is whether he or she set the trading rules and follow the rules. There are thousands set of trading rules that you can create or follow, what I recommend is that you do not need to create a certain of trading rules, you can just follow them which came from the famous investor and traders.

One of the famous investor that I admire and respect a lot is Warren Buffet. In his world, rules are more important than anything. His famous quote is as follow: Rule 1: never lose money Rule 2: never forget rule no 1 Funny enough? Many people understand the importance of setting rules but never learn to follow the rules.

For part 1, I would like to share the rules that I follow before I enter the market.

Rule 1 - Always do market research before market open:
Open your CNBC or any finance website to get the latest update, understand what's happening in the market right now. Either is it oil price drop, or some where having a war, focus on news that may be making any impact to the US market and the stock you are trading. After learning the news, try to figure out the market sentiment, for example, is oil inventory going lower a good thing to the market? Certainly not! With the latest news in hand, it will help you to make a better decision when entering the trade.

Rule 2 - Limit your trading size:
Do not over trade, always make sure you have enough money to play for the next game. Thumb of rule is always using 1/20 of your total money for each trade. If you have $5000, each trade is $250, in that case you can have 20 games to play.

Rule 3 - Give your trade a reason:
Before entering the position, make a note and jot down what makes you buy or sell certain options, as well as what strategy you use, and why? Put all this down in your trading journal, so that you can revise it back. If you end up a loss, make sure you understand where the problem is. If you earn a profit, remember what you did right.

Rule 4 - Set exit level:
When you see a potential trade, holds your trigger, make sure you set your exit level before clicking the button. Many people are good traders, they know when to enter the trade, but do not know when to get out. You need to set two exits, one for your stop loss, one for your profit limit. Especially for stop loss, set at the level that you are comfortable with your risk level, from the technical point of view, you can set your stop loss at certain support level, when the stock break through the next support level, cut the loss and run.

For part 2, please find out from Options Trading Academy. Always trade with your passion!

About the Author
I am an options trader and internet marketer, I have experienced the up and down through this valuable journey. Now I am here to share my humble experience so that you can be benefited from it. You can find out more free resources from http://optionstradingacademy.blogspot.com/ and http://internetmarketerjournal.blogspot.com/.

By Scott Martin

When you're comparing shares vs. property in an attempt to decide where you'll invest your hard earned money next, it's never a case of one being entirely good or entirely bad. Shares and property both have their benefits and downsides. The important thing is to look for good choices in each sector, and to decide which option fits your particular situation.

For a while, the shares versus property argument was going in favor of property, as far as most people were concerned. Investing in property was fashionable. With the recent real estate crisis in America property investment is losing its appeal for many. However, that doesn't mean that investment property isn't a viable choice. Buying property to rent is still a good option, and there's plenty of opportunity available in commercial property.

Stocks and shares have bounced back and forth recently, and many people are concerned about their future prospects. However, the right choice can mean that, for you, the shares vs. property debate comes up in favor of the stock market. It all depends on your situation - there are good things about both of them. Anyone who argues that one is definitely superior to the other hasn't done his or her homework.

Benefits of Property

In general, property wins the shares vs. property argument for people interested in stability and long term growth. Property offers good leverage and strong capital gains. Established properties fare better, and it's important to choose carefully. Look for good locations and opportunities for price appreciation. If you want to be sure of income, think about rental locations as a safe bet.
Property investment is something that many find easier to understand than share investment. There's a certain level of knowledge and sophistication required, but less technical understanding. In terms of shares vs. property, property is also more tangible - you'll be able to see where your money is going.

Investing in property can also give you more control over your investment. Property investors have complete control over the investment, where share investors have only the influence of their voting power. In terms of shares vs. property, Property also gives you the ability to personally add value if you choose to renovate or develop it.

Benefits of Shares

When we talk about shares vs. property, shares offer high liquidity and good cash flow prospects. They're easier to profit on in the short term, if you keep a good eye on shares prices. Income is one of the most certain parts of any investment return. That means you should look for companies you know to be well managed, which have a good profit record if you think shares are the best choice in the shares vs. property debate.

In addition to the above, when it comes to shares vs. property, shares are much more divisible. You can sell down portions of your portfolio without selling the whole thing - something that can't be said about property. The minimum investment is also usually lower. If you can only invest five thousand dollars, that's not a problem.

Transaction costs are lower in the shares vs. property debate, too. The only costs required are brokerage on acquisition and disposal. On the other hand, property will have a number of extra costs on both ends, plus the cost of maintaining it. Direct share ownership actually has no ongoing costs at all.

Property vs Shares? As long as you are investing are heading in the right direction.

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By: Chris Vermeulen

Gold’s price action in the past 5 months has frustrated many traders. Especially those who have difficulty making money during consolidation periods which are in. The past couple months are consistently the weaker months for gold prices year after year. That being said August through year end have been consistently strong for trading gold and gold ETF’s.

Chart 1 – Gold Spot Price, you will see that gold found support at the 50 exponential moving average and also found major support at the 200 EMA. August is just around the corner when gold generally picks up steam, which you can see in the chart below in 2007. Gold ETF Price Gold at support levels and entering August

Chart 2 – The Collapsing Dollar looks to be struggling at resistance and making a lower high and lower low (bear Trend). If the USD breaks down it should slide to the 67 cent level and send gold soaring for 2-3 months. Gold ETF Trading US Dollar at resistance making lower highs and lower lows.

Chart 3 – A close up chart of the USD, you can see its currently at the top of its Bollinger Bands and just made a lower low 2 weeks ago. Head and Shoulders anyone…. ETF Investing Weak dollar at top or range with head and shoulders pattern

Chart 4 – GLD Gold ETF is my trading vehicle of choice and is currently at support making higher highs and higher lows (bull trend). While this does not provide a buy signal with my daily trading model, it does provide an excellent trading opportunity for an intraday trade as we should see prices make a move much higher or much lower within the next couple days. Gold ETF Fund GLD Gold ETF is poised for a move, does not matter which way at this point thought.

Chart 5 – Recent Gold ETF trade. My focus for short term trading is simple. Wait for a breakout which satisfies my trading model, enter the trade and then exit 50% of position on the first sign of weakness. Exit second half on a trend line break. My goal for GLD ETF is 2-5% and we are in trades for 2-10 days unless prices continue to run. I generally have 10-20 trades per year with gold. Gold ETF Trading My recent Gold ETF trade which profited 3.4% with very little down side risk during a sideways market.

GLD trading for me is the most accurate trading vehicle I have come across. I have been using my proven trading model which avoids the price gaps and keeps risk for each traded under 3%.

Gold ETF funds makes it simple to profit from the markets using a proven trading model for trading long, and short term gold setups.

Chris Vermeulen is Founder of the popular trading site TheGoldAndOilGuy.com. There he shares his highly successful, low-risk trading method. For 6 years Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets. Subscribers to his service depend on Chris' uniquely consistent investment opportunities that carry exceptionally low risk and high return.

Reach Chris at: Chris [at] theGoildAndOilGuy [dot] com

Chris Vermeulen is a veteran trader of gold and oil who makes his methods and insights available to others via his website at The Gold and Oil Guy "My strategy makes your trades extremely accurate with very little downside risk," he said. He provides traders with unparalleled gold and oil trading analysis, signals and 24/7 trading email support.

Article Source: http://www.ArticleBiz.com

By: Leroy Rushing

The Do’s and Don’ts of shorting is actually very straight forward, yet many traders heed this advice only to lose money. Shorting any tradable good is a dangerous position by nature; short sellers can lose more than their investment while potentially profiting only as much as 100%.

Both day traders and swing traders alike have much to gain from short-term short positions, which allow them to capitalize on the dropping value of a security. Often, it is a failing company or a bursting bubble which can yield large returns on the downside as it did on the upside.

Do’s of shorting

Do use technical analysis as a way to study short positions. Shorting is a very sensitive investment because it requires that much emphasis be placed on the entry point. The active professional trader uses technical analysis as a way to study the future of a price while ignoring the traditional fundamentals.

Do use a comprehensive trading plan. Selling short requires more in depth studies than that of long positions. A comprehensive trading plan for shorting is usually in much greater detail and highlights virtually every outcome of a possible position. Do chart out support and resistance for entry points in short positions. Support and resistance points are critical for shorters because they tell when the stock need be sold.

Don’ts of shorting

Do not expect instant financial freedom. Life-changing results rarely come to short sellers just because of the fact that short selling is not as potentially profitable as long positions. Selling short at $25 with a move to $0 is a 100% gain, while $1 to $3 is a 300% gain. Short sellers can only make up to double their money back and lose multiples more.

Do not hold short positions for long periods of time. In the short-term market for day traders and swing traders, short positions provide optimal return while limiting downside. Short positions are often best for short periods of time.

Do not try day trading with a small account. Short selling with a small account is almost impossible because brokerages will not front the kind of margin required to sell short a large number of shares. Bigger accounts are required to take short positions. The professional trader must have enough to ride out large market upswings against the shorted security.

General Information on shorting

Beating the market with short positions is difficult but not impossible. It is certainly the case that short term traders are better positioned for using short positions than that of long term traders because of the small profit possibilities of long term shorts.

Leroy Rushing is an active, professional day trader; trading coach; and author. He is the Founder and CEO of Trading EveryDay, a provider of educational trading products and services that are available worldwide. Trading EveryDay has complimentary/FREE products, a Tools of the Trade eBook and a Trading Room Report, that are downloadable for your convenience.

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by: Uche Vera I

In the wake of the third week of the second quarter of this year ,the stock market suddenly started going down .There was a kind of panic .The panic was understandable considering the fact that our market before then had been characterised by huge returns .And the beginning of this year was no exception .So obviously one has to panic when the bearish trend developed .

But if you had enough information ,you would know and understand that there was no way our market will remain in a bearish position .Ours is a developing market and it is an understatement to say that the potential for growth and returns in the market is huge. Let me give you a clear example .America has a population of over 300 million, a GDP in excess of $13 trillion and a market capitalisation of $15.35 trillion.South Africa has a GDP of $282bn and a market capitalisation of $759bn .In Nigeria we have a population of about 120 million ,a GDP of $160bn and a market capitalisation of $90 bn .Only about 2 million Nigerians are investors in the stock market .That is less than 3% .In the U .S 49 .7 % of the people invest in their markets ! The bulls will return. This clearly shows that our market in still emerging .

More people will definitely enter the market ,capitalisation will move up ,and more companies will get listed on the exchange .So the potential for more activities is quite huge . The Nigerian stock market is the best in the emerging market category of stock exchanges and among the best on return on investment .So ,the bulls will return. By the beginning of 2007 ,market capitalisation stood at N5.12 trillion and by December of that same year it has appreciated to about 100 % to N10.2 trillion .By the time we entered the third month of this year ,the market has appreciated by more than 20% to N12.6 trillion . Afri Invest west Africa recently in it's half year result collaborated the belief that our market will witness a steady bullish trend in the nearest future . So what is my point ? Even though the market is experiencing a bearish trend/volatility ,major indicators are strong and with the recent intervention of market regulators the correction of the market could have started in earnest .

What are you buying !! Our experts are suggesting that Transcorp should be included in your buying potfolio but definitely not in your selling . Starcomms joined the market on Monday at 13.56 . and gained close to 1.00 that same day .Wether it is a good buy ? Telecommunications is presently a lucrative sector and starrcomms has been involved in expansion projects ,so it is a good buy and it should be one of those equities you might want for keeps. Enjoy the rest of your week .

COPYRIGHT( C) 2008 Uche Vera Uche Vera is a journalism major .She writes on Business and Economy including general topics .She is a senior procucer and writer with a radio production outfit that specializes in business programming .visit her blog at http://financiallquotientt.wordpress.com

Step three of the Wyckoff method is intended to help traders avoid marginal trades. Wyckoff teaches us to select only those issues that have built a cause. A cause can be defined in more than one way.

In step three, Wyckoff is referring to the use of a figure chart to get an indication as to how far from its current level, the price of an issue is likely to move. This indication is derived by taking a count on a figure chart.

While an issue is in preparation for a move, its action produces a horizontal formation on a figure chart. The horizontal formation contains the count. When the price has completed its preparation and begins to move out of the area in which the preparation was done, the count has been completed and can be measured. To measure the count, the trader selects the appropriate price level within the horizontal formation and simply counts the number of horizontal divisions on the chart beginning at the right side of the formation and ending at the left side of the formation. The trader counts all the horizontal divisions both those that have a posting in them and those that do not. The total number of horizontal divisions is the count. It provides an indication as to how far from the level at which the count was taken the price is likely to move.

If the price leaves the zone of preparation, normally referred to as the trading range, to the up side, Wyckoff says to add the count to the level at which it was measured to get an indication as to how high the price is likely to go. If the price leaves the trading range to the down side Wyckoff says to subtract the count from the level at which it was measured to get an indication as to how low the price is likely to go.

The anticipated ending point of a move indicated by a count is called its objective. An objective may be a single level, but is more often than not a range of values referred to as the objective range. If a count for an advance is taken at the very bottom of the trading range, it will indicate a single level as the objective of the move. However, if the count is taken at some other level within the trading range, the result will be an objective range.

This range is determined by adding the count to the level at which it was measured and by adding it to the lowest level in the trading range. If a count for a decline is taken at the very top of the trading range, it will indicate a single level as the objective of the move. If the count is taken at a lower level in the trading range, the result will be an objective range. In this case, the objective range is determined by subtracting the count from the level at which it was measured and by also subtracting it from the highest level in the trading range.

Individual issues are not the only place were counts are taken and objectives are measured. They can also be taken and measured for a general market index. If a trader is operating in the options or futures derived from an index, it is essential that the trader take a count and determine an objective for the index that is being traded. When the index reaches its objective range, the move is likely to end and the position in the derivative trading vehicle can be closed. Measuring counts and determining objectives on the underlying index usually provides more reliable indications than does taking the counts and determining objectives on the particular trading vehicle that has been selected.

Traders who only operate in individual issues should not ignore the indications for the general market. Situations where both the general market and an individual issue are indicating an objective above or below current levels are the most desirable. If the market and an individual issue both have higher or lower objectives, the movement of the market as a whole is likely to help the individual issue reach its objective. If the general market does not have an objective that is in harmony with that of an individual issue being considered, the individual issue may still reach its objective, but the odds of that happening are not as good as they are when the market has a similar objective to that of the individual issue.

Wyckoff does not provide specific directions as to how large of a count an issue should have to be considered for a trade. In making this determination, the trader needs to be realistic. If the trader only wants to hold positions for a short period of time, smaller counts should be identified with relatively nearby objectives. Identifying much larger counts with much higher or lower objectives and expecting those objectives to be reached in a short period of time is not realistic. Traders who are comfortable with the idea of holding a position for an extended period of time should also be realistic. It is a waste of time and effort for these traders to focus on small counts and nearby objectives. A trader who is willing to wait for his reward to develop should demand a larger count and more distant objective before taking a position.

All Wyckoff traders should always remember what Wyckoff says about figure charts, counts and objectives. They provide indications only. Above all else is the character of the price and volume action. If it supports the idea of the indications being realized, positions can and should be held. However, if the character of the action does not support the idea of the indications being realized, positions should be closed.

By: Daniel Jones

If you are looking to spread bet on coffee then there are a few facts that you should note.

1)The two main types of coffee that are traded are Robusta and Arabica

a.Robusta is generally traded on the London International Financial Futures and Options Exchange (LIFFE)
b.Arabica is generally traded on the Intercontinental Exchange (ICE)

2)Arabica Facts

a.Arabica is also known as Coffea Arabica or Coffee “C” when referring to coffee futures
b.When Arabica coffee cherries ripen they fall to the ground and spoil
c.Arabica accounted for around 60% of world coffee production. Brazil and Colombia produce the majority of the world’s Arabica supply

3)Robusta Facts

a.Robusta is also known as Coffea canephora and Conillon
b.It is considered to be of a lower grade than Arabica. It has twice the caffeine and produces an inferior taste
c.The Robusta plant is easier to take care of and has lower production costs. When its coffee cherries ripen they remain on the plant
d.The Robusta plant is less susceptible to disease than Arabica
e.The Robusta plant can grow in areas where Arabica cannot
f.Robusta accounts for approximately 40% of global coffee production. Vietnam and Indonesia produce 50% of the world’s Robusta

4)According to the International Coffee Organisation (ICO), last year saw coffee production down 7% to 118,000 million bags

5)Coffee is measured in 60kg bags

6)As Anthony Grech of IG Index recently reported “It is also important to note that the production of both coffee types, as with any agricultural commodity, is primarily dependent on weather conditions, harvesting practices and disease. Therefore monitoring these variables, particularly in the major coffee producing countries, will provide an understanding of coffee supply and its intrinsic value, when compared with demand”

7)Key players in the market are Procter and Gamble, Kraft, Nestle and Sara Lee. Together this ‘Big Four’ buys most of the world’s raw coffee. Therefore monitoring the buying habits of these companies would help provide a better understanding of coffee demand. From a micro perspective, marketing and profit margins and also play an important role in driving demand

8)You can spread bet on both Arabica Coffee “C” and Robusta with spread betting companies like WorldSpreads and IG

9)Note that coffee is traded in US dollars. That means one of the biggest factors affecting the price is the exchange rate, just like Crude Oil and Gold. Because coffee is traded in US Dollars then, all things being equal, Coffee will tend to follows the dollar exchange rates. If the Dollar goes down against the Euro, the price of Coffee should go up and vice versa.

10)Finally, it is worth noting that demand for coffee is considered to be price inelastic. This means that when coffee prices increase, individuals do not proportionally reduce their coffee consumption, and when coffee prices decline, consumer demand for coffee does not proportionally rise to any great extent


Before you start trading coffee note that spread betting carries a high level of risk to your funds. You can lose more than you initially invest. It may not suit all investors. Only speculate with funds that you can afford to lose. Ensure you understand the risks and seek independent financial advice if and when necessary.

Based in the heart of London’s financial district, Daniel Jones is a professional commentator for some of the leading financial spread betting websites.



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