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Archive for August, 2010

You hear it all the time, when it comes to stocks you have to diversify.It is one of the main stock trading tips that is in every brief stock market tutorial around.And if you are an investor this is very easy to do, just buy a bunch of stocks and you are done.

However if you are a trader then you can still have some diversity?  And how would you go about it?

Yes, diversity can still help you to stay safer.  Just think what would happen if you where wrong and lost a lot of money on 1 trade with nothing else to balance it out.If you are trading and want to diversify your holdings here are some things that you can do.

1.       Have Different Trading Positions Open

A lot of great traders will have 5 or 10 positions open at one time.  This way they know if one of their positions does not make them money then another one will

2.       Keep Losses Small

The idea behind keeping losses small is that if a trade loses you money that money can be easily made up with another trade.  So if you have 2 positions 1 long and 1 short and the market goes down, hopefully your short position will make you more than your long position lost you.

3.Learn How To Short Stocks

Selling stocks short is essential to help you to diversify if you are a short term trader.  With long term investors it doesn’t matter as much because they can lose half of their account in a month and still be ok just as long as everything works out in the long run.

With short term trading you are more susceptible to the short term movements in the market.  So, holding onto long and short term positions at the same time can help you to get more out of the stock market and really get some more consistency through the good times and the bad.

If you have ever traded stocks, you must have heard a lot about the DOW index going up or down. Recently the DOW index crumbled and lost 1000 points in just a matter of 24 hours. This was most probably one of the biggest loss of the DOW index. Dow futures are futures contracts based on the DOW index or what is actually the Dow Jones Industrial Average Index abbreviated as DJIA. Dow Jones Index was started at the end of the 19 century and is a price weighted index of 30 blue chip stocks that get traded on the New York Stock Exchange. Over the years, there has been changes in the composition of these 30 blue chip stocks but the DOW index has maintained its popularity as the barometer of the New York Stock Exchange. If you happen to watch CNBC, Bloomberg or FOX Business, you will hear a lot about DOW going up or down. The best way to trade the DOW index is through trading the DOW Futures . Know a shocking DOW Futures secret discovered by Karl Dittmann that is repeated daily at the same time that can make you rich. Discover the Seven Summits Trader and download the Dynamic Profit Generator Software FREE that is platform independent! Discover Forex Mastery 2.0 and watch these shocking M3 Forex Software videos that show how it predicted the DOW crumble days before it actually happened.

Futures trading is somewhat different than the traditional buy and hold investing. In futures trading you have to constantly monitor the price. if you don’t than you will very soon receive the margin call from your broker. Dow Futures are based on the Dow Jones Index and the value of the Dow futures contract is equal to 10 times the value of the index at a particular point in time .

Let’s make this clear with an example. Suppose the DOW is at 11,000 points. The value of the DOW futures contract will be $10 multiplied with 11,000 or $110,000. Since the index value is being multiplied with ten, a DOW Futures contract has an inbuild leverage of ten. What this means is that for every point rise or fall in the DOW, you can profit or loss $10 .

Now, in futures trading there is no uptick rule that can prevent you from going short. so unlike stock trading,you can go short on a futures contract anytime without any market rule stopping you from doing that. What this means is that you can profit by going long or short on DOW futures. If the DOW index is going up, you can go long and profit and if it is going down, you can go short and still profit from the fall in the DOW index .

As saud before, futures trading is different as compared to stock trading. Futures market has a lot of volatility and daily the futures contract is marked to the market. What this means is that in futures trading, you have to always keep your eyes open otherwize, you can easily get wiped out by the market. Now you can also trade Emini DOW futures that is a smaller version of the standart DOW futures contract. Another highly popular stock index futures contract is the S&P futures and the E-mini S&P futures .

Severe workplace or road accidents cripple victims for the rest of their life. Along with the pain and related problems they also bring along a major financial strain in the form of medical expenses especially when lump sum compensation awards get exhausted. Compensation to victims today work more on structured settlements principle that divides the compensation into periodic installments that help with lifelong needs.

Under structured settlement a legally binding contract is agreed upon between the claimant or victim, the defendant and a third party institution which assures the victim compensatory money in the form of periodic and equal payments. Some states do not tax these structured settlements. It is risky for the beneficiary when the whole amount is paid out in one huge chunk giving room for unplanned spending. Further they cater to the regular needs of dependants like children’s tuition fees, other household expenditures etc. This system allays the general fears of improper and unwise spending which normally occurs when a huge sum is received at one go.

These structured settlements are best for people who want a reliable future source of income. But for a person who prefers immediate access to a large amount, selling the structured settlement is a good option. Selling and buying of structured settlements have several legal repercussions to them. Also different are the insurance company terms on these. Also consult with your insurance company before proceeding with sale as they too have their legal guidelines affecting such sale. The insurance companies too have their rules as to the change of recipient.

Make sure to wait for the right buyer with a good offer. Most of the investment firms eagerly pursue settlement contracts. The buyer looks at the legally guaranteed future annuities which he gets at a discounted value while the seller goes for instant cash in hand. The buying company’s history should be looked upon for avoiding pitfalls. Con deals are rampant with overnight fictitious companies disappearing once the settlement has been transferred to their name without making any payment. Always ensure a good attorney represents you who will be able to help you handle such transactions.

When buying settlement structures also similar precautions are necessary. It would be best if a court ruling establishes the transfer of rights to the buyer’s favor to prevent any unwanted disputes in the future. Buying and selling structured settlements can be of help to the parties involved but must include careful and prudent study to avoid being ripped off.

You can also consider structured settlement loans as an alternative. Or visit this page for Structured Settlement Buyout

We’re going to look closely at the thinking of losers with this day trading online series.

Tagore – the famous poet: —- wrote , “Pessimism is a form of mental dysomania. It distains healthy nourishment and indulges in the strong drink of denunciation and creates an artificial rejection which thirsts for a stronger draught”.

Losers are just like the lemmings, racing towards the ocean. The trap of rejection and self denunciation catches them and they want more ! Bombardment by negatives, by parents and relatives to children and the continuation of this through life makes it feel that a conspiracy is out there to start and keep an attitude of "can’t do" in people . Nearly all society continues this conditioning through commercials, pressure from friends and family, and music . A paper can’t be distributed , a news hour cannot be made interesting unless you have misery and unpleasantness …. that which the loser is made of .

Losers out there love misery – it is the only thing that makes him happy . Incredible !

A self defeatist is what the losing trader is. He functions best when he is under stress and strain , and losing money makes him feel at home . When a loser strikes gold in the market, he falls apart … it’s something he is unused to. He has never learned how success should be enjoyed. His thoughts have always been built on struggling and losing . A win occurs, he loses it, becomes an expert – then develops what a well know futures trader (Larry Williams) called "the King Kong feeling". Self control is lost and he quickly loses his profits , and he’s back to the misery and struggling again, that which he is used to , – like lemmings going out to the ocean, and while he may not admit it, the struggle is what he loves he loves the struggle to win although he won’t admit it. Winning is something his mind can’t cop with . His mind can cop with struggle. It’s incredible, isn’t it? Especially if you take a look at it through a day trading online course.

He correlates a posture of immaturity . It’s easy to see why he is made a fool of by the cordial politician that says "There’s no need to worry about your life. We can take care of it. We actually know what is good for you better than you do".

An desire to win that’s overwhelming is what the loser has. They tell themselves that winning can happen , and they come back again and again to try and save face. In their psychological patterns ineffectualness is already programmed in. When success occurs, those events about hypnotize him . He then goes into a trance or hypnotized state . He gets sinking feelings about this and that . He doesn’t wait to apply the things he did correctly , usually at the wrong time to the same market . His mind basically tells him "This really isn’t happening" . He is unaware of where he is. He turns into someone else .

[ Seeing a loser win is a great event , but it's sad because you can recognize the trance state they are in , and you know that given time they will lose again - so much, that they will be right back where they started .]

There are times when a profit accrues, the loser’s mind will be so happy with the profit , that prematurely they will reach out and grab it. If loss is happening , his mind says "It will all work out in the end" and they continue to hang on. He cuts profits short and allows losses to run on.

The market is hard to short for the budding trader . He thinks that prices have no ceiling and that the sky is the limit . As long as he buys against base zero, growth is inevitable , since to him life is all about upward movement and growth .

We will continue this discussion about how losers think in our next article in this day trading online series.

You can find numerous essential aspects necessary to be a winning market investor.

Money will not accumulate in your account without a little work in your part. Truly, stock market timing means pitting your sentiment skills on those of tens of thousands of added traders.

The common those who create investments in market be defeated cash. Many people usually are not aware of that. Many investors & traders stay on the bulk (the crowd) that typically purchases and sells the wrong times. They buy at tops, sell at bottoms, moreover make emotional investing conclusions depending on news events.

The crowd does that for just a reason. That time they invent their decisions, they think they’re proper! Feelings are strongest motivators at that time it comes to money. It may override belief.

This implies, for someone to accomplish success, you must have the ability to understand past those urges to purchase & sell, which may happen to you only as they occur to everybody else. If you are able to accomplish that, you are in a position to turn out well at market timing.

But does not despair. Timing the stock market is not so challenging. You simply have to stay on several system of trading. Here’s few significant set of laws for market timing achievement.

You Must Have an Accurate Investment Strategy

As we defined in our other investing articles. You should have a proved investment strategy that puts you in to valuable positions.

The techniques of Swing Timing Alert describe present trends & trade them, in both bull and bear markets, with huge returns.

Research exhibits the economic markets trend approximately eighty% of the time. Our strategies exploit that information. We mind nothing regarding what newscasters say, or what the latest monetary indicator is.

This is our Investment Strategy. The trend is where at the returns are, and that’s where we are.

Systematic Execution

Obtaining an Investment Strategy is great, but in case if you cannot persist with the approach which makes use of it, you may not be valuable. The desire to stay on the crowd is very much powerful.

Here is an example, let’s assume the stock market is in the middle of the two day super rally. You just Identify this feeling is correct. You can experience it.

But your market timing strategy is not permit you to stick to the crowd, and that implies you get out of this tactic & go your particular technique.

You might have now joined the crowd.

All too normal, and typically it results in a loss.

Useful Money Management

The most common mistake made by new market investors is usually to place large amounts of funds in to a particular aggressive approach right away.

Every one of stock market timing approaches might not succeed. Good ideas keep those losses quite small. But aggressive stock market timing strategies are, as their name means, more volatile in comparision with conservative approaches.

The latest stock market investor, faced with an immediate small damage in the aggressive approach, is very likely to be an previous stock market investor.

They could have outperformed the stock market once they’d stayed the course, but the aggressive type of the approach they selected caused them to panic & go away.

They might have utilized a conservative strategy more according to their emotional ability to trade. Swing Timing Alert have them as well. The number of trades won’t indicate enormous gains. You don’t have to buy and sell violently to earn.

Excellent stock market timing methods, such as those utilized by members of Swing Timing Alert Newsletter, lessen losses and remain them small. They may also discover trends and remain you in those trends until they finish, thus capitalizing on as much profit potential as can be realized.

There is an old saying, keep your losses small & permit your gains ride. If your stock market timing tactic does this, you will be valuable.

You Must Have a Timing Strategy

This is where Swing Timing Alert arrives into picture. We have well-known timing strategies for investments which have passed through all types of market condition.

By using alerts created by Swing Timing Alert we’re capable of effectively profit in both bull & bear markets, while reducing losses in unpredictable sideways markets.

You can’t expect to make Long Term Returns on your investment without using a tried & tested system! Here’s the Stock Market Timing system which works effectively even in a crisis situation. Subscribe to Swing timing alert & learn the most effective stock market timing system for trading the Stocks.

Investing into the stock market can be a great plan of action.So, what exactly are they?  Here is a short basics of stock market investing tutorial for people who want to start learning about the stock market.

Stocks are just pieces of the ownership of a specific company.For example if you buy 1 share of stock with the company XYZ then you will own a small piece of the given company.If there are 10 million shares of stock and you own 1 then you are 1/10,000,000th owner of that company.

Over time stocks move up and down based on how fast the company grows and how much supply and demand there is for the company.If the company is fundamentally strong and growing then there will be more and more demand to invest into it and this demand will raise the price of the stock.

Stocks can also make money for their investors in a second way.  Dividend paying stocks are stocks that pay you a small amount of the earnings.This income can be a nice side benefit to owning a stock and as the company increases and expands then the dividends that they pay out will also expand, giving you a nice increasing passive income stream on the side.

So, how do you find strong stocks that will grow over time?  Well there are a few different strategies out there but perhaps the best long term strategy would be value investing.

This involves getting into stocks from companies which are already established and in working order, however their stock price is low.In other words the stock is undervalued compared to where it should be.

Value investors will use ratios such as the Price to Earnings Ratio and the Price to Book Ratio in order to try to match up how much the company is actually worth per share and how much those shares are going for.

It can also be pretty valuable to look at how much money the company does make compared to their expenses and if they do have potential to grow.If you can’t see the company being around for the next 5 or 10 years then buying it for a long term investment is probably not a very good idea.On the other hand if it does have a large growth potential then the opposite is true.

When everything comes down to it you are going to have to be the one to decide if it is worth buying or if it is not.However if you do take the time to do your research and learn from your mistakes then you are already taking the first steps to success.

Because of the current status of the global economy investing in anything making investments on just about anything is a doubtful decision nowadays. Gold trading however great long term investments for the simple reason that it never loses its value. During the last few years the gold market has grow to more than triple in value. This can be attributed to the stability of the metal in the face of economic recession.

This is how one aspect of how physical gold trading works. The traders will purchase gold from the supplier at a price since they buy it in bulk. After which the trader will sell it to different gold dealers and jewellers at a standard price in the market. This allows them to profit and earn bigger returns from their investments.

Before investing in gold exchange trade funds, make sure that you research thoroughly as you do with any other stock. Once you have found the stock that suits your needs, you can open an online trading account and practice using the gold trading tools provided by the website.

At the end of the decade, the market suffered more downturns as the London gold market shut down to alleviate prices. The shut down caused a sudden demand spike, this caused a run on the price of gold and caused chaos on spot pricing and futures. The market shut down for two weeks so that market order would return, and when the market reopened private investors were shut out.

Today the London gold market continues to be the standard for gold contracts and prices. Beginning at 10:30 a.m. and 3 p.m. every day, gold prices are set and published. This is used by gold producers as official figures. The New York gold market also opens as the second London set occurs. After that gold is traded throughout the day.

There are also a slew of online trading websites where you can compare the prices of gold coins and gold bars. These websites allow you to log on to window shop before you purchase your choice of gold. Be sure to get a well-known supplier or dealer. Also be reminded to be careful when buying gold through the internet. This business involves large amounts of money so you have to be alert of frauds in online physical gold bullion trading business.

Do you have a day job? Most probably yes! Are you still interested in making a 4-5 figure part time income in your extra time? I am sure, you will be! Now, this article in about how to make a 4-5 figure monthly income part time trading forex not more than 20 minutes a day. You see, forex is the hottest market right now. You can trade forex from the comfort of your home in the evening. Hey, you can even trade forex while on the go from your mobile. So why not learn forex trading and use it to make a good part time income? The problem is many people don’t try to learn forex trading with enough determination. 90% of the people simply quit in the first two months . Why is it so?

The main reason is of course, the lack of determination and effort. Trading is a solitary activity. If you do it on your own, you will soon become bored. The best way to learn forex trading is to take a mentor or a coach. Your forex trading mentor can take you by hand and show you how to successfully trade the forex markets .

Think, can a basketball team win without a coach or a golf player improve his/her game without coaching or a tennis player improve without coaching . The same applies in forex trading. Watch this weird 30 minutes Forex Nitty Gritty FREE video just now. Don’t miss watching this shocking forex story on video! Get this Forex Swing Trading End of Day Trading Kit (100 Page PDF Plus Videos) by Bill Poulos FREE! Watch these Forex Mastery 2.0 and the New M3 Forex Software FREE Preview videos just now!

One person who can teach you forex trading is Bill Poulos. Bill is a highly respected trader, coach and a mentor. He started trading way before in the early 1970s. Over the decades, he has taught many people to successfully trade forex. His philosophy is to trade not more than 20 minutes a day and reach a 5 figure monthly part time income .

You can try his Forex Income Engine Course RISK FREE for 90 days. Another person who is a great teacher, coach and a mentor is Forex Joe. Forex Joe was a Texan sports bettor of 30 years before he stumbled upon forex trading. As a sports bettor he had made a fortune betting using his proprietary mathematical formulas. He applied those same mathematical formulas to the forex market and lo and behold, he made  a fortune here as well. You can try his Forex Mastery 2.0 Program RISK FREE .

 Bill is a great teacher and mentor. Forex Joe is also a great teacher and a mentor. He open his Forex Mastery 2.0 Program only 2-3 times in a years and enrolls only a few students. He will be opening his course in May 2010. You need to watch the Forex Mastery 2.0 preview videos just now  !

InfoGrok Energy, a leading Energy industry news and intelligence website is reporting that Vestas, the Denmark-based wind energy company have received a substantial order from Devon Wind Power Ltd, a subsidiary of ESB Wind Development UK.

The order is for delivery of 22 units of its V90-3.0 MW wind turbines to its large scale Fullabrook Wind Farm.

Fullabrook Wind Farm, which is situated between Barnstaple and Ilfracombe in North Devon.

The order received by Vestas has a total capacity of 66 MegaWatts.All the wind turbines ordered as part of the deal will be installed at the Fullabrook Wind Farm site.The delivery schedule for the wind turbines is April 2011. The contract includes (1) supply; (2) installation and; (3) commissioning of the wind turbines. It is estimated that once the wind farm is fully operational, it will provide sufficient electricity for nearly 30,000 domestic consumers in the UK.

Klaus Steen Mortensen, President of Vestas Northern Europe is quoted as saying, “We are very pleased to announce this order.” “When completed, the Fullabrook will become the largest onshore wind farm in England, and it is a landmark in both the development of ESB as one of our key accounts and in their strategic goal of investing EUR 4 billion in renewable generation projects. Vestas looks forward to playing an active role in the achievement of the target.”

When put into full production, Vestas predicts the wind turbines will save the environment from an annual carbon emission count of more than 91,000 tons of CO2 compared with the average generated energy sources such as oil, gas and nuclear in the United Kingdom.
This move will further strengthen the UK coalition governments green credentials amongst environmentalists, the general public and also work as a test bed for future growth of the wind power industry in the United Kingdom.

European Markets Set For A Swoon?

From Elliott Wave Global Market Service

There appears to be some significant Elliott Wave technical chart pattern developments unfolding in the European markets that if confirmed will bring irrecovable change to complexion of the Western European markets for the foreseeable future.

These developing bearish Elliott Wave patterns are also likely to have broad reaching implications interms of their impact on daily life throughout the Eurozone.Without getting caught up in the social commentary rhetoric, suffice to say however, they are likely now to take a turn for the worse.  Having said that, social commentary is not our business.  We are in the business of identifying trend development for our members, reviewing and analyze the markets and distributing videos to help keep them safe.

And keeping our members safe is the top priority at this time and here is why we think why.  Firstly, the are a couple of long term trend indicators that we find highly reliable that are telling us now to be cautious, they are specifically the ‘Weekly Aroon Oscillator‘ and the ’50 day & 200 day Moving Averages‘.  Both of the indicators have triggered highly reliable ‘bearish cross-overs’ that have previously lead to dramatic declines of a longer term nature.  No indicator is fail-safe, however these are pretty good.

In the short term, there are a cluster of bearish chart patterns developing in the major European markets such as ‘bearish head and shoulders topping formations and descending triangle tops’ that also suggest the potential for a ‘crash-like’ move down in the order of 15% plus in the coming months if the resolve as we think they might.

Other than a host of technical indicators and bearish technical chart patterns, the most obvious indication of a major move lower is a near complete bearish Elliott Wave count, that if correct will likely usher in a larger crash move in the near term

Rather than go through the individual detail of each major European market market I have decided to attach to this article a copy the European Edition of The Monthly Global Forecast from the 24th of June that details the prevailing technical evidence indicating much lower prices directly ahead.

If you follow the markets and use either Elliott Wave or technical analysis for the basis of your trading and you would like to receive daily video reports covering the short term Elliott wave and technical analysis of the major US markets, Gold Trust, Oil Holders and USD Bullish then please visit our service at www.elliottwavegms.com. Our one-fee all inclusive service includes all major global markets, currencies and commodities in our monthly forecast report in addition to our portfolio stock service by way of weekly video update.

We are currently offering A WEEK OF FULL MEMBERSHIP FREE to all visitors who register only their first name and email address.  To get full immediate access to the full range of video forecast reports for click here GET ONE WEEK OF FULL MEMBERSHIP FOR FREE!

Paul Thomason

Founder, Elliott Wave Global Market Service