Tuesday, September 25, 2007

Is Inflation Harmful

Q. Should the Government be concerned if the CPI rises to 5%?

The Govt set the MPC a target for CPI of 2% +/-1 therefore it believes inflation higher than 3% is potentially damaging for the economy.

It depends on inflation in other countries. If inflation in the UK is higher than elsewhere then UK goods will become uncompetitive leading to a fall in demand for UK exports.

If there is a fall in demand for Exports then there may be a deficit on the current account Balance of Payments. However this may be offset by a devaluation that is likely to occur

However if inflation is high there will be a devaluation of the exchange rate, This is something the govt wishes to avoid as it creates uncertainty amongst business.

Higher rates of inflation may cause menu costs, which means firms have to change price lists quite often. However this is not that significant when inflation is only 5%.

If inflation is caused by unsustainable economic growth then the boom may be followed by a recession . To keep inflation within target the Bank of England will have to increase interest rates, this causes problems because AD will fall causing lower growth.

Higher rates of inflation are disliked by business because it makes it more difficult to predict future costs. Therefore investment will be lower, Countries with lower inflation rates generally have poorer economic growth.

A high rate of inflation would make it more difficult to join the EURO, because it would breach the Maastricht criteria. If inflation in the UK was higher than Europe a single Monetary policy would be ineffective for the UK

If the inflation was world wide caused by an increase in the oil price, it may be necessary to revise the inflation target of 2.5% . The UK would not lose its competitive advantage because every country would have higher inflation. TO reduce inflation would cause stagflation (lower growth and lower prices)

Inflation may cause redistribution of income from savers to borrowers, although this will depend upon the rate of interest. E.g. if interest rate were 8% savers would still have a real interest rate of 3% It depends on whether wages are keeping up with inflation. If wages were only increasing by 4% then real wages would be falling.

Should the govt be concerned with inflation falling below 2%?

If prices are falling because AS shifts to the right because of new technology, this is beneficial for the economy, because growth is increasing and jobs being created

If deflation is cause by falling AD then this is serious economic problem because it indicates a recession with problems such as unemployment, lower output and a negative multiplier effect

Deflation can cause problems for the economy. It means that those who have debts will see the real value of debts increase, this will lead to lower consumer confidence and possibly lower AD and economic growth

Deflation makes monetary policy ineffective. This is because interest rates cannot be reduced below 0%.

Companies cannot alter real wages easily because workers are very resistant to any cut in nominal wage wages.

It is more difficult to set prices when there is deflation

By R.Pettinger Economics Teacher in Oxford. More Economics essays at Economics help.org Including macro and micro economic essays.

Monday, September 24, 2007

Finding the Forex Trading System for You

When you start to look around, for a viable Forex trading system, you quickly become aware, of so many options out there that you may not be sure where to begin. In order to pick the right trading system, you will need to establish some basic criteria that you can use to evaluate any possible candidates. Here are some suggestions to help you make your choice.

One of the first things you need to check into is what type of commitment you have to make in order to use the system. Will you need to commit a minimum amount of resources to the system in order to be able to participate? If so, what is that minimum amount? Set aside any trading system, which insists that you have to set aside an amount of funds, that you are not comfortable with or are unable to reasonably commit and still maintain your current standard of living.

Next, look into support resources that are available to you as a user of the system. You want to know that you have access to up to the minute information, as currency exchange rates can and often do change several times a day. You may also want to look for a comprehensive tutorial that helps you understand the way the system works at each juncture. Another aspect in regard to resources has to do with the ability to communicate with another human being. Can this be accomplished with emails, direct chats or even by placing a toll free phone call? Pass on any system that seems to leave you hanging out there on your own, even if you consider yourself too savvy to ask for help. The fact is that you will need assistance at some point and it would be nice to know it is there when that day comes.

You may also want to look closely at what type of claims for success are made for the system in question. While you do want to get involved with a system that has a proven track record, there is no need to waste your time with any trading system that promises overnight wealth. While people can and do make impressive livings involved in currency trading, the fact is that they tend to make them over time, not overnight. Avoid any system that makes what seem to be grandiose claims for success. Focus your attention more on trading systems that will be able to support you for the long term, as you incrementally grow your revenue stream.

Finding a Forex trading system that is reputable, reliable, and will provide you with the support you need can be done. If you take a little time to evaluate each possibility and make sure the trading system provides everything you need to grow your own success.

If you are interested in learning more take a look at my site dedicated to teaching you how forex trading works

Should You Time the Real Estate Market?

Timing anything in the financial markets is generally considered a hit and miss proposition. With the deflating real estate market, however, opportunities abound.

Should You Time the Real Estate Market?

Throw out the idea of attempting to time a market and many media gurus will tut-tut the mere idea. The basic criticism is three fold. First, you are not smart enough to do it. Second, you may wait to long and miss the best buying opportunity. Third, timing is irrelevant as certain investments such as real estate grow steadily over time which means you should just buy now and wait it out.

In the case of real estate, these assumptions are not as influential in the decision to time certain markets as they may seem. Currently, the real estate market in many areas is deflating after a historic period of appreciation and demand. Simply put, this represents a buying opportunity for the savvy buyer. So, should you try to wait and find the bottom of the current market? In my opinion, you should consider it.

Are you smart enough to do this? Yes. Most financial markets can be a bit complex when you get down to the nitty gritty of the situation. The stock market is influenced by a wide variety of factors that would seem to make it nearly impossible to time price movements unless you have insider information. That being said, tens of thousands of day traders seem to be able to make solid profits doing it. If they can do it with stocks, you can certainly do it with real estate.

Will you miss the bottom of the market? Maybe, but I doubt it. The beauty of timing the real estate market is, indeed, time. Unlike stocks, real estate prices tend to move over slower periods of time. In a fast moving real estate market, you still will have a couple of weeks to evaluate the price movements. Simply put, they do not move over minutes or hours but in easily identifiable trends. Even if you miss the absolute bottom as prices rebound, you should still get a very good deal compared to prices two years ago.

Should you just buy now since real estate is a good investment over time? You could. This clich is grounded in truth. Over long periods of time, real estate has shown a consistent trend of appreciation. That being said, historical appreciation rates run from six to eight percent depending on the community. If you can get a home at a 30 discount to two years ago, you will reap the benefits when prices bounce back.

Should you time the real estate market when considering buying? The decision is yours, but dont be put off by supposed gurus telling you it should not be done.

Raynor James is with the site - FSBO America - homes for sale by owner.

Sunday, September 23, 2007

Forex Trading Three Great Reasons to Start Currency Trading

Most people shudder at the thought of Forex Trading because they think that it is very high risk trading because of the great amount of leverage involved. However the money making potential in Forex Trading is huge when compared to other financial instruments worldwide.

This article will highlight three great reasons why you should consider Forex Trading or at least a managed Forex Trading Account when considering between the multitude of investment instruments available on the market today.

Firstly, the forex market is the most liquid financial market in the world today. This means practically that even in a falling or rising market, there will always be a ready buyer or seller on the market. Most of us have been caught in situations where we want to sell a stock but there are no ready buyers in a falling market.

The great amount of liquidity in the forex market today, means that not only can you sell your currency fast but you can also acquire it fast as well and in rapid succession. Thats one reason why George Soros managed to funnel large amounts of money through the several South East Asian currencies during the currency crisis and made huge amounts of money in the process.

Secondly, the forex market is a true global market meaning that it operates 24/7 during the weekdays. This means that if you really wanted to, you could trade through the night and the day. Thankfully there is forex trading software now that helps you monitor trades and hunt for good trading opportunities and when you just enter your trading strategy, and the robot takes over and closes your position for you. The trading platforms now are so robust that you can set your downside indicators to close your position when it falls below a pre-set number so that you do not lost money even while you are sleeping.

Thirdly, the Forex Market is controlled by macro economic factors. Currencies are representations of how strong the economies are and how global trade affects them. The US Dollar rises and falls against the Euro in response to how strong the US economy is. Central bank intervention also plays a large role in this matter and such details are readily known to anyone today with internet access. You would want to contrast this to stock markets where the fund managers are usually the first to know about a scandal or bad quarter as opposed to the main retail investors. Another aspect of marco economics is that currency trends take a long time to play out. This means practically that we will not be caught off guard so fast when there is a turn in the market which takes a few years to play out.

In conclusion, we have highlighted three reasons why you should consider Forex Trading as a possible way to make money online. Take some time this weekend and go to the library and read all you can on the subject and then practice as much as you can with the free simulated accounts that most forex trading brokers provide and only spend money when you have accumulated enough profitable paper trading. Remember with great risk comes great reward in the Forex Trading Market. Carpe Diem!

Copyright 2006 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)

Joel Teo is the successful Webmaster of http://www.RealEstateInvestment101.info

Learn how you can make more money today from Property Investment today and start generating a positive monthly cashflow from your property investments.

The Big Business Of Forex Online Trading

The daily transactions on the Forex, or foreign exchange markets, are so vast that they dwarf the total amount of money invested in stock markets across the globe. With over two trillion dollars in daily volume, the Forex is the most significant of the global monetary marketplaces

Since the introduction of the Euro to the world currency mix, the Forex has seen exponential growth. Add the rise of the Internet, and what had been the exclusive domain of the worlds great banks, financial institutions and super wealthy with at least a million dollars to invest became available to small investors who had PCs, Internet connections, and a few thousands of dollars in risk capital.

There is a very wide mix of entities, from individual brokers to corporations to governments, engaged in currency dealing through Forex online trading. And the currency market, because it does not operate form a single physical exchange like the NYSE, is ideal for Forex online trading. There are, of course, cites around the globe with large numbers of Forex brokers, and the advent of Forex online trading has connected all of them electronically. Forex online trading is now conducted around the clock every day of the year.

Forex Pre-Internet
In pre-Internet days, Forex business was conducted over the telephone and the only way in which individual investors could participate was to go to their bank and have a banker place their currency trade, or phone the bank to request that it be placed. For most of its history, the currency market saw very little individual involvement.

But Forex online trading has changed all that. Hundreds of thousands, if not millions, of individual investors have taken advantage of their around-the-clock online access and, just like larger institutions, are now engaging in Forex online trading twenty-four hours a day. Geography no longer matters, because business hours are always ongoing somewhere in the world.

Forex Trading Today
Forex traders can now have a hands-on role in their investments by continually observing market trends so that they can close their Forex online trading positions when the market turns against them. Forex online trading has also benefited from improvements in encryption technology, making investors feel more secure about having money online.

Forex online trading, in short, has become big business. And every big business will eventually spawn cottage business; Forex online trading is not different. There are now hundreds of websites offering advice and software designed to improve an investors chance of success in the Forex online trading game.

But you should make sure, before you decide to give your money to any Forex online trading site, that its software is compatible with your PCs operating system. And take the time to comparison shop for commission fees. Youd be surprised to know how widely they can vary among brokers. And above all else, find out how the broker intends to let withdraw your Forex online trading earnings.

You can also find more info on Online Forex and Trading Forex. e-forextradingsystem.com is a comprehensive resource to know about e-Forex Trading System.

Annuity Basics

Annuities can be very good things for some of us and a disaster for those of us who have not been made aware of the pitfalls and traps that in turn can easily befall them.

Since most people have or are going to look into annuities as a retirement or and an investment vehicle, make sure it fits into todays needs and parameters. It has to be right for the times we are in and it needs to be periodically revaluated for tomorrows world.

Precautions to be taken when buying annuities:

1.One should not Buy Annuities With Long Surrender Periods:

People are talked into buying an annuity that locks up their money for an excessive period of time with a surrender period that is longer than another comparable annuity with similar interest rates.

2.Do not fall for First Year Bonus Interest Rates:

Some annuity companies offer you a bonus or bonus interest rate on your first year deposit into an annuity.

3.Understand exclusion rations and the value of a partial 1035 exchange.

This is a rather complicated subject because there are enormous variables in determining how to properly structure your annuity contract from day one so as to maximize the taxable exclusion ratios when and if you decide to take an annuitization income from your annuities in the future.

4.Do not use small companies with questionable financial ratings

An annuity by definition is a contract guaranteed by an insurance company. Annuity consumers sometimes forget this and buy and annuity without factoring the claims paying ability of the insuring company. This does not only apply to the questions of solvency or bankruptcy but to the more subtle effect it might have ones contract. If an annuity company has financial trouble it most likely will not go bankrupt (even though it is a possibility) because of the various government regulatory groups that monitor annuity companies. But what can happen is the annuity company will lower the rates at which it credits interest to your account in order to make up its losses in other areas of its business.

5.Know the guaranteed cover per person per insurance company

One needs to know if an insurance company goes broke what is the guaranteed cover per person per insurance company is available .One should not invest more than that in the fixed or guaranteed annuities and the variable annuities are not covered. Because if they broke then one may get stuck or spread the amount between different insurance companies.

6.Consider the shortest penalty free surrender date

The next thing you have to consider is getting the shortest possible penalty free surrender date term as possible so long as the interest rate is better than any CD.

Lastly and most importantly get the best professional help, one who will always tell you "like it is" even if its sometimes hard to listen too and even harder sometimes to act upon.

Mansi aggarwal writes about annuity basics Learn more at http://www.annuitiesforlife.com

Invest or be Pink Slipped

Firing an employee seems to be easier and easier for corporations. Up until now you allowed them to set your clocks. Now its time to fight back! Beat them at their own game. They had your future pegged. Now your certainty is in your own hands.

Corporations attempt to make the best use of their resources so they claim. You must do the same! And when the corporation is no longer the best use of your resource give them their pink slip. You must begin to look for ways to capitalize on your time and increase your earning potential. Think like a corporation about how you can increase your earnings quarter by quarter.

This is exactly what I did and I am so grateful for it. I had started six years prior diversifying my income. I accomplished this by investing in commodities. I still remember the thrill of my first trade in commodities. I managed to turn $1,500 into $18,000 in about 4 months. That was almost equal to my $20,000/ yr salary at that time. Up to that point nothing I attempted to do to earn a real income, you know the type of income that would allow me to splurge and enjoy life, actually worked.

I immediately stopped buying all the other so-called moneymaking material. I began focusing all my efforts on investing in commodities. A funny thing happened to me. I noticed I actually performed my job better because I was happier knowing I had my investments working for me. I was able to handle stress much better. I started setting goals and taking vacations away from home instead of using my vacation time simply as time off from work.

I even started solving problems that were a challenge for others but the solutions seemed to come to me with ease. I gradually moved up in the company through promotions. I started viewing the company as an investment for me. This view allowed me to start taking full advantage of their tuition reimbursement program and their interest free loans for computer purchases.

My experience of investing in commodities allowed me to change my perspective on life. When I was given the news that I would be out of a job due to reorganization, I felt no pressure. I had planned for this moment six years in advance. Of course, everyone was quite shocked when I kept my composure and said the company was the best company I had ever worked for.

I continued to work diligently and happily right up to the very last day. You see the company had paid for my college education, gave me two interest free loans for my computers and gave me a lifetime of experience. Well, the truth is I knew I had my investments in commodities and the company had allowed me to earn the money to invest.

Diversify your income now!

Copyright David Wells. This Newsletter and all contents are proprietary products. All rights reserved. You are welcome to forward the entire Newsletter to anyone interested.

Often referred to as The Money Motivator, David Wells is passionate about helping people crack the wealth code to become money magnets. Let him teach you the techniques Hillary Clinton used to turn $1,000 into $100,000 in the course of a year.

To put The Money Motivator to work for you, visit his website at http://www.themoneymotivator.com and sign up for his FREE newsletter, Money Moments. In it youll receive creative ways for getting the money you need and how to invest like a millionaire.

12 Basic Stock Investing Rules Every Successful Investor Should Follow

There are many important things you need to know to trade and invest successfully in the stock market or any other market. 12 of the most important things that I can share with you based on many years of trading experience are enumerated below.

1. Buy low-sell high. As simple as this concept appears to be, the vast majority of investors do the exact opposite. Your ability to consistently buy low and sell high, will determine the success, or failure, of your investments. Your rate of return is determined 100% by when you enter the stock market.

2. The stock market is always right and price is the only reality in trading. If you want to make money in any market, you need to mirror what the market is doing. If the market is going down and you are long, the market is right and you are wrong. If the stock market is going up and you are short, the market is right and you are wrong.

Other things being equal, the longer you stay right with the stock market, the more money you will make. The longer you stay wrong with the stock market, the more money you will lose.

3. Every market or stock that goes up will go down and most markets or stocks that have gone down, will go up. The more extreme the move up or down, the more extreme the movement in the opposite direction once the trend changes. This is also known as "the trend always changes rule."

4. If you are looking for "reasons" that stocks or markets make large directional moves, you will probably never know for certain. Since we are dealing with perception of markets-not necessarily reality, you are wasting your time looking for the many reasons markets move.

A huge mistake most investors make is assuming that stock markets are rational or that they are capable of ascertaining why markets do anything. To make a profit trading, it is only necessary to know that markets are moving - not why they are moving. Stock market winners only care about direction and duration, while market losers are obsessed with the whys.

5. Stock markets generally move in advance of news or supportive fundamentals - sometimes months in advance. If you wait to invest until it is totally clear to you why a stock or a market is moving, you have to assume that others have done the same thing and you may be too late.

You need to get positioned before the largest directional trend move takes place. The market reaction to good or bad news in a bull market will be positive more often than not. The market reaction to good or bad news in a bear market will be negative more often than not.

6. The trend is your friend. Since the trend is the basis of all profit, we need long term trends to make sizeable money. The key is to know when to get aboard a trend and stick with it for a long period of time to maximize profits. Contrary to the short term perspective of most investors today, all the big money is made by catching large market moves - not by day trading or short term stock investing.

7. You must let your profits run and cut your losses quickly if you are to have any chance of being successful. Trading discipline is not a sufficient condition to make money in the markets, but it is a necessary condition. If you do not practice highly disciplined trading, you will not make money over the long term. This is a stock trading system in itself.

8. The Efficient Market Hypothesis is fallacious and is actually a derivative of the perfect competition model of capitalism. The Efficient Market Hypothesis at root shares many of the same false premises as the perfect competition paradigm as described by a well known economist.

The perfect competition model is not based on anything that exists on this earth. Consistently profitable professional traders simply have better information - and they act on it. Most non-professionals trade strictly on emotion, and lose much more money than they earn.

The combination of superior information for some investors and the usual panic as losses mount caused by buying high and selling low for others, creates inefficient markets.

9. Traditional technical and fundamental analysis alone may not enable you to consistently make money in the markets. Successful market timing is possible but not with the tools of analysis that most people employ.

If you eliminate optimization, data mining, subjectivism, and other such statistical tricks and data manipulation, most trading ideas are losers.

10. Never trust the advice and/or ideas of trading software vendors, stock trading system sellers, market commentators, financial analysts, brokers, newsletter publishers, trading authors, etc., unless they trade their own money and have traded successfully for years.

Note those that have traded successfully over very long periods of time are very few in number. Keep in mind that Wall Street and other financial firms make money by selling you something - not instilling wisdom in you. You should make your own trading decisions based on a rational analysis of all the facts.

11. The worst thing an investor can do is take a large loss on their position or portfolio. Market timing can help avert this much too common experience.

You can avoid making that huge mistake by avoiding buying things when they are high. It should be obvious that you should only buy when stocks are low and only sell when stocks are high.

Since your starting point is critical in determining your total return, if you buy low, your long term investment results are irrefutably better than someone that bought high.

12. The most successful investing methods should take most individuals no more than four or five hours per week and, for the majority of us, only one or two hours per week with little to no stress involved.

C.C. Collins is a Financial Planning Advisor and Author of Scientific Wealth Strategies at http://www.wealthscientist.com Find more information at http://www.stockinfo4u.com

Saturday, September 22, 2007

Stocks Double All The Time

Did you know that $1000 Invested one time, if it returns 100% a year would be worth over $1,000,000 in 10 years? Here is how it breaks down

Start $1,000

End of Year 1 $2,000

End of Year 2 $4,000

End of Year 3 $8,000

End of Year 4 $16,000

End of Year 5 $32,000

End of Year 6 $64,000

End of Year 7 $128,000

End of Year 8 $256,000

End of Year 9 $512,000

End of Year 10 $1,024,000

That is doubling your money every year.

Of course that scenario doesn't include taxes etc.. However if you had a 401K you wouldn't get taxed on it.

Maybe you have seen that before but that shows that the person with a Long term strategy can make a great deal of money from not a big investment. 100% a year isn't a lot when we are talking about HYIP investments but how many of those are going to last 10 years as well? NONE

Did you know a good percentage of Stocks double each year? I just did some quick research on this with the newspaper. I opened up the Stock Market section for the Nasdaq/AMEX. I decided to check the 52 week high and 52 week low for some stocks. What I was searching for is how many stocks under a certain letter were at least double from its 52 week low. In other words for a stock like "Hansen" (I have NO IDEA WHAT THEY DO OR ANY INFO ON THEM THIS IS JUST AN EXAMPLE) This company (Hansen) had a 52 week HIGH of $44.25 and 52 week Low of $8.51 and was trading above $44. So from the low of $8.51 to the high that is over 5x increase. Point being their are a LOT of stocks that move up 100% in a year, Hansen moved up 400%+!

I did research on a few different letters. (I only looked at letters that had a small # of companies just to show you the research. I didn't want to do like the letter "S" which would have hundreds of companies)

I did the letters "H", "J", "O", and "XYZ". In my paper the letter "H" had 33 companies listed for the Nasdaq/Amex of those 33 companies 16 of them had a 52 week hi/low difference of at least 90%. 17 of the companies did not.

The letter "J" had 9 companies that had a 52 week hi/low of 90% or better, and 5 companies that did not. The letter "O" had 27 companies that had a 52 week hi/low of 90% or better and only 15 companies that didn't. The letters "XYZ" had 17 companies with a 52 week hi/low of better than 90% and 6 that did not.

So of those 6 letters listed above companies under those letters had companies with a 52 week hi/low of 90% or better 69 times and not 43 times.

My point of this is MANY stocks each year double in value no matter what the overall stock market does. All you need is to find 1 a year that can double. That could go from .50 cents to $1. Or $5 to $10 or $20 to $40. You ONLY need 1 stock!

One stock I mentioned on our Alley Cat Trading Newsletter went from .26 cents back in late November to almost $1 in early January. That more than doubled in less than 2 months!The stock was CYGX. I am sure there are many stock trading newsletters online and off. Do some research on them and the companies they recommend. Remember you only need 1 good stock a year. You could very well have a situation like with CYGX where it doubled in a very short time You take your profits and go hunting for the next stock. You don't always have to be in a trade. If that trade took you 2 months you are 10 months ahead of schedule take your time to find the next stock that could turn. Maybe that stock ends up taking 14 months to double.

Copyright 2006 Steve Hoven

Steve Hoven has had years of experience trading. check out his free newsletter at http://www.alleycatnews.net.

Find Job Online, To Make Money from Home Whats Right for You?

Whether its the crammed cubicle, aggravating boss, annoying co-workers or maybe just your desire for more freedom, both financially and hourly, youve come to the right review. It is possible to find a job online and start making money from home. Just follow my simple tips and you can make your dream of working from home a reality.

There are so many lies and tricks out there, especially if youre trying to find a legitimate work from home opportunity. Dont be turned off or run away when your first search doesnt turn up anything but scams. On the other hand dont be too trusting when it comes to any get rich quick scheme, even when they tell you therere not. Remember the golden rule when it comes to searching for a job from home, If it sounds too good to be true, it probably is!

With that in mind decide what you want to do. There are so many opportunities, no matter what you decide you like to do, or want to do; you can find something to match it. The goal isnt to leave your current job you hate to find a new job from home and still hate it!

Do you like meeting/talking to people? Do you like sales? Do you like to work on the computer? Do you want to be employed by someone else or are you ok taking the responsibilities that come with being self employed, like taking care of your own taxes? There are many things to consider, but dont worry, you might have to try a few things to find out what you like or dislike.

If you are ok with meeting and talking to people, there are several customer service or sales based jobs that can be found online. There are so many industries that hire outside agents. Some examples would be real estate, multi-level marketing, telemarketing, travel agent, personal training and much more. Most of the time, area-specific training is required and possibly a certificate or test is needed to work in that field. These can all be achieved online from your respected company and or organization.

If you were interested in working for yourself, by yourself, you can find many jobs online. These jobs would involve different industries or services online. Some examples of computer based jobs are paid surveys online, data entry, affiliate marketing or even selling products wholesale. Depending on what you decide to do online, determines your needed level of expertise. You might have to do things like running a website, dealing with customers, or even researching a product, but usually no degree or certificate is required.

My personal recommendation would be finding a job that works for you online. Most jobs Ive discovered online allow you to make money for a long time off your initial efforts. Having been in the customer service field for a number of years as a personal trainer, theres always a limit on your freedom and income. You have to work to make money and you have trade time to work, so you compromise both freedoms. See, by trading a specific amount of time for a specific amount of money, you can only do so much. If you decide to do something online you will have more time to do what you need to do, and the possibility of an unlimited amount of earnings.

Whatever you decide to try, give it everything youve got. See if its right for you and if it doesnt work, move on. Dont ever give up; it might only take a few weeks to see if something is right for you, but it will take about three months of hard work before the right thing starts to work for you. So do NOT give up! Thats what separates people that succeed from people that fail, as long as you keep giving it an honest effort if can work for you!

For me working from home is the only way to go. I must set my own goals, work my own hours and most importantly write my own paycheck. I can not understand giving my time to someones vision just to make them more money; I wont ever do that again. I walked away from corporate America a long time ago and I couldnt be happier working from home.

Thats why I take a personal interest in helping anyone seeking the freedom that Ive been able to discover. If you found this article helpful or would like more advice or reviews of legitimate work from home opportunities visit http://www.we-review-for-you.com/database.html

Brad McCleary has been envolved in the fitness industry for over seven years through athletics and personal training. By working from home, he was able to make enough money to leave the corperate fitness world and focus on training clients the way they should be trained. Check out his other articles on work from home opportunities, and fitness on http://www.we-review-for-you.com and check out his wife, Jennifer McCleary's, helpful articles covering a variety of subjects.

Friday, September 21, 2007

Stock Market Info-What You Must Know Before Investing In The Market

Many people today want to learn how to invest their money. Unfortunately, there is a lot of bogus stock market info out there when it comes to investing. The bottom line question you need to ask yourself is this: is stock market investing right for you?

The answer to this is different for everybody. For instance, many people simply dont want to take the time to educate themselves about investing outside of work. Yes, learning about investing does take some effort However, the rewards of financial freedom and prosperity you will gain down the road are well worth the effort.

However, if you are like many people who dont know anything about investing, and dont want to know anything about investing, then certainly making your own investment decisions can be financial suicide. At the very least, put it in a mutual fund with a proven record of performance.

You see, its uneducated investors who not only ruin their own financial futures, but also cause the market crashes so prevalent today. Often times, an uninformed investor will look at factors that really have nothing to do with their companies performance. Since they cant read a balance sheet or a financial statement, they have no way of determining the overall health of the company they are investing in.

Therefore, whenever any bad news about the economy comes out, they immediately sell, even if that news has little to no effect on their company. When thousands of investors do the same, the result is a market crash similar to the Great Depression and at other times. Some simple education on reading stock market info could have prevented this catastrophe.

The bottom line is this: learn the stock market terminology, educate yourself about the company or companies you will be investing in, and be able to read a financial statement.

If you do plan on getting into the exciting, highly lucrative (yet risk) world of investing, be absolutely sure you know what youre doing. Dont ever invest without knowing how to read companies financial statement and determine their profitability and future growth potential.

Only once you have this understanding should you even consider putting your money into the market. Remember: if you do take the time to learn and understand the market, the sky is the limit for you as far as wealth. Hopefully this stock market info will help you achieve financial success with your investments.

For more info on how to buy stocks, and tips for investing in the stock market, visit http://www.stock-investing-tips.com, a popular site that teaches how to make a fortune from your investments.

Investing- How Political Risk Affect Your Investments

Recent articles have discussed the importance of investing overseas. Political risk applies to both developed and undeveloped countries. It is important to consider the political risk associated with those investments and the effect that risk can have on your portfolio.

From an investment portfolio perspective, unexpected changes in actions and policies taken by a countrys leaders can greatly impact that countrys financial markets. Nowadays, the actions taken in one country will often reverberate through other financial markets around the world. This risk is referred to as political risk.

For instance, the press reports that a Chinese government official raises concerns over how high and fast stock prices have risen. Traders around the world speculate that the Chinese government may take action to control the market. Chinas stock market has a massive sell-off, erasing 10% of its value in one day.

That speculation then reverberates through the worlds financial markets. The major U.S. stock markets decline 3% in one day. At one point during the day, the Dow Jones Industrial Average drops over 150 points in one minute. The average investor loses thousands, maybe even tens of thousands of dollars in one day.

But it doesnt stop there. The worldwide market correction causes investors to reassess the amount of risk in their portfolios. They are concerned and take action to reduce their exposure. So the markets dont just drop one day, but a down-cycle lasting weeks or months develops.

There are many other examples that I can give. There is a coup in Thailand, which affects foreign investors. Hugo Chavez, the President of Venezuela, announces the government is taking control over various industries with substantial foreign ownership. Stocks of companies with investments in Venezuela are immediately affected.

Political changes are a risk to a portfolio, but they can also be an opportunity. Having the foresight to anticipate political changes and the effects it will have on a country will allow you to buy in before everyone else does.

For instance, countries issue bonds just like companies do. The interest rate paid on those bonds (how the bonds are priced) depends on the financial and political stability of the country. Several years ago, Brazil was in serious financial trouble. Its bonds paid a very high interest rate to reflect that risk.

The government took steps to improve the financial condition. It changed tax policies and opened markets to foreign investment. As those policies took effect, the country became more stable. As the risk associated with owning Brazilian bonds decreases, so does the interest rate those bonds pay. If you purchased one of the bonds when it was paying the high interest rate and sold it after the country became more stable you would have made a handsome profit.

For years, most industries in China were government owned and controlled. Foreign investment was restricted and there wasnt a viable means of trading stocks. In the past several years China has made it easier for foreigners to invest. It has also been privatizing government owned companies. That process is still in the early stages. Although there continues to be significant risks associated with investing in China, there are also great potential rewards.

Remember that there is a trade-off between risk and reward. An investors goal should not be to avoid all political risk. If you do, you will have to settle for lower returns. Lower returns mean you will have to save more to provide for retirement. Lower returns mean that you may not get the income from your portfolio that you need to live on during retirement.

Instead, there are two things that you need to do. First, understand that political risk exists. Even if you only invest in U. S. stocks and bonds, your portfolio will still be impacted by the actions of political leaders around the world.

Second, try to identify the political risks associated with the investments you own. The risk associated with equity investment in emerging market economies is different than those of developed countries. The risk associated with bond investments is different from those of equity investments.

Third, take steps to manage that risk. Alter your investment strategy. Broadly diversify your portfolio to reduce country-specific risk. Utilize both stocks and bonds. And have an exit strategy in place in case something unexpected occurs.

Nationally-syndicated financial columnist and Certified Financial Planner Jeffrey Voudrie provides personal, in-depth money management services and advice to select private clients throughout the USA. Hell answer your financial question FREE at http://www.guardingyourwealth.com

Nagymama's Hungarian Chicken Soup for Your Family's Soul

OK. I promised you my Hungarian chicken soup recipe. Being that we are suffering from an arctic blast, with wind chills in the negative 15 to 25 degrees, it seems that a wonderful pot of simmering chicken soup is the perfect anecdote for the bone-chilling days were experiencing in many parts of the country. Here is the way I remember Nagymama, my Hungarian grandmother, making it. Ive carried on her tradition by making it this way for my own family as well:

Fill up your stock pot about two-thirds of the way with water. No need to measure; just fill it so that theres enough room to add all of the following ingredients. (two-thirds should be just about perfect.)

Rinse your chicken with cold water and add it to the pot. Use either a whole cut-up chicken with the insides removed or three to four split breasts, with skin. Season the pot with ground kosher salt and pepper. Partially cover the pot and bring to a boil.

When it boils, remove the lid, reduce the temperature to a roaring simmer, and once you get the boiling under control, partially cover again. Cook at this temperature for around 30-45 minutes, until the chicken is tender when poked with a fork.

Turn off heat and remove the scum from the top of the pot. Then remove all chicken from pot. De-skin, de-bone, cut into bite-size pieces and put it back into the pot. Add peeled carrots (the authentic Hungarian way is to add them whole, not cut up), diced celery (again, add whole stalks if you want to be authentic) and quartered peeled medium size onions. Check your seasonings, now adding genuine, sweet Hungarian paprika (I also add a healthy does of thyme, although Nagymama never did!) Simmer on low heat for at least a couple of hours, until the flavors have a chance to mingle. (You can also let it simmer all night long on the lowest possible heat, removing it from the stove first thing in the morning.)

Right before youre ready to serve it, add thin egg noodles right to the pot, turning up the heat so that they cook through (about eight minutes.) Enjoy!

Nagymama always served this with homemade bread and pure butter. A European pastry was also served, as was a good cup of after-dinner coffee or tea.

Fewer aromas fill up your home better. Fewer memories of your childrens home could be stronger than the ones this will create. Try to keep a pot of this going for the rest of the winter. I am trying to do the same

Carolina Fernandez earned an M.B.A. and worked at IBM and as a stockbroker at Merrill Lynch before coming home to work as a wife and mother of four. She totally re-invented herself along the way. Strong convictions were born about the role of the arts in child development; ten years of homeschooling and raising four kids provide fertile soil for devising creative parenting strategies. These are played out in ROCKET MOM! 7 Strategies To Blast You Into Brilliance. It is widely available online, in bookstores or through 888-476-2493. She writes extensively for a variety of parenting resources and teaches other moms via seminars, workshops, keynotes and monthly meetings of the ROCKET MOM SOCIETY, a sisterhood group she launched to encourage, equip and empower moms for excellence. Please visit http://www.rocketmom.com

Adding Business Value: How do you Add Value in your Business?

When owners of small businesses want me to coach them to grow and expand their business, I often find that they are have reached a ceiling in selling their goods (products and services) and have run out of ideas for moving forward.

As I talk to them about how they currently add value to their customers' lives and to their company's assets, I find that few of them actually understand what value is. Memorably, Warren Buffett (CEO of Hathaway) said in 1999, "Price is what you pay when you buy an asset, value is what you receive for your money".

Revenue - Cost = Value added

Accountants say that value is the residue left when costs are subtracted from revenues. As a simple equation, this hides more meaning than it reveals.

In greater detail, successful business leaders recognise that after the clients cash has moved into their bank account, and they have paid for the materials that they used, there is money left over and this added value represents a growth in their business assets.

Types of value - with examples

At a deeper level, I see there are four types of business activities that affect value:

1. Value Transfer is when I pay for your products or services - including access rights, knowledge, expertise or personal advice. In the transfer, we transfer equivalent values of goods and money so there is no overall growth.

2. Value Increase arises when I pay for something that is cost-less for you - possibly service brochures, product lists, serving suggestions, residual materials or by-products. In this transaction, you offer goods that have a low or nil cost to you and I pay money for them.

3. Value Creation occurs when I pay for your novel idea - such as packaging complementary products, putting current goods to more uses or identifying different consumption models. Here your ideas create a wholely new arrangement of products and services and I am willing to pay for the resultant intangible (productivity, beauty, entertainment, progress, fashion etc).

4. Trading is where we bargain so we both add value - perhaps through relationships, networking or referrals. The trader buys plentiful goods and takes them to where they are scarce and swaps them for goods that are plentiful there. Then the trader carries these goods to trade where they too are scarce. The value arises from the sequence of trades.

Further practical ideas

Applying these ideas to your business, ask yourself:

  • Beyond your main products and services, what other goods might your customer buy that would improve their use of their purchases?
  • Given that the by-products and waste from your production processes can often attract a

    disposal cost, how could you package them or further process them so that people would pay for them?

  • Where do you have static stock (and dead money) which you could liquidate and turn into

    revenue?

  • Which of your buildings and machines are partially used and how could you rent them out (or sell them off)?
  • Which processes produce waste and how could you adjust your materials and processes to

    avoid this shrinkage in value?

  • Where could you train your staff and where can you invest in product design and production processes to create new opportunities in your market?
  • What intellectual assets (such as designs, patents, staff suggestions) have you that are

    dormant and unused?

As I work with my clients, my 'outside pair of eyes' helps them recognise an abundance of assets that they had previously ignored. Then they can set to work in adding more value to their sales and to their customers lives.

Adrian Pepper coaches people through business and personal difficulties, helping companies figure out what to do, how to move forward and what to get organised. You can contact him through Help4You Ltd, through his website at http://www.help4you.ltd.uk or by phone +44-7773-380133. At http://feeds.feedburner.com/help4you, you can listen to his podcast for small businesses.

Day Trading For A Living

Every person that is considering trading in the stock market considers day trading. It is inherent to the game of investing to want to play with the Big Boys by day trading. It can be an expensive game to learn, and for some people, it will forever be a losing game.

Part of the problem with day trading, is getting information soon enough to make a decision. Another problem, is trying to scalp small percentage points like you see the analysts on TV doing. If you have a big enough bank account, and have access to really fast equipment, you might be able to pull this one off. My recommendation, leave it for the big boys who pay the big bucks to have a seat on the board of trade, as a small investor, you are never going to beat them at their game.

However, the biggest single problem facing a novice day trader is simply pulling the trigger. Most novice traders suffer from paralysis of analysis, they are trying to find the perfect time to get in or get out. There is no perfect time, you just have to make the best you can with what you got.

One of the saddest things that can happen, is for a trader to know deep in his heart that a trade has gone bad, but doesnt want to take the loss. He will sit there, holding a losing trade, knowing he should sell, but he just cant force himself to take the loss. Until he sells, it is just a paper loss, not a real loss, and the trade may turn around. When he sells, it becomes a permanent, real loss. However, while he is hesitating, his position is losing ground and when trading options, they can end up completely worthless.

This is where having a good mechanical trading system will come in handy; it helps to eliminate the emotion from trading. A good mechanical system will have a set point to enter the trade, and a set point to exit the trade. As long as the trader remembers, and uses, the rules of his system, the odds of winning on a trade greatly increase. More importantly, the odds of having a devastating loss are greatly decreased.

To find what trading system works best for you, use paper trading until you completely understand what the rules are, where you should enter the trade, where you should exit the trade. Learn where to place the trailing stops to minimize loses. Dont be afraid that the time spent paper trading is time lost in the market. One thing you can be assured of, there will always be another trade coming along.

John Marston is a self taught trader who has traded online for over 15 years from his home in California. You can go to his website at http://www.Trade-The-Stockmarket.com which has a wealth of information about various trading strategies. You can also read his Blog which describes some of his personal trading strategies.

How To Control Fear And Greed In Trading

There is an old saying that the market is driven by fear and greed. Anyone that has placed more than a couple of trades will surely have experienced these two emotions.

All traders experience emotion. The distinction between a successful trader and an unsuccessful trader comes down to how they deal with that emotion. Let's look at how these emotions affect a successful trader and an unsuccessful trader in various scenarios:

1. The trader's three previous trades have been losers. The unsuccessful trader will consider this before placing his next trade and be fearful that this trade will also end up a loser. This might result in a delay in placing the trade whilst waiting for the price to confirm that they were right - thus missing a perfectly good entry. They might suddenly discover that some other factor, previously unconsidered, is a reason not to enter the trade at all. Basically they will be fearful of another loss.

The successful trader will have tested their strategy extensively and will be aware that a series of losing trades is very probable. They will also measure their success on whether they place the trade according to their system rather than whether it is purely a winner or a loser. They trust their system and place the trade when the set-up occurs. The fear is removed from the trade because they know that several losers in a row is to be expected.

2. Once a trade is entered it immediately moves against the trader. The unsuccessful trader will fear that they have made a mistake. They fear making another loss so they wait and hope that the market moves back in their favour. The fear of taking another loss now controls their trading decisions, they might move their stop further out so the market doesn't take them out for a loss. They might ignore the trade, hoping that it will get back to at least breakeven - the daytrade becomes a position trade of a few days and then it becomes a long term 'buy and hold' strategy.

The successful trader, of course, will know from extensive testing of his system that such trades happen and that the trade might come round or it might hit the stop. His stop is in place and it will remain in place - the system dictates where the stop is, not the trader's fears.

3. Once a trade is entered it immediately moves strongly in the traders favour. The unsuccessful trader will suddenly see a villa in the sun or a new sports car flashing before his eyes. This trade is going to the moon so he removes his price target and decides to let it go. Greed has now completely taken over his trading decisions and the previous plan (if any) is ignored. Of course, markets rarely move in one direction for long and when the market turns the greed turns to fear as the dream slips away and the trader tries to hold on until the price gets back to where it was. The daytrade becomes a position trade...

The successful trader has set a target, either a certain price or a timed exit and will stick to it. If the trade only takes 5 minutes then that's just great, there's plenty that won't.

Fear and greed are human emotions - we can't do anything about that. But, when it comes to trading we need a way to control those emotions. Here's a few tips:

1. Know your system. If you have confidence in your system this helps to override those feelings of fear and greed. Confidence can only come from designing and extensively testing your own ideas. You can never be fully confident when you rely on someone else's tips or signals.

2. Automate your system. Computers do not suffer from fear and greed, they won't hold onto a loser praying for a miracle or screaming at the screen that the market is wrong - they'll just cut it if that is what the system says to do.

3. Money management. Quite simply, no matter how good your system you must only risk a sensible amount - and always money you can afford to lose.

Tim Wreford runs Online Futures Trading, a website that provides information and resources for traders. Tim also provides a free day trading system, the results of which are updated daily on the site.

Saifun -- Is It The Little Flash Company That Could?

NASDAQ: SFUN 26.88

Do you think the market for smart phones, digital audio (MP3) players, consumer solid state drives (SSDs), portable media players, digital video cameras, GPS devices, multimedia and music handsets, memory cards and USB flash drives are growing? All these products provided a disruptive position taking away market share from their predecessors.

One market segment that could see even stronger growth than these separate products we mentioned, and include other growth products, is the flash memory market. Flash is a root component used in all the above products and more.

Based on history we are forecasting that flash is the memory medium of choice for a plethora of devices in the consumer electronics in wireless devices and that flash will grow faster than the wireless devise market. It appears that in the past, memory for computing devices has grown faster than the device that utilizes the memory. Memory of the Personal Computer (PC) and the Internet has grown faster than their supporting platform. With the PC creating tremendous growth and history as our guide the demand for both memory and disc drives for the personal computer was often the impetus of many upgrade cycles. The Internet with the many millions of new web pages created a tremendous growth in storage. Ive seen in many reports that forecasted storage of the internet has been one of the fastest growing subsets of the internet as a whole.

With a decrease in price per gigabyte (GB) of more than 80 percent over the past three years and with the high growth in wireless data the need for new and addition memory could exceed the growth of the hardware device market that uses flash for its memory. The current market in flash memory is about $25 billion annually and its forecast is about 40 billion by 2010.

With each new product cycle the advantages of flash have become more disruptive allowing it to become about 30-40% cheaper every year. Many experts are forecasting this disruptive curve to replace the disc drive market for PCs. Flash has already replaced hard drives in most MP3 players.

Currently the flash memory is designed to support two types of flash memory. One type of memory supports your machines internal usage or operating system, the other type is for more external storage needs. The internal memory often uses the architecture of NOR, which has been established for years and Intel (NASDAQ:INTC) considered by many as the market leader. The NOR technology is a more complex technology and is starting to see the market mature.

Often you will find both NOR and NAND in the same mobile device.

The much faster growing market is for external memory market needs or NAND and the one of the leaders is SanDisk. SanDisk Corp. (NASDAQ: SNDK), founded and managed by president and CEO Dr. Eli Harari. SanDisk and Toshiba jointly launched the multi-level cell (MLC). This technology made it possible to divide the cell and store two bits of data on the same piece of silicon (x2, as it were), which significantly improved the profitability of manufacturers and fabs, basically doubling the price performance curve.

This process has become the leader and allowed NAND MLC to become disruptive to the predecessor NOR architecture and in 18 months penetration has been so great that MLC is becoming dominate force in flash.

We believe that this new curve of double captivity on a single cell technology will become the single most important factor for next generation flash memory, and it will become essential as flash is staring to see possible limits in the reduction of its die size as many experts are starting their forecasting. If flash is going to continue on its curve of lowering the price of a gigabyte by 80% over the next three years, it is my opinion they will need an architecture thats designed specifically to establish this goal. There is a proprietary NROM architecture that has many advantages toward increasing capacity of bits per cell. The NROM is close to production of 4 bits of memory in each cell or quad flash.

The company we believe has a unique position and leads the NROM approach in the flash memory market is an Israeli based company called Saifun (NASDAQ:SFUN).

Saifun is an intellectual properties company which its revenues come in three forms: licenses, royalties and support. This type of model has been very successes for our model portfolios in the past. The three previous companies that had core business from intellectual property we investment into our portfolios were Qualcomm (NASDAQ:QCOM) in1997 at 3.31 per share and still holds a position. Arm Holdings (NASDAQ:ARMHY) in 9/29/1999 @ 9.60 and holds half a position and Rambus (NASDAQ:RMBS) in 1998 which appreciated about 350% in 2000 and we sold the position in the model portfolio when Intel stopped supporting the Rambus architecture late and 2000 and in 2001.

Even though it is very early is Saifun publicly traded history we are excited by its new form of flash memory architecture, it appears that Saifuns approach has many advantages over the more established NAND and especially NOR. The single most important part is their technology curve. They have the ability to double the bits per cell allowing for a second compounding curve. The other architecture they are working hard on is to shrink their size and increase density, but we believe that Saifun with its simpler model should achieve a smaller die than the others but the real advantages with Saifun is the ability to allow 4 bits of memory in every piece of silicon (x4). Doubling again the events of MLC while at the same time reducing their size thus possibly leading the new flash architecture. Another advantage is NROMs ability to work both as an operating system and memory component being able to supply both markets that individually NOR and/or NAND has target.

A second company has just announced that in 2007 they will start producing a 4 bit cell in NAND. The company making this announcement is M-Systems (NASDAQ: FLSH). They claim they will have a product on the market some time in 2007. Even though they have achieved this tremendous breakthrough we believe that because they use the whole cell instead of a fraction of the cell for this doubling process, the whole cells ability to double again may become geometrically tougher. On the last review M-Systems has not explained their business model to (make at own fabs or licenses) and delayed the secondary offering.

It is has been our opinion that companies that form successful royalty models resemble gutters and the fab companies have the appearance like shingles when looking at a roof. When it rains the gutter can create a stronger stream receiving income and achieve a much higher level of profitability. The delay of M-Systems secondary offing might reduce the chance of more fab developments.

Either way this looks like a marathon race and since this is such a very large market it will be about a $40 billion market when quad flash is widely available, that means that any of the top three or four should benefit.

Saifun already competes extremely well with NOR but early 2007 when it doubles the number of bits from 2 bits to 4 per cell it should be able to show advantages over MCL NAND currently the price performance leader. Saifun has a chance of repeating the same step that, in our opinion, allowed SanDisk to lead the last cycle.

There are many new technologies looking to replace flash but at this point there are a few that are close to achieving mainstream volumes. You should know the Saifun technology hibernated for about twenty years. This is very common, the Internet incubated for about 30 years and electricity for 100 years. New technologies often hibernate longer than people anticipate, and then it seems that they often almost explode onto the seen very quickly.

Even though Saifuns approach is about 20 years old, the technology they have just started to achieve is commercial feasibility.

The true advantage is since they only use points in the cell versus in the more convention approach such as NOR or NAND that uses the whole cell. This simpler usage allows for higher data retention and also provides a faster response time, and hopefully more density, and less power.

This is a tremendous advantage having 4 times the bits in competitive cells. Saifun also believe future that future cells could expand to possible to 8 or even 16 bits per silicon.

Possible risk

Saifun only has a handful of clients, if they loose Infineon Technologies (NYSE:IFX) Saifun largest client, they would impact their business tremendously. On a side note, it looks like it will pick up UMC out of Taiwan.

Saifun has basically signed many very large vendors like Sony (NYSE:sne) and Spansion (NASDAQ:SPSN) a spin off Advanced Micro Devices (NYSE:AMD) / Fujitsu (pink sheets) these based solely on the flash market are small in the market, since the production volume is small this could make it harder to be designed into leading volume products.

Even though we believe NROM offers a simpler cell structure with several layers, we believe it will be easy over time to reduce or migrate to a smaller form factor, but this has not been completed in high volume production. If and/or until they can compete in a smaller form factor this company will be, based on unit size, be at a significant disadvantage. Experts believe in 2007 this disadvantage should be at most minimal and Saifun believes in late cycles this will be come a true advantage.

To summarize

1) If Saifun continues to lead the flash market with more bits per cell with NROM flash architecture.

2) If Saifun if achieves the forecasting of smaller die than comparable flash.

If Saifun achieve either of these goals it could become an architecture leader in the flash memory market. If they are able to achieve both they would attain a real architecture leadership position.

According to several of our monopoly theories, available at www.durig.com the stock market value of the companies that lead architecture often grow faster than all the combined companies stock market values that utilize the architecture.

Thus, if Saifun become the dominant architecture with the smallest die size in my opinion it will probably attain the leading stock market value in the flash memory market.

Randy Durig manages the several Portfolios including the Monopoly Technology Portfolio to see the full list go to http://www.durig.com and http://www.money-manager.us

Durigs Monopoly Blue Chip Portfolio National Performance Rankings: 3rd In the United States, Ranked by 3 year annual return, for Large Capitalization Blend, 4th Quarter 2005, By Money Manager Review.

Randy Durig owns Saifun in discretionary client's portfolios and in his own account. Past performance is not a guarantee for future returns. All information we believe to be correct but make no guarantee to accuracy.

Randy recommend for open source investment news to read or publishing articles go to http://www.investment-investment.us.

Collecting Licensed Art Product One Of America's Biggest Businesses... And Hidden Secrets

FROM AMATEUR TO SAVVY ART PRODUCT COLLECTOR (CRASH COURSE)

If you are the average collector, like me (or like I once was), you think of a nice rendering in a lovely picture frame that looks nice on the wall and color-coordinated with carpet, furniture, and the like.

I thought that for many years and then I grew savvy.

I still love art as much as any art collector; I have some Dali unlimited editions, lots of framed museum poster art and the like.

But it wasn't until I learned about licensed art products that I learned the real game.

The bulk of art trade today, is not done on picture frame; but on art collectibles such as tee shirts, mousepads, porcelain plates, sweatshirts, caps, and other such items.

When I was in first grade, you could buy a Fun With Dick And Jane lunch box for about 35 cents. That same box goes today for around $200. Early similar Peanuts products have brought a thousand or more. These are not framed art pieces but licensed manufactured merchandise.

So what to buy?

Well I always say buy what you like because no matter what the value, you are going to enjoy owning it.

But if you want to hedge as they say in the stock market, do a little research and find out who is right on the edge of fame, up-and-coming, etc. and their prices are still low on their manufactured goods. Usually most of these goods from t-shirts to mousepads to tote bags range in the $20-$30 range.

When I first became a cartoonist, in 1997, I had zero knowledge of the art licensing business, much less did I know that it is one of the largest volume businesses in the U.S. With about 40 billion dollars exchanged annually in it.

It was not until almost 10 months ago, when I began licensing my own cartoons onto manufactured products at deep discount rates, did I realize, (and surprisingly how many people were and are buying) that there really are collectors out there who are serious. (I was relatively unknown when the first purchase came in).

So I studied how the Internet-savvy investor figured out who was up and coming and who was not. There are a number of analytical sites; one owned by Amazon.com called Alexa.com and another called Netcraft.com. Most investors monitor weekly or monthly how their favorite creator is doing. With about 8-10 billion websites on the Internet on any given day, most just look at the top 1 million websites that include, art, cartoons, cartoon merchandise, etc.

Our main cartoon website has now received 7.5 million visitors since 2005 (I can remember when 100 per day was reason to celebrate); now it is more like 4000+ per hour). What was my formula? I wish I could tell you. I did a lot of blogging and article writing (still do) and keep creating.

I can sleep well at night when someone buys one of my cartoon mousepads, or tee shirts, or whatever, not just because it causes laughter which is a good thing, but because we have been scrutinized by the Internet analytical community as up-and-coming which means now buyers can buy and begin collecting at a very reasonable price, which, next year, might not be so reasonable; I wish I could control that; I can't, the manufacturer gets to do that. If it were up to me, I'd sell it for pennies so everyone could enjoy it. But I can't.

My point (seems like hype, of course) and partly it is. But I can only tell you about my own experience (being on the verge of being well-known, not quite there, I'd say); I can still walk around town and nobody raises an eyebrow. These days, unlike the days of old, "celebrities" are not necessarily flesh that talk seen on celluloid (aka Hollywood); many "celebrities" of today are common everyday people who took the time to study various marketing techniques of the Internet and made it work for them.

Whether you buy and sell licensed art goods, pure art, electronics or anything else, the same principals apply on the Internet that do in a department store. Except the Internet can be even more brutal. Word of mouth gets around lightening fast and if you make a mistake, thousands if not hundreds of thousands of people can know about it within hours if not minutes. On the other hand if you do something right, the same principal applies. Not to worry, you *will* make mistakes and most people can accept them. The issue is not if you make one or not, but if you learn from it. I don't always, but I do try my best, and I can honestly say I make a lot less of them today than I did a decade ago when starting.

Does that make me an Internet guru? I have some bad news. There ARE no Internet gurus, and frankly I am not so certain there are gurus in any field, though, there are some who know a bit more than others and are generous enough to teach it. The Internet is for everyone. It has leveled the business playing field. Information that used to be available just to large corporations are now available to all of us. It is how we use it that matters.

I would never teach you all I know even if I could for a variety of reasons. One being, it might not be your style. You might not have the slightest interest in buying and selling licensed image collectibles. You might, but mine might not be your taste. You may love mine, but my style is different than yours. A lot of paths lead to that Internet pot of gold. You may like blogging more than article marketing. Social networking might be your thing. You might be a wiz at ppc marketing. I try to learn a little about each and interconnect it all with incoming links. That seems to keep my sites ratings high. I still have much to learn, but so do the "so called gurus" who taught me.

If you still think there are "gurus", think about this. If Albert Einstein came back from the dead and was to be thrown into the workplace, he'd probably be fired immediately (he wouldn't even know what the Internet was much less how to send an email. So even the guru that he was, gurus are here today and gone tomorrow as information changes. The secret, I think, is to keep up with that ever changing information and become flexible. Some information is right on target and some people who claim to be gurus don't have a clue.

Can you imagine the Dali Lama telling you "Hey, I'm a guru. Look at me!" Nope. Too humble; and probably the closest thing to one. So if someone is hyping him/herself or another as a guru, don't walk, but run the other way. That is what I do and I make a lot more money, as do my associates by taking that posture. We all have the "guru within". I

In any case, the bottom line is not just to research but have fun; don't buy just to sell at a profit; not that that is a bad thing, it is not;l but buy what you enjoy, and you will (usually) find someone else enjoys it just as much if not more, and is willing to double or even quadruple your profit within a few years.

Rick London is a cartoonist and owns two licensed cartoon e-stores; Londons Times Tees http://www.londonstimestees.com and Londons Times Superstore http://www.londonstimessuperstore.com He recently invented the world's first fully-automated medical alert device called Insert Alert http://www.nsatinc.com

Tuesday, September 18, 2007

My 7 Most Important Business Lessons

Millions of people start new small businesses in the United States every day. Many fail at running a small business every day. What causes one business owner to succeed where another fails? There are seven key areas to focus your efforts for a successful small business. It starts with knowing oneself and ends with not being afraid to ask for help.

1. Know Yourself

Having your own business is more than just creating a job for yourself. To be a successful small business owner, there are many personal sacrifices you will be required to make. You have to be willing to make them. By knowing yourself and what is truly important to you, you will be able to make these choices far easier than if you have never considered your priorities.

Your basic roles in a small business are in marketing, planning, finance, and administration. To get the best results, it is rare for one person to play all these roles equally well. You must know which parts you can handle yourself and which parts you're going to need help with. That's why it's so important to be objective and take a close look at your overall strengths and weaknesses. Ask yourself the following questions:

- Do you plan before you take action? - Are you willing to hustle for the sale? - How financially savvy are you? - Do you have a well thought out plan? And, do you work the plan? - Do you know how to make sales happen? Can you ask for the sale?

In those areas where you assess yourself as weak, you can ask for help.

2. Ask For Help When You Need It

When youre young and unseasoned, you tend to think you can do anything. This is a recipe for disaster for the small businessperson. If you insist on doing everything yourself, you will work 16 hours a day and not do some things well.

Remember, getting results is what counts! With outside advice and assistance, your quest for a successful business can be accomplished faster and with far fewer bruises than doing it yourself. When I started my first online business, I even created by own website. In retrospect, this was a big mistake. It took me far longer to create my site than having a more experienced person do it. Start equating every second of your time with money. Your time isnt free. While you are trying to do everything, whats falling through the crack?

Don't be too proud to ask for help, we all need help sometimes. With the Internet, the small business owner has a wealth of experience available to them. Why not take advantage of the many resources, paid and otherwise, available to you? Join a small business forum, like the Small Business Forum (www.smallbusinessbrief.com/forum/) where you can exchange knowledge with other small business owners. Access the millions of online articles on every business subject you can think of at ezinearticles.com.

Qualified sources are also available from your local government offices and other professional services. It is important to recognize -- what you don't know can end up costing you money and greatly reduce the chance of achieving your business goals.

With all that knowledge, you need a plan of action.

3. Action Planning

I like to call it action planning rather than planning. Action is the only element which turns a plan into reality. Many people are great at planning but they suffer when it comes to follow-through. Successful small business owners are action oriented. But that action starts with a plan.

According to leading authorities, the main reason 80% of all new businesses fail within the first five years is not money, but the lack of planning. If you want to succeed, the trick is to know how to make right the decisions by implementing an effective business plan. Remember, if you fail to plan, you might as well plan to fail.

A business plan should include how you will finance the business, who will perform certain critical business functions, the license and permits required, accounting method, as well as what you know about your prospects and customers.

4. Mind Meld Your Customer

Just knowing your customer isnt enough for long-term success in your small business. In Star Trek, the Vulcan race had the ability to perform a mind meld. At the time of the mind meld, they could see, think, and feel everything their partner was seeing, thinking, and feeling. This is how close you must come to understanding your customer. The closer you get, the more successful you will become.

Are you listing to your customers? Make it your business to give your customers what they want and they will buy from you. They are the reason you are in business, and your future depends on them. The products and services you provide should be a direct reflection of their needs. Think in your customers' terms; buy, show, sell, and say things that interest them, not you. Don't forget, it is the customer that determines whether or not you succeed. They vote every day by where they spend their money.

Reflect on the following questions:

- Do you know the reasons why customers shop at your store? (service, convenience, price) If not, ask!

- Do you seek suggestions from your customers on ways you can boost business?

- Do you use a store or online questionnaire to aid you in determining your customers' needs?

- Do you stay in contact with customers on a regular basis?

- Do you ever try to re-establish a relationship with lost or inactive customers?

A key to success lies in knowing your customer. The other half of the equation is to know your industry.

5. Know Your Industry

You can gain the greatest competitive edge if you intimately understand your industry. You must know the ins and outs of your particular products and industry. You should know every competitor as well as their strengths and weaknesses. Its in your competitors weaknesses where you will most frequently find your own success.

Your competitors size, services, location, marketing approach, type of customers, suppliers, and pricing strategies should be as well known to you as your own. Your local business climate, median household income, level of education, ethnic population, and the other demographics of your potential customers should be second nature to you. To prosper, you must know the game and the playing field intimately.

Many people focus upon these areas but still fail. Why? They focus more upon the product than the finances of the business.

6. Maintain Good Financial Records

If you don't know where your money is going, it will soon be gone. The "game of business" is played with products and customers, but the score is kept in dollars and cents. Good financial records are like the instrument panel on your car, they keep you posted of your speed, fuel level and engine condition. Without them you're flying blind trying to pace the other cars. If you know how much you're spending, buying and selling, you can take control and help your business make more money.

- Do you have basic accounting knowledge? Or, do you have someone you trust to keep the books?

- Do you maintain every receipt you obtain through the running of your business?

- Have you computerized your business to streamline everyday tasks and business procedures?

- Do you use sales forecasts, expense sheets, and financial statements on regular basis to assess the progress or your business?

- Do you evaluate your operating expenses and make necessary changes on a regular basis?

Many people erroneously believe good record keeping is for the government and those financial obligations. They are wrong! Good financial record keeping can help your business succeed. Use the financial information available to make improvements to the operation of the business and improve profits. Remember through it all, the old adage cash is king is true.

7. Manage Your Cash

It doesn't matter how unique your store is, your business can't survive without good cash flow. Cash is the lifeblood of your business. The money coming into or out of your store is the vital component that keeps your business financially healthy. For profitability, more cash must come into the business every day than goes out of the business. You can have the greatest sales in the world, but if its all in receivables, how will you pay your bills?

A monthly Cash Flow Statement is a critical business tool. It shows the amount of money at the start of a period and how much cash was received during the period. It identifies the various sources of incoming cash and the reasons for outgoing cash. Budget wisely. Know the sources of your monthly income and expenses. Then, you won't have to worry about running out of money. And that is a good thing.

Like any game, the game of business has rules and tools. Those who excel at the game, play it better than their competitors. Keep focused upon these seven critical areas and you will succeed. Remember, Albert Einstein once defined insanity as doing the same thing over and over again and expecting a different result. Isnt it time you changed the things you are doing so you can succeed? I think the time is now!

Michele Schermerhorn calls herself a Corporate Freedom Fighter dedicated to freeing cubicle prisoners to experience their own successful online business. She has over 30 years experience in the business world and over 12 years running her own successful online businesses. She is President of Online Business Institute Inc. (http://www.obinstitute.com), authors a sassy marketing blog (http://www.imarketblog.com), and regularly conducts free online seminars. Online Business Institute Inc. exists to Create Successful Online Business Owners One Person At A Time.

Online Futures Trading - Advantages and Disadvantages

What Is Online Futures Trading?

A futures contract is an agreement to buy or sell a commodity at a date in the future. Everything about a futures contract is standardized except its price. All of the terms under which the commodity or financial instrument is to be transferred are established before active trading begins, so neither side is hampered by ambiguity. The price for a futures contract is determined in the trading pit or on the electronic trading system of a futures exchange.

The internet now allows access to those electronic trading systems from anywhere in the world. This increases liquidity in those markets and makes them even more attractive to traders.

Trading on all futures exchanges takes place against a backdrop of statutory regulation and rules as laid down by each exchange and the Commodity Futures Trading Commission (CFTC). Regardless of whether your trading is executed within the trading pit or electronically, it is subject to the same rules, regulations and safeguards.

Advantages of online futures trading

Leverage. Futures operate on margin, meaning that to take a position only a fraction of the total value needs to be available in cash in the trading account.

Commission Costs. Electronically traded futures contracts require no human intervention to match buys and sells unlike a traditional futures pit. This means that commission costs can be cut dramatically, leading to significant savings for the frequent trader.

Liquidity. The involvement of speculators means that futures contracts are reasonably liquid. However, how liquid depends on the actual contract being traded. Electronically traded contracts, such as the e-mini's tend to be the most liquid whereas the pit traded commodities like corn, orange juice etc are not so readily available to the retail trader and are more expensive to trade in terms of commission and spread.

Ability to go short. Futures contracts can be sold as easily as they are bought enabling a trader to profit from falling markets as well as rising ones. There is no 'uptick rule' for example like there is with stocks.

No 'Time Decay'. Options suffer from time decay because the closer they come to expiry the less time there is for the option to come into the money. Futures contracts do not suffer from this as they are not anticipating a particular strike price at expiry.

Automated trading. Electronic futures brokers offer the facility to programmers to interface directly with their trading software. This means that custom written trading software can automatically trade a strategy without any human intervention at all. A system can make buy/sell signals which are automatically routed to the exchange along with any stops and targets.

Almost instant fills. With electronically traded futures there is no need to call up a broker and wait for a fill from the trading floor. Orders are instantly placed on the electronic order book and filled as soon as a match is found - for liquid contracts such as the emini S&P500 this will be within a second.

Level playing field. With traditional pit traded futures the professional in the pit has a major advantage over the retail trader in terms of speed of execution and costs. Electronic futures trading offers all participants exactly the same advantages.

Disadvantages of online futures trading

Leverage. Can be a disadvantage if it encourages trading with too high a risk for a particular strategy. A carefully devised money management plan is essential.

Overtrading. The instant nature of electronic futures trading coupled with low commission costs and tight spreads can encourage a trader to take additional trades to those determined by their trading plan.

Online futures trading offers significant benefits to the retail trader. However, a carefully developed trading plan must be formulated before attempting to enter this extremely competitive business.

Tim Wreford operates Online Futures Trading, a website that provides information and resources for traders. Tim also provides an article detailing the development of a day trading system, the results of which are updated daily on the site.

Forex Trading Tips

Forex trading has the highest volatility of any investment market in todays global marketplace. Forex has a volatility of 500. Liquid stocks volatility is from 60 to 100. Smart investors are currently jumping into the forex market at record numbers.

With access to a computer, an investor can go online anywhere in the world 24 hours a day, except for the weekends. A Forex investor is in control of his account. With the right strategy and attention to world events, a Forex investor can reap substantial profits with his investment.

Although an investor can enter the Forex market with very little capital outlay, he should keep in mind that, with the volatility of the currency market and the economic and political turmoil around the world, Forex trading is not risk free.

A Forex investor must be able to analyze the news, not just listen to it, and after analyzing the news, an investor should use proven strategies when buying or selling. An investor should never make and investment decision based on fear or greed. He should consult reputable charts and graphs and known and proven market indicators before making a decision. A Forex investor should familiarize himself with the big players and political figures that influence the market. Learn personalities and listen to fellow Forex investors. Because Forex traders all trade in currencies, there is no threat of insider trading. Every Forex investor is an insider. With the right strategy and insight into what moves the market, a Forex trader can be very successful.

Milos Pesic is an expert in the field of Forex Trading and runs a highly popular and comprehensive Forex Trading web site. For more articles and resources on Forex related topics, online forex trading, trading tips, forex software and much more visit his site at:

=>http://forex.need-to-know.net/

Put Your Money in a Foreign Bank Account at 10% Interest - No Don't

Many foreign banks have deals for those with American Dollars to put their money in accounts with a guaranteed interest of ten percent, even backed by Lloyds of London. Is this a good idea? Where else can you earn 10% on your money leaving it in a bank?

Well, it sound like a good idea at first and some banks really need US Dollars because they are a trusted currency and used to secure International Shipment Guarantees; so they are willing to give ten percent because the shippers only trust the US Dollar. Meanwhile, your money sits in the foreign bank tied to the local currency exchange.

In my personal opinion that sounds scary. If the currency is stable that is one thing, but I have watched people lose money doing that. If you make 10% great, but they could have a huge devaluation, nationalize all bank accounts, anything like that. What if you make 10% but if the devaluation is 22% less? So you have ten percent more money but that money is worth 22% less - see why it is risky?

In my personal observation; I have watched huge US or World Bank Investments in nations, running things up until all that money was siphoned out quickly, crashing the currency; temporary inflation and zapped. I have seen year over year strong growth only to watch huge market adjustments and currency swings in many of the foreign nations offering these deals.

As a small-time investor you can get hammered playing currencies or even using such a bank account scheme, although in some cases money has been made as promised and the foreign currency has even gone up during the time period, thus interest plus increased valuation.

Now then, let's say you are going to put US Dollars into an El Salvador Bank at guaranteed interest of 10%, but during the time period the currency devaluates? Well, you have 10% more money minus the devaluation, and you still took a huge risk outside the safer US Banks paying a lower interest rate.

On the other hand investing in El Salvador Bank shares might be different as stock, but I have no clue, what they are loaning on or how they operate. If you have first hand knowledge then that makes sense or if you are traveling and wish to have some money already there as you travel it also makes sense. Indeed, one has to consider what the money is being used for while the bank has it. Such as Guerrilla War financing, drugs or some thing sinister?

In my personal opinion - Investing in Emerging Market Debt can be a good play from all I read. Even larger multi-national banks are invested in these places; I like some of the "micro-loan" programs that are going on out in the world. There is a lot of risk investing in one particular bank stock or play of course.

My thoughts and in my personal opinion; would be I guess to find a Mutual Fund that specialized in emerging debt markets, that was diversified with some top managers and decent track records.

San Salvador has Earthquakes, weather issues, all sorts of things, guerillas, drugs, it is a third world country. In my personal opinion - I worry about Central Banks really. I like the Central Banks in Chile, Malaysia, South Africa, but of course the interest they are paying is not close to what you have quoted. Well I guess those are my personal opinions on the Bank Account Scheme.

L. Winslow is an Economic Advisor to the Online Think Tank, a Futurist and retired entrepreneur http://www.worldthinktank.net . Currently he is planning a bicycle ride across the US to raise money for charity and is sponsored by http://www.Calling-Plans.com and all the proceeds will go to various charities who sign up.

Stock Picks 101- How to Maintain a Trading Diary

Those that dont know history are destined to repeat it. Edmund Burke

Trading is a business. Like any business, it has items of value. In your trading business, your inventory of cash is the most important asset. You must preserve it and increase it at all costs.

You also have financial tools. One of your business more subtle items of value is your decision making process. You must constantly be striving to improve it.

This is where a trading diary comes in. A diary lets you log and then analyze your decision making process. Such an at-a-glance is invaluable for doing the kind of self analysis you need to make sure your decision process continuously improves.

Every trade you make should be entered in your trade diary. Enter the date, time of entry, symbol, company name, number of shares, price per share, setup, trigger, expected trade duration and your subjective state. These entries should be made at the time of the trade. They decrease in value in proportion to how delayed you are in making the entry. In other words, make them right away!

Trade exits should be noted with similar items to the entry including the profit or loss. Of course, youll find that youll develop your own list of items to include. Whatever you do, be consistent.

Heres a neat tip: also log trades you did NOT take but you seriously considered taking. Make a note of why you decided against the trade. Then you can go back later and see what might have happened if you had taken the trade. This will give you additional insights into your decision making process.

In addition to keeping a trade diary, you should also maintain a spreadsheet that shows you all your positions at a glance and how theyre doing. To get you started, here are some ideas for columns you can include in this spread sheet:

Symbol
Sector
Description
Quantity
Purchase Price
Purchase Date& Time
Comm.Cost
Latest Price
Market Value
Percentage of Assets
Gain or (Loss)
Percent Gain or (Loss)
YTD Return
Dividend Yield
P/E Ratio
Projected Growth Rate
Average Daily Volume
PEG Ratio
Market Cap
Beta

Depending on your trading style, you can add or remove columns. For example if you primarily day trade, you probably arent interested in dividends or PEG ratio. But these and other fundamental attributes are quite useful if you have a long term trading style.

The big difference between the list above and that which is maintained by your brokerage is that you continue to maintain the entries after the position is closed. Brokerages usually remove closed items from your list.

Youll be surprised at all the things you discover once you start to develop a trade diary with a significant history. How often you review your trade diary will depend on the frequency of your trading. A day trader will want to do a review once a week. A long term trader can review his stocks picks quarterly.

Live long, document well and prosper.

With customers in more than 70 countries Doug Newberry enjoys his position as host of the "Market Toolbox On Demand" online radio show. He is also the editor of the "Market Toolbox Newsletter." His company, Investing Systems Network specializes in providing financial tools and portfolio management software for its customers.