Investing Guide

The recent end time prophecy, which centered around the prediction that the world would come to an end on May 21, 2011, received massive publicity and many lives were adversely affected. As we know, the prophecy didn’t come to pass. But there is something we can learn about financial planning and investment strategies based on the events that took place. Let’s look at it more closely:

The Parallels of May 21, 2011 and the Investment World

Prophecy:

First, there was a voice, claiming to be an authority, who utilized advertising and marketing through billboards, literature, radio time, the internet, and word-of-mouth to spread the message that the world would end. There were three types of people who responded to this message. Continue reading ‘Investments and Prophecy: The Two Are Alike’ »

Day Trading in Your Birthday Suit

Day trading has become extremely popular with the average individual investor. Why? Because all the tools of the trade are easily accessible including real-time market activity, investing indicators and lightning quick trade executions, and enough charts to make Milton Friedman dizzy. Your home becomes your own personal Wall Street except you don’t have to wear those silly vests or use those weird hand trading signals, in fact you can sit in your birthday suit in front of your screen with a beer or cup of coffee and switch to daytime TV if you get bored.

Your mini Merrill Lynch can be set up for Less Than a Dinner at a nice Steakhouse Continue reading ‘Day Trading in Your Birthday Suit’ »

Why Investing?

There are so many people out there talking about investment, best way to generate passive income and to increase earning. Even there are so many experts and analysts out there providing tips and information to support investors in making good investment decision. We used to see rich people are still investing although they are already wealthy. But what are the reasons that made the rich people keep investing?

1. Money to work for you

Most of us are working for money and only get paid if we have performed our job well. Due to the high living standard, our pay might not be able to sustain our current living standard. How can we acquire additional income for ourselves? Continue reading ‘Three Reasons to Invest Your Money’ »

Recently, an investment savvy friend of mine, looking to start his young graduate on the road to wealth, was evaluating the benefits of a Roth IRA vs traditional IRA.

You see, setting up investment funds for young people is the latest trend in graduation gifting. Not only does the growing value of one of these accounts provide the gift that keeps on giving, but it helps teach young people about the importance of saving and investing.

Of course, making the decision to give such an important gift may not be as straightforward as it first appears. There are some important issues that you must first take into consideration before heading over to your banking institution.

First, and most important, is your relationship with the graduate. How well do you know their current financial needs? Continue reading ‘What You Need To Know About Investment Gifting For Your Graduate’ »

Silver is one of the best-returning assets of the last 12 months. I believe the recent run in silver is just the beginning. Keep in mind, during similar financial times (for example in the 1970s), silver prices shot up 3,733%.

You probably already realize one of the world’s best long-term investments right now is silver. But did you also know that you don’t need to buy ‘investment’ silver in order to take advantage of this trend? To learn more, keep reading.

One reason for silver’s surging investment potential is simple: Silver is real money, and money talks!

With government spending getting out of control, silver is where the smart money is going. Silver is also a great way to actually make money go further, instead of the wilting dollar. Continue reading ‘How to Make Money in Silver, the Future of Silver Prices’ »

According to Warren Buffet “Margin of Safety” are the three most important words in investment. This concept is also the corner stone of the philosophy that Benjamin Graham taught.

To get an answer of what margin of safety would mean in terms of investing in commodities, we need to be able to value a commodity relative to its price. The lower the price in relation to the value, the higher the margin of safety. Commodities are also non-income producing assets, in fact there is a cost to carry the commodity. This cost is made up by the cost of money as well as the storage cost of the relevant commodity. The prudent commodity investor should thus factor in this cost when calculating value and should be more conservative in valuation to increase the safety margin. Continue reading ‘How to Get Margin of Safety With Commodities’ »

Tip #1 – Focus On 1 or 2 Techniques Only

There are many techniques that one can use when it comes to day trading. But if you want to be successful, you will only focus on 1 or 2 of those techniques. Why? Well the reason is very simple. It’s much better to be great at a few things then mediocre at many things. The idea is to become so knowledgeable in a few techniques that you become an expert in those areas. When you become an expert in a few select areas, you will be in high demand and will ultimately be able to make more money.

Tip #2 – Be A Great Money Manager

To be a successful day trader you must be a great money manager. You must know when to take a risk and when not to. You should risk no more than 2% per position. The goal is to make sure you can live to trade another day. If you blow it all in just one day how can you expect to ever become a great trader? The best of the best watch over their accounts like a hawk. They never put too much in one position. Each position is very small so no matter what happens, it won’t have a huge impact on their account. Once your account starts to grow, you should risk even less than the 2%. Continue reading ‘4 Day Trading Tips For Beginners’ »

Ratio Trading is a scientific concept that is the “surest way to make money in the stock market” irrespective of market swing and fluctuations. In other words ratio trading guarantees consistent and stable income from the stock market which is large viewed as a risky, unstable and volatile sector by even inside players.

The negative reputation of the stock market is largely due to the practices of individual players who participate in speculation. Ratio trading on the other hand is not speculative in nature. Rather it has the potential to change the perspective of the stock market as a risky sector. To those who understand the tools and strategies of ratio trading and can yield them to earn profits in options market, know that the stock market can indeed be a de-risked niche. Continue reading ‘Top 5 Benefits of Ratio Trading: Know the De Risk Theory of Stock Market Trade’ »

Today’s world is all about making money so that you can support yourself and your family. Nothing is cheap anymore because of the global recession which has seriously crippled our economy to the core. If this keeps on going then you can expect everything to go up in price for the next 10 years or so. It is a very tough world that we are living in right now because nothing is like it used to be way back around 10 years ago. Back then everything was cheaper and you felt more secured with your job and financial status, but now it is the exact opposite. If you want to make some big money then you can try investing some of your cash into the stock market. There are risks involved with this business, but the rewards that await you make taking the risks well worth it.

Before you enter the stock market you need to know the basics first. Just like engaging yourself into a new sport, you can’t expect to learn all of the advanced stuff without first going into the fundamental aspects of the game. For stock marketing you need to know when, where, and how to trade, purchase, and sell your stock. Stock market training is an important thing that you need to partake in if you plan on becoming one of the top dogs in this ultra competitive industry. With stock market training you will be able to know more about what makes this industry tick from the inside and how you can use it to make more money. Continue reading ‘Entering the Stock Market Industry’ »

One of the basic principles of Newtonian physics, Inertia, can be summarized as “the tendency of an object to resist any change in its motion” (Wikipedia.org).

Vanguard’s recent report entitled Generations: Key Drivers of investor behavior comes to a similar conclusion with respect to 401k plan participants. The report examines three key drivers of investor behavior:

Prevailing Market Conditions
Engagement and Inertia
Plan and Investment Menu Design
Vanguard notes that prevailing market conditions appear to change the asset allocation for new enrollees (i.e., stock market up recently, higher allocation to equities) more significantly than for participants at large. For example, new enrollees that were not using target-date funds in December of 2008 allocated approximately 10% less to equities than new enrollees did in 2007. (See Figure 5 of Generations: Key Drivers of investor behavior). Continue reading ‘401K Participant Physics: More Proof That Plan Investment Design Trumps Investment “Education”’ »