Many discussions are devoted to finding the fair value of an investment. The goal of every investor is to find undervalued investment and sell it when it reaches fair value. Admittedly, this is the hardest part of investing. So, what is the real value? The fair value is a point where the price of an investment reflect its profitability.
The fair value is relative and depends on other factors beyond the control of the investors. Here we will discuss about how to calculate the fair value within our own borders of control. In short, the calculation of the fair value of an investment depends on the expected return and the risk taken to achieve that. Return Higher risk needs higher reward. It's very simple.
So, what assets are lower risk investments? We can only compare. First thing that comes out of my mind is Certificate of Deposit (CD). You are guaranteed certain return (interest), if you can keep for a certain period of time set in advance. You would never lose your principal at the end of the term.
The next low risk investment is Treasury Bond. This is the bond issued by the U.S. government, which is considered safest in the world. There are certain risks associated with the small fluctuations in the price of the bond. However, if you held the bond to maturity, you are guaranteed certain return. Your return depends to some extent on the price you bought the bond at.
The next higher investment risk purchase ordinary shares. This is what we are going to concentrate more here. It is considered a higher risk than the two types of investments mentioned previously because you have a higher chance of losing money on your investments. Previously, we found that higher risk needs higher reward. Therefore, stock investing requires a higher reward.
So, what does this have anything to do with the real value? Quite simply, the price of a common stock that we buy should give us a higher annual return than bonds or CD. For example if a CD gives you a 3% return, treasury bonds give you a 4% return, then you would want your stock gives you a higher return of perhaps 6%.
What does it means for a stock to give investor a return of 6%? It never really say, right? You are partly right. Although not explicitly shown, you can do a little digging and find out how much the performance of your stock would be investment. For example, if your Certificate of Deposit (CD) gives you a 2% annual return, for $ 100 of investment, would earn $ 2 per year. Let's assume that you want your stock to give you a return of 6%, which is higher than CD or treasury bond. This means for every $ 100 invested in common stocks, it needs to give us a return of $ 6 per year.
Where we can provide this information? You can get it on Yahoo! Finance or other financial publications. All we have to do is find the share price of ordinary shares and earnings per share (also known as earning per share) of that particular stock. Let's use an example to illustrate my point. Magna International Inc. (MGA) expected a profit of $ 6.95 per placing share for fiscal year 2005. Recently, the share of trade at $ 73.00. The annual return of buying Magna stock is $ 6.95 divided by the price of $ 73.00. This gives us a return of 9.5%.
Magna will continue to give investors a 9.5% return year after year? It depends. If the share price rises, Magna will be less than 9.5% per year return. What else? Well, Magna might not constantly produce the same amount of profit year after year. It may even produce a loss! So you see, stock investing is inherently risky, because there are two moving part in the equation. Price of the ordinary shares and profit by the company itself. That is why the investor should seek a higher return when choosing their inventory investment.
Okay. So, let's move on to the crucial point in investing in common stocks. What is the fair value of Magna stock assuming a constant profit of $ 6.95 per share? Personally, I reject the fair value of an ordinary share to at least 2% above the rate of Treasury bond. Note: I use the 10-year loan here. Recently, treasury bond can give us a 4% return. Therefore, the fair value of Magna common stock is like me a return of 6%
So, what is the fair value of Magna common shares in this case? For a profit of $ 6.95 per share, the fair value of Magna common stock is $ 115.80 per share. That's right. At $ 115.80 per share, Magna common stock investors 6% annual return. That said, we never have to buy at fair value. Ordinary shares Why? Because our goal is to invest money. If we buy shares at fair value, when we benefit? We do expect to sell it when it is overvalued? Sure, it would be nice if we can do all the time. But to be conservative, let's not get on the couch our stocks overvalued level.
There you go. I explained how to calculate the fair value of a common stock. Of course, the $ 6.95 per share profit figure is the expectation of profit compiled by Yahoo! Finance. It is in no way to buy. Approval of Magna common shares You should do your own calculation to that number to check.
Hari Wibowo manages a modest investment website aims to help to go to work. People Curious to find the fair value of a common stock? A more detailed analysis can be found
Friday, 29 November 2013
Wednesday, 27 November 2013
Your House Is Your Biggest Investment Do You Really Just Want a Loan Advisor?
A loan officer will be able to help you qualify for a loan. Is that really what you want? If you consider that your home is your biggest investment should not be part of a whole Investment Plan?
Most people do not look at their home as part of their overall financial plan. That is a huge mistake especially when you consider that for most people a home is the biggest investment they ever make.
When the house is integrated into an overall financial plan that is done by a qualified financial advisor magic.
If you are young and starting your only concern may be just around the mortgage that will allow you to qualify for that house to get. Back in 1985, when I bought my first house that I actually had a 40 year ARM because that was the only way I could qualify for a home. I was born a few years later after my second daughter I not nearly enough life insurance or emergency savings, but I just could not afford.
Wow, if I knew then what I know now. Today, most people can lower their mortgage by about 40% with a power-option ARM. This 40% savings can be used for many things. For a young family it can be used for Life Insurance and Emergency Fund. For the older couple it can be used to help build a retirement nest egg.
A loan consultant would never be able to tell you all that. A good financial advisor able to help as an integral part of your overall financial plan would be your home you
Mike Makler Offers Financial Services (Mortgages, Life, Annuity) in Florissant Missouri in North St. Louis County Missouri just across the bridge from St. Charles Missouri
Most people do not look at their home as part of their overall financial plan. That is a huge mistake especially when you consider that for most people a home is the biggest investment they ever make.
When the house is integrated into an overall financial plan that is done by a qualified financial advisor magic.
If you are young and starting your only concern may be just around the mortgage that will allow you to qualify for that house to get. Back in 1985, when I bought my first house that I actually had a 40 year ARM because that was the only way I could qualify for a home. I was born a few years later after my second daughter I not nearly enough life insurance or emergency savings, but I just could not afford.
Wow, if I knew then what I know now. Today, most people can lower their mortgage by about 40% with a power-option ARM. This 40% savings can be used for many things. For a young family it can be used for Life Insurance and Emergency Fund. For the older couple it can be used to help build a retirement nest egg.
A loan consultant would never be able to tell you all that. A good financial advisor able to help as an integral part of your overall financial plan would be your home you
Mike Makler Offers Financial Services (Mortgages, Life, Annuity) in Florissant Missouri in North St. Louis County Missouri just across the bridge from St. Charles Missouri
Monday, 25 November 2013
Traders Secret Art of Setting Stop Losses - Guaranteed To Boost Profits
When traders first begin considering their stop losses, keep in mind this comment from Tom Baldwin, a leading day-trader. He said: "The best traders have no ego."
Successful traders are faced with losses constantly, and they swallow their pride and get out of position when they need to. This allows traders to survive in the market long enough in order to be successful. Traders set their stop losses, and then stick to the plan.
How do traders go about setting stop losses? There are a variety of ways. Traders could base a stop loss on a percentage retracement, where the permitted share prices retrace a certain percentage of the entry to the exit. Several indicators can be used to identify where the stop loss will be set. Merchants can also use support and resistance stops to the level at which the turn is made set. The key is to just have a stop loss in place.
Personally I find these options too subjective. I prefer having a mechanical way to calculate my stop losses so I use a volatility based stop. The reason I stop this type is because volatility generally represents a measurement of how quickly the stock either rises or falls (market noise). So if I measure the volatility and take a multiple of that value, I'm probably going to have set off the direct sound from the market. My stop loss This ensures I have not stopped from a position too often.
Traders can measure volatility by using the Average True Range (ATR) from a stock. This value can be found with the most graphics packages. In short, the Average True Range (ATR) indicates how much a stock will move as an average over a given period. For example, if traders had a one dollar stock that moved up five cents on average over the last 20 days, that does not mean traders or the stock moves up or down. It tells just how much the average traders specific stock moves. The average true range is a great tool and can be used for more than trading plan setting stops the traders. If traders are not familiar with setting stops, I recommend traders to do research. A place for excellent article sources in the Trading System Blog.
Traders use indicators in the calculation of stop loss by subtracting a multiple of the Average True Range (ATR) of the entry. For example, could I take twice the ATR and subtracting my entry. If we look at the example, I got on with a one dollar stock, an ATR value of five cents and a multiple of two the amount is ten cents. Which, subtracted from our entry price of one dollar gives a stop loss value of 90 cents.
Before traders even a position to enter, they must know where the selling point of the stock should be. If the share price does not move in the traders preferred direction, but moves against them, traders will know when to sell. Emotions are removed from the equation, and they just follow what the stop loss dictates.
This is how most successful traders limit their losses. They know when they are going to sell before they start trading. Although their methods for calculating this stop loss may vary, all traders have a stop loss in place. The stop loss is a critical part of the merchants trading. Without it, even the best-designed trading system make a profit.
- = - = - == - = - = - = - == - = - = - = - = - = - = - = - = - = - = - = -
David Jenyns is recognized as the leading expert when it
comes to designing profitable stock trading systems.
Discover the "secret formula" of trading that anyone can use
to consistently generate large profits from the market
Download your FREE copy of David's new Ultimate
Stock Trading Systems course.
Successful traders are faced with losses constantly, and they swallow their pride and get out of position when they need to. This allows traders to survive in the market long enough in order to be successful. Traders set their stop losses, and then stick to the plan.
How do traders go about setting stop losses? There are a variety of ways. Traders could base a stop loss on a percentage retracement, where the permitted share prices retrace a certain percentage of the entry to the exit. Several indicators can be used to identify where the stop loss will be set. Merchants can also use support and resistance stops to the level at which the turn is made set. The key is to just have a stop loss in place.
Personally I find these options too subjective. I prefer having a mechanical way to calculate my stop losses so I use a volatility based stop. The reason I stop this type is because volatility generally represents a measurement of how quickly the stock either rises or falls (market noise). So if I measure the volatility and take a multiple of that value, I'm probably going to have set off the direct sound from the market. My stop loss This ensures I have not stopped from a position too often.
Traders can measure volatility by using the Average True Range (ATR) from a stock. This value can be found with the most graphics packages. In short, the Average True Range (ATR) indicates how much a stock will move as an average over a given period. For example, if traders had a one dollar stock that moved up five cents on average over the last 20 days, that does not mean traders or the stock moves up or down. It tells just how much the average traders specific stock moves. The average true range is a great tool and can be used for more than trading plan setting stops the traders. If traders are not familiar with setting stops, I recommend traders to do research. A place for excellent article sources in the Trading System Blog.
Traders use indicators in the calculation of stop loss by subtracting a multiple of the Average True Range (ATR) of the entry. For example, could I take twice the ATR and subtracting my entry. If we look at the example, I got on with a one dollar stock, an ATR value of five cents and a multiple of two the amount is ten cents. Which, subtracted from our entry price of one dollar gives a stop loss value of 90 cents.
Before traders even a position to enter, they must know where the selling point of the stock should be. If the share price does not move in the traders preferred direction, but moves against them, traders will know when to sell. Emotions are removed from the equation, and they just follow what the stop loss dictates.
This is how most successful traders limit their losses. They know when they are going to sell before they start trading. Although their methods for calculating this stop loss may vary, all traders have a stop loss in place. The stop loss is a critical part of the merchants trading. Without it, even the best-designed trading system make a profit.
- = - = - == - = - = - = - == - = - = - = - = - = - = - = - = - = - = - = -
David Jenyns is recognized as the leading expert when it
comes to designing profitable stock trading systems.
Discover the "secret formula" of trading that anyone can use
to consistently generate large profits from the market
Download your FREE copy of David's new Ultimate
Stock Trading Systems course.
Saturday, 23 November 2013
A Critical Review of Metastock 8.0 - Is Upgrading Worth the Money
If you are like many other traders, you have been eagerly awaiting the release of Metastock 8.0 for one reason, and one reason only, the reportedly redeveloped system tester. Metastock `s one major error is always the lack of back testing capabilities, though previous versions of Metastock are head and shoulders above the competition on other fronts.
But what criteria you use to trade with, be it moving averages, candlesticks, Fibonacci retracements, or any other trading system, you're going to need to test back. Everyone should thoroughly back test or simulate their trading system in a way that can match the conditions you will trade in. It `s something all serious traders do.
Consequently, when Equis International (the makers of MetaStock 8.0) announced "an entirely new type of exploration that emulates running system tests on an entire database of securities", I could hardly wait to get the MetaStock version 8.0.
While waiting to receive my copy of Metastock 8.0 I started building trading systems. By the time my copy of Metastock 8.0 finally arrived, I had about 20 systems ready for testing and could not wait to try them.
However, when I loaded the software, I was in for a surprise. It looked like nothing had changed. I thought maybe Equis International kept the same interface and added greater flexibility and more options, but after searching in every nook and cranny, I found almost nothing that was new. It looked the same and, except for a few minor changes, it was the same!
When I got to the system tester - now called the Enhanced System Tester "This was my main reason for upgrading version 7:22 This is what seemed to be only real difference between MetaStock MetaStock 7.22 and 8.0,...
After fiddling with the MetaStock 8.0 Enhanced System Tester for a few hours, and testing my 20 systems, I reached the decision that I wasted my money on the new version of MetaStock 8.0. Despite the supposed improvements to the Enhanced System Tester, if it `s predecessor, left a lot to be desired.
Although the 8.0 MetaStock Enhanced System Tester tests multiple effects in a batch, it treats each effect independently from the others. Therefore, when MetaStock 8.0 the first safety test, it uses your predefined float and take the trade chosen during the test period. Once this is done, repeat the same process for the second security, with the same original float, without reference to the first security.
In the end, the same result that you would have if you just tested each security separately and summed up the results you receive. Not only is this process terribly slow, but the whole reason for testing your system has gone the way. When you are done with all surveys, the performance of your trading system is still unknown!
The moral of the story is that if you already own MetaStock 7 don `t have to worry about upgrading to MetaStock 8.0. Just stick with the version you have and keep your fingers crossed that Equis International gets the right MetaStock 9.0.
But what criteria you use to trade with, be it moving averages, candlesticks, Fibonacci retracements, or any other trading system, you're going to need to test back. Everyone should thoroughly back test or simulate their trading system in a way that can match the conditions you will trade in. It `s something all serious traders do.
Consequently, when Equis International (the makers of MetaStock 8.0) announced "an entirely new type of exploration that emulates running system tests on an entire database of securities", I could hardly wait to get the MetaStock version 8.0.
While waiting to receive my copy of Metastock 8.0 I started building trading systems. By the time my copy of Metastock 8.0 finally arrived, I had about 20 systems ready for testing and could not wait to try them.
However, when I loaded the software, I was in for a surprise. It looked like nothing had changed. I thought maybe Equis International kept the same interface and added greater flexibility and more options, but after searching in every nook and cranny, I found almost nothing that was new. It looked the same and, except for a few minor changes, it was the same!
When I got to the system tester - now called the Enhanced System Tester "This was my main reason for upgrading version 7:22 This is what seemed to be only real difference between MetaStock MetaStock 7.22 and 8.0,...
After fiddling with the MetaStock 8.0 Enhanced System Tester for a few hours, and testing my 20 systems, I reached the decision that I wasted my money on the new version of MetaStock 8.0. Despite the supposed improvements to the Enhanced System Tester, if it `s predecessor, left a lot to be desired.
Although the 8.0 MetaStock Enhanced System Tester tests multiple effects in a batch, it treats each effect independently from the others. Therefore, when MetaStock 8.0 the first safety test, it uses your predefined float and take the trade chosen during the test period. Once this is done, repeat the same process for the second security, with the same original float, without reference to the first security.
In the end, the same result that you would have if you just tested each security separately and summed up the results you receive. Not only is this process terribly slow, but the whole reason for testing your system has gone the way. When you are done with all surveys, the performance of your trading system is still unknown!
The moral of the story is that if you already own MetaStock 7 don `t have to worry about upgrading to MetaStock 8.0. Just stick with the version you have and keep your fingers crossed that Equis International gets the right MetaStock 9.0.
Thursday, 21 November 2013
How to Calculate the Value of Your U.S. Savings Bonds
If you're like many Americans over the age of 55, you've probably had taken money out of your paychecks for years and years to buy
U. S. certificates of deposit. These bonds are probably sitting in a safe at your local bank or safely tucked away in a drawer at home. But while you might know where those bonds are at this moment, do you have any idea how much they are actually worth?
It seems to be a fact of life that World War II-era Americans bought U.S. savings bonds for a number of reasons. First it was the patriotic thing to do. America needed to support the war effort and the Americans were more than willing to provide support. Money Secondly, it was an excellent way to save for retirement or for the education of a child, or for any other reason. Third, the interest paid on U.S. savings bonds was competitive and income were deferred until the bonds were actually cashed in.
For some reason, however, many of the U.S. savings bonds sold was never cashed in until after the death of the owner. Then a family member to discover them and wonder how much they were actually worth.
Of course, if you are in that situation today, you could take it to your local bank bonds and they have it. But, there is another way to get the information. The Office of the debt, Ministry of Finance, has a website that all that information, including a calculator with instructions so you can figure out how much your bonds are worth today offers - and you can do it all yourself.
So, if you have questions about your savings bonds, go to And do not forget to bookmark for later use the site.
Lawyer Michael Pancheri is the founder and CEO of the Living Trust Network. You can email us directly by him at . You can also contact at the Living Trust Network's website. The URL is
Copyright 2005. Living Trust Network, LLC.
U. S. certificates of deposit. These bonds are probably sitting in a safe at your local bank or safely tucked away in a drawer at home. But while you might know where those bonds are at this moment, do you have any idea how much they are actually worth?
It seems to be a fact of life that World War II-era Americans bought U.S. savings bonds for a number of reasons. First it was the patriotic thing to do. America needed to support the war effort and the Americans were more than willing to provide support. Money Secondly, it was an excellent way to save for retirement or for the education of a child, or for any other reason. Third, the interest paid on U.S. savings bonds was competitive and income were deferred until the bonds were actually cashed in.
For some reason, however, many of the U.S. savings bonds sold was never cashed in until after the death of the owner. Then a family member to discover them and wonder how much they were actually worth.
Of course, if you are in that situation today, you could take it to your local bank bonds and they have it. But, there is another way to get the information. The Office of the debt, Ministry of Finance, has a website that all that information, including a calculator with instructions so you can figure out how much your bonds are worth today offers - and you can do it all yourself.
So, if you have questions about your savings bonds, go to And do not forget to bookmark for later use the site.
Lawyer Michael Pancheri is the founder and CEO of the Living Trust Network. You can email us directly by him at . You can also contact at the Living Trust Network's website. The URL is
Copyright 2005. Living Trust Network, LLC.
Tuesday, 19 November 2013
Consolidation Period
The economic data reported Fri showed continued above trend growth with disinflation (at the core level, excluding food and energy) in the second quarter. Real output growth has so far this year has been delayed by about 4% in 2003 and 2004 to just over 3 1/2%, while core inflation fell from 3% last quarter to 2%. Consumption growth slowed from 3.5% to 3.3%, investment growth rose 9%, and net exports increased more than 12%. Also, business inventories fell.
Nasdaq has rallied 310 points in three months, and hit high Friday morning in 2201 a new four-year. The economic data suggest market pullbacks will be limited, although we have entered. The seasonally weak period in July, August and September after a big run-up Consequently, there is a period of consolidation rather than a correction in the coming months.
The first chart below is a Nasdaq monthly chart. The long Price-by-Volume bar (on the left side of the graph) is a "sticky" area, between 1750 and 2250, which is difficult for Nasdaq up or down to break. However, Nasdaq may break and hold above the 80 month MA in 2257, then keep it to 2645, the 38.2% Fibonacci level. Rally Nasdaq has an open hole in 1905, and the monthly Parabolic SAR buy signal (green dots) is currently in 1904 which are support levels.
The second graph is an SPX daily year-to-date overview. SPX has resistance to 1,253, which is a multi-year Fibonacci level. The rising 10 day MA, currently in 1232, has recently support. There are many support levels between 1185 and 1225. However, the 50 and 200 day MAs are important levels. If SPX close below the 200 day MA, then close it. Gaps in 1174, 1143 and 1138
It is unlikely Nasdaq will hold 2200 shortly. However, if that is so, then in 2257 is another important resistance level. Also, it is unlikely that SPX 1253 will hold in the short term, which is a multi-year resistance level. I expect a more volatile trading range below these levels, given the volatility indices are so low. Consequently, the SPX 20 days to test MA, next week, and lower levels in test August
Next week's economic reports are: Mon: ISM Index and Construction spending, ie: Personal Income, Personal Spending, Factory Orders and Auto Sales, Wed: ISM Services, Thu: Unemployment Claims, and Fri: Non-farm payrolls, hourly earnings, and the unemployment.
Notable earnings next week: Monday: TEVA HUM, ie: CMCSA SIRI, Wed: PRU NT CI CVS DUK CPN HL TWX SINA, Thu: G OATS THROUGH TO UL TOL SLE ONXX GFI CLX CQB, Fri: CBJ
I plan to trade put on my "predictable" stocks, including two index ETFs, biotech, and Internet continue. A If the market rises higher, there are several large cap banking stocks and drugs to perform, with less risk than most other files on pullbacks. See PeakTrader.com Top Stock Picks section for more information.
Tickets available at Forum Index
Arthur Albert Eckart is the founder and owner of Peak Trader. Arthur has worked for commercial banks, eg Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds 1999-00. Arthur Eckart has a BA and MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.
Mr Eckart has to maximize a comprehensive trading methodology using economics, portfolio optimization, and technical analysis and minimizing risks developed at the same time. This methodology has resulted in excellent returns with low risk over the past three years.
Nasdaq has rallied 310 points in three months, and hit high Friday morning in 2201 a new four-year. The economic data suggest market pullbacks will be limited, although we have entered. The seasonally weak period in July, August and September after a big run-up Consequently, there is a period of consolidation rather than a correction in the coming months.
The first chart below is a Nasdaq monthly chart. The long Price-by-Volume bar (on the left side of the graph) is a "sticky" area, between 1750 and 2250, which is difficult for Nasdaq up or down to break. However, Nasdaq may break and hold above the 80 month MA in 2257, then keep it to 2645, the 38.2% Fibonacci level. Rally Nasdaq has an open hole in 1905, and the monthly Parabolic SAR buy signal (green dots) is currently in 1904 which are support levels.
The second graph is an SPX daily year-to-date overview. SPX has resistance to 1,253, which is a multi-year Fibonacci level. The rising 10 day MA, currently in 1232, has recently support. There are many support levels between 1185 and 1225. However, the 50 and 200 day MAs are important levels. If SPX close below the 200 day MA, then close it. Gaps in 1174, 1143 and 1138
It is unlikely Nasdaq will hold 2200 shortly. However, if that is so, then in 2257 is another important resistance level. Also, it is unlikely that SPX 1253 will hold in the short term, which is a multi-year resistance level. I expect a more volatile trading range below these levels, given the volatility indices are so low. Consequently, the SPX 20 days to test MA, next week, and lower levels in test August
Next week's economic reports are: Mon: ISM Index and Construction spending, ie: Personal Income, Personal Spending, Factory Orders and Auto Sales, Wed: ISM Services, Thu: Unemployment Claims, and Fri: Non-farm payrolls, hourly earnings, and the unemployment.
Notable earnings next week: Monday: TEVA HUM, ie: CMCSA SIRI, Wed: PRU NT CI CVS DUK CPN HL TWX SINA, Thu: G OATS THROUGH TO UL TOL SLE ONXX GFI CLX CQB, Fri: CBJ
I plan to trade put on my "predictable" stocks, including two index ETFs, biotech, and Internet continue. A If the market rises higher, there are several large cap banking stocks and drugs to perform, with less risk than most other files on pullbacks. See PeakTrader.com Top Stock Picks section for more information.
Tickets available at Forum Index
Arthur Albert Eckart is the founder and owner of Peak Trader. Arthur has worked for commercial banks, eg Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds 1999-00. Arthur Eckart has a BA and MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.
Mr Eckart has to maximize a comprehensive trading methodology using economics, portfolio optimization, and technical analysis and minimizing risks developed at the same time. This methodology has resulted in excellent returns with low risk over the past three years.
Sunday, 17 November 2013
Oil and Gasoline Price Uncertainties
De Light Crude Continuous Contract hit een all-time high op $ 70,85 per vat, terwijl Loodvrije Benzine Futures spiked 50% of $ 1 per gallon op dinsdag. Echter, olie sloot de week op $ 67,57 per vat, terwijl de benzine eindigde de week tot 15%. Er is nog steeds onzekerheid over de omvang van de olie-en benzine verstoringen in de Golf, in de komende weken of maanden, veroorzaakt door de orkaan Katrina. Er zijn veel krachten houden van een deksel op olie en benzine prijzen.
De zomer rijden seizoen eindigt na Labor Day. President Bush drong er bij de Amerikanen om benzine te besparen. Veel Amerikanen geannuleerd rijden plannen voor de Labor Day weekend, vanwege de prijspieken in retail benzine. Er waren duizenden klachten over de prijs kerving bij benzinestations vorige week. Europese regeringen zijn de scheepvaart olie en geraffineerde producten aan de VS De Amerikaanse regering opende de Strategic Petroleum Reserve, aan oliemaatschappijen, en zwevende beperkingen op de regionale benzine normen. De sterke Amerikaanse economische groei is vertraagd, en kunnen blijven vertragen in de komende maanden.
Olie en benzine kan op korte termijn toppen hebben geraakt op dinsdag, terwijl het lijkt olievoorraden hadden "blow-off" toppen (tegenovergestelde van capitulaties) woensdag en donderdag. Bijgevolg kan de olievoorraden in een volatiele range zijn in de komende weken, samen met de beurs in het algemeen.
De eerste grafiek hieronder is een OIH weekly chart. Vorige week, OIH, een olie ETF (dwz mandje van olievoorraden) verhandeld tussen 112 en 122. Ik vermoed, de volatiele trading range zal blijven, terwijl de olie blijft in de $ 60. OIH heeft grote weerstand in de lage 120s en belangrijke steun in de lage 110s. Dus, kunnen er uitstekende mogelijkheden om OIH opties (of opties op andere olievoorraden) handel volgende week.
De tweede grafiek is een SPX daily chart. Er is aanzienlijke steun op korte termijn rond 1200 (dwz psychologische ondersteuning, 200 dagen MA, en Parabolische SAR koopsignaal). Vorige week, 1225 was verzet. Als SPX houdt 1225, kan het tot de handel tot 1245 (recent hoog) en 1253 (meerjaren Fibonacci niveau). Echter, SPX heeft openstaande hiaten in 1174, 1143 en 1138.
September opties vervallen in twee weken. Sommige huidige september Max Pain expirations zijn: SPX 1220 met de waarde van de oproepen 150% meer dan de waarde van puts (dat is bearish, omdat de put / call is een contraire indicator). SPX sloot op 1218. OEX 565 met de waarde van 130% geeft groter dan de waarde van oproepen (wat omhoog). OEX gesloten op net iets meer dan 563. QQQQ 39 met de waarde van 15% zet dan de waarde van oproepen. QQQQ gesloten 38 3/4. Volatiliteit normaal pikt-up twee weken voor opties aflopen.
Economische rapporten volgende week zijn: ma: Geen (markt gesloten voor Labor Day), Di: Herziene Productiviteit en Beige Book Fed, Wo: Werkloosheid Claims en Groothandel Voorraden, en vr: Export & Import prijzen. Ook, in september, de FOMC vergadering, winst waarschuwingen, en end-of-het-kwartaal window dressing moet de markt te beïnvloeden.
De onzekerheid van de olie-en benzineprijzen, en economische gegevens, veroorzaakt door orkaan Katrina zou moeten bijdragen aan de volatiliteit in de komende twee weken. De beurs kan blijven consolideren, op korte termijn, tot winst waarschuwing seizoen in eind september en het derde kwartaal de winst in oktober.
Kaarten verkrijgbaar bij Forum Index Markt Overzicht sectie.
Arthur Albert Eckart is de oprichter en eigenaar van PeakTrader. Arthur heeft gewerkt voor commerciële banken, bijv. Wells Fargo, Banc One, en First Commerce Technologies, tijdens de jaren 1980 en 1990. Hij heeft ook gewerkt voor Janus Funds 1999-00. Arthur Eckart heeft een BA en MA in Economie van de Universiteit van Colorado. Hij heeft gewerkt aan opties portfolio-optimalisatie sinds 1998.
De heer Eckart heeft een uitgebreide trading methode met behulp van economie, portfolio-optimalisatie, en technische analyse te maximaliseren en minimaliseren van risico's op hetzelfde moment ontwikkeld. Deze methodologie heeft geresulteerd in uitstekende rendement met een laag risico in de afgelopen vier jaar.
De zomer rijden seizoen eindigt na Labor Day. President Bush drong er bij de Amerikanen om benzine te besparen. Veel Amerikanen geannuleerd rijden plannen voor de Labor Day weekend, vanwege de prijspieken in retail benzine. Er waren duizenden klachten over de prijs kerving bij benzinestations vorige week. Europese regeringen zijn de scheepvaart olie en geraffineerde producten aan de VS De Amerikaanse regering opende de Strategic Petroleum Reserve, aan oliemaatschappijen, en zwevende beperkingen op de regionale benzine normen. De sterke Amerikaanse economische groei is vertraagd, en kunnen blijven vertragen in de komende maanden.
Olie en benzine kan op korte termijn toppen hebben geraakt op dinsdag, terwijl het lijkt olievoorraden hadden "blow-off" toppen (tegenovergestelde van capitulaties) woensdag en donderdag. Bijgevolg kan de olievoorraden in een volatiele range zijn in de komende weken, samen met de beurs in het algemeen.
De eerste grafiek hieronder is een OIH weekly chart. Vorige week, OIH, een olie ETF (dwz mandje van olievoorraden) verhandeld tussen 112 en 122. Ik vermoed, de volatiele trading range zal blijven, terwijl de olie blijft in de $ 60. OIH heeft grote weerstand in de lage 120s en belangrijke steun in de lage 110s. Dus, kunnen er uitstekende mogelijkheden om OIH opties (of opties op andere olievoorraden) handel volgende week.
De tweede grafiek is een SPX daily chart. Er is aanzienlijke steun op korte termijn rond 1200 (dwz psychologische ondersteuning, 200 dagen MA, en Parabolische SAR koopsignaal). Vorige week, 1225 was verzet. Als SPX houdt 1225, kan het tot de handel tot 1245 (recent hoog) en 1253 (meerjaren Fibonacci niveau). Echter, SPX heeft openstaande hiaten in 1174, 1143 en 1138.
September opties vervallen in twee weken. Sommige huidige september Max Pain expirations zijn: SPX 1220 met de waarde van de oproepen 150% meer dan de waarde van puts (dat is bearish, omdat de put / call is een contraire indicator). SPX sloot op 1218. OEX 565 met de waarde van 130% geeft groter dan de waarde van oproepen (wat omhoog). OEX gesloten op net iets meer dan 563. QQQQ 39 met de waarde van 15% zet dan de waarde van oproepen. QQQQ gesloten 38 3/4. Volatiliteit normaal pikt-up twee weken voor opties aflopen.
Economische rapporten volgende week zijn: ma: Geen (markt gesloten voor Labor Day), Di: Herziene Productiviteit en Beige Book Fed, Wo: Werkloosheid Claims en Groothandel Voorraden, en vr: Export & Import prijzen. Ook, in september, de FOMC vergadering, winst waarschuwingen, en end-of-het-kwartaal window dressing moet de markt te beïnvloeden.
De onzekerheid van de olie-en benzineprijzen, en economische gegevens, veroorzaakt door orkaan Katrina zou moeten bijdragen aan de volatiliteit in de komende twee weken. De beurs kan blijven consolideren, op korte termijn, tot winst waarschuwing seizoen in eind september en het derde kwartaal de winst in oktober.
Kaarten verkrijgbaar bij Forum Index Markt Overzicht sectie.
Arthur Albert Eckart is de oprichter en eigenaar van PeakTrader. Arthur heeft gewerkt voor commerciële banken, bijv. Wells Fargo, Banc One, en First Commerce Technologies, tijdens de jaren 1980 en 1990. Hij heeft ook gewerkt voor Janus Funds 1999-00. Arthur Eckart heeft een BA en MA in Economie van de Universiteit van Colorado. Hij heeft gewerkt aan opties portfolio-optimalisatie sinds 1998.
De heer Eckart heeft een uitgebreide trading methode met behulp van economie, portfolio-optimalisatie, en technische analyse te maximaliseren en minimaliseren van risico's op hetzelfde moment ontwikkeld. Deze methodologie heeft geresulteerd in uitstekende rendement met een laag risico in de afgelopen vier jaar.
Friday, 15 November 2013
How to Use Annual Report
There are many steps in calculating the fair value of a company . However , before we do that , it is necessary to know how a company earns its profits . It does so by selling to the consumer ? licensing its technology to other companies ? or extraction of natural resources from the ground?
The sensible way to do it is by reading the annual report of the company. What is a report ? Annual Report is an annual publication of public companies to inform investors. Better about the line of business Annual report gives investors a look of the line of business , financial health , as well as the strategies of management to do business .
Let 's look at CNET Networks Inc. The company trades in the NASDAQ market with symbol : CNET . What does CNET do? I know CNET owns cnet.com . But do you know that it also owns download.com , MP3.com , ZDnet.com and News.com ? How do I know ? Yep , you guess it . CNET report will give you all that.
The annual report of CNET 's , we can do a little digging internet for CNET . As of August 27, 2005 , these websites of CNET attracts 3 % of all Internet traffic . Pretty impressive , considering that Google owns 23 % of all Internet traffic . In April 2005 , Google had 78.6 million unique visitors . By comparing this metric , we can have an idea CNET potential sales for the month of August. I will not go , but this shows how useful reading CNET 's annual report . Reading an annual report serves as the first step to invest in a particular company .
How do we obtain annually ? Report There are several sources for . First is the companies own website . You are interested in knowing more about CNET Networks ? You can get the report by going to http://www.cnet.com and go to its shareholder relationship. After a few clicks, you can then download the annual report .
Or ... you can go to some websites for a number of different companies in alphabetical order to offer them. complete report Our website is one of them . Admittedly , while having hundreds of annual reports in one place is convenient, it is not as thorough as what to say own company website .
Hari Wibowo manages a small financial website aimed at new investors to get started . Curious ? You can find his other writings on
The sensible way to do it is by reading the annual report of the company. What is a report ? Annual Report is an annual publication of public companies to inform investors. Better about the line of business Annual report gives investors a look of the line of business , financial health , as well as the strategies of management to do business .
Let 's look at CNET Networks Inc. The company trades in the NASDAQ market with symbol : CNET . What does CNET do? I know CNET owns cnet.com . But do you know that it also owns download.com , MP3.com , ZDnet.com and News.com ? How do I know ? Yep , you guess it . CNET report will give you all that.
The annual report of CNET 's , we can do a little digging internet for CNET . As of August 27, 2005 , these websites of CNET attracts 3 % of all Internet traffic . Pretty impressive , considering that Google owns 23 % of all Internet traffic . In April 2005 , Google had 78.6 million unique visitors . By comparing this metric , we can have an idea CNET potential sales for the month of August. I will not go , but this shows how useful reading CNET 's annual report . Reading an annual report serves as the first step to invest in a particular company .
How do we obtain annually ? Report There are several sources for . First is the companies own website . You are interested in knowing more about CNET Networks ? You can get the report by going to http://www.cnet.com and go to its shareholder relationship. After a few clicks, you can then download the annual report .
Or ... you can go to some websites for a number of different companies in alphabetical order to offer them. complete report Our website is one of them . Admittedly , while having hundreds of annual reports in one place is convenient, it is not as thorough as what to say own company website .
Hari Wibowo manages a small financial website aimed at new investors to get started . Curious ? You can find his other writings on
Wednesday, 13 November 2013
Investment Rowing
You have rowed a boat at some point have not
You? Yes , put the oars in the water and pull . of
Of course you do not know where you're going
because you sit back . every so
often should you turn to look to see if forward
pull in the right direction .
Reminds you of the stock does it not?
You have invested your money and you 're pulling
hard ( working ) trying to get to that rainbow
where the pot of gold is supposed to be, but you
back down and you can not see where
you go.
The stock market is more like one of those
Olympic shells with a lot of people become
together to the finish. Unfortunately, in
the fair each person puts his oar
in the water at a different time , and some
even push their oar . What a mess . how is
someone is going to ever win if they do not pull all
at the same time ? Let me give you a hint . they
not .
And why they do not want?
You, the little man in the rowboat , not
have a coach or coach you may not
knows what he's doing . These coaches have been
learned how to eradicate the big guns on Wall Street
and the big guys do not care about you.
To a stockbroker become the person
must be a very severe test. That test has
nothing to do with helping investors to make money.
It is all about rules to prevent them lying
and you cheat on your behalf. That is good
and it works , but they are not taught how
trade or protecting your money .
When the broker or financial planner does
pass that test he will receive two manuals . the first
is a copy of all the rules and regulations .
The second is how to open account in other words
you get to send him. money
There is no third guide on how to protect a
customers ' money . You can not expect row your
boat in the right direction if your coach
do not know what he's doing . When your boat
begins to leak ( the market starts down) your
coach has no idea how to patch the leaks and
you sink slowly . Does this sound familiar ?
You need to learn how to grow your boat in the
send right direction through the maze of
Wall Street. The first rule is not to let
your boat sinking . If you have a leak, you must
the patch immediately . The scholarship
hot selling a losing position . stop the
leaks so that your boat will not sink .
Wall Street coaches are not taught
simple technique and the agency always
wants you a position . When you sell
have money and learn it - CASH is a position . many
times it is better to be out of the market than
sink it.
That way you will still have to row a boat.
Al Thomas ' book , "If it does not go up , do not buy ! " Has helped thousands of people make money and keep their profits with his simple 2 - step method . Read the first chapter at and discover why he's the man that Wall Street does not want you to know .
You? Yes , put the oars in the water and pull . of
Of course you do not know where you're going
because you sit back . every so
often should you turn to look to see if forward
pull in the right direction .
Reminds you of the stock does it not?
You have invested your money and you 're pulling
hard ( working ) trying to get to that rainbow
where the pot of gold is supposed to be, but you
back down and you can not see where
you go.
The stock market is more like one of those
Olympic shells with a lot of people become
together to the finish. Unfortunately, in
the fair each person puts his oar
in the water at a different time , and some
even push their oar . What a mess . how is
someone is going to ever win if they do not pull all
at the same time ? Let me give you a hint . they
not .
And why they do not want?
You, the little man in the rowboat , not
have a coach or coach you may not
knows what he's doing . These coaches have been
learned how to eradicate the big guns on Wall Street
and the big guys do not care about you.
To a stockbroker become the person
must be a very severe test. That test has
nothing to do with helping investors to make money.
It is all about rules to prevent them lying
and you cheat on your behalf. That is good
and it works , but they are not taught how
trade or protecting your money .
When the broker or financial planner does
pass that test he will receive two manuals . the first
is a copy of all the rules and regulations .
The second is how to open account in other words
you get to send him. money
There is no third guide on how to protect a
customers ' money . You can not expect row your
boat in the right direction if your coach
do not know what he's doing . When your boat
begins to leak ( the market starts down) your
coach has no idea how to patch the leaks and
you sink slowly . Does this sound familiar ?
You need to learn how to grow your boat in the
send right direction through the maze of
Wall Street. The first rule is not to let
your boat sinking . If you have a leak, you must
the patch immediately . The scholarship
hot selling a losing position . stop the
leaks so that your boat will not sink .
Wall Street coaches are not taught
simple technique and the agency always
wants you a position . When you sell
have money and learn it - CASH is a position . many
times it is better to be out of the market than
sink it.
That way you will still have to row a boat.
Al Thomas ' book , "If it does not go up , do not buy ! " Has helped thousands of people make money and keep their profits with his simple 2 - step method . Read the first chapter at and discover why he's the man that Wall Street does not want you to know .
Monday, 11 November 2013
Preholiday Trading
The Light Crude Continuous Contract closed at $ 66.13 a barrel on Friday , after hitting an all - time high at $ 67.95 a barrel earlier in the day . A week from Monday is Labor Day , which marks the end of the summer driving season marks . Therefore I believe oil hit a short term top Friday or next week above .
Recent economic data show continued high oil prices , together with higher interest rates , a drag on U.S. economic growth . Orders for durable goods fell about 5 % last month , and Walmart announced sales will be lower than expected . However , business inventories are lean . A slower economy will reduce demand for oil .
The SPX daily chart below shows an orderly pullback in August. Currently, SPX oversold bounce in the Labor Day holiday. Enough Major support is around 1200 , ie the 200 day MA , and price - per - Volume bar . There are several major resistance levels to work to create a strong resistance together ie 10 , 20 , and 50 day MA , the Parabolic SAR sell signal ( red dots ) , and the price - per - Volume bar, all between 1220 and 1225.
There is usually a bullish bias of the week for a vacation, and then the first few days of a new month . However, the market is selling at the weekend (and the rally from last week) , that's bear market behavior , it is a seasonally weak period , and SPX has opened gaps in 1174 , 1143 and 1138. Oil prices and economic data , the market is moving .
There are many important economic reports next week , where a large part of the volatility should generate , in the season low market volume : Ma: No , di : Factory Orders, consumer confidence , and FOMC Minutes , Wed: Revised Q2 GDP and GDP Chain Price deflator and Chicago PMI . Do : Personal Income , Personal Spending , Unemployment Claims , Construction Spending , ISM Index and Auto Sales . Fri : Non - Farm Payrolls , Unemployment and labor .
The Dow Industrials were recently severely affected by high oil prices , and closed below 10,400 Friday , while the Nasdaq pretty well held. If oil prices above next week , DIA calls ( and put on some oil ) can buy on pullbacks . There are also several Dow components that were recently hit particularly hard .
Tickets available at Forum Index Market Overview section .
Arthur Albert Eckart is the founder and owner of Peak Trader . Arthur has worked for commercial banks , eg Wells Fargo , Banc One, and First Commerce Technologies , during the 1980s and 1990s . He has also worked for Janus Funds 1999-00 . Arthur Eckart has a BA and MA in Economics from the University of Colorado . He has worked on options portfolio optimization since 1998 .
Mr Eckart has to maximize a comprehensive trading methodology using economics , portfolio optimization , and technical analysis and minimizing risks developed at the same time . This methodology has resulted in excellent returns with low risk over the past four years .
Recent economic data show continued high oil prices , together with higher interest rates , a drag on U.S. economic growth . Orders for durable goods fell about 5 % last month , and Walmart announced sales will be lower than expected . However , business inventories are lean . A slower economy will reduce demand for oil .
The SPX daily chart below shows an orderly pullback in August. Currently, SPX oversold bounce in the Labor Day holiday. Enough Major support is around 1200 , ie the 200 day MA , and price - per - Volume bar . There are several major resistance levels to work to create a strong resistance together ie 10 , 20 , and 50 day MA , the Parabolic SAR sell signal ( red dots ) , and the price - per - Volume bar, all between 1220 and 1225.
There is usually a bullish bias of the week for a vacation, and then the first few days of a new month . However, the market is selling at the weekend (and the rally from last week) , that's bear market behavior , it is a seasonally weak period , and SPX has opened gaps in 1174 , 1143 and 1138. Oil prices and economic data , the market is moving .
There are many important economic reports next week , where a large part of the volatility should generate , in the season low market volume : Ma: No , di : Factory Orders, consumer confidence , and FOMC Minutes , Wed: Revised Q2 GDP and GDP Chain Price deflator and Chicago PMI . Do : Personal Income , Personal Spending , Unemployment Claims , Construction Spending , ISM Index and Auto Sales . Fri : Non - Farm Payrolls , Unemployment and labor .
The Dow Industrials were recently severely affected by high oil prices , and closed below 10,400 Friday , while the Nasdaq pretty well held. If oil prices above next week , DIA calls ( and put on some oil ) can buy on pullbacks . There are also several Dow components that were recently hit particularly hard .
Tickets available at Forum Index Market Overview section .
Arthur Albert Eckart is the founder and owner of Peak Trader . Arthur has worked for commercial banks , eg Wells Fargo , Banc One, and First Commerce Technologies , during the 1980s and 1990s . He has also worked for Janus Funds 1999-00 . Arthur Eckart has a BA and MA in Economics from the University of Colorado . He has worked on options portfolio optimization since 1998 .
Mr Eckart has to maximize a comprehensive trading methodology using economics , portfolio optimization , and technical analysis and minimizing risks developed at the same time . This methodology has resulted in excellent returns with low risk over the past four years .
Saturday, 9 November 2013
The Benefits of Laddering Your CD Investments
If you decided to stock some money away in a certificate of deposit , why not reap the highest benefit over time by laddering your CD investments? What is a CD latter ? I'm glad you asked.
A CD ladder is formed by purchasing multiple CDs at one time with different maturity dates . An example of a CD ladder to maturities of one year, two years , three years , four years , and have a five year CD . These five investments form the rungs of your CD ladder with a certificate maturing every year for the next five years .
For example , let's say you had $ 10,000.00 to invest . You could buy five CDs for $ 2,000 each , each invested for one year more than the first . So you would have a $ 2,000 CD maturing in one year , have another two years , and so on until the last , which has a duration of five years. Every year for the next five years of your CD matures and you earn interest on your $ 2,000 principal amount.
If your certificate of deposit matures , you roll over into another CD . The best strategy is to buy at the longest maturity , which in our example above five years a new CD. This strategy allows you to take advantage of the higher rates normally associated with long-term CDs while maintaining frequent access to a portion of your money .
Another advantage of laddering your CDs is that over time smoothes the high and the low interest rate cycles . Some years the interest rate will be high, the rates will be lower . Other years Currently, banks pay some of the highest CD rates we've seen in the last decade .
Before deciding on laddering your CDs , make sure you can afford to do without the money for a period of time . You will pay a penalty for taking your money before you drink ripe CD .
Also, do not get stuck on the idea that you should invest in a 5 - year ladder. You may be more comfortable with a three- year ladder based on your financial needs . Or you may want a ladder with a 3 months , a six months, one 12 months , and try a 24 month period .
The advantages of laddering your CD investment is that you lose your risk when rates are lower low , increasing your return if interest rates are high , and still have access to some of your money should you need the money for an emergency.
© 2005 Author : James H. Dimmitt
James is editor of " your credit" , a free weekly newsletter with tips to help you manage your personal finances. You Subscribe today and receive e - book ? IDENTITY THEFT - How to avoid becoming the next victim ! ? ? and other cost-saving bonuses by visiting
A CD ladder is formed by purchasing multiple CDs at one time with different maturity dates . An example of a CD ladder to maturities of one year, two years , three years , four years , and have a five year CD . These five investments form the rungs of your CD ladder with a certificate maturing every year for the next five years .
For example , let's say you had $ 10,000.00 to invest . You could buy five CDs for $ 2,000 each , each invested for one year more than the first . So you would have a $ 2,000 CD maturing in one year , have another two years , and so on until the last , which has a duration of five years. Every year for the next five years of your CD matures and you earn interest on your $ 2,000 principal amount.
If your certificate of deposit matures , you roll over into another CD . The best strategy is to buy at the longest maturity , which in our example above five years a new CD. This strategy allows you to take advantage of the higher rates normally associated with long-term CDs while maintaining frequent access to a portion of your money .
Another advantage of laddering your CDs is that over time smoothes the high and the low interest rate cycles . Some years the interest rate will be high, the rates will be lower . Other years Currently, banks pay some of the highest CD rates we've seen in the last decade .
Before deciding on laddering your CDs , make sure you can afford to do without the money for a period of time . You will pay a penalty for taking your money before you drink ripe CD .
Also, do not get stuck on the idea that you should invest in a 5 - year ladder. You may be more comfortable with a three- year ladder based on your financial needs . Or you may want a ladder with a 3 months , a six months, one 12 months , and try a 24 month period .
The advantages of laddering your CD investment is that you lose your risk when rates are lower low , increasing your return if interest rates are high , and still have access to some of your money should you need the money for an emergency.
© 2005 Author : James H. Dimmitt
James is editor of " your credit" , a free weekly newsletter with tips to help you manage your personal finances. You Subscribe today and receive e - book ? IDENTITY THEFT - How to avoid becoming the next victim ! ? ? and other cost-saving bonuses by visiting
Thursday, 7 November 2013
Sell Discipline for Investors: Importance and Execution
Investors usually do not have an aversion to buying an asset. The real gut wrenching decision is when - and whether - to sell . What most do not realize ( or do not want to realize ) is the overwhelming importance of the sell decision. Let the reasons and techniques nerves of a seller can soothe .
Finding reasons not to actively sell is as simple as finding a reason to avoid . A root canal Have you ever heard (or told yourself) , "I can not sell , it's too low ! " Or , " The XYZ brokerage analyst says the price goes through the roof ! "Or , " I do not want to pay the capital gains tax "
Let's look at each of these ' justifications ' in the context of their impact on an investment portfolio and techniques to avoid having to come up with them :
" I can not sell , it's too low ! "
If the price of an asset has declined dramatically , there is usually a fundamental problem . Often that fundamental problem than a technical problem . In other words, if market participants see dramatic declines in price charts , panic sets in and " heard " starts to get the price down even more hunting ( reference the NASDAQ index from February 2000 to September 2002 ) . Once an asset has been trampled , it is extremely difficult and time consuming to resuscitate .
Selling Technique : First of all , do not let the prices fall " too low " . Ask a predetermined point to sell as asset prices fall and stick to it . Performing a stop loss order so discipline is not a problem . Note - Selecting a selling point does not need complicated process . Either determine where your " pain threshold " is losing in terms of market value or percentage and mark that point . Or look at a historical price chart and look for " floors" , the price points where the price seems repeatedly bounce backup . If the price falls below that point , it is often a point of no return .
If you still "like" safety , although the price has dropped , setting a price for the asset to buy after a positive price return has developed . Finding the absolute price bottom is like trying to catch . A falling knife Use a "buy stop" to ensure that you buy at a predetermined point security.
" The XYZ brokerage analyst says the price goes through the roof ! "
We have observed numerous cases in which Wall Street analysts were punished for filling their pockets or their business , by producing biased research articles designed to influence in their favor . Prices Analyst hype can only take it to a point , after which it should be . On its own merits a security Investors beware!
Avoidance Technique : Let's assume that analyst Rich Buyhype is good and actively advances up . First , let's follow the previous technique and execute a stop loss order . Then, if the asset appreciates in price , periodically stop loss price commensurate with the price up . This is known as a ' trailing stop . " Most brokers will allow their investors to change their stop losses easy with no fees .
"I do not want to pay the capital gains tax "
An overwhelming amount of stock investors would like to have paid capital gains tax in 1999 . Most would have paid considerably less than they eventually lost in market value in the next 2 years . Consider the capital gains tax does not apply to the value of the asset. Only for the amount of profit , A 15 % capital gains tax payment is less than a 15 % loss of market value, unless the asset does not cost base .
Avoidance Technique : Unfortunately, we can not avoid paying taxes on unrealized gains . But we can sell assets and losses greater than to avoid the tax. Paid Do not let the tax tail wag the investment dog . If an asset hits your stop point , sell it and do not look back , whether it is a profit or a loss. After all , unless the tax law changes , should the sale to pay at some point your winnings.
summary
Sell to lock in your profits a security can be a very useful strategy , but it is sometimes difficult to implement. If you do not have the discipline to sell at a predetermined point ( most investors do not) , put a stop loss order so that trade will happen automatically. Use the trailing stop loss technique as your active appreciate to lock in your profits . These strategies work especially well in situations where capital gains are not a problem . However, keep in mind the many of the richest investors pay substantial taxes because they have the right to designate to lock in profits and avoid big losses .
Visit our website at to learn more about selling discipline and active investing.
Rob Hounshell is President and Chief Investment Strategist of Limestone Capital , a registered investment advisory . He holds the Chartered Financial Analyst and Certified Financial Planner designations . Is he managing investments for 18 years .
Finding reasons not to actively sell is as simple as finding a reason to avoid . A root canal Have you ever heard (or told yourself) , "I can not sell , it's too low ! " Or , " The XYZ brokerage analyst says the price goes through the roof ! "Or , " I do not want to pay the capital gains tax "
Let's look at each of these ' justifications ' in the context of their impact on an investment portfolio and techniques to avoid having to come up with them :
" I can not sell , it's too low ! "
If the price of an asset has declined dramatically , there is usually a fundamental problem . Often that fundamental problem than a technical problem . In other words, if market participants see dramatic declines in price charts , panic sets in and " heard " starts to get the price down even more hunting ( reference the NASDAQ index from February 2000 to September 2002 ) . Once an asset has been trampled , it is extremely difficult and time consuming to resuscitate .
Selling Technique : First of all , do not let the prices fall " too low " . Ask a predetermined point to sell as asset prices fall and stick to it . Performing a stop loss order so discipline is not a problem . Note - Selecting a selling point does not need complicated process . Either determine where your " pain threshold " is losing in terms of market value or percentage and mark that point . Or look at a historical price chart and look for " floors" , the price points where the price seems repeatedly bounce backup . If the price falls below that point , it is often a point of no return .
If you still "like" safety , although the price has dropped , setting a price for the asset to buy after a positive price return has developed . Finding the absolute price bottom is like trying to catch . A falling knife Use a "buy stop" to ensure that you buy at a predetermined point security.
" The XYZ brokerage analyst says the price goes through the roof ! "
We have observed numerous cases in which Wall Street analysts were punished for filling their pockets or their business , by producing biased research articles designed to influence in their favor . Prices Analyst hype can only take it to a point , after which it should be . On its own merits a security Investors beware!
Avoidance Technique : Let's assume that analyst Rich Buyhype is good and actively advances up . First , let's follow the previous technique and execute a stop loss order . Then, if the asset appreciates in price , periodically stop loss price commensurate with the price up . This is known as a ' trailing stop . " Most brokers will allow their investors to change their stop losses easy with no fees .
"I do not want to pay the capital gains tax "
An overwhelming amount of stock investors would like to have paid capital gains tax in 1999 . Most would have paid considerably less than they eventually lost in market value in the next 2 years . Consider the capital gains tax does not apply to the value of the asset. Only for the amount of profit , A 15 % capital gains tax payment is less than a 15 % loss of market value, unless the asset does not cost base .
Avoidance Technique : Unfortunately, we can not avoid paying taxes on unrealized gains . But we can sell assets and losses greater than to avoid the tax. Paid Do not let the tax tail wag the investment dog . If an asset hits your stop point , sell it and do not look back , whether it is a profit or a loss. After all , unless the tax law changes , should the sale to pay at some point your winnings.
summary
Sell to lock in your profits a security can be a very useful strategy , but it is sometimes difficult to implement. If you do not have the discipline to sell at a predetermined point ( most investors do not) , put a stop loss order so that trade will happen automatically. Use the trailing stop loss technique as your active appreciate to lock in your profits . These strategies work especially well in situations where capital gains are not a problem . However, keep in mind the many of the richest investors pay substantial taxes because they have the right to designate to lock in profits and avoid big losses .
Visit our website at to learn more about selling discipline and active investing.
Rob Hounshell is President and Chief Investment Strategist of Limestone Capital , a registered investment advisory . He holds the Chartered Financial Analyst and Certified Financial Planner designations . Is he managing investments for 18 years .
Tuesday, 5 November 2013
Introduction To FOREX
The Foreign Exchange Market , better known as FOREX , is a worldwide market for buying and selling currencies . It handles a large amount of the transactions 24 hours a day, 5 days per week . Daily exchanges are worth approximately $ 1.5 trillion ( U.S. dollars ) . In comparison, the United States Treasury Bond market averages $ 300 billion per day , and the U.S. stock exchange about $ 100 billion per day .
The Foreign Exchange Market was established in 1971 when fixed currency exchanges were abolished. Currencies became valued at 'floating' rates determined by supply and demand . The FOREX grew steadily throughout the 1970s , but with the technological advances of the FOREX 80 ' s extensive trading levels of $ 70 billion per day to the current level of $ 1.5 trillion.
Who Trades in FOREX ?
The FOREX is made up of about 5000 trading institutions such as international banks, central government banks ( such as the U.S. Federal Reserve) , and commercial companies and brokers for all types of foreign currencies . There is no centralized location of FOREX , major trading centers are located in New York , Tokyo, London , Hong Kong , Singapore , Paris and Frankfurt . All trading is done over the phone or internet . Businesses use the market to buy and sell their products in other countries , but most of the activity on the FOREX is from currency traders who use it from small movements to generate profits. In the market
Even though there are many big players in FOREX , it is accessible to the small investor thanks to recent regulatory changes . Previously, there was a minimum transaction size and traders were required to meet . Strict financial requirements
With the advent of Internet trading , regulations have been amended so that the large interbank units to be broken down into smaller lots. Each party has a value of approximately $ 100,000 and is accessible to the individual investor through ' leverage loans extended for trading. Usually a lot can be operated with a leverage of 100:1 means that U.S. $ 1,000 will allow you to control a $ 100,000 currency exchange .
Benefits for Trade in FOREX
Liquidity - Because of the size of the Foreign Exchange Market , investments are highly liquid . International banks are continuously providing bid and ask quotes and the large number of transactions per day ensures that there is always a buyer or a seller for every currency .
Accessibility - The market is open 24 hours a day, 5 days a week . The market opens Monday morning Australian time and closes Friday afternoon New York time . Transactions can be done on the Internet from your home or office .
Open Market - Currency fluctuations are usually caused by changes in national economies . News about these changes is accessible to everyone at the same time - can not ' trading' in FOREX there .
No Commission - Brokers earn money by setting a spread - can be bought at and what it can be sold at the difference between what a coin .
How does it work?
Currencies are always traded in pairs : the U.S. dollar against the Japanese yen , or the English pound against the euro . Every transaction involves selling one currency and buying another , so if an investor believes the euro will rise against the dollar , he will sell dollars and buy euros .
The potential for profit exists because there is always movement between currencies. Even small changes can result in substantial gains due to the large amount of money involved in each transaction . At the same time , a relatively safe market for the individual investor . There are safeguards built in to protect both the broker and the investor and a number of software tools exist to minimize the loss.
Ron King is a full - time researcher , writer, and web developer . Visit FOREX4U to learn about this fascinating investment . Medium more
Copyright 2005 Ron King . This article may be reprinted if the resource box intact.
The Foreign Exchange Market was established in 1971 when fixed currency exchanges were abolished. Currencies became valued at 'floating' rates determined by supply and demand . The FOREX grew steadily throughout the 1970s , but with the technological advances of the FOREX 80 ' s extensive trading levels of $ 70 billion per day to the current level of $ 1.5 trillion.
Who Trades in FOREX ?
The FOREX is made up of about 5000 trading institutions such as international banks, central government banks ( such as the U.S. Federal Reserve) , and commercial companies and brokers for all types of foreign currencies . There is no centralized location of FOREX , major trading centers are located in New York , Tokyo, London , Hong Kong , Singapore , Paris and Frankfurt . All trading is done over the phone or internet . Businesses use the market to buy and sell their products in other countries , but most of the activity on the FOREX is from currency traders who use it from small movements to generate profits. In the market
Even though there are many big players in FOREX , it is accessible to the small investor thanks to recent regulatory changes . Previously, there was a minimum transaction size and traders were required to meet . Strict financial requirements
With the advent of Internet trading , regulations have been amended so that the large interbank units to be broken down into smaller lots. Each party has a value of approximately $ 100,000 and is accessible to the individual investor through ' leverage loans extended for trading. Usually a lot can be operated with a leverage of 100:1 means that U.S. $ 1,000 will allow you to control a $ 100,000 currency exchange .
Benefits for Trade in FOREX
Liquidity - Because of the size of the Foreign Exchange Market , investments are highly liquid . International banks are continuously providing bid and ask quotes and the large number of transactions per day ensures that there is always a buyer or a seller for every currency .
Accessibility - The market is open 24 hours a day, 5 days a week . The market opens Monday morning Australian time and closes Friday afternoon New York time . Transactions can be done on the Internet from your home or office .
Open Market - Currency fluctuations are usually caused by changes in national economies . News about these changes is accessible to everyone at the same time - can not ' trading' in FOREX there .
No Commission - Brokers earn money by setting a spread - can be bought at and what it can be sold at the difference between what a coin .
How does it work?
Currencies are always traded in pairs : the U.S. dollar against the Japanese yen , or the English pound against the euro . Every transaction involves selling one currency and buying another , so if an investor believes the euro will rise against the dollar , he will sell dollars and buy euros .
The potential for profit exists because there is always movement between currencies. Even small changes can result in substantial gains due to the large amount of money involved in each transaction . At the same time , a relatively safe market for the individual investor . There are safeguards built in to protect both the broker and the investor and a number of software tools exist to minimize the loss.
Ron King is a full - time researcher , writer, and web developer . Visit FOREX4U to learn about this fascinating investment . Medium more
Copyright 2005 Ron King . This article may be reprinted if the resource box intact.
Sunday, 3 November 2013
Raising Capital Using a Public Company
Going public in this manner is ideal for companies that might not be large enough to an insurance company for an IPO and those that do not need to pull to pull . Immediate capital They want to go public because of the many advantages that being a public company offers such as increased valuation, using public stock as currency to other businesses and assets , liquidity , prestige gain and to reduce the need for costly venture capital and other financing sources reduce . It also makes it easier to raise capital because once you become public it gives you credibility and a benchmark rate to march against capital.
Public companies are typically valued higher than their private counterparts . So , what many advanced CEOs and CFOs do is go public without simultaneously raising capital and thus a higher valuation and benchmark stock trading price . Then , as a public company , they do a private placement with a big discount on the market with the provision that the investors the stock for 1 year . That is why investors get the discount price of the open trading market .
As an example , a company goes public without initially raising capital and begins trading on the open market at U.S. $ 10.00 per share . An individual can go on the internet or run in a listed company to buy stock at $ 10.00 per share . Often sell public companies in this situation stock in a private placement at a very significant discount on the open market price ( in this example , perhaps $ 5.00 per share ) . Accept the investors to keep for a period of time the stock. ( Issuers may sell the stock themselves or have small broker / dealers to help them. ) Since investors can buy at a big discount on the open market price they give them a decent incentive to invest the shares. Making it easier to raise capital.
This is very valuable and very useful tool when raising capital . It can help to reread the above example to understand how it makes it easier for you to raise capital. Completely in some The president of our company is an experienced securities attorney .
We help companies to an IPO on the NASDAQ , the NASD OTCBB ( National Association of Securities Dealers Over the Counter Bulletin Board ) or NQB (National Quotations - Pink Sheets ) .
In fact, if a company is interested in Going Public they may want to start trading on the Pink Sheets . There are NO audits , NO periodic SEC reports and they do not have to deal with Sarbanes Oxley . It is also very fast and relatively inexpensive. A company may initially begin trading on the Pink Sheets or they want quickly become public and , if they wish , can later easily trade on the OTCBB .
Public companies are typically valued higher than their private counterparts . So , what many advanced CEOs and CFOs do is go public without simultaneously raising capital and thus a higher valuation and benchmark stock trading price . Then , as a public company , they do a private placement with a big discount on the market with the provision that the investors the stock for 1 year . That is why investors get the discount price of the open trading market .
As an example , a company goes public without initially raising capital and begins trading on the open market at U.S. $ 10.00 per share . An individual can go on the internet or run in a listed company to buy stock at $ 10.00 per share . Often sell public companies in this situation stock in a private placement at a very significant discount on the open market price ( in this example , perhaps $ 5.00 per share ) . Accept the investors to keep for a period of time the stock. ( Issuers may sell the stock themselves or have small broker / dealers to help them. ) Since investors can buy at a big discount on the open market price they give them a decent incentive to invest the shares. Making it easier to raise capital.
This is very valuable and very useful tool when raising capital . It can help to reread the above example to understand how it makes it easier for you to raise capital. Completely in some The president of our company is an experienced securities attorney .
We help companies to an IPO on the NASDAQ , the NASD OTCBB ( National Association of Securities Dealers Over the Counter Bulletin Board ) or NQB (National Quotations - Pink Sheets ) .
In fact, if a company is interested in Going Public they may want to start trading on the Pink Sheets . There are NO audits , NO periodic SEC reports and they do not have to deal with Sarbanes Oxley . It is also very fast and relatively inexpensive. A company may initially begin trading on the Pink Sheets or they want quickly become public and , if they wish , can later easily trade on the OTCBB .
Saturday, 2 November 2013
Scots Beat Yanks in China Bank Deal
With visions of an ATM in every neighborhood in China , foreign banks and investment firms are in line to close "China Club. "
moneybags communism
The initiation fee for the " China Club " is straightforward and pure moneybags communism : invest cold hard cash in its largely insolvent state banks , put your reputation on the line , reassure nervous foreign investors about the upcoming IPOs , and share your risk management , corporate banking and other expertise with enthusiastic Chinese executives . The benefits of membership in the China Club are alluring but mostly maybes . Maybe you'll get by taking over an IPO or working in China with the bank in asset management , corporate banking or credit cards . Part of your money back
But the temptation was too much to resist and they stand in line for membership . Bank of America, the German bank Allianz , Goldman Sachs , Merrill Lynch , UBS and the Royal Bank of Scotland ( RBS ) have already agreed to or to take equity stakes in China's big four state banks in the current negotiations . There is another twist to the story . Membership fees are not the same for everyone, but are negotiated one by one and this can be a sweet or sour taste depending on the deal is to cut leave.
Pay more for uncertainty
The recent deal inked led by the Royal Bank of Scotland consortium is the best so far and saves the well known Bank of America deal hands down.
Bank of America acquired a 9 % stake in China Construction Bank for $ 3 billion . The Royal Bank of Scotland ( RBS ) invested $ 1.6 billion for a 5 % stake and brought Merrill Lynch and Hong Kong tycoon Li Ka - shing along to the risks which dividing the total investment to $ 3.1 billion for a combined 10 % of the shares . The RBS Group also paid less than the Bank of America , stated that paid 1.2 times book value . Even better than putting up less cash and getting slightly better value , the Scots were able to get a lifeline from their Chinese partners . Although details have not been released , the RBS group gets a portion of their money back if black holes in the books, if the IPO planned for early next year is canceled or if the banks simply disagree .
Thank you. May I Have Another
The question is, membership fees will decline over time or get steeper ? Goldman Sachs and Allianz are in talks to pay about $ 1 billion for a stake in China's largest state-owned bank - the Industrial and Commercial Bank of China . China favored UBS is also discussing an investment of $ 500 million in the Bank of China for its lead underwriting role in the years to IPO cement .
This rush of foreign banks to get a piece of the Chinese action shareholders should take a break. Like when you join the local country club , there are unforeseen risks and costs . Soon the monthly membership fee be increased and then there are the dreaded " special assessments " for new greens , a swimming pool or a new irrigation system.
Risk , Return - Maybe?
China's large state-owned banks have a huge burden of non - performing loans to those poorly performing state-owned enterprises in recent years . With a small minority participation , foreign banks have very limited control over the management of their partner bank . As the old saying goes banking, if you owe the bank a little money , the bank owns you , if you owe the bank a lot of money , you can feel the bank. For investment banks , the payout seem even slimmer . Investment banking and underwriting fees are notoriously slim in Asia and IPO after market valuation will need to enjoy a substantial risk - adjusted return .
And do not even think of missing a payment . Last year, Citigroup was chosen to endorse a $ 5000000000 list for China Construction Bank after offering an equity stake buy . It was later dropped like a hot potato after failing to follow through.
I hope all these banks make a lot of money in China - but it may not be wise to exchange it for perhaps billions of hard earned capital .
Carl Delfeld is head of global consulting firm Chartwell Partners and editor of Chartwell Advisor and the Asia Investor Intelligence newsletters . He served on the Board of Directors of the Asian Development Bank and is the author of The New Global Investor ( iUniverse : 2005) . For more information go to
moneybags communism
The initiation fee for the " China Club " is straightforward and pure moneybags communism : invest cold hard cash in its largely insolvent state banks , put your reputation on the line , reassure nervous foreign investors about the upcoming IPOs , and share your risk management , corporate banking and other expertise with enthusiastic Chinese executives . The benefits of membership in the China Club are alluring but mostly maybes . Maybe you'll get by taking over an IPO or working in China with the bank in asset management , corporate banking or credit cards . Part of your money back
But the temptation was too much to resist and they stand in line for membership . Bank of America, the German bank Allianz , Goldman Sachs , Merrill Lynch , UBS and the Royal Bank of Scotland ( RBS ) have already agreed to or to take equity stakes in China's big four state banks in the current negotiations . There is another twist to the story . Membership fees are not the same for everyone, but are negotiated one by one and this can be a sweet or sour taste depending on the deal is to cut leave.
Pay more for uncertainty
The recent deal inked led by the Royal Bank of Scotland consortium is the best so far and saves the well known Bank of America deal hands down.
Bank of America acquired a 9 % stake in China Construction Bank for $ 3 billion . The Royal Bank of Scotland ( RBS ) invested $ 1.6 billion for a 5 % stake and brought Merrill Lynch and Hong Kong tycoon Li Ka - shing along to the risks which dividing the total investment to $ 3.1 billion for a combined 10 % of the shares . The RBS Group also paid less than the Bank of America , stated that paid 1.2 times book value . Even better than putting up less cash and getting slightly better value , the Scots were able to get a lifeline from their Chinese partners . Although details have not been released , the RBS group gets a portion of their money back if black holes in the books, if the IPO planned for early next year is canceled or if the banks simply disagree .
Thank you. May I Have Another
The question is, membership fees will decline over time or get steeper ? Goldman Sachs and Allianz are in talks to pay about $ 1 billion for a stake in China's largest state-owned bank - the Industrial and Commercial Bank of China . China favored UBS is also discussing an investment of $ 500 million in the Bank of China for its lead underwriting role in the years to IPO cement .
This rush of foreign banks to get a piece of the Chinese action shareholders should take a break. Like when you join the local country club , there are unforeseen risks and costs . Soon the monthly membership fee be increased and then there are the dreaded " special assessments " for new greens , a swimming pool or a new irrigation system.
Risk , Return - Maybe?
China's large state-owned banks have a huge burden of non - performing loans to those poorly performing state-owned enterprises in recent years . With a small minority participation , foreign banks have very limited control over the management of their partner bank . As the old saying goes banking, if you owe the bank a little money , the bank owns you , if you owe the bank a lot of money , you can feel the bank. For investment banks , the payout seem even slimmer . Investment banking and underwriting fees are notoriously slim in Asia and IPO after market valuation will need to enjoy a substantial risk - adjusted return .
And do not even think of missing a payment . Last year, Citigroup was chosen to endorse a $ 5000000000 list for China Construction Bank after offering an equity stake buy . It was later dropped like a hot potato after failing to follow through.
I hope all these banks make a lot of money in China - but it may not be wise to exchange it for perhaps billions of hard earned capital .
Carl Delfeld is head of global consulting firm Chartwell Partners and editor of Chartwell Advisor and the Asia Investor Intelligence newsletters . He served on the Board of Directors of the Asian Development Bank and is the author of The New Global Investor ( iUniverse : 2005) . For more information go to
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