City Trade

           Stocks, Currency Trading & Investment Info





Reasons You should Use a Regulated Forex Broker

August 20th, 2008

Does becoming a regulated forex broker interest you? Forex brokers do their business in the fast paced arena of foreign currency, creating millions for their clients. In addition, they earn very good money in commissions for themselves , speculating on which specific countries exchange rates are going to either go up or down in the near future.

What Entity Regulates Forex Brokers?

Since Forex brokers do their business around the world in various nations and cities, there is no single agency that regulates all Forex brokers. Instead, brokers are generally regulated through the local regulation brokerage agency in their home countries.

Therefore, U.S. Forex brokers are mainly regulated through the Securities and Exchange Commission, the Federal Deposit Insurance Corporation, the Federal Reserve System, or the Office of the Comptroller of the Currency.

Forex brokers that are situated in Japan are regulated by the Financial Services Agency, while the Irag Securities Commission regulates Forex brokers that are located with the borders of Iraq.

What Are The Rule That Govern Forex Traders?

Making trades on foreign exchanges is very different from making trades on the NYSE or the Nasdaq for instance. Forex trading has it’s rules set down by the National Futures Association. The majority of the trades have to do with the major currencies; The American, Australian, Canadian dollars; The Euro; The British Pound; The Japanese Yen and so on.

National Futures Association

These various regulations are set forth in the National Futures Association Retail Off Exchange Foreign Rules. The various rules include detailed information in regards to assessments and dues, different requirements for managing a Forex account, numerous obligations of assignees, and various other situations that arise throughout the course of Forex trading.

The internet website of the National Futures Association incorporates a wealth of information for the start up regulated Forex Broker or Forex Investor. At this site you will find all the numerous rules that govern Forex traders; Forex reporting requirements’ Forex alerts for investors; different notices to Forex members, decision notices which interpret the Forex rules, as well as other resources for those people who want to learn more in regards to Forex.

Their website also furnishes various links for electronic filing that are required to both establish as well as maintain a Forex brokerage, Forex reporting, promotional materials, complaints, exemptions, and the annual questionnaire.

Be Wary Of Unregulated Brokers

All investors must be aware that Forex fraud is an increasingly pervasive problem. The Commodities Futures trading Commission have estimates that consumers have lost in excess of $395 million in fraudulent Forex schemes.

For Additional Information

If you are looking for added information in regards to Forex than can be found on the National Future Association website, you can educate yourself on Forex trading by a self study program or through taking a course.

Listen to Corbin Newlyn as he shares his insights as an expert author and an avid writer in the field of finance. If you would like to learn more go to Forex Training advice and at Learning About Forex tips.

Related Posts
  • Reasons To Use Regulated Forex Brokers
    Are you considering a career as a regulated Forex broker? Forex brokers work in the ever changing field of foreign currency, making millions for their customers. They also earn quite a bit of money in commissions for the...
  • Choosing a Forex Broker - 9 Questions to Ask Every Forex Broker
    Looking for a Forex broker can be a difficult search for traders who just don’t know where to look. If you are looking for a broker, then there are certain questions you need to be sure to ask prospective brokers t...
  • Do You Make These Simple Mistakes By Not Picking One Market?
    Many traders are overwhelmed by the size and intricacy of the FOREX market, and yet a knowledgeable trader has the potential to realize profits in this market that is unmatched by any other. There are a number of aspects...
  • New Discovery Gives You A Mini Forex Trading Advantage
    Why trade forex? Why spend the time and effort to understand a large and complex market like the Foreign Exchange? Well, mainly for the chance to make large profits, while incurring low costs. The mini forex trading mark...
  • How to Find a Broker for the FOREX Trading Market
    It's not always easy to know what to look for in a broker in any market, much less a market as complex as the FOREX. But, if you want to trade in FOREX you need a broker. While it might be tempting to simply ask the brok...

Posted in Currency Trading | Comments Off

Business Broker

Where to Look for Outstanding Investments

August 19th, 2008

Most investors know by now that the economic center of the world is in the process of shifting from West to East. Transfers of funds to pay for crude oil imports are a big part of this shift as far as America is concerned. You can not pay out over seven hundred billion dollars a year to oil exporting nations without creating a huge balance of payments problem.

The following list of “tallest, biggest, and largest” shows in a down to earth basic way the results of the global economy shifting its center. These interesting facts are from an author named Ferrez Zagawriteit. Just look at some of these. Some are trivial and some are important. However, all together they paint a pretty stark picture for Westerners staying on top of the economic heap in the 21st century :

1) World’s tallest building - Dubai, UAE
2) Largest publicly trading company - Beijing, China
3) Biggest oil refinery - Under construction in India
4) Largest passenger airplane - Airbus - Europe
5) Largest investment fund on the planet - Abu Dhabi, UAE
6) Biggest movie industry - Bollywood, India. (Not Hollywood)
7) Largest Ferris wheel - Singapore
8) Largest casino - Macau. (Macau actually just passed Las Vegas in gambling revenues.)
9) The Mall of America in Minnesota was once one of the largest shopping malls in the world. Now it does not even make the top 10.

Only ten years ago the US would have topped these categories. It’s not only that this wealth transfer shift is taking place it’s the speed at which it is occurring that is unsettling from a Western point of view.

If you are an American who hasn’t traveled outside of the United States recently, or at all, should you take a trip to Asia or , say Dubai, UAE, you will likely be quite taken back by the cutting edge infrastructure being constructed. One personal example hit me right in the eyes about four years ago. I flew into Kuala Lumpur, Malaysia from Koh Sumui, Thailand.

Since I departed from as small airport I was on a smaller aircraft which landed at the previous international airport. The airport was a very run down old fashioned facility that was almost deserted as most traffic had already been transferred to the fantastic new Kuala Lumpur International Airport (KLIA).

After spending four delightful days in a great city I departed from KLIA to Bangkok. Wow! What a difference in airport infrastructure. KLIA is a gleaming facility that is one of the world’s best airports. In fact, it is the first airport anywhere to receive Green Globe 21 (GG21) certification, and hence, it is the first environmentally friendly airport in the world.

This type of “leapfrog” from old style facilities to the best and most advanced in the world is common in Asia and in the Arab Gulf States. While America politicians still tell lies to Americans about America having the best and greatest of everything in the world the evidence that this is no longer the case is rapidly developing for anyone who opens their eyes and mind. The fantastic development that occurred in Beijing, China for the 2008 Olympic Games is a good example of how fast things are changing.

The rapid shift in the center of global economic activity presents many outstanding investment opportunities for the internationally inclined investor. If your investment universe is limited to old line US blue chip stocks you have best note that some of the blue chips, like the automotive companies, are looking more black and blue than blue chip.

Go East, young man. A new world is coming.

Learn more about the shift in global economic power and the coming energy crisis and its consequences for the way we will live and work at Crisis News Analysis

Related Posts
  • Invest In Penny Stocks - How To Buy Penny Stocks Online?
    Ask any investor what a stock trading under $5 is and they will tell you it is a penny stock, microcap stock, or nano stock. These three terms are for the most part interchangeable. However the broader definition of a pe...
  • Analyze Your Stocks And Double Your Profit
    An investor buys a share of stock by resorting to various approaches that validate his investment by reaping rich profits. Before investing, however, it is necessary for a value investor to study the financials of a busi...
  • Things To Look For In An Investment
    Investment involves staking capital in an enterprise, with the expectation of profit. It is nothing but the use of liquid funds to gain income or increase capital. In order for money to grow, investors need to invest jud...
  • Refinancing Home Equity Loans
    A home equity loan is basically the value of equity you have in your property. The equity in your property can be calculated by deducting the outstanding mortgage on your home from the market value of your home, the rema...
  • Don’t Believe All Stock Trading Myths-It Could Cost You
    Stock Trading Myths - Share Price and P/E Ratio A common misconception among investors and traders is that a stock at $5 per share is "cheaper" than a stock trading at $500 per share. This seems to be common sense, bu...

Posted in Investing | Comments Off

Business Broker

Happy Traders are Balanced Traders

August 19th, 2008

Any overworked individual suffers over time. Their relationships decline, their friends forget to invite them along after being turned down repeatedly, and of course, their children realize that work is more important than them. Pretty sad when you put it all down on paper and look at it. Especially because the traders that enjoy what they do also maintain a life outside of trading. Being committed is a necessity. Does being a committed trader mean doing nothing other than trading and learning?

You have an allotted time during every day to choose how you are going to spend your hours, your most precious commodity. If you choose to spend ten or twelve of those hours devoted to trading and learning the art of day trading, how do you spend the rest of your time? If you choose to spend eighteen hours of every day absorbed in the world of day trading, you are headed for burn out, frustration, and disappointment. Those who are successful and maintain longevity are also happy while they are trading in part because they are happily involved in life while they are not trading.

Novice traders often admit that they did not work this hard in college, for their SAT scores, or even in their old profession, even if they were physicians or attorneys. Instead, because their own money is at stake, many novice traders feel as though they must become consumed by the trading world in order to become successful sooner. It doesn’t work well that way. Burning out is the second most common reason that trader quit their day job and move on to something else. Financial loss is the first. Traders who are able to take their time and build some confidence while maintaining their life last the longest and become most successful in the market.

Many traders really enjoy the process of trading. It is stimulating and challenging and it requires more knowledge than one can get from just reading a book. No matter how much any of us loves what we do, we all need a reason to do it. We can’t always work for sake of working. Sometimes prestigious titles and large incomes are helpful, but we still need to know that we are important and that there is more to us than our work. It is a psychological necessity, especially during times of difficult trading.

Without the chronic joy of friends, family, loved ones, partners, and sheer downright fun, we can not be completely fulfilled. The happiest and most successful traders find a good, strong balance between work and play, the internet and the family, and life and job. It is not uncommon for those who are making a switch from a different career into day trading to burn up all their energy in the trades. But before long, they are dissatisfied, lonely, and even angry. The most successful people at any profession still find at least some time to really enjoy the world around them, the people they love, and the life that they are living.

If you would like to immensely improve your trading and investing results, check out www.secrets2trading.com
AND for a Limited Time, you will also receive a FREE copy of a limited number of the amazing book “Trading In The Zone” which is jam-packed with daily trading ideas and psychological preparations to instantly improve your trading and investing performance.

Related Posts
  • How To Invest Your Money Safely
    When it comes to making investments, most people know that there is always room for a possible loss. Stock market investments in particular are rather notorious for taking a rather well funded portfolio and emptying it r...
  • Should You Get Into Forex Trading?
    The Forex market is the biggest in the world with over trillion dollars revenue every day. That amount is not even matched by the combined revenue earned by the stock markets of Tokyo and New York. Forex trading is a hug...
  • Traders Success and a Positive Mental Attitude
    Successful futures traders have a positive mental attitude, and maintain that positive attitude every single day they trade. It takes confidence in your abilities, confidence in your decisions, confidence in your charts ...
  • Healthy Body, Healthy Trading Mind
    When traders start out, it's completely overwhelming the amount of things to learn and suck in. The simple to the most complex: the computer, the trading software, the markets, the strategies, indicators, psychology, cap...
  • How to Have More Fun Investing
    Investing in the stock market can be both fun and exciting. If approached with the right attitude you can create a new hobby that will serve to occupy your time in a very useful and profitable way for years to come. Some...

Posted in Currency Trading | Comments Off

Business Broker

Proceed With Care For Maximum Returns

August 19th, 2008

In the last few years there has been a massive increase in buying and letting property abroad, a trend driven by rising British property prices, the opening up of new destinations by budget airlines and cheaper air fares.
Letting abroad can work well and is a great way for landlords with properties in the UK […]

Related Posts
  • So You Wanna Know About the 401k Retirement Plan?
    The 401k retirement plan has taken the corporate world by storm since 1979, primarily because of it's affordability to employers. While pensions often sucked companies dry, 401k providers charge a small monthly administr...
  • Uncovering An Automatic Forex Trading System
    Automatic forex system trading, the new innovative technology in the forest trading market is believed to be a revolutionary trading mechanism that is going to change the conventional approach towards currency trading. ...
  • Is It Worth Going For The Services Of A Real Estate Attorney?
    After all, a single real estate transaction involves so many things and you have to take into consideration so many factors that it is almost impossible to do all the tasks alone, irrespective of how experienced and comp...
  • Options Trading Mastery: Construction & Value of a Vertical Spread
    Construction of a vertical spread occurs with the purchase and sale of a call (put) in the same stock and in the same month. The only difference between the two options is the strike price. For example, an investor would...
  • Options Trading: The Protective Put Strategy In Different Scenarios
    As previously stated, when we buy a stock, three potential outcomes exist. The stock can go up, go down, or remain stagnant. Let's hypothesize results across these three scenarios. Say you buy the stock for $31.00 and bu...

Posted in Investing | Comments Off

Business Broker

Shelby SuperCars Undergoes First Round Financing: $5,000,000 of Series A Convertible Preferred Stock

August 19th, 2008

Shelby SuperCars, Inc announced recently it has signed with Sheffield International Finance Corporation to provide Investor Relations services for its raising $5mm through the company’s confidential private placement issuing 5,000,000 shares of preferred stock at $1.00 per unit for total proceeds of $5,000,000.

SSC has developed conservative pro-forma based on capturing an exclusive segment of the market. The Company expects to use the proceeds to finance the construction of manufacturing facilities, ramp up full-scale manufacturing, fund the development of the Ultimate Aero EV (SSC’s first electric Supercar) and to continue the research and development required to keep SSC exciting in the marketplace.

With the proposed manufacturing facility and the expected showrooms opening worldwide, the Company expects its projected sales of the Ultimate Aero and the launch of the Ultimate Aero EV to increase significantly. A full breakdown of the Company’s projections is provided in the Confidential Private Placement Memorandum through investor relations firm Sheffield International Finance Corporation.

This offering represents the Company’s first acceptance of outside capital since its inception. To date, SSC has achieved its world-class status with internal funding only. The Company will take in $5,000,000 in first-round financing via the placement of its Series A Convertible Preferred Stock providing a 12% cumulative annual dividend to investors. The Company expects to entertain several exit strategies including a merger, acquisition, or IPO in the near future.

Interested parties capable of placing a minimum investment of $250,000 may contact Sheffield International Finance Corporation for a complete Investor Kit but the offering is said to be invitation based restricted to select invitees.

While auto enthusiasts and high profile financiers are reeling over the company’s recent announcement of a 100% electric supercar, Shelby SuperCars remains on track to deliver 4 clean supercars by end of year 2009. With the SSC brand securely engrained into the international automotive industry, SSC will follow its ever popular Ultimate Aero and Ultimate Aero EV with a lower priced, higher volume 4-door luxury, super-sedan, the “SSC Luxor”. The super luxury sedan is said to include reclining, heated and air conditioned rear seats, full time wireless internet and will maintain SSC’s commitment famous performance being first luxury sedan to be capable of speeds greater than 220 mph. Beyond GPS, Bluetooth, an infotainment center the luxury automobile will contain a fully capable personal computing system, accompanied by a 24 hour concierge service catering to the owner’s every need.

With all American engineering guided by one man’s vision, Jerod Shelby SuperCars, SSC is expected to keep the auto industry baffled with its ultra efficient business model. Although the minimum investment is $250K, the company expects to keep the number of investors to a minimum limiting the list of invitees to those who share a long term vision for SSC brand. The private placement is subject to final approval.

Shelby SuperCars, Inc. (SSC) is an all-American auto manufacturer based in West Richland, Washington. Founded in 1999 by Jerod Shelby, SSC has achieved design and engineering excellence in just seven years with the production of the Ultimate Aero Supercar.

Having obtained the Guinness World Record title of the “Fastest Production Car in the World,” the Ultimate Aero has solidified SSC’s place in history. With the goal of creating a world-class automotive brand, SSC’s future models include a four- door luxury sports sedan, and a historical engineering marvel, the Ultimate Aero EV - a 100% Green Supercar which will set the benchmark for the “world’s fastest electric car.”

Deniz Kumral is a marketing expert who works for Shelby Super Cars. You can find more details about in Shelby Super Cars at SSC Investor Relations page.

Related Posts
  • What Does A Stockholder Do?
    Let us envision you, not as a creditor, but as a part owner, a proprietor. That's what you become when you buy stock. You get away from the sheltered and static position of having a prior call on a certain sum of money a...
  • Day Trading Stock Symbols - How To Decipher The Cryptic Day Trading Stock Symbols!
    Ticking symbols refer to the letter system which are representative of the stocks. They are needed to monitor and find security info. It is useful if you are offering a quote because you might be asked to enter a symbol...
  • United States Savings Bonds - How Do I Calculate US Savings Bond Values?
    A savings bond is a treasury security for investors. In essence, investors are loaning the government money. They are issued both as paper bonds and electronic savings bonds. They cannot be traded but can be redeemed aft...
  • A Glance At Wrapped Financing
    So you have heard that seller financing is a great way to market your investment properties. It broadens your consumer base and puts a little extra cash into your pocket in the form of interest charges. But, there is onl...
  • Apartment Building Financing
    Purchasing any commercial real estate is an investment, and many people beginning apartment investing need to learn what type of financing will best work for them. Real estate financing can take several different forms, ...

Posted in Investing | Comments Off

Business Broker

Investing - 10 Common Mistakes You Should Avoid

August 19th, 2008

While it can seem very difficult to put money away each month for retirement or savings, not doing so can leave you with a lifetime of living paycheck to paycheck with no possibility of retirement. Just putting the money away, though, is not enough. You have to invest that money in something that will put your money to work for you, earning money on its own. The stock market, retirement plans, mutual funds, and other investment vehicles offered through banks and investment companies are great ways to do this. Be sure to avoid these common pitfalls when considering how to invest that money:

1. Don’t ignore your employer’s 401k plan, if it is offered. Most employers do have such a plan, and many match the funds you put in in some way. By not taking advantage of the 401k, you may be giving up free money, and you are definitely giving up one of the best possible investment vehicles around. If this is available to you, be sure to take advantage of it as soon as you are eligible.

2. Lack of some kind of investment and savings plan. Your age, budget, family situation, and other economic factors will determine how much you can invest each month, and what kind of investments you should make. Familiarize yourself with basic investing philosophies and then invest according to your needs and situation.

3. Being too conservative with your investments. If your timeline to retirement or other financial need is more than 20 years away, you need to consider maximizing your returns through riskier investments. While you may lose some money, at least on paper, in the short term, history has proven again and again that you will make significant returns over the long term. Riskier investments invariably provide higher returns.

4. Taking too much risk with your investments. As you get closer to retirement, you will need to start taking a different outlook on your investing. The name of the game here will be capital preservation, rather than high returns. As a result, you will want to start moving your portfolio to less risky investment vehicles such as money market funds, bond funds, and CDs.

5. Investing too heavily into one sector or type of investment. The best way to preserve capital, while at the same time earning high returns, is to diversify your portfolio. This will allow your money to grow regardless of current economic conditions and keep you from suffering the consequences of knee-jerk market reactions to short-term economic factors.

6. Getting involved in get rich quick scams. Once you’ve established investment accounts, you will be continually bombarded by less-than-honest people trying to get you to buy into their “hot stocks” tip sheets, and other investment advisory information. Don’t fall for it. Chances are, these opportunities are outright fake or just short of impossible to get them to actually work.

7. Hanging on to a hot investment for too long. From time to time, you will find a stock or other investment that pays very high returns. Keep in mind that it will not stay that way, and set a goal to get out before you lose money on it (double or triple your money, whatever makes sense). Once you’re out, don’t look back. Be happy that you made good money on it, not sad that you might have made more.

8. Information overload. You can spend way too much time on analyzing an investment, and by the time you are ready to make a move, it’s too late. Don’t let this happen to you. Lots of money is lost everyday because people were unwilling to make a move in time. Get just enough information to confirm your hunch and then just do it. If you don’t know enough about the investment or the industry, use an investment advisor to limit any mistakes you might make.

9. Investing while being saddled with debt. Your debt will accrue interest charges much faster than your investments will make money. Before investing your first dollar, get out of debt, particularly credit cards and other revolving debt instruments. A mortgage is just fine, as that will likely make you money in the long term, but revolving credit is just not necessary for most people.

10. Paying too much in commission fees. Few things will eat into your investment returns faster than commissions. Unless you are already very rich, and you’re constantly trading in and out of stocks and bonds, you should not be paying high commissions. For most people a discount broker is the way to go. For the cheapest possible commissions, consider using one of the online investment brokers, and be sure to compare commission structures before deciding which broker to use.

For more information about general investing and other personal finance subjects like 401k, CDs, and budgeting be sure to visit http://www.personal-finances-blog.com today.

Related Posts
  • How to Avoid Investing Mistakes
    It is inevitable that you will make mistakes throughout your investing years. This is normal and you can certainly learn from mistakes. There are some big mistakes that you can and should avoid. First off it would be a m...
  • Common Marketing Mistakes Investors Make and How to Avoid Them
    Good marketing is one of the factors that attract the attention of several people. It is the main reason some real estate properties become more popular among buyers as compared to others. It demands more than posting a ...
  • Rookie Mistakes Can Be Expensive In Forex Trading
    First what is Forex: The FOREX or Foreign Exchange market is the largest financial market in the world, with an volume of more than $1.5 trillion daily, dealing in currencies. Unlike other financial markets, the Forex ma...
  • Avoid Common Real Estate Marketing Mistakes
    Similar homes in the area are attracting competitive offers and selling quickly while others seem to stay on the market forever. Whats the key to making sure that your house sells and doesnt remain on the market indefini...
  • Avoid Common Renovation Mistakes
    Renovations begin but each victory only reveals more problems with the house. Toward the end of the movie, the couple is left hopeless, broke, and with a house that is in ruins. While this is only a movie, stories like t...

Posted in Investing | Comments Off

Business Broker

Some Hot Tips To Stock Market Success

August 18th, 2008

As a beginner starting out in stock market investing you’ll probably hear all sorts of advice on what will work and what won’t when it comes to investing your money on the stock market and learning how to buy stocks. Well we’ve decided to reveal some of the true and tested strategies that successful stock market investors have used time and time again to their winning advantage.

Wait for your stocks to mature
Any investor who has been on the block for more then a minute will probably say that when you buy stocks you need to have some patience and wait - stock investing is not usually a get rich quick investment method. Once you have taken your time to research what you are buying and have made your purchases then have confidence in yourself and your broker’s choices and sit back and wait. Don’t just panic like many people do and sell off all your stocks when the market goes down a bit. Hold on to them as long as you can and you will often come out a winner.

Don’t only buy stocks that are going up in price
Another thing to watch out for is to not only to buy stocks that are hot and rising just because everybody else is. Many new investors will often get caught up in the frenzy of hot stocks and buy in quickly. If a stock is already really high in price it may not be a good time to buy in so make sure you know what you’re doing. There’s a good chance that it will start to also go down just as fast as it went up. It’s true there are times when it is good to buy into stocks that are going up but just remember make sure you think it’s a good price and a solid stock that will continue to rise if you do decide to buy a stock that’s rising in price.

Make sure to diversify
You’ll hear this from any wise investor when it comes to buying not only stocks but any kind of investment. Diversification is one of the keys to success because you don’t want to put all of your money into one place since it’s never guaranteed there. When it comes to stocks you’ll want to buy a healthy range of them. Of course some will perform better then others and that’s just the name of the game. On the other hand don’t over diversify because you really won’t be able to properly track your stocks and understand what is going on with them. Stick to buying stocks of a small group of solid companies and work with those to start off.

Sam provides further tips on successfully investing in the stock market through his website that gives all sorts of information on buying stocks.

Related Posts
  • Hot Tips for Successful Online Forex Trading - Part 2
    In the first article in this series, I passed on several tips to help you become a successful trader. Some of them are from my personal experience as a trader and a trainer, and some of them are online forex trading trui...
  • Free Stock Tips to Help You Succeed
    When it comes to getting free stock tips, you can find them just about anywhere. The thing you have to be wary about when it comes to these free tips is the source. It is possible that tips you read in a newspaper or mag...
  • Forex Winners - 5 Tips to Forex Trading Success
    Forex trading is where the big money is for traders, but the Forex currency market can also be a place where you can lose a fortune if you don’t know how to approach it right. Making a profit at Forex trading takes...
  • Tips For Dealing With Stock Market Advice Tips
    The innovation of the internet has produced a multitude of experts who have apparently all made millions through online stock market trading. It may be that this person or company has a good reputation in stock investmen...
  • Online Day Trading - 5 Must-know Guidelines To Make You An Expert Online Day Trader!
    A lot of people are taking up trading as a means to get successful quickly. Day trading isn't very different from any other trading system on the grounds that involves purchasing and selling stocks and other goods. But a...

Posted in Stock Market Investing | Comments Off

Business Broker

Income Investing: Go Ask Alice

August 17th, 2008

Jefferson Airplane has never, ever, been mistaken for a band of financial advisors, but the White Rabbit lyrics can be incredibly instructional to the generation of investors who experienced the classic first hand— as a description of their own college days’ lifestyle. If only they had heeded the dormouse’s call to “feed your head.” For the sake of your retirement sanity and security, you just have to make income investing an intellectual exercise— not an emotional one.

The Brainwashing of the American Investor has its own tale of an Alice whose “logic and proportion” had “fallen sloppy dead”. Many years ago, when interest rates soared into double digits, elderly Alice was well advised to invest her stash in a portfolio of Ginnie Maes. Smiling broadly, she bragged to her friends about the federally guaranteed 13% interest she was receiving in regular monthly intervals— much more than she needed to cover her living expenses.

But interest rates continued to move higher, and the decreasing market value of her Ginnie Maes was more than she could tolerate. “If rates continue to go up, I’ll have nothing left” she cried to her White Knight financial advisor who suggested patience and understanding. The very same pill that made her income grow larger was also making her market value become smaller. But the income kept rolling in, higher yielding unit trusts were purchased with the excess, and major redemptions were nowhere to be seen. The income kept growing, the market value kept shrinking, and Alice was seeing red from seeing red on her account statements.

So Alice went to her local bank and traded in her absolutely government guaranteed 13 per centers for some laddered, non-negotiable, 8.5% CDs. “No more erosion of my nest egg”, she toasted proudly with the hookah smoking bank caterpillar who orchestrated her move to lower income levels. Within a few months, she was liquidating CDs to pay the bills that never seemed to be a problem with those terrible Ginnie Maes.

Don’t let such uninformed thinking sabotage your retirement program; don’t let the selfish advice of a product sharpshooter send you chasing rabbits when IRE (interest rate expectations) or other temporary market conditions shrink the market value of your income portfolio. Feed your head; feed—your—head. Income pays the bills, and if the income level is both steady and adequate, there is no need to change investments. Market value should be used to determine when to buy more (at lower prices) and when to take profits (at higher ones). It is almost never necessary to take a loss on a high quality (government guaranteed in Alice’s case) income security.

More recent experimenters in much more sophisticated potions have addressed the issue with similar results, reaching mind-numbing conclusions such as these: 1) I know that my income has actually grown throughout the debacle in the financial sector but I don’t want to buy anymore of these securities until the prices go back above what I paid for them originally. Translation: I’d rather stick with my 4.5% tax-free yield than increase it by adding to my positions at lower prices.

2) Sure, I understand the relationship between IRE and the prices of income CEFs but individual bonds and Treasuries haven’t suffered nearly as much. That’s where we should have been. Translation: I would be much happier with 3% stability than with an 8% rate of realized spending money. 3) I’m tired of seeing all the negative positions in my portfolio. Let’s keep all the income we receive in money market until we’re back in positive territory. Translation: I’d rather accept 1.5% or so than reduce my cost basis and compound my yield by adding to my positions at lower prices.

Modern brokerage firm monthly statement “pills” were developed during the dot-com drug era, when Wall Street was trying to emphasize the brilliance of its speculative prescriptions by making us all feel ten feet tall, month after month after month—. But the geniuses on the institutional chessboard produced too many mushroom product varietals causing the red correction queen to lop off many of their sacred heads. The papers that were designed to make our chests burst with pride have turned on us as a haunting reminder of the reality of markets and the cycles that push them in either direction.

It should be easy to navigate a quality income portfolio through whatever circumstances, cycles, and scandals come at you, but a clear head and a clearer understanding of what to expect is required. Most brokerage firm statements make it difficult to monitor asset allocation using any methodology, including the Working Capital Model, and I don’t think that it’s by chance. Most income investors expect income securities to have stable market values. Constant confusion breeds unhappiness, unhappiness foments change, and the masters of the universe encourage you to fritter around from mushroom to mushroom in perpetual emotional chaos. To who’s benefit?

It would be wonderful if an investor’s monthly statement would organize his securities based on their class and purpose, but Wall Street doesn’t want such distinctions to be made easily. It would be great if the institutions would help investors formulate reasonable expectations about what will happen to the market values of their securities in varying market place conditions, but that’s not likely to become a reality any time soon. It would spectacular if the media would produce information and explanation instead of news bites and sensationalism, but you guessed it— not much chance of that either.

Income investing should be easy. How many hookah-smoking caterpillars have given you the how?

Steve Selengut
Sanco Services
Kiawa Golf Investment Seminars
Author: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read” and “A Millionaire’s Secret Investment Strategy”.

Related Posts
  • Passive Income from Apartment Buildings
    Passive income is a subject that is often thought or talked about in commercial real estate. The passive income is the income from rental activity, with limited business interests or other activities in which the investo...
  • Is It Worth Investing In Low-Income Housing?
    In fact, investing in real estate is serious business, and for a prudent real estate investor, it is worth investing in low-income housing. It can be quite fruitful and can earn you a good capital and cash flow. Look aro...
  • Retirement Income Investing: For Worry-Free Retirement
    Financial planning can be a difficult task especially if you are planning for retirement. Looking into the future and making assumptions on your lifestyle and the amount of income that is ideal for you is something that ...
  • Build Resources With Residual Income Investment
    There are many fine points to review when you look at building a residual income investment portfolio, especially if you are looking for residual income to outlast your original capital investment. Consider the initia...
  • Build Your Wealth With The Power Of Investing
    Are you wondering how you can make your first million without quitting your fixed salaried job? Have you saved up a tidy sum of money but have no idea how to make it grow? Are you looking for ways to build an additional ...

Posted in Investing | Comments Off

Business Broker

Level 2 Trading With Regards To UK Shares

August 16th, 2008

Level 2 trading is a popular way of trading UK shares because Level 2 shows the order book for every single UK-listed share at any given time. Therefore you can quickly view how many buyers and sellers there are on each side of the order book. So how can you use this information to successfully trade UK shares?

Well first and foremost the number of orders and their respective quantities of shares gives you a good indication of the future price movement of a share. This is because if there are more buyers than sellers on the order book then you would obviously expect the price to move up in the near future, and vice versa.

Level 2 allows you to view live streaming prices and shows you exactly what’s happening on the order book continuously throughout the trading day. However with that being said, it’s not necessarily as easy as that otherwise everyone who uses Level 2 would be very wealthy.

One of the main problems, and a common annoyance amongst traders, are market makers. These people can effectively control the order book, particularly on smaller stocks where they essentially make up the order book. So they can easily raise and drop their order prices and move a company’s share price, even without any orders being placed.

They even have a significant impact on the larger shares, although to a lesser extent because there are a lot of other orders on the order book from ordinary traders as well. In fact these other people can also be a problem because due to the fact that anyone with direct market access can place orders onto the order book, it means that there is a lot of market manipulation going on.

For instance it’s very easy to place a large trade 1 or 2% away from the current market price in order to encourage traders into either buying or selling. Of course the person does not want to see this order get taken out, and will remove this order straight away if it looks like getting taken out. It’s only purpose is to give the illusion that there’s a large buyer or seller in the wings in order to influence other traders.

So these are just a few of the problems you will come up against when using Level 2. It is unquestionably a useful tool and can be a useful tool for predicting future price movements in a lot of cases, but it’s certainly not a foolproof way of making money from UK share trading.

Click here to read a full review of ADVFN, the leading provider of Level 2 data and real-time share prices.

Related Posts
  • Avoid Market Timing By Using DCA And DVA
    Ideally, investors try to buy a stock when the price has reached a support level (a level at which the price is as low as it will go) and sell the stock when it hits a resistance level (a level at which the price is as h...
  • How You Can Avoid Market Timing
    Ideally, investors try to buy a stock when the price has reached a support level (a level at which the price is as low as it will go) and sell the stock when it hits a resistance level (a level at which the price is as h...
  • Strategies for Combatting Market Timing
    Ideally, investors try to buy a stock when the price has reached a support level (a level at which the price is as low as it will go) and sell the stock when it hits a resistance level (a level at which the price is as h...
  • How I Reduce My Investment Risk
    Ideally, investors try to buy a stock when the price has reached a support level (a level at which the price is as low as it will go) and sell the stock when it hits a resistance level (a level at which the price is as h...
  • Learn To Avoid Market Timing
    Ideally, investors try to buy a stock when the price has reached a support level (a level at which the price is as low as it will go) and sell the stock when it hits a resistance level (a level at which the price is as h...

Posted in Stock Market Investing | Comments Off

Business Broker

Are You Searching For An Automated Way To Trade Online?

August 16th, 2008

Automated trading is a comprehensive way for the forex exchange market and early indications are that sales are hot. These programs call for no experience and is created to function on autopilot and make you money. All that you need is a reliable Internet connection and an ability to have your computer run continuously. Let me reiterate, this thing allows you to set it, forget it, collect your cash. Most of these “robots” were tested and on average the software creates 20 winning deals in a row.

Wait, did I jump the gun? Do I need to explain forex? Forex is a currency exchange market designed to trade the frequent fluctuations in international currency. Meaning that if you would look at the American dollar versus the euro in 2000, when the two were about even, and purchased the euro, you would have made about 50% up to this point, as the euro is now much stronger versus the american dollar.
A forex automated advisor allows even trading newbies to flourish in the competitive field of foreign currency exchange.

Perhaps you have heard of money managers trading managed accounts that can require a hefty set of fees for your profit as well. Most of these automated software programs are not like that. Another thing that I’m sure most people bring up is the price of these automated programs. Why so much? Well if you really sit down and think about it, and weigh your pros and your cons of having or not having the software, the price is worth it, especially for what this software can do for you! And the price tag isn’t going to cost you an arm and a leg, you wont have to put your house up for sale or anything like that.

In fact the most expensive one I saw was a few hundred bucks. And to me even that’s worth buying, for the amount of financial security it could very well end up bringing to the table.

The forex auto bot as I like to call it is an expert advisor for the average individual who either does not want to or lacks the time to learn the system, and as with any Forex automated advisor due diligence should be exercised. The beautiful thing about the Forex, unlike stock trading, is that the forex is a 24-5 deal, you can make money constantly, provided you have the right equipment like some of the automated forex programs out there!

This author is a huge fan of Profitable Expert Advisor

Related Posts
  • Automated Forex Trading: Trade Profitably Automatically
    The forex trading market is the largest market in the world, which has wide ranging impacts on the global economy. Hundreds and thousands of traders are trying to make money on this lucrative market. Their job has become...
  • The Secrets to Finding Great Deals in Real Estate
    Yes, it's true, people are making a lot of money buying and selling homes, but they aren't capable of doing this with blind faith alone. They have adopted several money-making principals into their business plans, one of...
  • How To Setup Your First Online Stock Trading Account
    The internet has made some very difficult transactions easier to execute than they were before now. One of these transactions is investing and trading stocks over the internet. It has been statistically estimated that in...
  • California Property and Saavy 1031 Exchanges
    A major money maker these days is real estate. If you have a chunk of extra cash, it is certainly a great investment if you can find the right area. A sure win nowadays seems to be California. Everyone is always flock...
  • Online Stock Market Trading Is For Everyone
    Online stock market trading and searching out the best stocks to buy and utilizing hot stocks is not too complicated for anyone with reasonable intelligence and a grasp of simple mathematics to get their heads around. Ev...

Posted in Currency Trading | Comments Off

Business Broker

« Previous Entries  

  • Home

Search


Categories

  • Currency Trading
  • Investing
  • Stock Market Investing

Archives

  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008
  • March 2008
  • February 2008
  • January 2008
  • December 2007
  • November 2007

Blogroll

  • Article Archive
  • Articles
  • CCJ Loans
  • Cooking Recipes
  • Funny Insults
  • Game Cheats
  • Household Tips
  • Laptops & Computers
  • Lowest Rate Loans
  • Mortgage
  • Net Invest
  • PC
  • Play Online Games
  • Recipes

Meta

  • RSS
  • WP
Designed by growldesign - Adapted for Wordpress by Business Broker