When one begins to consider an option , it is very important to find out how the premium is calculated. Option premiums are dependent on a number of factors, including the time just like the price of the underlying process. There are two parts to an option premium: intrinsic value and time value. Therefore, various factors have an influence on the intrinsic and time value.
Intrinsic value
Intrinsic value is the difference between the market price ofunderlying shares at a certain point in time and theExercise price of the option . Below are a fewExamples of call and put options.
Call Options
For example, say MicroCeuticals (MC ) for April $ 25.00 call optionstraded at a premium of $ 6.00 and MC shares tradeat $ 30.00 per share, the option has intrinsic value of $ 5.00 .The latter is because the option buyer has the rightto buy the shares for $ 25.00 , which is $ 5.00 lowerthan the market price . Such options have intrinsicValue will be "in -the-money " . In this example ,the remaining $ 1.00 of premium value ( $ 6.00 - $ 5.00) .
If the shares of MC were intrinsic value at $ 23.00, tradedwould be effectively zero because the $ 25.00 call option contractjust so the shooter , buy the shares for $ 25.00per share , which is $ 2.00 higher than the market price . whenthe share price is lower than the exercise price of the call option ,the option is considered to be ' out-of -the-money " .
It is important to remember that call options in order to convey theProtect the right, but not the obligation , to purchase the underlying shares.If the share price falls below the exercise price, then it is probably betterthe shares on the stock market and let the options expire.
Put Options
Put options work in the opposite direction to calls . If the exercise priceis greater than the market price of the stock , then the put option ispossesses in -the-money and intrinsic value. The exercise of in -the-moneyPut option allows the taker to sell the shares at a higher price than thecurrent market price.
For example, an MC enables April $ 40.00 put option to purchase MC SellShares for $ 40.00 , if the current market price is $ 35.00 for MC . thisOption has a premium of $ 5.50, consisting of $ 5.00 of intrinsic valueand 50 cents value. A put option is out-of -the-money when theShare price exceeds the exercise price, because the shooter will not exercisethe place , the shares under the current stock price to sell.
As you may recall, to put options convey the right, but not the obligationthe underlying shares to sell. If the stock price exceeds the exercise pricethen it is probably better to use the shares on the stock market to sell and letthe option to expire .
It should be noted that if the share price corresponds to the market price,the call and put options are considered " at- the-money " .
value
Fair value is the amount you are willing to paythe possibility that the market might move in your favorduring the term of the option. He represents and extra paymentthe writer of the option , the risk that the offset underlyingStock will move and result in a loss to the writer . value isvary with in -the-money , at- the-money and out- of-the- money optionsand is greatest for at-the- money options . As the time draws afterclose and the opportunities for the opportunity to become profitable decline ,the value decreases. This dilution of the value of the option is asTime decay . Value does not decay at a constant rate ,but is faster , possibly exponentially , how tocloser to leakage.
Value is affected by , among other things , the following factors , by :Maturity , interest rates , volatility (which can be quantifiedwith Bollinger Bands ) , dividend payments and the market's expectations .
The value of an option is greater the longer the time to maturity.The premium will be higher under conditions of high market volatility.Again Bollinger Bands are a great way to measure volatility.This is a consequence of the larger area in which the stock or commoditycan potentially move . As interest rates increase , call option premiums are to be driven ,while put option premiums will be pushed down. Supply and demand determine theMarket value of all options. In times of strong demand is undoubtedly premiumsbe higher .
Hopefully this article will provide investors and traders consider buyingor sale of options with more information. Although technical analysis isuseful to predict when trying to market movements , fundamental analysisOptions on the use of the factors described above provide many traderswith benefits as well..
Friday 29 November 2013
Wednesday 27 November 2013
The Difference Between Investing and Trading
Investment and trade are not the same. The
returns you are looking for, the length of time it takes to achieve
those returns , the amount of risk you are willing to take, and to make
the commitment to monitor the investment strategy may dictate whether to
invest or trade.
investing activities
Investing holds an asset for a longer period , expect it to increase in value . The best known example is invested in equity funds through a retirement . Many of these funds are held for years and are expected to show a significantAppreciation in the long term .
You can also invest in individual stocks and hold them for 6 to 18 months or longer, sometimes much longer. This is known as " buy and hold " strategy.
Property would be another example of investment, unless the property is purchased for quick change.
Jewelry, art , stamps and collectibles are other examples to invest , know where they are kept for a long time hoping to appreciate their value.
trade
Trading is also investing , but the time frame for a return on investment is a much shorter period of time , usually a matter of a few days or weeks.
The most obvious example would be day trading , where a trader in and out of the market on the same day .
Still other trading takes over a period of several days to several weeks.
Most trading takes place , with individual stocks and commodities , the commodity markets is the predominant vehicle .
Rob Hall is a successful futures trader , President & CEO of his own investment company and international author . His books are traded on learning about futures markets show distributed through Sumas International Sales Ltd on them
investing activities
Investing holds an asset for a longer period , expect it to increase in value . The best known example is invested in equity funds through a retirement . Many of these funds are held for years and are expected to show a significantAppreciation in the long term .
You can also invest in individual stocks and hold them for 6 to 18 months or longer, sometimes much longer. This is known as " buy and hold " strategy.
Property would be another example of investment, unless the property is purchased for quick change.
Jewelry, art , stamps and collectibles are other examples to invest , know where they are kept for a long time hoping to appreciate their value.
trade
Trading is also investing , but the time frame for a return on investment is a much shorter period of time , usually a matter of a few days or weeks.
The most obvious example would be day trading , where a trader in and out of the market on the same day .
Still other trading takes over a period of several days to several weeks.
Most trading takes place , with individual stocks and commodities , the commodity markets is the predominant vehicle .
Rob Hall is a successful futures trader , President & CEO of his own investment company and international author . His books are traded on learning about futures markets show distributed through Sumas International Sales Ltd on them
Monday 25 November 2013
Foreign Investing - US Investors Still Missing Out?
Investors
are still too slowly realizing what scientists have long pointed out -
by foreign stocks to your portfolio will , in the long term , increase
your returns and lower the overall risk of your portfolio.
U.S. investors comprehensive foreign investment are both realists and optimists. They are optimistic that the chances are better off when they have invested at least some of their hard earned money in countries with higher growth rates than here. You can not help , but when they see realists a new record trade deficit of the United States, almost every month , as the figures are released by the Treasury . Until we get our fiscal and trade deficits under control, while the short-term rallies are very likely not change the long-term weakness of the U.S. dollar for the foreseeable future is likely.
The problem is that most U.S. investors and their advisers , have not had the time , opportunity or inclination to educate and familiar with foreign investment , busy as they are just right with its own home market.
This lack of familiarity and comfort is set for the average investor from the overseas markets. It has encouraged use relatively expensive actively managed mutual funds many investors . Available to the investor as a financial plan , the broker has to pay - These funds are often with additional agendas , sold by a broker or advisor. Unfortunately, these actively managed funds are often disappointing results. In large part, this is because actively managed funds have relatively high operating costs , but it is also because international fund managers, like their domestic counterparts find it so hard to benchmark outperformance sustainable ... and of course private investors just love to chase historical performance !
Many wealthy investors do not have any single foreign investments in general. The New York Stock Exchange , a survey of U.S. holders of foreign shares in 2000. The survey found that almost one in ten investors , the shares held directly , also gave a foreign stock exchanges of any kind. In my professional experience , this was foreign exchanges more often than not a Canadian stock. Very few investors really benefit from genuine regional economic and currency diversification of their direct participation in the average.
Most investors still do not realize how easy it has become to trade and follow foreign securities .
The development of low-cost exchange-traded funds ( " ETFs " ) , who specializes in tracking the local indices of different geographical regions or individual countries , has led to the U.S. investor has now ETFs a real alternative to these expensive active managed mutual funds
A convenient way for a U.S. investor to take a direct investment in a single foreign company is when you have a form of security called American Depositary Receipt , "ADR" use . These were first developed way back in the 1920s . ADRs are U.S. securities traded on U.S. markets , and although most of them trade on the Pink Sheets , there are still a few hundred from which to choose that trade on the New York Stock Exchange or the NASDAQ , including dozens of well-known names such as Nokia , Toyota, Sony and Shell.
The great progress made in recent years, access to information , transaction ease , confidence and convenience in Internet , does everything you can now follow the fortunes and trade , the ADRs of an Australian bank or a Mexican bank , just as easily as you can use a U.S. bank ... and in your regular U.S. brokerage account to do so.
There are disadvantages to foreign investment . The possibilities opened by the Internet itself tends to lead to stronger markets correlate with each other , the . Utility of the geographical distribution of investments Accounting, reporting and regulatory standards of many foreign exchange markets are often not as high as we take for granted here - although all of these are rapidly changing for the better. And of course these foreign nations are sovereign states with different degrees of political stability , and often with a different political outlook than would largely accepted here .
The time to buy is on overseas markets if they despised the most and least loved . And that has certainly delivered not the case for the last year or two , if overseas markets have significantly higher yields than the U.S. market .
Nevertheless , investors should usually to recommend a bit more thought to the routine 10 -15 % of their portfolio in the rule for foreign investment. Just avoid the latest hot fund the International Quarter ... each Quarter!
Survey cited :
Duncan Ellis is an author and retired stockbroker. He has worked both in the UK and the U.S. as a mediator. He specialized for many years in researching, trading and consulting U.S. investors in foreign securities. He runs the website specialist
U.S. investors comprehensive foreign investment are both realists and optimists. They are optimistic that the chances are better off when they have invested at least some of their hard earned money in countries with higher growth rates than here. You can not help , but when they see realists a new record trade deficit of the United States, almost every month , as the figures are released by the Treasury . Until we get our fiscal and trade deficits under control, while the short-term rallies are very likely not change the long-term weakness of the U.S. dollar for the foreseeable future is likely.
The problem is that most U.S. investors and their advisers , have not had the time , opportunity or inclination to educate and familiar with foreign investment , busy as they are just right with its own home market.
This lack of familiarity and comfort is set for the average investor from the overseas markets. It has encouraged use relatively expensive actively managed mutual funds many investors . Available to the investor as a financial plan , the broker has to pay - These funds are often with additional agendas , sold by a broker or advisor. Unfortunately, these actively managed funds are often disappointing results. In large part, this is because actively managed funds have relatively high operating costs , but it is also because international fund managers, like their domestic counterparts find it so hard to benchmark outperformance sustainable ... and of course private investors just love to chase historical performance !
Many wealthy investors do not have any single foreign investments in general. The New York Stock Exchange , a survey of U.S. holders of foreign shares in 2000. The survey found that almost one in ten investors , the shares held directly , also gave a foreign stock exchanges of any kind. In my professional experience , this was foreign exchanges more often than not a Canadian stock. Very few investors really benefit from genuine regional economic and currency diversification of their direct participation in the average.
Most investors still do not realize how easy it has become to trade and follow foreign securities .
The development of low-cost exchange-traded funds ( " ETFs " ) , who specializes in tracking the local indices of different geographical regions or individual countries , has led to the U.S. investor has now ETFs a real alternative to these expensive active managed mutual funds
A convenient way for a U.S. investor to take a direct investment in a single foreign company is when you have a form of security called American Depositary Receipt , "ADR" use . These were first developed way back in the 1920s . ADRs are U.S. securities traded on U.S. markets , and although most of them trade on the Pink Sheets , there are still a few hundred from which to choose that trade on the New York Stock Exchange or the NASDAQ , including dozens of well-known names such as Nokia , Toyota, Sony and Shell.
The great progress made in recent years, access to information , transaction ease , confidence and convenience in Internet , does everything you can now follow the fortunes and trade , the ADRs of an Australian bank or a Mexican bank , just as easily as you can use a U.S. bank ... and in your regular U.S. brokerage account to do so.
There are disadvantages to foreign investment . The possibilities opened by the Internet itself tends to lead to stronger markets correlate with each other , the . Utility of the geographical distribution of investments Accounting, reporting and regulatory standards of many foreign exchange markets are often not as high as we take for granted here - although all of these are rapidly changing for the better. And of course these foreign nations are sovereign states with different degrees of political stability , and often with a different political outlook than would largely accepted here .
The time to buy is on overseas markets if they despised the most and least loved . And that has certainly delivered not the case for the last year or two , if overseas markets have significantly higher yields than the U.S. market .
Nevertheless , investors should usually to recommend a bit more thought to the routine 10 -15 % of their portfolio in the rule for foreign investment. Just avoid the latest hot fund the International Quarter ... each Quarter!
Survey cited :
Duncan Ellis is an author and retired stockbroker. He has worked both in the UK and the U.S. as a mediator. He specialized for many years in researching, trading and consulting U.S. investors in foreign securities. He runs the website specialist
Saturday 23 November 2013
Inflation Proof Your Investment Portfolio with ETF's
Although
inflation has been relatively quiet in the U.S. since the late 1980s ,
it now seems to be some strong evidence that they could begin to heat up
again with an expanding economy , with skyrocketing oil and housing
prices in some major regions of the combined land . While
the Federal Reserve has been the increase in interest rates , citing
the threat of rising inflation , the cautious message to . Agents from
the FBI that inflation is still benign and not a threat Inflation is benign ? Excuse
me, but the cheapest gas I can find anywhere in this area is $ 2.23 per
gallon, up nearly 50 % over the previous year, property prices in my
Howard County , MD neighborhood have more than doubled in the last five
years .
Inflation should really be a major concern for all investors because it reduces the value of their savings over time . History has also shown that the traditional investments in financial instruments like stocks and bonds usually fare badly in the face of soaring inflation, as is witnessed in the wild decline during the last bout of serious inflation in the 1970s .
Fortunately for investors , there was quiet a bit of improvements made in the financial markets since the 1970s , and investors now have many more options available in order to protect their portfolios from the scourge of inflation. One of the best and easiest ways investors can diversify their portfolio is through the use of Exchange Traded Funds , commonly known as ETFs . ETFs you may recall are similar to passive index -based mutual funds, but they can be bought and sold on the market like stocks . There are currently more than 170 different ETFs ( and still growing !) That the investors to choose , and these ETFs cover the entire spectrum of domestic stock index on fixed income , international and real estate and commodity prices are related.
An easy way to inflation proof your portfolio then would be a part of your portfolio holdings of domestic stocks based securities , such as S & P500 to replace conventional type stocks and bonds, with an inflation -protected bonds and real estate ETF or gold ETFs .
table 1
Inflation Protected Bond ETF:
iShares Lehman TIPS Bond Fund ( NYSE: TIP)Real Estate Index ETF:
Vanguard REIT Vipers ( AMEX : VNQ )iShares Cohen & Steers Realty Majors Index Fund ( AMEX : ICF)iShares Dow Jones U.S. Real Estate Index Fund ( AMEX : IYR )Gold ETF :
streetTRACKS Gold Shares ( NYSE: GLD)iShares COMEX Gold Trust ( AMEX : IAU)By adding these alternative asset classes in their portfolio mix , investors will not only realize significant benefits from diversification as these asset classes have a very low correlation with domestic equities and fixed - income assets , but protection from the risk of inflation as well . For a complete listing of Exchange Traded Funds Visits the Nasdaq market site atMr. John J. Lah , MBA, CFA is a Principal at Waverly Financial Group a no commissions, no sales , fee -only financial advisory firm located in Ellicott city, MD specializing in asset management with Exchange Traded Funds . Mr. Lah received his MBA from James Madison University in Harrisonburg , and is a Chartered Financial Analyst . For more information about the CFA designation , please visit the CFA Institute
Inflation should really be a major concern for all investors because it reduces the value of their savings over time . History has also shown that the traditional investments in financial instruments like stocks and bonds usually fare badly in the face of soaring inflation, as is witnessed in the wild decline during the last bout of serious inflation in the 1970s .
Fortunately for investors , there was quiet a bit of improvements made in the financial markets since the 1970s , and investors now have many more options available in order to protect their portfolios from the scourge of inflation. One of the best and easiest ways investors can diversify their portfolio is through the use of Exchange Traded Funds , commonly known as ETFs . ETFs you may recall are similar to passive index -based mutual funds, but they can be bought and sold on the market like stocks . There are currently more than 170 different ETFs ( and still growing !) That the investors to choose , and these ETFs cover the entire spectrum of domestic stock index on fixed income , international and real estate and commodity prices are related.
An easy way to inflation proof your portfolio then would be a part of your portfolio holdings of domestic stocks based securities , such as S & P500 to replace conventional type stocks and bonds, with an inflation -protected bonds and real estate ETF or gold ETFs .
table 1
Inflation Protected Bond ETF:
iShares Lehman TIPS Bond Fund ( NYSE: TIP)Real Estate Index ETF:
Vanguard REIT Vipers ( AMEX : VNQ )iShares Cohen & Steers Realty Majors Index Fund ( AMEX : ICF)iShares Dow Jones U.S. Real Estate Index Fund ( AMEX : IYR )Gold ETF :
streetTRACKS Gold Shares ( NYSE: GLD)iShares COMEX Gold Trust ( AMEX : IAU)By adding these alternative asset classes in their portfolio mix , investors will not only realize significant benefits from diversification as these asset classes have a very low correlation with domestic equities and fixed - income assets , but protection from the risk of inflation as well . For a complete listing of Exchange Traded Funds Visits the Nasdaq market site atMr. John J. Lah , MBA, CFA is a Principal at Waverly Financial Group a no commissions, no sales , fee -only financial advisory firm located in Ellicott city, MD specializing in asset management with Exchange Traded Funds . Mr. Lah received his MBA from James Madison University in Harrisonburg , and is a Chartered Financial Analyst . For more information about the CFA designation , please visit the CFA Institute
Thursday 21 November 2013
The Myth of the Earnings Yield
AbstractA very slim minority of firms distribute dividends . This truism has revolutionary implications. In the absence of dividends, the basis of most - if not all - of the financial theories we use to determine the value of the shares , is distorted . These theories are based on some implicit and explicit assumptions :That the (basic ) "value " of a share is closely correlated (or even the same) its market position (market or transaction) price ;The price movements ( and volatility) are mostly random when correlated in the (basic ) "value" of the stock (always converge on this " value " in the long term );That this fundamental " value " answers and reflects new information efficiently ( old information is fully incorporated in the Act).Investors to the power of all future income from the share ( with one of a plurality of possible rates - all hotly disputed ) discount. Only dividends form meaningful income and because only a few companies in the distribution of dividends to engage theorists were forced to " paid " with "expected" dividends rather than deal ones . The best indicator of the expected dividends is the result. The higher the profit - and the more likely the higher the dividends. Also retained earnings are considered deferred dividends. Retained earnings are reinvested , the investments generate profits and in turn increase the likelihood and size of the expected dividends. The result - if not yet distributed - with the result yields and other measures - were wrongly translated to a return yield . It is as if these earnings were distributed and created a RETURN - in other words , an income - for the investor.The reason for the continuation of this is misleading, that according to all current theories of finance, in the absence of dividends - shares are worthless . If an investor is likely never receive income from his investments - then its stocks are worthless . Capital gains - the other type of income from investment - is also driven by the result , but it does not function in financial equations.However , these theories and equations in stark contrast to market conditions.People do not buy stocks because they expect a stream of future income in the form of dividends. Everyone knows that dividends are quickly becoming a thing of the past. Instead, investors buy stocks because they later sell them to other investors hope for a higher price . In other words, investors expect a return on their investments , but in the form of capital gains realized. The price of a share reflects the discounted expected return ( the discount rate being its volatility ) - NOT the discounted future stream of income. The volatility of a stock ( and the distribution of prizes) , which in turn is a measure of expectations regarding the availability of willing and able buyers (investors) . Thus, the expected capital gains of a basic element ( the expected return value) for volatility (the latter is a measure of the expectations regarding the distribution of the availability of willing and in a position where price per customer class) consisted adjusted . Results come into the picture only as a benchmark , calibrator , a benchmark . Capital gains are created when the value of the company whose shares are traded increased. Such an increase is more often than not with the future stream of income for the company (NOT to the shareholder ! ) Correlates . This strong correlation is what binds together income and capital gains . There is a link - that could be causing and yet not . But in each case the result is a good proxy for capital income is not subject to appeal .And that's why investors are obsessed with profit figures . Not because higher profits mean higher dividends now or at any time in the future . But because the results are an excellent predictor of the future value of the company and thus the expected return . Put more clearly : The higher the score , the higher the market valuation of the company , the greater the willingness of investors , the higher to purchase the shares at a higher price , the investment income . Again, this is not a causal chain can be strong , but the correlation.This is a philosophical shift from "rational" measures (such as fundamental analysis of future income ) to " irrational" ones ( the future value of the equity interest to different types of investors). It is a transition from an efficient market ( all new information is immediately available to all rational investors and is included in the price of the share is added immediately ) to an inefficient one ( always the most important information is missing or lacking : how many investors want to share a specific price to buy at any given time ) .An income -driven market is "open" in the sense that it depends on newly acquired information and respond to them efficiently ( it is very liquid) . But it is also " closed " because it is a zero sum game , even in the absence of mechanisms for selling it short. An investor gain is another's loss, and all investors are always on the hunt for bargains (for what is a bargain can be evaluated " objectively " and regardless of the state of mind of the player ) . The distribution of gains and losses is pretty even . The general price level amplitudes around an anchor .A market driven capital gains is "open" in the sense that it refers to new flows of capital (to new investors) is dependent. As long as new money keeps pouring in, capital gains will be maintained and realized expectations . But the amount of such money is finite, and in this sense , the market is "closed." After the exhaustion of available funding sources, tends to burst the bubble and the general price level implodes , without soil . This is often called a " pyramid scheme " or more politely , described a " speculative bubble " . Therefore, portfolio models (CAPM and others) are unlikely to work . Diversification is useless if shares and markets move in tandem ( contagion ) and they move in tandem because they are all influenced by one critical factor - and only on one factor - the availability of future buyers at given prices.Sam Vaknin is the author of " Malignant Self Love - Narcissism Revisited " and " After the Rain - How the West Lost the East" . He is a columnist in " Central Europe Review " , United Press International ( UPI) and ebookweb.org and the editor of mental health and Central East Europe categories in The Open Directory, Suite101 and searcheurope.com . Until recently , he served as Economic Advisor to the Government of Macedonia.
Tuesday 19 November 2013
Lessons in Transition
Q: What the most successful approaches to attracting direct foreign investments: offering prospective investors tax breaks and similar arrangements, or improving the overall investment climate in the country?
Empirical research has shown that investors are not lured by tax breaks and monetary or fiscal investment incentives. They will make use of existing schemes (and ask for more, pitting one country against another). But this will never be the determining factors in their decision. They are much more likely to be influenced by the degree of protection of property rights, the level of corruption, transparency, the state of the physical infrastructure, education and knowledge of foreign languages and "mission critical skills", geographical location and proximity to the markets and culture and mentality.
Q: What are successful techniques for countries to improve their image rather negative investment?
The politicians of the country must be seen to be transparent, non-corrupt encouraging business, liberalization and protection of the property rights of investors. A real, transparent (eg through international tender) privatization a case where the government supported a foreigner against a local, a politician severely punished for corruption and nepotism, a fearless new medium - change image of a country.
Q: Should there be restrictions on the repatriation of foreign investment capital (such restrictions could prevent an investment panic, but at the same time they have a negative impact on investor confidence's)?
Short term and long term capital flows are two disparate phenomena with very little in common. The first is speculative and technical in nature and has very little to do with the fundamental reality. The latter is investment oriented and committed to increasing the prosperity and wealth of his new residence. It is therefore wrong to talk about "global capital flows". There are investments (including even long term portfolio investments and venture capital) - and there is speculative, "hot" money. While "hot money" is very useful as a lubricant on the wheels of liquid capital markets in rich countries - it can be destructive in less liquid, immature economies or economies in transition.
The two phenomena should be accorded different treatment. While long term capital flows should be liberalized, encouraged and welcomed completely - in the short term, "hot money" type should be controlled and even discouraged. The introduction of targeted tax capital controls (as Chile has implemented) is one possibility. The less attractive Malaysian model springs to mind. It is less attractive because the offense both short-term and long-term financial players. But it is clear that an important and integral part of the new international financial architecture control of speculative money in pursuit of ever higher returns MUST be. There is nothing wrong with high yields - but the capital markets provide yields connected to economic depression and cuts through the mechanism of short selling and the use of certain derivatives. This aspect of things must be neutered or at least countered.
Q: What approach has been most useful in best meet the needs of small businesses: through private business support companies, business organizations, or government agencies?
It depends where. In Israel (until the beginning of the 90s), South Korea and Japan (until 1997) - The State shall provide the necessary guidance and support. In the United States - the private sector invented its own enormously successful support structures (such as venture capital funds). The right approach depends on the characteristics of the country in question: how entrepreneurial its citizens, how accessible credit and micro-credit for SMEs, how benign the bankruptcy laws (which always reflect a social ethos), how good is the physical infrastructure , how educated are its citizens and so on.
Q: How can collective action problems in numerous and scattered small and medium entrepreneurs be best addressed?
It is set in the era of cross-Atlantic transport, telecommunications and computer networks (like the Internet). An odd question Geographic distribution is absolutely irrelevant. The problem is in the diverging self-interests of the various actors. The more numerous they are, the more niche-oriented, the smaller - the lesser of the common denominator. A proof of this fragmentation is the declining power of cartels - trade unions, on the one hand and business trusts, monopolies and cartels, on the other hand. The question is not whether this can be remedied, but whether it should be overcome. Such diversity of interests is the lifeblood of the modern market economy based on conflicts and disagreements as much as it is based on the ability to end a compromise and reach a consensus.
What should be done centrally is public relations and education. People, politicians, big business must learn the value and benefits of small business, entrepreneurship and intrapreneurship. And new ways to support this sector must constantly be borne in mind.
Q: How would the small firms' access to seed capital and other resources best be promoted?
The traditional banks around the world failed in maintaining the balance between risk and reward. The result was a massive shift to the capital markets. Scholarships for trading in the shares of small and technology companies jumped over the world (NASDAQ in the U.S., the former USM in London, the Neue Markt in Germany and so on). Investment and venture capital funds was the second most important source quantitatively. They not only funded budding entrepreneurs but also coached them and saw them through the excruciating and dangerous research and development.
But these are rich world solutions.
An important development was the invention of the "third world solutions," such as micro loans granted to the agricultural and textile sectors, especially for women and that involve the whole community.
Q: Women start one-third of new businesses in the region: now can this contribution to economic growth be further stimulated?
By providing them with the conditions for their entrepreneurial skills to work and exercise. Through the establishment of day care centers for their children. By providing microcredit (women have proven extremely reliable borrowers). Through them tax credits. By allowing or encouraging flexitime or part-time work or work from home. By recognizing the home as the domicile of business (especially through the appropriate tax laws). By equalizing their legal rights and their wages. By protecting them from sexual harassment or gender.
Vaknin is the author of "Malignant Self Love - Narcissism Revisited" and "After the Rain - How the West Lost the East". He is a columnist in "Central Europe Review", United Press International (UPI) and ebookweb.org and the editor of mental health and Central East Europe categories in The Open Directory, Suite101 and searcheurope.com. Until recently he was economic advisor to the Government of Macedonia...
Empirical research has shown that investors are not lured by tax breaks and monetary or fiscal investment incentives. They will make use of existing schemes (and ask for more, pitting one country against another). But this will never be the determining factors in their decision. They are much more likely to be influenced by the degree of protection of property rights, the level of corruption, transparency, the state of the physical infrastructure, education and knowledge of foreign languages and "mission critical skills", geographical location and proximity to the markets and culture and mentality.
Q: What are successful techniques for countries to improve their image rather negative investment?
The politicians of the country must be seen to be transparent, non-corrupt encouraging business, liberalization and protection of the property rights of investors. A real, transparent (eg through international tender) privatization a case where the government supported a foreigner against a local, a politician severely punished for corruption and nepotism, a fearless new medium - change image of a country.
Q: Should there be restrictions on the repatriation of foreign investment capital (such restrictions could prevent an investment panic, but at the same time they have a negative impact on investor confidence's)?
Short term and long term capital flows are two disparate phenomena with very little in common. The first is speculative and technical in nature and has very little to do with the fundamental reality. The latter is investment oriented and committed to increasing the prosperity and wealth of his new residence. It is therefore wrong to talk about "global capital flows". There are investments (including even long term portfolio investments and venture capital) - and there is speculative, "hot" money. While "hot money" is very useful as a lubricant on the wheels of liquid capital markets in rich countries - it can be destructive in less liquid, immature economies or economies in transition.
The two phenomena should be accorded different treatment. While long term capital flows should be liberalized, encouraged and welcomed completely - in the short term, "hot money" type should be controlled and even discouraged. The introduction of targeted tax capital controls (as Chile has implemented) is one possibility. The less attractive Malaysian model springs to mind. It is less attractive because the offense both short-term and long-term financial players. But it is clear that an important and integral part of the new international financial architecture control of speculative money in pursuit of ever higher returns MUST be. There is nothing wrong with high yields - but the capital markets provide yields connected to economic depression and cuts through the mechanism of short selling and the use of certain derivatives. This aspect of things must be neutered or at least countered.
Q: What approach has been most useful in best meet the needs of small businesses: through private business support companies, business organizations, or government agencies?
It depends where. In Israel (until the beginning of the 90s), South Korea and Japan (until 1997) - The State shall provide the necessary guidance and support. In the United States - the private sector invented its own enormously successful support structures (such as venture capital funds). The right approach depends on the characteristics of the country in question: how entrepreneurial its citizens, how accessible credit and micro-credit for SMEs, how benign the bankruptcy laws (which always reflect a social ethos), how good is the physical infrastructure , how educated are its citizens and so on.
Q: How can collective action problems in numerous and scattered small and medium entrepreneurs be best addressed?
It is set in the era of cross-Atlantic transport, telecommunications and computer networks (like the Internet). An odd question Geographic distribution is absolutely irrelevant. The problem is in the diverging self-interests of the various actors. The more numerous they are, the more niche-oriented, the smaller - the lesser of the common denominator. A proof of this fragmentation is the declining power of cartels - trade unions, on the one hand and business trusts, monopolies and cartels, on the other hand. The question is not whether this can be remedied, but whether it should be overcome. Such diversity of interests is the lifeblood of the modern market economy based on conflicts and disagreements as much as it is based on the ability to end a compromise and reach a consensus.
What should be done centrally is public relations and education. People, politicians, big business must learn the value and benefits of small business, entrepreneurship and intrapreneurship. And new ways to support this sector must constantly be borne in mind.
Q: How would the small firms' access to seed capital and other resources best be promoted?
The traditional banks around the world failed in maintaining the balance between risk and reward. The result was a massive shift to the capital markets. Scholarships for trading in the shares of small and technology companies jumped over the world (NASDAQ in the U.S., the former USM in London, the Neue Markt in Germany and so on). Investment and venture capital funds was the second most important source quantitatively. They not only funded budding entrepreneurs but also coached them and saw them through the excruciating and dangerous research and development.
But these are rich world solutions.
An important development was the invention of the "third world solutions," such as micro loans granted to the agricultural and textile sectors, especially for women and that involve the whole community.
Q: Women start one-third of new businesses in the region: now can this contribution to economic growth be further stimulated?
By providing them with the conditions for their entrepreneurial skills to work and exercise. Through the establishment of day care centers for their children. By providing microcredit (women have proven extremely reliable borrowers). Through them tax credits. By allowing or encouraging flexitime or part-time work or work from home. By recognizing the home as the domicile of business (especially through the appropriate tax laws). By equalizing their legal rights and their wages. By protecting them from sexual harassment or gender.
Vaknin is the author of "Malignant Self Love - Narcissism Revisited" and "After the Rain - How the West Lost the East". He is a columnist in "Central Europe Review", United Press International (UPI) and ebookweb.org and the editor of mental health and Central East Europe categories in The Open Directory, Suite101 and searcheurope.com. Until recently he was economic advisor to the Government of Macedonia...
Sunday 17 November 2013
Investing As A Sport?
I said last week that money does not generally buy happiness , but the lack of it can buy absolute misery . This , by the way, is not just my personal observation . It is the conclusion of some of the most respected happiness researchers ( Yes, there is such a thing - . Read my book )
The problem is that we pay attention to more money if we lack than when we have it. This does not seem fair , but the Lord works in mysterious ways . Most people are invested in the stock market , either directly or through mutual funds, pension funds or other vehicle . It's so hard to not be a part of the Panic Crowd . But I , in all my financial wisdom , have two golden rules to offer . This may not make you rich , but they will be happy .
Number One: Place your investment in the safest possible vehicles ( Do as I say , not as I do ! ) And forget them . When the next recession ends , take inventory and see that you are still investment . Most of us do not get a rush watching our investments dip or yo-yo up and down . Most people are happier when they forget they even have investments .
Number two : If you are one of those people with a terminal case of Itchy Trading Finger , then you probably would not be happy ignoring your investments . Put aside what you need for the long term , as the pension if your heart lasts that long . Do not play with this money . Do not touch it . Trade only with "extra " money . The rest of you are asking : "What's that ," But Itchy Fingers Trading know what I 'm talking about they see trading as a sport ? . .
In fact, stock trading is a sport . Much more than , say , hunting . Think about it . In a sport , two equal opponents off against each other . " Let the best one win . " Each faces the same challenges . Each is armed with the same weapons . Each has an equal chance of feeling the thrill of victory and the agony of defeat ( unless, of course , you happen to be the Tampa Bay Devil Rays ) .
Imagine the play - by - play as hunting was a sport : . . . "Man is closing in. He comes from behind and rounding to the south side He raised his rifle deer do not even seem to notice Oh , I can .. ' t watch This is a massacre waiting Deer has just jerked up and turned He turns around a tree , and - . ? .. look Deer has a rifle he aims he shoots he Kills man down What an upset , ladies and gentlemen " ! . .
In real life, Deer not win very often . In fact , I estimate that the human is about 4.3 trillion times more likely to be defeated by his own teammate than the opposition . We call this "friendly fire".
Unlike Itchy Trading Finger , who have an equal chance of striking gold or move to a cardboard box on the corner of the street . The fair is really sport , for those who choose to treat . It that way That is why it is so important to put aside - in safe investments - the money that you feel you need for your future. That way , when Itchy Fingers Trading retire , they go out of the carton .
For the rest of us, we are happier getting our sport watch monster trucks crush WWF actors . Oops ! There I go again, mixing my sport and my metaphors , not to mention ignoring a number of federal safety standards. Can your investments are safer than my WWF friends , and you can sleep well at night .
David Leonhardt is The Happy Guy . He is an energetic motivational speaker and author of Climb Your Stairway to Heaven : the 9 habits of maximum happiness. Visit him at
The problem is that we pay attention to more money if we lack than when we have it. This does not seem fair , but the Lord works in mysterious ways . Most people are invested in the stock market , either directly or through mutual funds, pension funds or other vehicle . It's so hard to not be a part of the Panic Crowd . But I , in all my financial wisdom , have two golden rules to offer . This may not make you rich , but they will be happy .
Number One: Place your investment in the safest possible vehicles ( Do as I say , not as I do ! ) And forget them . When the next recession ends , take inventory and see that you are still investment . Most of us do not get a rush watching our investments dip or yo-yo up and down . Most people are happier when they forget they even have investments .
Number two : If you are one of those people with a terminal case of Itchy Trading Finger , then you probably would not be happy ignoring your investments . Put aside what you need for the long term , as the pension if your heart lasts that long . Do not play with this money . Do not touch it . Trade only with "extra " money . The rest of you are asking : "What's that ," But Itchy Fingers Trading know what I 'm talking about they see trading as a sport ? . .
In fact, stock trading is a sport . Much more than , say , hunting . Think about it . In a sport , two equal opponents off against each other . " Let the best one win . " Each faces the same challenges . Each is armed with the same weapons . Each has an equal chance of feeling the thrill of victory and the agony of defeat ( unless, of course , you happen to be the Tampa Bay Devil Rays ) .
Imagine the play - by - play as hunting was a sport : . . . "Man is closing in. He comes from behind and rounding to the south side He raised his rifle deer do not even seem to notice Oh , I can .. ' t watch This is a massacre waiting Deer has just jerked up and turned He turns around a tree , and - . ? .. look Deer has a rifle he aims he shoots he Kills man down What an upset , ladies and gentlemen " ! . .
In real life, Deer not win very often . In fact , I estimate that the human is about 4.3 trillion times more likely to be defeated by his own teammate than the opposition . We call this "friendly fire".
Unlike Itchy Trading Finger , who have an equal chance of striking gold or move to a cardboard box on the corner of the street . The fair is really sport , for those who choose to treat . It that way That is why it is so important to put aside - in safe investments - the money that you feel you need for your future. That way , when Itchy Fingers Trading retire , they go out of the carton .
For the rest of us, we are happier getting our sport watch monster trucks crush WWF actors . Oops ! There I go again, mixing my sport and my metaphors , not to mention ignoring a number of federal safety standards. Can your investments are safer than my WWF friends , and you can sleep well at night .
David Leonhardt is The Happy Guy . He is an energetic motivational speaker and author of Climb Your Stairway to Heaven : the 9 habits of maximum happiness. Visit him at
Friday 15 November 2013
Making It Second Nature
Not long ago I was laying on the floor of my son throwing one of his toy balls back and forth in the air to myself and I had a strange revelation . I noticed that when I threw the ball in the air in my left arm automatically started to move to where the ball was coming. At that time I was quite surprised at the fact and decided to experiment a bit .
I was not sure if it was real or if I was just automatically react aware very quickly and it appeared only as a seamless act moves . I continued the act for a while and then I started consciously trying to move to where the ball would go my arm. I was still able to catch the ball, but it was a very different feeling . I was not sure I would catch where as before I just knew I would be so much that I do not even think about it . Then I remembered to catch the ball I experienced a psychological shift . Just to be sure I went back to my normal method simply throwing and catching and again it felt automatically .
I then tried to throw the ball and close my eyes and see my hand or knew where to go . It did . I did not catch much , but the ball always hit my hand . I tried the whole thing with my eyes closed and besides I did not touch the ball very often quite that way .
Now I know you must be thinking what does any of this have to do with trade . Well , ... uh ..... everything! Sure, you have a system that works and capital and time and desire and effort , but beyond that the mental state of being a trader is . Not only a trader but a consistently successful trader .
How did my mind learn to know exactly where the ball went? I suppose that after many years of throwing or catching a ball as a child my subconscious adapted the process in a second nature kind of way . As I throw the ball sends the synaptic messages to my arm directly to where the ball will be , even if my eyes are closed .
In trade the markets we look for hours each day . Some of us all day every day . The successful among us probably hours after that during practice . I spend at least one hour after the normal market transactions using my system . My system is second nature to me now as a result like to throw the ball . I still use a system and rules to follow , but if I'm not thinking about the process too much and only flow in a zone I usually know what the market will do.
So how do we develop this skill or trait ? I believe there are two ways and they will practice in both cases. One way is to really work hard at your craft and put yourself through an intensive regimen of study , practice and work . If you work hard every day and try to get a little better each day will happen over time as your account and you do not burn out mentally. There are mental tricks that you can use in this way as effectively to build a reward system for milestones or keep a daily log of your trading making activities. This method is tiring , and sounds for many people that it would be.
The other way to gain insight is second nature to focus on having fun with your craft your attention. While the first method is directed to laboriously go through the motions of this method is more nimble . In no way am I suggesting that the trade should be taken lightly . I'm talking about here approach . If you should be doing in a kind of mental game every day to put the homework you'll be much more likely to do it and more importantly draw on your experiences in your real - time trading . You need to keep if that helps and maybe talk to yourself about what you see along the way . Pace quickly Make a funny sound or something like to enter your trades and again as you exit the program . Maybe upbeat sound for winning trades and nimble crashing sounds for losing trades . Do what works for you , but keep it fun .
There is no getting around this. If your goal is to see the automatic reflexes kicking into gear as your subconscious mind have a chance then you should exercise . I walk every day through the previous two trading days step-by - step and using the Pivot Trend difference model from my NQ Scalping System I choose a trading day from the past trading days immediately following the recent activities seem . I bet if you ask any professional or Olympic athlete or they can think about what it is that makes them so consistently that the answer would be practical . I can say with certainty that the extra time I after the markets close is the key to my success .
Good luck to you all . Trade well !
I was not sure if it was real or if I was just automatically react aware very quickly and it appeared only as a seamless act moves . I continued the act for a while and then I started consciously trying to move to where the ball would go my arm. I was still able to catch the ball, but it was a very different feeling . I was not sure I would catch where as before I just knew I would be so much that I do not even think about it . Then I remembered to catch the ball I experienced a psychological shift . Just to be sure I went back to my normal method simply throwing and catching and again it felt automatically .
I then tried to throw the ball and close my eyes and see my hand or knew where to go . It did . I did not catch much , but the ball always hit my hand . I tried the whole thing with my eyes closed and besides I did not touch the ball very often quite that way .
Now I know you must be thinking what does any of this have to do with trade . Well , ... uh ..... everything! Sure, you have a system that works and capital and time and desire and effort , but beyond that the mental state of being a trader is . Not only a trader but a consistently successful trader .
How did my mind learn to know exactly where the ball went? I suppose that after many years of throwing or catching a ball as a child my subconscious adapted the process in a second nature kind of way . As I throw the ball sends the synaptic messages to my arm directly to where the ball will be , even if my eyes are closed .
In trade the markets we look for hours each day . Some of us all day every day . The successful among us probably hours after that during practice . I spend at least one hour after the normal market transactions using my system . My system is second nature to me now as a result like to throw the ball . I still use a system and rules to follow , but if I'm not thinking about the process too much and only flow in a zone I usually know what the market will do.
So how do we develop this skill or trait ? I believe there are two ways and they will practice in both cases. One way is to really work hard at your craft and put yourself through an intensive regimen of study , practice and work . If you work hard every day and try to get a little better each day will happen over time as your account and you do not burn out mentally. There are mental tricks that you can use in this way as effectively to build a reward system for milestones or keep a daily log of your trading making activities. This method is tiring , and sounds for many people that it would be.
The other way to gain insight is second nature to focus on having fun with your craft your attention. While the first method is directed to laboriously go through the motions of this method is more nimble . In no way am I suggesting that the trade should be taken lightly . I'm talking about here approach . If you should be doing in a kind of mental game every day to put the homework you'll be much more likely to do it and more importantly draw on your experiences in your real - time trading . You need to keep if that helps and maybe talk to yourself about what you see along the way . Pace quickly Make a funny sound or something like to enter your trades and again as you exit the program . Maybe upbeat sound for winning trades and nimble crashing sounds for losing trades . Do what works for you , but keep it fun .
There is no getting around this. If your goal is to see the automatic reflexes kicking into gear as your subconscious mind have a chance then you should exercise . I walk every day through the previous two trading days step-by - step and using the Pivot Trend difference model from my NQ Scalping System I choose a trading day from the past trading days immediately following the recent activities seem . I bet if you ask any professional or Olympic athlete or they can think about what it is that makes them so consistently that the answer would be practical . I can say with certainty that the extra time I after the markets close is the key to my success .
Good luck to you all . Trade well !
Wednesday 13 November 2013
California Deparment of Corporations and Franchise Opportunities Law
What CA needs to do to address problems in Franchising
We must not allow more degradation of California through incessant over regulations in the franchising sector . No other sector of our economy provides many jobs as franchising . Some people would say : retail , more than half of all retail jobs are franchises . Well, there is a problem in the franchise community with the way the Department of Enterprise is about the business . First, there are only 12 franchise registration states in the United States at this time , down from 14 two years ago . California is one of them , even by lawyers who make their living filing is the most stressful .
It is considered the most hostile by active franchisors as well, of which only 2,230 in total in the U.S., approximately 380,000 franchise outlets at an average of 15 employees . Not all franchisors offer these businesses or franchises in California to the many displaced workers there . The reason is the slow nature of the process at the Companies and the hostile and suspected hostile bureaucracy of the department and the hassle and horror stories , which are discussed in the industry department. Third of every consumer dollar spent in the state of California is going through a franchise business. If these companies do not exist, then no one works there , no cities derive income from taxes on the sale of products , since no products are sold where no shop exists , there is no state income earned because nobody has a job, buildings remain vacant and people who want to own their own business remain unemployed or underemployed and never got a chance to pursue to get that. part of their American Dream
Less franchisors franchise mean higher prices for those who participate due to lack of competition and the consumer or business less of a return on investment for the business as a result of these prices . The Department of Corporations is suppose to help consumers , not ensure that they pay higher prices for franchise companies to pursue . Their American Dreams You can then exacerbate that with less choice for consumers and the slowdown in funding / supply, which means less revenue for the state. The adverse effect caused by this department is completely in - excusable and that is nice and Gentile. All this took place in California because of the doubling of the Federal Trade Commission Laws in California Franchise registration and renewal .
Business Opportunities Franchises are not like that much fraud occurs in franchising is a long term relationship and one that is closely examined by lawyers in the franchising field . In other words, any franchisor trying to pull a fast one would have to deal with many private lawsuits and the subsequent FTC to consumers. Yet the Department of Corporations and unnecessary adds a third tier to the situation in which the free enterprise stifled by slow processing of applications and renewals. Because the laws are a little different these compounds the problems of the uniformity of understanding and thus hurts economies of scale , to enjoy that franchisors and franchisees so they can compete against the bigger box type stores, which crush the little guys . Little boys significance of small businesses, which employ two thirds of the population in the state of California . Each time is delayed in the application or renewal times the cost the state money in tax revenues and Californian voters in jobs, lower living standards , higher prices ( artificial inflation) , reduced choice and options in pursuing their American Dream . If any of these franchisors
What started as a good idea to arrange the DOC Franchise Businesses in California for many years before is no longer necessary as to complain , the private right of action lawyers who specialize in franchising , business associations and the Federal Trade Commission have more than filled in the hole . The pendulum when the DOC is added by unnecessary duplication , extra paperwork , time only process compounds the problems of slow recovery or our CA economy and of course lost tax revenue sales to cities and income tax payments and fees to the Great State of California to the equation . Recently the ABA - American Bar Association for Franchising is online " list serve " the franchise lawyers in our great nation , many practice law in California were commenting on the problems with the franchise registration and renewal applications be deferred for a stamp of approval . The cost is not bad considering the CA market size , $ 600.00 but the review process is a real quote : " bitch " . Do not just quote me , the whole industry agrees , it is a universal truth now as perception is reality. And even though several years have seen a rapid return of the application other years they had many months , that is quite been . A more common occurrence With this bad business attitude few franchisors looking forward to the California market , regardless of its status as the seventh largest economy in the world , which apparently has gone to the heads of a few people . The reality is that the franchisor , which are among the largest group of economic inflows are not as enthusiastic as you might think , on the contrary . Many fear the day that their brands are so big that it's time to finally go into the CA market . And do not take it from me , ask around the franchise industry which is the worst place to do business as a franchise ? Affairs The state that the duplication of resources with the Federal Trade Commission is cutting off the hand that feeds them .
Think of this , we are hurting 2,230 companies which account for one third of every dollar that passes through the hands of consumers , which is 33 % . No other company can compete with Wal format - without saving the incredible synergy and economies of scale that franchising provides Mart box. Wal - Mart by the way does Nationwide only 10% . Consumers of California deserve a break , the franchise community drowning in paperwork , the DOC can not do the job quickly enough and to top it off it is a complete duplication of the rules? With cuts the DOC will slow further processing , when in fact if you closed the franchise department at the DOC , you could be millions per year and increase the flow of capital and jobs to maintain the state and a greater influx of tax revenue to the city, county and state governments . This is not really to do , if you are looking to cut a very difficult choice , there is no better place than the DOC Franchising Division . If you need to continue , they may reduce the cost to $ 400.00 per year for " franchise notification" ( notice can be done online and reporting fees can be mailed or taken by credit card - if you need web help, I will volunteer my web team free of charge and have it up and running within a week ) and have the franchisors agree with the rules of the Federal Trade Commission about franchising ( this is done in both Florida and Texas , where no problems are heard ) , and watch the franchisors of this land and set up companies for unemployed Californian 's who use $ 60,000-100,000 per year , so they pay income to the state, by setting up franchise and were using more people . tax
This franchise units , jobs , job turnover suburbs who tell me that they could really use it now , even with Schwarzneger the recent release of funds to them . This will also spur growth in commercial real estate and fill some of those buildings that are empty , with warm bodies who are making a living and pursuing their dreams . The average consumer in California lives in a house they put 3 % down on , refinanced twice , driving an SUV they bought for zero / zero , try soccer afford for their 2.2 kids and figure out how they are going to pay all those credit cards and student loans for degrees that will not help them in the future . You can do the real problems and see this simple solution . Our company has estimated that we could provide to the State of California alone, 4,000 jobs in three years but we have concentrated in 23 other states in this nation . See the truth , we are hurting the business I worked me hard all my life to a company to build and doing my part to strengthen our state and my country. Help me with the regulatory nightmare and I and all my colleagues franchisors will help to solve this problem. When I started my business at the age of 12 , I was told that I was part of the ten percent of California ' s who were self- employed , we employed along two thirds of the people and that I and my colleagues - entrepreneurs were of value .
If so , why do we all layers and duplicate registrations, applications , paperwork , rules, etc on top of each other and present a clear message that California is all show and no go and that we do not believe in small business and entrepreneurship . If you continue to send these negative message and if this is true , how can we believe in you ? Would you please remove the franchise division of the Department of Enterprise , because it is an unnecessary division of that department. By doing this you will achieve the following goals : 1.) Hitting the taxpayers , 2 ) to help the economic growth through the use of civilians 3 ) generating tax revenue to my state 4 ) send a signal to the franchising and business that means California . . . business Please help me so I can help them and they can help you and you can serve us and together we can all live free , feed our families and enjoy all that California is the largest state of the country .
Signed, The Entrepreneur .
We must not allow more degradation of California through incessant over regulations in the franchising sector . No other sector of our economy provides many jobs as franchising . Some people would say : retail , more than half of all retail jobs are franchises . Well, there is a problem in the franchise community with the way the Department of Enterprise is about the business . First, there are only 12 franchise registration states in the United States at this time , down from 14 two years ago . California is one of them , even by lawyers who make their living filing is the most stressful .
It is considered the most hostile by active franchisors as well, of which only 2,230 in total in the U.S., approximately 380,000 franchise outlets at an average of 15 employees . Not all franchisors offer these businesses or franchises in California to the many displaced workers there . The reason is the slow nature of the process at the Companies and the hostile and suspected hostile bureaucracy of the department and the hassle and horror stories , which are discussed in the industry department. Third of every consumer dollar spent in the state of California is going through a franchise business. If these companies do not exist, then no one works there , no cities derive income from taxes on the sale of products , since no products are sold where no shop exists , there is no state income earned because nobody has a job, buildings remain vacant and people who want to own their own business remain unemployed or underemployed and never got a chance to pursue to get that. part of their American Dream
Less franchisors franchise mean higher prices for those who participate due to lack of competition and the consumer or business less of a return on investment for the business as a result of these prices . The Department of Corporations is suppose to help consumers , not ensure that they pay higher prices for franchise companies to pursue . Their American Dreams You can then exacerbate that with less choice for consumers and the slowdown in funding / supply, which means less revenue for the state. The adverse effect caused by this department is completely in - excusable and that is nice and Gentile. All this took place in California because of the doubling of the Federal Trade Commission Laws in California Franchise registration and renewal .
Business Opportunities Franchises are not like that much fraud occurs in franchising is a long term relationship and one that is closely examined by lawyers in the franchising field . In other words, any franchisor trying to pull a fast one would have to deal with many private lawsuits and the subsequent FTC to consumers. Yet the Department of Corporations and unnecessary adds a third tier to the situation in which the free enterprise stifled by slow processing of applications and renewals. Because the laws are a little different these compounds the problems of the uniformity of understanding and thus hurts economies of scale , to enjoy that franchisors and franchisees so they can compete against the bigger box type stores, which crush the little guys . Little boys significance of small businesses, which employ two thirds of the population in the state of California . Each time is delayed in the application or renewal times the cost the state money in tax revenues and Californian voters in jobs, lower living standards , higher prices ( artificial inflation) , reduced choice and options in pursuing their American Dream . If any of these franchisors
What started as a good idea to arrange the DOC Franchise Businesses in California for many years before is no longer necessary as to complain , the private right of action lawyers who specialize in franchising , business associations and the Federal Trade Commission have more than filled in the hole . The pendulum when the DOC is added by unnecessary duplication , extra paperwork , time only process compounds the problems of slow recovery or our CA economy and of course lost tax revenue sales to cities and income tax payments and fees to the Great State of California to the equation . Recently the ABA - American Bar Association for Franchising is online " list serve " the franchise lawyers in our great nation , many practice law in California were commenting on the problems with the franchise registration and renewal applications be deferred for a stamp of approval . The cost is not bad considering the CA market size , $ 600.00 but the review process is a real quote : " bitch " . Do not just quote me , the whole industry agrees , it is a universal truth now as perception is reality. And even though several years have seen a rapid return of the application other years they had many months , that is quite been . A more common occurrence With this bad business attitude few franchisors looking forward to the California market , regardless of its status as the seventh largest economy in the world , which apparently has gone to the heads of a few people . The reality is that the franchisor , which are among the largest group of economic inflows are not as enthusiastic as you might think , on the contrary . Many fear the day that their brands are so big that it's time to finally go into the CA market . And do not take it from me , ask around the franchise industry which is the worst place to do business as a franchise ? Affairs The state that the duplication of resources with the Federal Trade Commission is cutting off the hand that feeds them .
Think of this , we are hurting 2,230 companies which account for one third of every dollar that passes through the hands of consumers , which is 33 % . No other company can compete with Wal format - without saving the incredible synergy and economies of scale that franchising provides Mart box. Wal - Mart by the way does Nationwide only 10% . Consumers of California deserve a break , the franchise community drowning in paperwork , the DOC can not do the job quickly enough and to top it off it is a complete duplication of the rules? With cuts the DOC will slow further processing , when in fact if you closed the franchise department at the DOC , you could be millions per year and increase the flow of capital and jobs to maintain the state and a greater influx of tax revenue to the city, county and state governments . This is not really to do , if you are looking to cut a very difficult choice , there is no better place than the DOC Franchising Division . If you need to continue , they may reduce the cost to $ 400.00 per year for " franchise notification" ( notice can be done online and reporting fees can be mailed or taken by credit card - if you need web help, I will volunteer my web team free of charge and have it up and running within a week ) and have the franchisors agree with the rules of the Federal Trade Commission about franchising ( this is done in both Florida and Texas , where no problems are heard ) , and watch the franchisors of this land and set up companies for unemployed Californian 's who use $ 60,000-100,000 per year , so they pay income to the state, by setting up franchise and were using more people . tax
This franchise units , jobs , job turnover suburbs who tell me that they could really use it now , even with Schwarzneger the recent release of funds to them . This will also spur growth in commercial real estate and fill some of those buildings that are empty , with warm bodies who are making a living and pursuing their dreams . The average consumer in California lives in a house they put 3 % down on , refinanced twice , driving an SUV they bought for zero / zero , try soccer afford for their 2.2 kids and figure out how they are going to pay all those credit cards and student loans for degrees that will not help them in the future . You can do the real problems and see this simple solution . Our company has estimated that we could provide to the State of California alone, 4,000 jobs in three years but we have concentrated in 23 other states in this nation . See the truth , we are hurting the business I worked me hard all my life to a company to build and doing my part to strengthen our state and my country. Help me with the regulatory nightmare and I and all my colleagues franchisors will help to solve this problem. When I started my business at the age of 12 , I was told that I was part of the ten percent of California ' s who were self- employed , we employed along two thirds of the people and that I and my colleagues - entrepreneurs were of value .
If so , why do we all layers and duplicate registrations, applications , paperwork , rules, etc on top of each other and present a clear message that California is all show and no go and that we do not believe in small business and entrepreneurship . If you continue to send these negative message and if this is true , how can we believe in you ? Would you please remove the franchise division of the Department of Enterprise , because it is an unnecessary division of that department. By doing this you will achieve the following goals : 1.) Hitting the taxpayers , 2 ) to help the economic growth through the use of civilians 3 ) generating tax revenue to my state 4 ) send a signal to the franchising and business that means California . . . business Please help me so I can help them and they can help you and you can serve us and together we can all live free , feed our families and enjoy all that California is the largest state of the country .
Signed, The Entrepreneur .
Monday 11 November 2013
Investing Pointers for Neophyte Investors
If you know almost nothing , how do you go about the business of investing ? The first thing you need to know about investing , how much do you really know ? If its ' not much, then you should read extensively to educate yourself.
To be well informed , you should read the basics . out what a stock, bond or mutual fund is, and what the differences are between these three financial products and it's variables . Read books on financing and investing activities .
Talk to savvy investors , watch video and live presentations . Once you understand the differences and the risks of investing in each vehicle , you can move forward with confidence.
Now you can go to the second phase of learning about investing. Gain some experience , by investing in small stocks , and both learn from your mistakes and successes . However, to know first what kind of investor you are . Here are some tips to help you get the answers you.
In going to invest about your business a game plan and set concrete goals . The answers to these questions will provide valuable signposts for you in investing your money in your company.
o What is your time frame for investing?
o Which sectors of the industry you are interested in investing in ?
o What is the amount of resources you can use to invest safely in order to reach your goals?
o Have you considered your short term financial needs or goals ?
o Do you plan to live in your retirement years ? these investments
Determine your investment style . Are you a risk taker ? Or would you steady increase ? Consider this thought , you'll be able to sleep soundly at night , knowing that your investment is smaller and will last a long time before it increases ? Whether you prefer to hand over your money to a money manager ? Do you like to invest your money? Minimal risk Think of the kind of risk taker you are, because this will help in choosing the financial vehicles for investing in.
What is the length of time you want to spend on investing in stocks ? It is only 15 minutes a day ? Or do you find it as bringing with views on the financial statements and the debate on the merits of these files . Aware of entertainment to 7 to 14 hours per week
Please consider carefully the answers to these questions . If you know what type of investor you are , you can play to your strengths and minimize the risks of the funds you invest with .
Timothy Gorman is a successful Webmaster and publisher of Debt - Relief - Solutions.com . He provides more debt relief , consolidation and financial planning advice that you can research in your pajamas on his website .
To be well informed , you should read the basics . out what a stock, bond or mutual fund is, and what the differences are between these three financial products and it's variables . Read books on financing and investing activities .
Talk to savvy investors , watch video and live presentations . Once you understand the differences and the risks of investing in each vehicle , you can move forward with confidence.
Now you can go to the second phase of learning about investing. Gain some experience , by investing in small stocks , and both learn from your mistakes and successes . However, to know first what kind of investor you are . Here are some tips to help you get the answers you.
In going to invest about your business a game plan and set concrete goals . The answers to these questions will provide valuable signposts for you in investing your money in your company.
o What is your time frame for investing?
o Which sectors of the industry you are interested in investing in ?
o What is the amount of resources you can use to invest safely in order to reach your goals?
o Have you considered your short term financial needs or goals ?
o Do you plan to live in your retirement years ? these investments
Determine your investment style . Are you a risk taker ? Or would you steady increase ? Consider this thought , you'll be able to sleep soundly at night , knowing that your investment is smaller and will last a long time before it increases ? Whether you prefer to hand over your money to a money manager ? Do you like to invest your money? Minimal risk Think of the kind of risk taker you are, because this will help in choosing the financial vehicles for investing in.
What is the length of time you want to spend on investing in stocks ? It is only 15 minutes a day ? Or do you find it as bringing with views on the financial statements and the debate on the merits of these files . Aware of entertainment to 7 to 14 hours per week
Please consider carefully the answers to these questions . If you know what type of investor you are , you can play to your strengths and minimize the risks of the funds you invest with .
Timothy Gorman is a successful Webmaster and publisher of Debt - Relief - Solutions.com . He provides more debt relief , consolidation and financial planning advice that you can research in your pajamas on his website .
Saturday 9 November 2013
Short Term Savings Products
When you invest , it simply means that you are putting your money into products , in this case the short -term savings vehicles , which will allow you to reap high financial rewards .
Here is a list of the most common short -term savings products you should consider investing in.
Savings : When you first get wet your feet in investing, you should consider this, as it is the most popular banking product people use . The interest of a traditional savings range from 2.0% to 4.0 . This is better than keeping them at home. Investing in a savings account is relatively risk free, since these products are protected by the Federal Deposit Insurance . In general , the government's money you have on deposit to a maximum of $ 100,000 . Protects Some questions you need to ask : What is the interest rate on your savings ? Can change the rate after you open the account? Bank Will you pay a fixed monthly fee ? What if the balance drops ? Is the ATM service for free ? The fees reduced or waived if you deposit your paycheck or government payments ?
Money market funds : Money market funds are a specialized type of mutual fund that invests in extremely short-term bonds . Its shares are designed value of $ 1 at all times. It is a better product for investing in the traditional savings account , with respect to interest rates will give it to you . But has a lower rate than savings bonds . However , the virtue of investing in the money market fund is that while interest rates may be lower, you can take suits you your money.
Certificate of deposit ( CD ) : When you purchase a certificate of deposit , you are lending the bank use your money for a specified amount of time . In investing your money , you are assured of the annual interest payments . Investing in CD is relatively low risk , as it is FDIC insured up to $ 100,000 . If you invest $ 200,000.00 buy two CDs . Before going to invest your money , look for the best bank interest rates . Consider the fact that by purchasing CDs, you invest funds that will remain locked up for a certain period of time . Can you afford these funds locked up ? For if you take the money before it matures , you will pay . Steep fines If you are conservative about investing , this is a good place to start .
Financial experts recommend investing your money in the short term savings vehicles , if you are looking to earn some interest in minimal risk products .
Timothy Gorman is a successful Webmaster and publisher of Debt - Relief - Solutions.com . He provides more debt relief , consolidation and financial planning advice that you can research in your pajamas on his website .
Here is a list of the most common short -term savings products you should consider investing in.
Savings : When you first get wet your feet in investing, you should consider this, as it is the most popular banking product people use . The interest of a traditional savings range from 2.0% to 4.0 . This is better than keeping them at home. Investing in a savings account is relatively risk free, since these products are protected by the Federal Deposit Insurance . In general , the government's money you have on deposit to a maximum of $ 100,000 . Protects Some questions you need to ask : What is the interest rate on your savings ? Can change the rate after you open the account? Bank Will you pay a fixed monthly fee ? What if the balance drops ? Is the ATM service for free ? The fees reduced or waived if you deposit your paycheck or government payments ?
Money market funds : Money market funds are a specialized type of mutual fund that invests in extremely short-term bonds . Its shares are designed value of $ 1 at all times. It is a better product for investing in the traditional savings account , with respect to interest rates will give it to you . But has a lower rate than savings bonds . However , the virtue of investing in the money market fund is that while interest rates may be lower, you can take suits you your money.
Certificate of deposit ( CD ) : When you purchase a certificate of deposit , you are lending the bank use your money for a specified amount of time . In investing your money , you are assured of the annual interest payments . Investing in CD is relatively low risk , as it is FDIC insured up to $ 100,000 . If you invest $ 200,000.00 buy two CDs . Before going to invest your money , look for the best bank interest rates . Consider the fact that by purchasing CDs, you invest funds that will remain locked up for a certain period of time . Can you afford these funds locked up ? For if you take the money before it matures , you will pay . Steep fines If you are conservative about investing , this is a good place to start .
Financial experts recommend investing your money in the short term savings vehicles , if you are looking to earn some interest in minimal risk products .
Timothy Gorman is a successful Webmaster and publisher of Debt - Relief - Solutions.com . He provides more debt relief , consolidation and financial planning advice that you can research in your pajamas on his website .
Thursday 7 November 2013
Investing: Do You Want To Make Money, Or Would You Rather Fool Around?
It always amazes me how many stock market investors seem racetrack bettors . Some are very conservative, willing to trade low returns for relative safety . Others put up with both hands , looking for the big score . In this article I want to introduce you to a few characters that I have met . At racetracks Then we'll see what they can learn about investing us.
CONSENSUS CONNIE - Connie is easily recognizable . She is the lady with the table buried in paper. Connie thinks picking horses is too complicated for her to learn all the songs and the like. So she relies on the experts - all of them . Before she sits down , Connie buys all tout sheets . She adds them to the predictions of the newspaper , the handicapper on the circuit and the Daily Racing Form . If they all agree on a horse , Connie head for the windows.
As you would expect , Connie win more than they lose . Too bad the horses she wins with performing the shortest odds (smallest payout ) at the track . It takes Connie to make her occasional losers . Many winners
Connie has to invest the same approach. Before buying or selling something , it controls the money shows on cable TV , as many financial newspapers , newsletters and magazines as she can get her hands on , and then asks her broker. By the time Connie is ready to make a move, they work on old news . They can pick good stocks , but she's so late she misses most of the profits and takes up most of the losses .
ARTIE ACTION - For Artie , who in the game is more important than winning or losing . Artie just has to bet each race. Ask him how he did, and he will recite his list of winners for you . Many days , Artie will tell you that he won $ 200 . Count the cards on his table and you may find it cost him $ 350 to do it . Artie did not care that he lost $ 150 , as long as he has new winners to talk about .
Artie plays the market in the same way . It is in and out, up and down. He will win some and lose others . Talk to him and you think he's a genius . Ask him about losers and that he can not remember any. In fact, Artie thinks he is so good , he thinks to be a day trader . It generates many short-term capital gains and losses , he has a love / hate relationship with his accountant .
EXOTIC Ed - Ed loves the exotic bets . Daily Double, Exactas , trifectas , Pick 6 get all his blood moving.They all promise huge payouts for small stakes. Ed is not stupid , he knows that the odds of winning each bet are pretty slim. He makes up for it by betting many combinations . You can choose Ed from the crowd after each race . He is one busy shuffling through a deck of betting tickets to see if he won .
When Ed decides to invest , he takes the same approach . He buys a bunch of penny stocks , some junk bonds , maybe even take a flyer on an IPO or two . He has a stack of buying and selling fasteners on his desk . The Ed takes an hour to one simple question to answer - " How are you, Ed ?" .
" CYA " CHARLIE - Charlie never lose - a lot. And when he does , it bothers him dead . You see, Charlie is much more interested in _not losing_ than he is to win . In a two- horse race , Charlie will bet on both horses . Win and Place .
When it comes to investing , Charlie is a real belt - and - suspenders kind of guy . FDIC - insured savings account ? Yes , even if only pay 2 % . U.S. Savings Bonds ? Charlie also . Bought them for a walk on the wild side . What Charlie has not yet realized that , in his quest for absolute safety , he takes a big risk of being left behind .
Now that you have met our cast of characters , you see yourself in one or more of them ?
Are you like Connie , who likes the idea of winning, but does not trust himself to take its own decisions Your job is to learn enough to choose an advisor you can trust at least. Load index fund - even that. , Go out and buy a good no missing That way you can use the collective knowledge of the entire market .
Are you like Artie , who likes being able to talk about his latest "hot deal" more than making maoney on " boring" investments? Your job is to make the most of your money in vehicles that earn the returns you need in relative safety . Go ahead , take 10 % , and go have fun .
Are you like Ed , who has so many irons in the fire that he did not know whether he or behind ? Your job is to simplify , to focus on the ones you really understand and have confidence in your investments
Are you like Charlie , so afraid of losing money you lose on a higher return ? Your job is to understand that your trading capital risk ( risk of losing money) for the inflation risk ( risk of loss of purchasing power ) . Find a mix of investments that will generate a higher return and still let you sleep at night .
Whether you choose to take these tasks is entirely up to you . You are responsible for your financial life . Ask yourself a question , and act accordingly.
Want to earn money or would you rather fool around ?
John McCabe 's Web guides show you how to find more and more. Success in all facets of your life For more articles about living an abundant , vibrant , happy life , come to
CONSENSUS CONNIE - Connie is easily recognizable . She is the lady with the table buried in paper. Connie thinks picking horses is too complicated for her to learn all the songs and the like. So she relies on the experts - all of them . Before she sits down , Connie buys all tout sheets . She adds them to the predictions of the newspaper , the handicapper on the circuit and the Daily Racing Form . If they all agree on a horse , Connie head for the windows.
As you would expect , Connie win more than they lose . Too bad the horses she wins with performing the shortest odds (smallest payout ) at the track . It takes Connie to make her occasional losers . Many winners
Connie has to invest the same approach. Before buying or selling something , it controls the money shows on cable TV , as many financial newspapers , newsletters and magazines as she can get her hands on , and then asks her broker. By the time Connie is ready to make a move, they work on old news . They can pick good stocks , but she's so late she misses most of the profits and takes up most of the losses .
ARTIE ACTION - For Artie , who in the game is more important than winning or losing . Artie just has to bet each race. Ask him how he did, and he will recite his list of winners for you . Many days , Artie will tell you that he won $ 200 . Count the cards on his table and you may find it cost him $ 350 to do it . Artie did not care that he lost $ 150 , as long as he has new winners to talk about .
Artie plays the market in the same way . It is in and out, up and down. He will win some and lose others . Talk to him and you think he's a genius . Ask him about losers and that he can not remember any. In fact, Artie thinks he is so good , he thinks to be a day trader . It generates many short-term capital gains and losses , he has a love / hate relationship with his accountant .
EXOTIC Ed - Ed loves the exotic bets . Daily Double, Exactas , trifectas , Pick 6 get all his blood moving.They all promise huge payouts for small stakes. Ed is not stupid , he knows that the odds of winning each bet are pretty slim. He makes up for it by betting many combinations . You can choose Ed from the crowd after each race . He is one busy shuffling through a deck of betting tickets to see if he won .
When Ed decides to invest , he takes the same approach . He buys a bunch of penny stocks , some junk bonds , maybe even take a flyer on an IPO or two . He has a stack of buying and selling fasteners on his desk . The Ed takes an hour to one simple question to answer - " How are you, Ed ?" .
" CYA " CHARLIE - Charlie never lose - a lot. And when he does , it bothers him dead . You see, Charlie is much more interested in _not losing_ than he is to win . In a two- horse race , Charlie will bet on both horses . Win and Place .
When it comes to investing , Charlie is a real belt - and - suspenders kind of guy . FDIC - insured savings account ? Yes , even if only pay 2 % . U.S. Savings Bonds ? Charlie also . Bought them for a walk on the wild side . What Charlie has not yet realized that , in his quest for absolute safety , he takes a big risk of being left behind .
Now that you have met our cast of characters , you see yourself in one or more of them ?
Are you like Connie , who likes the idea of winning, but does not trust himself to take its own decisions Your job is to learn enough to choose an advisor you can trust at least. Load index fund - even that. , Go out and buy a good no missing That way you can use the collective knowledge of the entire market .
Are you like Artie , who likes being able to talk about his latest "hot deal" more than making maoney on " boring" investments? Your job is to make the most of your money in vehicles that earn the returns you need in relative safety . Go ahead , take 10 % , and go have fun .
Are you like Ed , who has so many irons in the fire that he did not know whether he or behind ? Your job is to simplify , to focus on the ones you really understand and have confidence in your investments
Are you like Charlie , so afraid of losing money you lose on a higher return ? Your job is to understand that your trading capital risk ( risk of losing money) for the inflation risk ( risk of loss of purchasing power ) . Find a mix of investments that will generate a higher return and still let you sleep at night .
Whether you choose to take these tasks is entirely up to you . You are responsible for your financial life . Ask yourself a question , and act accordingly.
Want to earn money or would you rather fool around ?
John McCabe 's Web guides show you how to find more and more. Success in all facets of your life For more articles about living an abundant , vibrant , happy life , come to
Tuesday 5 November 2013
Discipline in Trading and Investing
The only thing I can think of that most affects both trading and investing has to be self-discipline.
Being disciplined is fully 50% of the job of trading or investing. I do not care how good your trading system is , without the discipline needed to the system you do not have much of a chance of success to follow . To your objectives in meeting
It does not matter how big a planner or organizer , you are without discipline your plans will shed . Likely fail fruit
Discipline implies self-control and self-control keeps your ego . If you want to succeed , you must learn to trade without your ego get in the way .
Do not be fooled . Self-image of a person should be separated from its trade or invest . When personal esteem becomes entangled with your business activities , it demolishes not only your best trading or investing purposes , but it also damages your self-esteem .
You hear and read about great traders and investors who have done amazing things . They talk about how great they are . They talk about " The Big " trades they made . They talk about " Big" numbers. It derives from their already oversized ego.
Do not be fooled . Sooner or later , there are " big downfall . " It's part .
For a moment , let's look at the results of what a huge ego can do . With his big ego , Nick Leeson brought Barings Bank . Victor Niederhoffer ran his fund into a deficit . John Merriweather was so sure would work , that of his strategies he ended threat to the health of the entire banking system by betting more than fifty times its capital that he could predict , without any possibility of a loss , the direction of the various bond markets.
If we study the examples of these three men , there seems to be a pattern of temporary real success followed by a collapse for themselves and for those who are caught in them follow blindly.
Here are the types of problems arising from putting your ego in the mix .
- Not put into it : You do not want to be proven wrong .
- Hesitation before entry: You want reassurance before you act .
- About Trading : You really want to prove how great you are .
- Do not go if you should: You married your trade and just do not want to separate . Getting out would mean that you were wrong .
- Adding a losing trade : You're making a huge effort to prove that you originally were right .
- Grabbing a quick profit : You want confirmation that you did the right thing .
- Missing a chance because you can not pull the trigger on a trade : You 're still living with past mistakes .
In my 47 years of trading , I have seen many traders and investors come and go . Too many of them lost everything they had ever done . The big W. D. Gann died a pauper . The legendary Jess Livermore was broke when he committed suicide .
I have dozens of traders who lost money known for their egos got in the way .
I agree 100 % with the following statement by Marty Schwartz , the big S & P 500 daytrader .
"I've said it before and I'll say it again , because it can not be stressed enough - the main change in my trading career occurred when I learned MY EGO SEPARATION OF TRADING Trading is a psychological game . . most people think they are playing against the market , but the market does not care. you're really playing against yourself . you should stop trying things will happen to prove that you're right . just listen to what the market tells you now . Forget what you thought telling you five minutes ago . the sole purpose of trade is not to prove you 're right , but to hear the cash register ringing. "
To that I would add , "trade what you see , not what you think . " You can not afford to have your ego or your opinion shall be given . In your trading
Because both trading and investing businesses are uncertain of probabilities filled with uncertain outcomes , a huge ego or a fragile ego can easily destroyed . Defending your ego saps your energy , disrupts your perception , and will eventually destroy your business .
If your self-esteem is linked to your trading and investing choices , when it goes up and down with the results of your activities , you and your company in trouble . You must be strong self-image , not at the mercy of the outcome of your trade or investment choices .
To succeed in the market , you must have confidence in what you are doing and have confidence in yourself . But confidence should not be confused with self-image . Remember to make a market or fair to marry . If you see you are not good , be quick to get out . Run your trading or investing as a business. Practice self-discipline . You 'll be glad you did.
All the best in your trading ,
Joe Ross
Trading Educators Inc.
Joe Ross has been trading for over 47 years , and is a well known Master Trader . He has survived the ups and downs of the markets because of his adaptable trading style , low-risk approach that produces consistent profits .
Joe is the creator of the Ross hook , and has set new standards for low - risk. Trading set with his concept of "The Law of Charts " Joe was a private trader for most of his life in the middle of the . he shift his focus to 80 and decided to share his knowledge. After his recovery , he founded Trading Educators in 1988 to aspiring traders how to learn . profits using his trading approach
He has 12 major books on trading . All of them have become classics and have been translated into many different languages .
Joe holds a Bachelor of Science degree in Business Administration from the University of California at Los Angeles . He did his Masters work in Computer Sciences at the George Washington University extension in Norfolk , VA .
Joe still tutors , teaches , writes , and trades regularly . Joe is still an active and integral part of Trading Educators .
Being disciplined is fully 50% of the job of trading or investing. I do not care how good your trading system is , without the discipline needed to the system you do not have much of a chance of success to follow . To your objectives in meeting
It does not matter how big a planner or organizer , you are without discipline your plans will shed . Likely fail fruit
Discipline implies self-control and self-control keeps your ego . If you want to succeed , you must learn to trade without your ego get in the way .
Do not be fooled . Self-image of a person should be separated from its trade or invest . When personal esteem becomes entangled with your business activities , it demolishes not only your best trading or investing purposes , but it also damages your self-esteem .
You hear and read about great traders and investors who have done amazing things . They talk about how great they are . They talk about " The Big " trades they made . They talk about " Big" numbers. It derives from their already oversized ego.
Do not be fooled . Sooner or later , there are " big downfall . " It's part .
For a moment , let's look at the results of what a huge ego can do . With his big ego , Nick Leeson brought Barings Bank . Victor Niederhoffer ran his fund into a deficit . John Merriweather was so sure would work , that of his strategies he ended threat to the health of the entire banking system by betting more than fifty times its capital that he could predict , without any possibility of a loss , the direction of the various bond markets.
If we study the examples of these three men , there seems to be a pattern of temporary real success followed by a collapse for themselves and for those who are caught in them follow blindly.
Here are the types of problems arising from putting your ego in the mix .
- Not put into it : You do not want to be proven wrong .
- Hesitation before entry: You want reassurance before you act .
- About Trading : You really want to prove how great you are .
- Do not go if you should: You married your trade and just do not want to separate . Getting out would mean that you were wrong .
- Adding a losing trade : You're making a huge effort to prove that you originally were right .
- Grabbing a quick profit : You want confirmation that you did the right thing .
- Missing a chance because you can not pull the trigger on a trade : You 're still living with past mistakes .
In my 47 years of trading , I have seen many traders and investors come and go . Too many of them lost everything they had ever done . The big W. D. Gann died a pauper . The legendary Jess Livermore was broke when he committed suicide .
I have dozens of traders who lost money known for their egos got in the way .
I agree 100 % with the following statement by Marty Schwartz , the big S & P 500 daytrader .
"I've said it before and I'll say it again , because it can not be stressed enough - the main change in my trading career occurred when I learned MY EGO SEPARATION OF TRADING Trading is a psychological game . . most people think they are playing against the market , but the market does not care. you're really playing against yourself . you should stop trying things will happen to prove that you're right . just listen to what the market tells you now . Forget what you thought telling you five minutes ago . the sole purpose of trade is not to prove you 're right , but to hear the cash register ringing. "
To that I would add , "trade what you see , not what you think . " You can not afford to have your ego or your opinion shall be given . In your trading
Because both trading and investing businesses are uncertain of probabilities filled with uncertain outcomes , a huge ego or a fragile ego can easily destroyed . Defending your ego saps your energy , disrupts your perception , and will eventually destroy your business .
If your self-esteem is linked to your trading and investing choices , when it goes up and down with the results of your activities , you and your company in trouble . You must be strong self-image , not at the mercy of the outcome of your trade or investment choices .
To succeed in the market , you must have confidence in what you are doing and have confidence in yourself . But confidence should not be confused with self-image . Remember to make a market or fair to marry . If you see you are not good , be quick to get out . Run your trading or investing as a business. Practice self-discipline . You 'll be glad you did.
All the best in your trading ,
Joe Ross
Trading Educators Inc.
Joe Ross has been trading for over 47 years , and is a well known Master Trader . He has survived the ups and downs of the markets because of his adaptable trading style , low-risk approach that produces consistent profits .
Joe is the creator of the Ross hook , and has set new standards for low - risk. Trading set with his concept of "The Law of Charts " Joe was a private trader for most of his life in the middle of the . he shift his focus to 80 and decided to share his knowledge. After his recovery , he founded Trading Educators in 1988 to aspiring traders how to learn . profits using his trading approach
He has 12 major books on trading . All of them have become classics and have been translated into many different languages .
Joe holds a Bachelor of Science degree in Business Administration from the University of California at Los Angeles . He did his Masters work in Computer Sciences at the George Washington University extension in Norfolk , VA .
Joe still tutors , teaches , writes , and trades regularly . Joe is still an active and integral part of Trading Educators .
Sunday 3 November 2013
Trend Following
Trend following also called momentum trading is the simplest and safest way of stock market investing . It puts you in stocks and mutual funds that go up and get out when they start down . Well done , there is no guesswork .
How many times have you bought a stock or fund for in-depth analysis ? You have gone from Morningstar and bought their extensive reports - many months old, but you do not know that . Perhaps your broker sent you a bushel of nice reports about how great this particular company . Unfortunately every time you bought the shares or funds either not gone up or down.
Once you 're touted a number of equity you can be sure you are not the first and you could be the last to be bought at the top of the move. What can you do to prevent this kind of Wall Street fall
Where to a file or a fund that will actually go up after you buy it find ? One thing I will say is do not try to pick individual stocks. Leave that to the pros. The best place for your money is in a no-load mutual fund (which is no commission ) or an ETF , Exchange Traded Fund (a type of mutual fund that trades like a stock ) . A fund has a professional money manager who is able to be. Of buying good stocks He spends his whole life to do, where you have another occupation so.
There are many places on the internet that ranking funds by performance such as Yahoo.com , stockcharts.com , barcharts.com and many others . Performance means that it is more and faster than any other investment . You can also list the funds can be found in Investor's Business Daily or you can subscribe to a service that does all this for you as noload FundX . Forget Morningstar and their star ratings that are meaningless .
To determine whether to buy or sell , you can use a very simple 200 - day moving average and you do not have to do the calculation. Go to http://www.bigcharts.com and click on their interactive charts . In the left column you can find a place to type in 200 and then find that line will appear in the fund symbol entered . When the fund is above the line you want to own it . When it goes below the line you want to sell . Yes , it's that simple .
There is no holy grail trading method , but next trend is about as close as possible to the average person will find . A trend follower understands there will be occasional losses , but he also knows that when a major trend begins he will participate for at least 60 % to 70 % of the profits from the move . He knows when to buy and more importantly when to sell .
Best selling all of 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 and receive his market letter and discover why he's the man that Wall Street does not want you to know . Copyright 2005
How many times have you bought a stock or fund for in-depth analysis ? You have gone from Morningstar and bought their extensive reports - many months old, but you do not know that . Perhaps your broker sent you a bushel of nice reports about how great this particular company . Unfortunately every time you bought the shares or funds either not gone up or down.
Once you 're touted a number of equity you can be sure you are not the first and you could be the last to be bought at the top of the move. What can you do to prevent this kind of Wall Street fall
Where to a file or a fund that will actually go up after you buy it find ? One thing I will say is do not try to pick individual stocks. Leave that to the pros. The best place for your money is in a no-load mutual fund (which is no commission ) or an ETF , Exchange Traded Fund (a type of mutual fund that trades like a stock ) . A fund has a professional money manager who is able to be. Of buying good stocks He spends his whole life to do, where you have another occupation so.
There are many places on the internet that ranking funds by performance such as Yahoo.com , stockcharts.com , barcharts.com and many others . Performance means that it is more and faster than any other investment . You can also list the funds can be found in Investor's Business Daily or you can subscribe to a service that does all this for you as noload FundX . Forget Morningstar and their star ratings that are meaningless .
To determine whether to buy or sell , you can use a very simple 200 - day moving average and you do not have to do the calculation. Go to http://www.bigcharts.com and click on their interactive charts . In the left column you can find a place to type in 200 and then find that line will appear in the fund symbol entered . When the fund is above the line you want to own it . When it goes below the line you want to sell . Yes , it's that simple .
There is no holy grail trading method , but next trend is about as close as possible to the average person will find . A trend follower understands there will be occasional losses , but he also knows that when a major trend begins he will participate for at least 60 % to 70 % of the profits from the move . He knows when to buy and more importantly when to sell .
Best selling all of 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 and receive his market letter and discover why he's the man that Wall Street does not want you to know . Copyright 2005
Friday 1 November 2013
Don't Catch a Falling Knife
One of the most common mistakes made by inexperienced investors is trying to "catch a falling knife " . This is used to the habit of buying shares in " free fall " describe sense , and is a bad strategy , albeit common among new investors . Unfortunately, it is a common practice even among old and experienced investors . I myself have even fallen prey to it .
Remember, there are two primary approaches to investing : fundamental analysis and technical analysis . We generally fall into the basic camp , because we evaluate stocks based on their valuation, instead of looking mainly to short -term price movements . We take this direction , because we believe this offers the greatest potential for long-term success .
A single-minded view of only the foundations of an investment , however, the profit of the investor and lead to some nasty positions . This is because there are real limits for buying a stock if it falls. One can have a stock that looks like a great value buy at $ 10 only to see it drop to $ 5 . Certainly , if the stock increases to $ 20 , you can have " right " been able to buy at $ 10 , but one could say that you are not " just enough " . Buy from 5 would have led to a 300 % return , while settled for only 100 % . Moreover, if you were convinced that $ 10 is a reasonable price , you could have saved time by buying it on the way back to the top instead of on the way down .
It's very simple - buying a stock in mid- fall is not a pleasant experience , and it is not difficult to come up with a variety of other strategies that would bring happier outcomes .
Yet we should not all files have dropped to avoid . In fact , studies have shown that investors who buy shares that are difficult cases tend to perform on a regular basis . Market better In fact , such a bottom - fishing strategy offer one of the best performances of all strategy sets. Lack of these opportunities can be costly .
The decision whether or not to buy " fallen angels " , but WHEN . This is where a bit of technical analysis skills comes in handy. Although technical aids can not really say to buy ( unless you're willing to take a piece of junk that happens to be a good price to buy are momentum ) , which shares can lead us to a better understanding of the timing . Once we have chosen a good investment based on fundamentals , it's time to decide where to put the money. Down
A good first step is to look for a positive movement on good volume before committing . As long as the stock falls , there is a good chance that you get . 's At a better price Better to wait a few days ( or weeks ) to ensure timed correctly your purchase. There is no advantage to buying before the time is right , even if the choice of the stock is ideal. It is here that patience is a virtue . Do not try to catch falling knives , but make sure to pick up after they hit the floor . They
By: Scott Pearson
President Scott Pearson is the Chief Investment Advisor for Value View Financial as well as a writer , editor , instructor , and business leader . As editor and publisher of Investor 's Value View, a national investment newsletter , he provides general money tips and investment advice to readers , and shows a particular talent for locating and providing analysis for undervalued stocks . Scott reached for questions or comments please send an email to
Remember, there are two primary approaches to investing : fundamental analysis and technical analysis . We generally fall into the basic camp , because we evaluate stocks based on their valuation, instead of looking mainly to short -term price movements . We take this direction , because we believe this offers the greatest potential for long-term success .
A single-minded view of only the foundations of an investment , however, the profit of the investor and lead to some nasty positions . This is because there are real limits for buying a stock if it falls. One can have a stock that looks like a great value buy at $ 10 only to see it drop to $ 5 . Certainly , if the stock increases to $ 20 , you can have " right " been able to buy at $ 10 , but one could say that you are not " just enough " . Buy from 5 would have led to a 300 % return , while settled for only 100 % . Moreover, if you were convinced that $ 10 is a reasonable price , you could have saved time by buying it on the way back to the top instead of on the way down .
It's very simple - buying a stock in mid- fall is not a pleasant experience , and it is not difficult to come up with a variety of other strategies that would bring happier outcomes .
Yet we should not all files have dropped to avoid . In fact , studies have shown that investors who buy shares that are difficult cases tend to perform on a regular basis . Market better In fact , such a bottom - fishing strategy offer one of the best performances of all strategy sets. Lack of these opportunities can be costly .
The decision whether or not to buy " fallen angels " , but WHEN . This is where a bit of technical analysis skills comes in handy. Although technical aids can not really say to buy ( unless you're willing to take a piece of junk that happens to be a good price to buy are momentum ) , which shares can lead us to a better understanding of the timing . Once we have chosen a good investment based on fundamentals , it's time to decide where to put the money. Down
A good first step is to look for a positive movement on good volume before committing . As long as the stock falls , there is a good chance that you get . 's At a better price Better to wait a few days ( or weeks ) to ensure timed correctly your purchase. There is no advantage to buying before the time is right , even if the choice of the stock is ideal. It is here that patience is a virtue . Do not try to catch falling knives , but make sure to pick up after they hit the floor . They
By: Scott Pearson
President Scott Pearson is the Chief Investment Advisor for Value View Financial as well as a writer , editor , instructor , and business leader . As editor and publisher of Investor 's Value View, a national investment newsletter , he provides general money tips and investment advice to readers , and shows a particular talent for locating and providing analysis for undervalued stocks . Scott reached for questions or comments please send an email to
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