How To Identify And Take Advantage Of Stock Market Trends

How To Identify And Take Advantage Of Stock Market Trends by Gregg Hall

Many people invest in the stock market and make a lot of money. How do they do it? They have learned how to spot stock market trends. The market is like fish swimming through the ocean, if you watch it long enough and understand its habits you can usually determine what it will do next. The market will send signals about the direction it is heading if you pay attention.

It is important to understand the general trend of the market, what it is doing now will tell us what will happen in the future. The two key ingredients to trend spotting is to the price and volume. When you look at the two together it can give you a picture of the quantities of buyers and sellers in the market. Volume will tell you if there is movement in the market and price will tell you what direction it is moving.

A volume indicator comes from the daily sale volume. If there is a day with high volume and prices it is most likely that mutual funds and institutional investors are buying, that is a sign the market is heading up. But on a day that has high volume and low prices means the big buyers are backing off and the market is down. A wise investor will use this information and some common sense to determine if it is a good time for them to buy or sell.

Some times it is easier to follow the leaders. This means to invest in stocks the big money makers invest in. Or you can play it safe and invest in companies that are known for steady growth. They might give back a big profit but there is more security. This is known as investing in market leaders. That also means you will be betting on a long term investment paying off handsomely in the future. But most investors feel that if there is no great risk there is no great reward.

Many of us have heard of the market being bullish or bearish. When it is a bull market that means there is a prolonged period of time when prices are rising in the market, faster than their historic average. This is also associated with investor confidence, motivating investors to buy with anticipation of future capital gains. And in a bear market it is when the prices are falling. There is certain pessimism in a bear market; investors will sell in anticipation of future losses if they don't.

A secondary trend is a temporary change in price during a primary trend. These can last for weeks and even months. When it is a decrease during a bull market it is called a correction. And when it is an increase during a bear market it is called a bear market rally.



Gregg Hall is an author living in Navarre Florida. Find more about this as well as stock market news at http://www.businessandstocknews.com

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7 Power Habits to Guarantee Financial Independence

7 Power Habits to Guarantee Financial Independence by Zamri Nanyan

Are you always running short of your funds? Do you still have to borrow money sometimes to at least live comfortably? Do you get to pay your bills on time?

If you answered mostly yes, then you are in danger of being financially unstable. You cannot afford the things you want and sometimes, even the things you need. Don’t go sulking out there! You better move your body. If such is the case, better tell yourself that you cannot afford to be that way always. You have to be financially independent.

What is financial independence? Financial independence is the capability to determine and support yourself through your own endeavors. There are 7 ways or habits for you to follow to gain financial independence. With the right attitude and the proper goal in mind, you might just find yourself beaming with pride because of your achievement.

1. Keep a focused vision


Start with a vision. What is your vision for your life? Where are you definitely heading? You want financial independence. You want to be able to stand on your own and have a more stable and secured life, for yourself and for your family.

Keep that vision in mind. Hold on to it as you start to realize that vision. The choices and decisions you will make in the future will have to head to the direction of your goal. Return to that vision when things get doubtful or tough.

2. Invest your money wisely

Generate income. Your income will be the financial foundation of your vision. This will basically come from your job’s income, but don’t settle with that.

Aim to increase your income. Invest your time, money and effort into a beneficial enterprise. Start a business that you feel passionately about and make sure it will work. Think carefully of every detail in your enterprise and work on it. Do not settle with good enough results. Aim for excellence, quality and integrity to succeed.

3. Save up

Start a fund for your future. Allot a percentage of your present income to savings. Do this at the start of each month, before you go ahead. This will avoid the enticement to buy, buy, buy. It will also teach you how to properly budget your money for necessary expenses.

Money in the bank could also earn interest. Although it is not considerable compared to a good investment, it is still a good way to keep money for your future. Just make sure you maintain the money in your savings account. Avoid touching it unless it is really necessary.

Give value also to your coins. Every single cent matters. All of those scattered coins you have there could comprise a few dollars. Even if it is considerably small amount, it will still find some use for that.

4. Spend wisely

Don’t spend all your earnings. As they say, don’t earn to spend. Buy only things that you really need. Tighten those belts for now as you bank for a more secured future. Choose to live simply. Forget the need to show off on other people that you can afford. If you want achieve financial independence, you must hold on to your money as much as possible.

Avoid incurring debts as much as possible. Take control of your finances as much as possible. Credit cards for example could hold you locked in a desperate state. You could be getting what you want now through that credit card, but imagine yourself giving the bulk of your income for interest payments! Make ends meet in the meantime for later on in life, you will surely afford to be leisurely.

5. Keep contingency plans

You must plan ahead for events in the future. Have contingencies. Make certain that your financial assets are secured. At this phase, it is a good option to get an insurance policy. Insure your life, health and property, even your loved ones.

Protect your interests whenever you enter into any engagement. Make sure that your endeavor is legal, that you are financially capable, and that it is feasible within your means. This way, you will have optimal performance and desirable results. You could prevent harmful losses in the long run.

6. Take care of yourself

Health is wealth. The only way for you to achieve your dreams and be able to stand on your own is when you are physically and psychologically able to do so. Have regular check ups with your physician. Have a healthy diet. Exercise Regularly. Health will be your asset to achieve financial independence. Only a good physical standing would allow you to enjoy the fruits of your toils today.

7. Be Unstoppable

You must keep yourself focused to achieve the goal of being financially independent. Do not let yourself be distracted by whimsical desires. Do not spray. Do not procrastinate. Every cent and every minute counts as what you do today will have a lot to say on what you will have in the future. Take advantage of every opportunity that will come your way. Keep yourself confident.

Tell yourself, you will not be a loser in this game. You have to make it!



Daegan Smith is the leader of the fastest growing team of successful home business enterpernuers on the net. Find out how we're creating financial freedom all across the globe and how to get in on the action FREE at http://www.comlev.net

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Why Poor People Can't Get Rich

Why Poor People Can't Get Rich by Terence Young

The distribution of wealth is never equal, there is always someone with more and someone with less. They say that if you were to take all the wealth in the world and redistribute it equally amongst the world's population that within a short while the top 20% will again control 80% of the wealth. So why do the rich get richer and the poor get poorer. The poor tend to think that the reason they are poor is because they aren't rich. It sounds ludicrous when you read that sentence but that is exactly how many of them think. They say that if they had the resources and money at their disposal like the rich then they too would be rich. The irony of it all is that very thinking, that you need money to make money is the very reason they are poor.

Money is not a requirement to wealth. If that was the case then all the poor people in the world might as well resign now to their future of lack. We wouldn't then hear about all those inspiring rags to riches story and how people overcame all odds to make it rich.

So if you don't need money to become rich then why is it so hard for poor people to become rich. The simple fact is that the rich have a wealth consciousness that creates abundance and prosperity in their lives. Whereas the poor have a money lack consciousness about money and therefore keeps them shackled in lack and poverty.

If you are in a current financial position that looks more like the description of the poor than the rich then you need to start to make some changes. The most unproductive thing you can do is to keep doing what you did yesterday and hope today will produce a different result. Change your actions and thoughts and that will change your results. So how do you go about changing your results?

First you need to start to find out what the rich do that you don't do. If you wanted to be able to play golf you would have a better chance of improving your game by learning from a PGA certified coach then you would asking your friend how is a weekend hacker scoring 30 over par. It's the same thinking when it comes to changing your financial situation. Learn from someone who is already rich rather than trying to learn from your friends and family who themselves are just barely keeping their heads above water. At the end of the day everyone is willing to give out free advice, but sometimes free advice if followed can be the most costly of them all. If you don't have people around you who are financially independent then go out and buy books of authors, go to seminars or ask around your circle of friends for recommendation. Start to take in the advice from people who can actually get you to where you want to go because they themselves have seen what the finish line looks like.



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How Do I Get Started In Short Term Investing?

How Do I Get Started In Short Term Investing? by Richard Callaby

For the average person, the thought of short term investing doesn’t appear to be a viable option. Most people think first of the typical savings account, or maybe even a 401K, but those are not the only options. Savings accounts no longer have an attractive interest rate, and a 401K is intended for retirement, and as such, can only be withdrawn under certain extenuating circumstances that are defined by government regulations. Besides, 401K is not considered a short-term investment, and that is what is being identified here.

Anyone who has some money to save should consider some of the short-term investment options instead of a typical low-interest savings account. Perhaps you are familiar with some of these such as CD’s, T-bills and money market funds, but there are other short-term investments as well such as zero coupon bonds from the U.S. Treasury, short-intermediate bond funds, and floating rate funds.

The major difference between these investments and the typical savings account is, with the exception of money market funds, there is a specified period of time required If you cash in before the maturity date, there is a steep penalty which varies according to the lending institution. It’s important to consider the purpose for which you are saving before deciding on the type of investment you want to make. The reason for that is that your intended purpose is going to tell you what kind of investment you want to make. For example, if you want to get a high interest rate, but your intention is to use it to buy a house or new car in a year or two, you may want to consider a money market account. The interest rates vary depending on the minimum balance requirement, but they are customarily available in denominations of $1,000 - $10,000. Additionally, up to three withdrawals per month are allowed, so this is attractive for the short-term investment.

The highest interest earned is going to be on the higher risk investments such as floating rate funds, which are funds that are used to buy loans from corporations. The problem with this is that environmental issues such as natural disasters can affect the interest rate, and therefore, the investor is going to earn less for his money than he had originally anticipated.

Various types of bond funds have existed for many years, and what the rate of return will be depends on the risk. Many of these bonds are generated for a set purpose, and the financial stability of the company offering them is going to determine the rate of return. The lower the credit rating, the higher the risk, and therefore, the higher the interest rate. Additionally, there are municipal bonds that are generated by cities, townships, and states for the purpose of renovations or other municipal needs. The bonds have a future maturity date that usually ranges anywhere from one year to seven years, sometimes more. This is still considered a short-term investment, however, but like other investments that have a maturity date, you will take a loss if you cash it out before its maturity date. That doesn’t mean that you can’t sell it to another investor at a price higher than what you paid; it simply means you can’t cash it out in the market without taking a cut in your profit.

For the short-term investor, mutual funds also make a nice investment and are safer than other types of investments. What happens with mutual funds is that the investor has the options to move the funds around within his portfolio based on the activity of the funds. If you have a broker, he will usually do this for you, watching out for your interests while moving the funds within the group.

What you choose to do must be based on your needs, so don’t make any decision until you have weighed your purpose for making the investment. Remember, the higher the investment, and the longer the term of investment, the higher your interest rate.



Richard Callaby is a Independent Computer Consultant, Writer, Author, Speaker and Instructor. More articles from this author and many other authors on personal finance can be reached at econtentking/finance

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The Top Seven Insider Tips to Preconstruction Investing

The Top Seven Insider Tips to Preconstruction Investing by Michael Zari

Copyright 2006 GetPreConstructionDeals.com

There are many different levels of real estate investors, ranging from experts to those who have already done several projects or to those who are just about to do their very first project and are looking for some guidance. These people, though they have varying experiences in real estate investing, have a common goal in mind: to find properties that will yield large profits in the long run.

Real estate investing is an activity that needs to be mastered to maximize returns. It takes a great deal of knowledge and experience before one can be a “pro” in this field. This is not saying that your have to be a pro in order to realize returns; you just have to do the things that a Pro does. There are many books that discuss the habits of successful individuals in different fields. Being a strong believer that you can learn a lot from successful people, I have gathered up a list of insider tips that I am sure that you will find useful.

Below are the top seven insider tips that we have found can help anyone to be successful in real estate investing.

#1 - Have a Plan

In everything we do there should always be a “game plan” to make sure everything works well. As a real estate investor, you should have a plan on your individual investments as well as an overall plan for your entire portfolio. Your plan should answer questions such as: What are the incentives? What are the benefits of going through a wholesale group? What are my options for exit strategy? Note that your criteria for an “excellent investment opportunity” should also be outlined in your plan. This way, when an opportunity crosses your desk (or computer screen) and meets your criteria, you can act quickly and there will be no time wasted.

Investing in real estate is also a form of business and there should be a good business plan in place before making that investment, whether it is your first one or not. You should include not only the benefits and projection of cash flow but also the possible risks in taking the investment. You should be able to think of appropriate course of action should your investment fail and put those details in your plan. That way, you will not be caught unprepared when such misfortunes happen.

#2 - Timing

As the adage goes, “the early bird gets the worm,” which I believe is especially true in real estate investing. One common element I’ve seen in successful real estate investors (and stock traders as well) is their ability to execute and completely follow through in a very timely fashion. They have broken down their investing into a system and once they know that something meets their criteria they do what it takes to “get ‘er done!” Once something meets their criteria, they do whatever it takes to get the investment. These people act fast from completing the necessary documents for reservation to following through on the entire process.

Getting in first through preconstruction opportunities also results in more incentives. Usually, if you take advantage of the “first day” price, you will pay less than the subsequent property buyers down the road. This, in some projects, even happens within the preconstruction phase; there are stepped price increases in the project. So in investments like this the early bird not only gets the worm, but also the extra built inequity as well! Therefore, it will be advantageous to you as an investor to get the right investments at the right time; and doing that is easy once you already have a working plan with all the criteria to look for in a good investment.

#3 - Do Your Homework!

On every investment that you make, you should do your homework, or in other words, know your project. Get all the necessary information about the project which include its location, developer and all the details about the property you are investing on. If possible, make a visit to the site as well. Remember that the price of an airline ticket is cheap compared to the size of your investment and you can pick up so much more information by putting your “boots on the ground” as well.

Since you are investing in a preconstruction project, you may want to check out other existing projects from the developer to see the kind of quality their properties have. It is also important to know if they are reliable and if your money is safe with them. A couple more things you need to know are: When will the building construction start? And how long should you expect the property to finish?

There may be a lot of things that need to be researched about the project but it is necessary that you have the right information so you will have a great feeling about the project right from the very start.

#4 - Create a Team of Experts

Every successful business person will tell you to surround yourself with experts. The same holds true in Real Estate. As a real estate investor, you should gather up a team of experts who will be able to give you good advice and suggestions on every investment that you make, tell you which is a good investment and which is not (and why), and be able to provide some help in such cases where an investment fails. You can also turn to these people if you have questions or if you need advice in areas where you feel you need a little more help on such as financial or legal aspects of investing.

How do you find your team? Start off with recommendations from fellow investors. Contact them, interview them, etc. It may a bit of time to complete and round out your team, but it is definitely worth the effort!

#5 - Knowledge is Everything

Ask! Ask! Ask! There is no harm in asking questions. If after reviewing all the materials and information that you gathered on a project, you still have some questions in mind, go ahead and ask. Being the investor, you are entitled to have the answers to all your questions. You may start with the source of the information you initially received, whether it is an agent or the developer themselves. They may be able to make everything clear for you, especially on project specific questions. If after consulting them again you feel that there are still some gray areas, feel free to ask your team of experts. They most likely have the answers to the things that you are looking for.

#6 - Know Your Financial Strength

No one else knows your specific financial situation better than you do! An exception to this might be your accountant or a financial advisor, if you have any. It is recommended that you personally assess your current financial situation if it can make you qualified for the project before going too far down the road. Perhaps you already have a bunch of properties and are tapped out? Whatever the reason, check it out. This can save you (and others) a lot of time if properly done up front.

Your buying power will have a huge effect on the decision of lenders, should you apply for financing on the property. But even if you do not seek financing, you still have to do your personal financial assessment. Of course, you wouldn’t want to end up being burdened with debt from your investments in the long run.

#7 - Seek Out Education

Your education as an investor is key to your success! Successful investors do not only study when they are planning to purchase something, they broaden their knowledge in investing by seeking out to learn everything about real estate investing all year round. It is not difficult to get more information that will help you in your investing adventure. A quick search from the different search engines will give you many articles about investing in real estate.

You may also benefit from attending web events and tele-seminars where you can hear information and have the opportunity to learn more about a particular preconstruction project or real estate subject. If self-studying is your thing, you may want to get some e-books that discuss how you can make a start in real estate investing and learn how to be a successful real estate investor.

Preconstruction real estate is getting more and more popular to the public these days. However, getting quality preconstruction deals is not as easy as buying items from a high end store. Whether you are a novice or an expert in the field of real estate, following the above insider tips will definitely spell success in your investment. Also, you should not hurry things up. Mastering preconstruction investing is not an overnight thing. Sufficient amount of time is needed to learn the strategies that real experts in the field do.



Michael C. Zari is a founder of http://www.GetPreconstructionDeals.com , a real estate investor and entrepreneur. His works have been referenced in many venues including the New York Times and USA Today. To continue to get weekly thought-provoking articles, go to http://www.GetPreconstructionDeals.com and sign up today!


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Stock Picks-Is GM Chairman losing it?

Stock Picks-Is GM Chairman losing it? by Richard Stoyeck

Copyright 2006 Richard Stoyeck

Don’t you just love it? General Motors can’t make a quality car to save its life, which is what it’s trying to do, and it wants Nissan to give it billions of dollars to show respect for a failed company. Over the last couple of years, you have heard of failed nation states, many of them in Africa. Countries that can’t feed themselves, and have just about as much wealth as is necessary to put an embassy in NY, so their diplomats can dine at the United Nations, and park overnight with diplomatic plates.

Now we have failed corporate states like General Motors who can’t get out of their own way, and probably have no justification for remaining in business other than the fact that they’ve been around for something approaching a century. If you really think about it, other than the employees who would anyone miss General Motors if they went out of business tomorrow, maybe even today. The remaining players would immediately pick up their market share, and we wouldn’t have to watch the slow market attrition that is taking that share down anyway.

There will come a time if they remain in business, that only aliens coming to visit our planet will buy General Motors vehicles. The news recently is ludicrous. Carlos Ghosn runs Nissan-Renault. This man has done a world-class turnaround over the last several years, making billions of dollars for a company that very few thought could be turned around.

Rick Wagoner is the typical corporate bureaucrat that spent decades at GM while its market share slid down the tubes. The two of them have been talking about some sort of consortium at the behest of GM’s major shareholder Kirk Kerkorian, who wants GM turned around tonight, today, yesterday. Wagoner has now decided that Nissan should pay GM billions of dollars for GM’s perceived greater value.

What value? Hey dude, you just lost $10 billion last year. You’ve bought out thirty five thousand employees that you can’t find work for. You’re a textbook case study in how to lose money by selling inferior products, and you believe you bring greater value to a partnership with Nissan, than Nissan brings to you. HELLO, ANYBODY HOME?

One of the first lessons anybody learns if they are active in the stock market is, you have to deal with reality, not your perceived reality, but what’s really taking place. GM has yet to do a full, truthful self-assessment and figure out where they are. What are you doing wrong? You can’t be doing things right, and lose $10 billion in a year. You’ve got sales all right, but your customers are so disenchanted with your product that they are not allowing you to price your product at a number that allows you to take a profit out of the sale. That’s how you lose money, and you can’t make it up on volume. You also have the issue of your competition’s pricing. The other guys are giving their customers perceived value and real value. The value is so great, that it is disallowing you a profit in the vehicles that you are putting on the market. It’s that simple.

But wait, there’s more!!

Toyota, your main rival for world supremacy just came out with a new Lexus LS 460 with built in features that GM isn’t even thinking about. It’s not even on the drawing boards at GM. THE LEXUS CAR PARKS ITSELF. It’s got sonar distance finding devices that link up to its navigation system. This thing can pull into a parallel parking position with the driver basically watching the car park itself.

Mercedes will envy the paint job at twice the price, and a first ever 8-speed transmission. How does a car with 380 horsepower get 19 miles to the gallon anyway? With a crash sensing system that prepares the brakes and airbags for the coming impact, this Lexus may give new meaning to the word safety. What’s going on here? For $70,000, Lexus will give you a car that BMW, and Mercedes can’t even dream about making for the price.

I have talked with representatives of the Japanese automobile companies. They think GM is on the ropes, and who can argue. The old giant is pumping out iron that just doesn’t do it anymore. The only employees happy at the company are hebephrenics on the assembly line who are taking too many pain killers. There’s also Chairman Rick Wagoner who appears to be constipated in every interview he gives, and wants a financial tribute from Nissan to boot.

The Future of GM

General Motors will continue to exist. If the consumer bought only on the basis of quality, and bang for the buck, GM would have filed for bankruptcy years ago. The consumer buys for other reasons though, aside from quality. Some have never driven a Japanese car, and wouldn’t consider it. Once you drive Japanese, buying American cars becomes unthinkable. Some buyers live in sections of the country where there is peer group pressure to buy American, such as the Midwest.

People on the East coast, and West coast however have basically shunned GM’s vehicles. The Big 3 automaker will never recapture anything in those two markets again. I can’t imagine how they turn around corporate morale. With seventeen layers of management compared to Toyota’s five, I don’t know how anyone is proud to say, “I work for GM”.

Would I love to see GM come back? You bet I would, how does it happen with an arrogant management team, trained by the guys that lost the ship to begin with. Wagoner’s team are the type of guys that would have screwed up the Iraq war worse than what it is, and I can’t imagine how it could be much worse. You need an outsider, with no loyalties to insiders, who can come in and SHAKE THINGS UP. Is it going to happen? Probably not, but that’s still what it takes. GM may have already gone through critical thresholds, and will just continue to peter out. Toyota on the other hand has just announced they are hiring 8,000 new engineers. Any takers?



Richard Stoyeck’s background includes being a limited partner at Bear Stearns, Senior VP at Lehman Brothers, Kuhn Loeb, Arthur Andersen, and KPMG. Educated at Pace University, NYU, and Harvard University, today he runs Rockefeller Capital Partners and StocksAtBottom.com
http://www.stocksatbottom.com


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