Tuesday, November 21, 2006
Saturday, October 28, 2006
The Way To Trade
The Way To Trade cuts to the essentials. I might summarize these essentials as follows:
You may think that the market exists somewhere out there.
??
How you think of the market is unique and exists only in your head. To win you have to ensure that your version of the market is "useful" and then make use of it.
You may think you see your version of the market clearly.
??
What you see is shrouded within an emotional whirlwind. The whirlwind may get a lot faster when you have a trading position in place.
You may think that trading is an easy function involving buying low and selling high.
??
In fact trading is not difficult, although nor is it easy, but the emotional problems we bring with us to the market mean that few win.
These three statements summarize what you are getting into.
In normal walks of life these sort of things either do not happen or we soon learn to stay away. The market is different. It does not do the same things all the time.
So one day a particular tactic will work, the next day it won't. Compare this with a normal everyday function like walking down the street. If you walk into a lamp post, you soon learn that you need to walk round them.
But in the market-place, the lamp posts keeps moving as you approach them, you can never be sure that you can get round them.
Can You Do Anything About It?
But what you can do is develop the mental discipline so that even when you do bump into them it's OK.
Apart from the analysis technique you should use, you also have to learn trading skills, which ultimately are about 95% of this game. This takes time.
Do not expect to be an instant success at trading, you have to learn this business as you do any other. Whilst you do so you have a simple task and this is the first secret of trading.
Like all great secrets it is well known, because that is the best way to keep something a secret, make everyone think it is not a secret at all. But this is where most traders fall down, this is where they knock themselves out of the game.
You may think that the market exists somewhere out there.
??
How you think of the market is unique and exists only in your head. To win you have to ensure that your version of the market is "useful" and then make use of it.
You may think you see your version of the market clearly.
??
What you see is shrouded within an emotional whirlwind. The whirlwind may get a lot faster when you have a trading position in place.
You may think that trading is an easy function involving buying low and selling high.
??
In fact trading is not difficult, although nor is it easy, but the emotional problems we bring with us to the market mean that few win.
These three statements summarize what you are getting into.
In normal walks of life these sort of things either do not happen or we soon learn to stay away. The market is different. It does not do the same things all the time.
So one day a particular tactic will work, the next day it won't. Compare this with a normal everyday function like walking down the street. If you walk into a lamp post, you soon learn that you need to walk round them.
But in the market-place, the lamp posts keeps moving as you approach them, you can never be sure that you can get round them.
Can You Do Anything About It?
But what you can do is develop the mental discipline so that even when you do bump into them it's OK.
Apart from the analysis technique you should use, you also have to learn trading skills, which ultimately are about 95% of this game. This takes time.
Do not expect to be an instant success at trading, you have to learn this business as you do any other. Whilst you do so you have a simple task and this is the first secret of trading.
Like all great secrets it is well known, because that is the best way to keep something a secret, make everyone think it is not a secret at all. But this is where most traders fall down, this is where they knock themselves out of the game.
PETROSUN DRILLING
PETROSUN DRILLING (P.S.U.D.)
Current Price: 1.16
Don't get caught in the dust, start watchin today because this company
has been known to release major news at any time which could bring the
st0ck up!!
Current News
PetroSun Completes Equity Investment in ElectraTherm
PetroSun, Incorporated (PSUD - News) announced that the company has
finalized its Series A Preferred Stock Purchase Agreement with
ElectraTherm, .....
Check your stock source for full press releases on this exciting stock!
Don't miss out !
Current Price: 1.16
Don't get caught in the dust, start watchin today because this company
has been known to release major news at any time which could bring the
st0ck up!!
Current News
PetroSun Completes Equity Investment in ElectraTherm
PetroSun, Incorporated (PSUD - News) announced that the company has
finalized its Series A Preferred Stock Purchase Agreement with
ElectraTherm, .....
Check your stock source for full press releases on this exciting stock!
Don't miss out !
Sunday, October 22, 2006
Saturday, October 21, 2006
FOREX explained.
What is it?
On the FOREX exchange you can buy and sell currencies. For example, you might buy Japanese yens (by exchanging them to the dollars you had), then, after yen / dollar ratio goes up, you sell yens and buy dollars again. At the end of this operation you are going to have more dollars, then you had at the beginning.
The FOREX market has much higher liquidity, then the stock market, as much more money are being exchanged. Also, it does not have "exchange places", like stock market does. FOREX is spread between banks all over the world, and as the result, it is open 24 hours, during the business week.
Unlike stocks, FOREX trades are performed with high leverage, usually it is 100. It means that by investing $1000 you can control $100,000, and increase potential profits accordingly. Some brokers provide also so called mini-FOREX, where the size of minimum deposit equals $100. It makes possible for individuals to enter this market easily.
Important note: Trader software comes with indicators, that are configured to assume margin (leverage) equal 1 stock operations and 100 for FOREX.
The name convention. In FOREX, the name of a "symbol" is composed of two parts - one for first currency, and another for the second currency. For example, the symbol usdjpy stands for US dollars (usd) to Japanese yen (jpy).
As with stocks, you can apply tools of the technical analysis to FOREX charts. Trader's indexes can be optimized for FOREX "symbols", allowing you to find winning strategy.
What is it?
On the FOREX exchange you can buy and sell currencies. For example, you might buy Japanese yens (by exchanging them to the dollars you had), then, after yen / dollar ratio goes up, you sell yens and buy dollars again. At the end of this operation you are going to have more dollars, then you had at the beginning.
The FOREX market has much higher liquidity, then the stock market, as much more money are being exchanged. Also, it does not have "exchange places", like stock market does. FOREX is spread between banks all over the world, and as the result, it is open 24 hours, during the business week.
Unlike stocks, FOREX trades are performed with high leverage, usually it is 100. It means that by investing $1000 you can control $100,000, and increase potential profits accordingly. Some brokers provide also so called mini-FOREX, where the size of minimum deposit equals $100. It makes possible for individuals to enter this market easily.
Important note: Trader software comes with indicators, that are configured to assume margin (leverage) equal 1 stock operations and 100 for FOREX.
The name convention. In FOREX, the name of a "symbol" is composed of two parts - one for first currency, and another for the second currency. For example, the symbol usdjpy stands for US dollars (usd) to Japanese yen (jpy).
As with stocks, you can apply tools of the technical analysis to FOREX charts. Trader's indexes can be optimized for FOREX "symbols", allowing you to find winning strategy.
I find 2 interesting free tools.
Forex currency converter - Looking for a currency converter? You can find everything here. Description of most popular currency converters.
FinRise. Free Forex Trading Signals - FinRise provides Free Trading Signals. Buy/Sell Signals. Forex traders using our free forex signals with specific entry and exit. At www.finrise.com you can find a lot of useful information, which can help you to achieve profit goals in the Forex market. Use it in your trade! Forex forecasts, technical analysis, forex signals
http://forexhint.blogspot.com
Forex currency converter - Looking for a currency converter? You can find everything here. Description of most popular currency converters.
FinRise. Free Forex Trading Signals - FinRise provides Free Trading Signals. Buy/Sell Signals. Forex traders using our free forex signals with specific entry and exit. At www.finrise.com you can find a lot of useful information, which can help you to achieve profit goals in the Forex market. Use it in your trade! Forex forecasts, technical analysis, forex signals
http://forexhint.blogspot.com
Friday, October 20, 2006
GET YOUR FREE TRADING TOOLS
Analytical Tools, Scanners, Education, and Financial Services
OptionVue Research provides products and services to individuals, money managers and institutions requiring a reliable resource for applying options to a comprehensive investment strategy.
With a foundation built on the finest in options analytics software, years of options trading experience, and a background in educational training and instruction, OptionVue Research's goal is to help better leverage investment capital for better returns.
OptionVue Research's products and services are suited for individuals seeking an understanding and direction of how to trade options, and for traders, money managers and institutions seeking more sophisticated analytics and strategies to compliment their existing management and trading philosophies.
FREE! 30-Day Trial to OptionVue Research.com
Register today for our FREE 30-day trial and receive complete access to the finest options analysis tools on the web:
MarketVue Options Analysis Tools & QuickVue Scans (powered by OptionVue 5)
This is your chance to test drive our powerful online analytical tools, and find trade ideas using our proprietary scanners.
HTTP://optionvue.com/FreeStuff.aspx
Analytical Tools, Scanners, Education, and Financial Services
OptionVue Research provides products and services to individuals, money managers and institutions requiring a reliable resource for applying options to a comprehensive investment strategy.
With a foundation built on the finest in options analytics software, years of options trading experience, and a background in educational training and instruction, OptionVue Research's goal is to help better leverage investment capital for better returns.
OptionVue Research's products and services are suited for individuals seeking an understanding and direction of how to trade options, and for traders, money managers and institutions seeking more sophisticated analytics and strategies to compliment their existing management and trading philosophies.
FREE! 30-Day Trial to OptionVue Research.com
Register today for our FREE 30-day trial and receive complete access to the finest options analysis tools on the web:
MarketVue Options Analysis Tools & QuickVue Scans (powered by OptionVue 5)
This is your chance to test drive our powerful online analytical tools, and find trade ideas using our proprietary scanners.
HTTP://optionvue.com/FreeStuff.aspx
Sunday, October 15, 2006
Why You Should Invest
Investing has become increasingly important over the years, as the future of social security benefits becomes unknown.
People want to insure their futures, and they know that if they are depending on Social Security benefits, and in some cases retirement plans, that they may be in for a rude awakening when they no longer have the ability to earn a steady income. Investing is the answer to the unknowns of the future.
You may have been saving money in a low interest savings account over the years. Now, you want to see that money grow at a faster pace. Perhaps youe inherited money or realized some other type of windfall, and you need a way to make that money grow. Again, investing is the answer.
Investing is also a way of attaining the things that you want, such as a new home, a college education for your children, or expensive oys.?Of course, your financial goals will determine what type of investing you do.
If you want or need to make a lot of money fast, you would be more interested in higher risk investing, which will give you a larger return in a shorter amount of time. If you are saving for something in the far off future, such as retirement, you would want to make safer investments that grow over a longer period of time.
The overall purpose in investing is to create wealth and security, over a period of time. It is important to remember that you will not always be able to earn an income?you will eventually want to retire.
You also cannot count on the social security system to do what you expect it to do. As we have seen with Enron, you also cannot necessarily depend on your company retirement plan either. So, again, investing is the key to insuring your own financial future, but you must make smart investments!
People want to insure their futures, and they know that if they are depending on Social Security benefits, and in some cases retirement plans, that they may be in for a rude awakening when they no longer have the ability to earn a steady income. Investing is the answer to the unknowns of the future.
You may have been saving money in a low interest savings account over the years. Now, you want to see that money grow at a faster pace. Perhaps youe inherited money or realized some other type of windfall, and you need a way to make that money grow. Again, investing is the answer.
Investing is also a way of attaining the things that you want, such as a new home, a college education for your children, or expensive oys.?Of course, your financial goals will determine what type of investing you do.
If you want or need to make a lot of money fast, you would be more interested in higher risk investing, which will give you a larger return in a shorter amount of time. If you are saving for something in the far off future, such as retirement, you would want to make safer investments that grow over a longer period of time.
The overall purpose in investing is to create wealth and security, over a period of time. It is important to remember that you will not always be able to earn an income?you will eventually want to retire.
You also cannot count on the social security system to do what you expect it to do. As we have seen with Enron, you also cannot necessarily depend on your company retirement plan either. So, again, investing is the key to insuring your own financial future, but you must make smart investments!
What Is Your Investment Style?
Knowing what your risk tolerance and investment style are will help you choose investments more wisely. While there are many different types of investments that one can make, there are really only three specific investment styles ?and those three styles tie in with your risk tolerance. The three investment styles are conservative, moderate, and aggressive.
Naturally, if you find that you have a low tolerance for risk, your investment style will most likely be conservative or moderate at best. If you have a high tolerance for risk, you will most likely be a moderate or aggressive investor. At the same time, your financial goals will also determine what style of investing you use.
If you are saving for retirement in your early twenties, you should use a conservative or moderate style of investing ?but if you are trying to get together the funds to buy a home in the next year or two, you would want to use an aggressive style.
Conservative investors want to maintain their initial investment. In other words, if they invest $5000 they want to be sure that they will get their initial $5000 back. This type of investor usually invests in common stocks and bonds and short term money market accounts.
An interest earning savings account is very common for conservative investors.
A moderate investor usually invests much like a conservative investor, but will use a portion of their investment funds for higher risk investments. Many moderate investors invest 50% of their investment funds in safe or conservative investments, and invest the remainder in riskier investments.
An aggressive investor is willing to take risks that other investors won take. They invest higher amounts of money in riskier ventures in the hopes of achieving larger returns ?either over time or in a short amount of time. Aggressive investors often have all or most of their investment funds tied up in the stock market.
Again, determining what style of investing you will use will be determined by your financial goals and your risk tolerance. No matter what type of investing you do, however, you should carefully research that investment. Never invest without having all of the facts!
Author : Jesper Yeoh
Founder : http://Investorhint.Blogspot.com
Knowing what your risk tolerance and investment style are will help you choose investments more wisely. While there are many different types of investments that one can make, there are really only three specific investment styles ?and those three styles tie in with your risk tolerance. The three investment styles are conservative, moderate, and aggressive.
Naturally, if you find that you have a low tolerance for risk, your investment style will most likely be conservative or moderate at best. If you have a high tolerance for risk, you will most likely be a moderate or aggressive investor. At the same time, your financial goals will also determine what style of investing you use.
If you are saving for retirement in your early twenties, you should use a conservative or moderate style of investing ?but if you are trying to get together the funds to buy a home in the next year or two, you would want to use an aggressive style.
Conservative investors want to maintain their initial investment. In other words, if they invest $5000 they want to be sure that they will get their initial $5000 back. This type of investor usually invests in common stocks and bonds and short term money market accounts.
An interest earning savings account is very common for conservative investors.
A moderate investor usually invests much like a conservative investor, but will use a portion of their investment funds for higher risk investments. Many moderate investors invest 50% of their investment funds in safe or conservative investments, and invest the remainder in riskier investments.
An aggressive investor is willing to take risks that other investors won take. They invest higher amounts of money in riskier ventures in the hopes of achieving larger returns ?either over time or in a short amount of time. Aggressive investors often have all or most of their investment funds tied up in the stock market.
Again, determining what style of investing you will use will be determined by your financial goals and your risk tolerance. No matter what type of investing you do, however, you should carefully research that investment. Never invest without having all of the facts!
Author : Jesper Yeoh
Founder : http://Investorhint.Blogspot.com
Understanding Bonds
There are certain things you must understand about bonds before you start investing in them. Not understanding these things may cause you to purchase the wrong bonds, at the wrong maturity date.
The three most important things that must be considered when purchasing a bond include the par value, the maturity date, and the coupon rate.
The par value of a bond refers to the amount of money you will receive when the bond reaches its maturity date. In other words, you will receive your initial investment back when the bond reaches maturity.
The maturity date is of course the date that the bond will reach its full value. On this date, you will receive your initial investment, plus the interest that your money has earned.
Corporate and State and Local Government bonds can be alled?before they reach their maturity, at which time the corporation or issuing Government will return your initial investment, along with the interest that it has earned thus far. Federal bonds cannot be alled.?
The coupon rate is the interest that you will receive when the bond reaches maturity. This number is written as a percentage, and you must use other information to find out what the interest will be. A bond that has a par value of $2000, with a coupon rate of 5% would earn $100 per year until it reaches maturity.
Because bonds are not issued by banks, many people don understand how to go about buying one. There are two ways this can be done.
You can use a broker or brokerage firm to make the purchase for you or you can go directly to the Government. If you use a brokerage, you will more than likely be charged a commission fee. If you want to use a broker, shop around for the lowest commissions!
Purchasing directly through the Government isn nearly as hard as it once was. There is a program called Treasury Direct which will allow you to purchase bonds and all of your bonds will be held in one account, that you will have easy access to. This will allow you to avoid using a broker or brokerage firm.
There are certain things you must understand about bonds before you start investing in them. Not understanding these things may cause you to purchase the wrong bonds, at the wrong maturity date.
The three most important things that must be considered when purchasing a bond include the par value, the maturity date, and the coupon rate.
The par value of a bond refers to the amount of money you will receive when the bond reaches its maturity date. In other words, you will receive your initial investment back when the bond reaches maturity.
The maturity date is of course the date that the bond will reach its full value. On this date, you will receive your initial investment, plus the interest that your money has earned.
Corporate and State and Local Government bonds can be alled?before they reach their maturity, at which time the corporation or issuing Government will return your initial investment, along with the interest that it has earned thus far. Federal bonds cannot be alled.?
The coupon rate is the interest that you will receive when the bond reaches maturity. This number is written as a percentage, and you must use other information to find out what the interest will be. A bond that has a par value of $2000, with a coupon rate of 5% would earn $100 per year until it reaches maturity.
Because bonds are not issued by banks, many people don understand how to go about buying one. There are two ways this can be done.
You can use a broker or brokerage firm to make the purchase for you or you can go directly to the Government. If you use a brokerage, you will more than likely be charged a commission fee. If you want to use a broker, shop around for the lowest commissions!
Purchasing directly through the Government isn nearly as hard as it once was. There is a program called Treasury Direct which will allow you to purchase bonds and all of your bonds will be held in one account, that you will have easy access to. This will allow you to avoid using a broker or brokerage firm.
The Budget ?The Ultimate Financial Management Tool
A carpenter uses a set of house plans to build a house. If he didn the bathroom might get overlooked altogether.
Rocket Scientists would never begin construction on a new booster rocket without a detailed set of design specifications. Yet most of us go blindly out into the world without an inkling of an idea about finances and without any plan at all.
Not very smart of us, is it?
A money plan is called a budget and it is crucial to get us to our desired financial goals.
Without a plan we will drift without direction and end up marooned on a distant financial reef.
If you have a spouse or a significant other, you should make this budget together. Sit down and figure out what your joint financial goals areong term and short term.
Then plan your route to get to those goals. Every journey begins with one step and the first step to attaining your goals is to make a realistic budget that both of you can live with.
A budget should never be a financial starvation diet. That won work for the long haul. Make reasonable allocations for food, clothing, shelter, utilities and insurance and set aside a reasonable amount for entertainment and the occasional luxury item. Savings should always come first before any spending.
Even a small amount saved will help you reach your long term and short term financial goals. You can find many budget forms on the internet. Just use any search engine you choose and type in ree budget forms?
Youl get lots of hits. Print one out and work on it with your spouse or significant other. Both of you will need to be happy with the final result and feel like it something you can stick to.
A carpenter uses a set of house plans to build a house. If he didn the bathroom might get overlooked altogether.
Rocket Scientists would never begin construction on a new booster rocket without a detailed set of design specifications. Yet most of us go blindly out into the world without an inkling of an idea about finances and without any plan at all.
Not very smart of us, is it?
A money plan is called a budget and it is crucial to get us to our desired financial goals.
Without a plan we will drift without direction and end up marooned on a distant financial reef.
If you have a spouse or a significant other, you should make this budget together. Sit down and figure out what your joint financial goals areong term and short term.
Then plan your route to get to those goals. Every journey begins with one step and the first step to attaining your goals is to make a realistic budget that both of you can live with.
A budget should never be a financial starvation diet. That won work for the long haul. Make reasonable allocations for food, clothing, shelter, utilities and insurance and set aside a reasonable amount for entertainment and the occasional luxury item. Savings should always come first before any spending.
Even a small amount saved will help you reach your long term and short term financial goals. You can find many budget forms on the internet. Just use any search engine you choose and type in ree budget forms?
Youl get lots of hits. Print one out and work on it with your spouse or significant other. Both of you will need to be happy with the final result and feel like it something you can stick to.
Avoiding Impulse Spending
Answer these questions truthfully:
1.) Does your spouse or partner complain that you spend too much money?
2.) Are you surprised each month when your credit card bill arrives at how much more you charged than you thought you had?
3.) Do you have more shoes and clothes in your closet than you could ever possibly wear?
4.) Do you own every new gadget before it has time to collect dust on a retailer shelf?
5.) Do you buy things you didn know you wanted until you saw them on display in a store?
If you answered es?to any two of the above questions, you are an impulse spender and indulge yourself in retail therapy.
This is not a good thing. It will prevent you from saving for the important things like a house, a new car, a vacation or retirement. You must set some financial goals and resist spending money on items that really don matter in the long run.
Impulse spending will not only put a strain on your finances but your relationships, as well. To overcome the problem, the first thing to do is learn to separate your needs from your wants.
Advertisers blitz us hawking their products at us 24/7. The trick is to give yourself a cooling-off period before you buy anything that you have not planned for.
When you go shopping, make a list and take only enough cash to pay for what you have planned to buy. Leave your credit cards at home.
If you see something you think you really need, give yourself two weeks to decide if it is really something you need or something you can easily do without. By following this simple solution, you will mend your financial fences and your relationships.
Answer these questions truthfully:
1.) Does your spouse or partner complain that you spend too much money?
2.) Are you surprised each month when your credit card bill arrives at how much more you charged than you thought you had?
3.) Do you have more shoes and clothes in your closet than you could ever possibly wear?
4.) Do you own every new gadget before it has time to collect dust on a retailer shelf?
5.) Do you buy things you didn know you wanted until you saw them on display in a store?
If you answered es?to any two of the above questions, you are an impulse spender and indulge yourself in retail therapy.
This is not a good thing. It will prevent you from saving for the important things like a house, a new car, a vacation or retirement. You must set some financial goals and resist spending money on items that really don matter in the long run.
Impulse spending will not only put a strain on your finances but your relationships, as well. To overcome the problem, the first thing to do is learn to separate your needs from your wants.
Advertisers blitz us hawking their products at us 24/7. The trick is to give yourself a cooling-off period before you buy anything that you have not planned for.
When you go shopping, make a list and take only enough cash to pay for what you have planned to buy. Leave your credit cards at home.
If you see something you think you really need, give yourself two weeks to decide if it is really something you need or something you can easily do without. By following this simple solution, you will mend your financial fences and your relationships.
Avoiding Impulse Spending
Answer these questions truthfully:
1.) Does your spouse or partner complain that you spend too much money?
2.) Are you surprised each month when your credit card bill arrives at how much more you charged than you thought you had?
3.) Do you have more shoes and clothes in your closet than you could ever possibly wear?
4.) Do you own every new gadget before it has time to collect dust on a retailer shelf?
5.) Do you buy things you didn know you wanted until you saw them on display in a store?
If you answered es?to any two of the above questions, you are an impulse spender and indulge yourself in retail therapy.
This is not a good thing. It will prevent you from saving for the important things like a house, a new car, a vacation or retirement. You must set some financial goals and resist spending money on items that really don matter in the long run.
Impulse spending will not only put a strain on your finances but your relationships, as well. To overcome the problem, the first thing to do is learn to separate your needs from your wants.
Advertisers blitz us hawking their products at us 24/7. The trick is to give yourself a cooling-off period before you buy anything that you have not planned for.
When you go shopping, make a list and take only enough cash to pay for what you have planned to buy. Leave your credit cards at home.
If you see something you think you really need, give yourself two weeks to decide if it is really something you need or something you can easily do without. By following this simple solution, you will mend your financial fences and your relationships.
Answer these questions truthfully:
1.) Does your spouse or partner complain that you spend too much money?
2.) Are you surprised each month when your credit card bill arrives at how much more you charged than you thought you had?
3.) Do you have more shoes and clothes in your closet than you could ever possibly wear?
4.) Do you own every new gadget before it has time to collect dust on a retailer shelf?
5.) Do you buy things you didn know you wanted until you saw them on display in a store?
If you answered es?to any two of the above questions, you are an impulse spender and indulge yourself in retail therapy.
This is not a good thing. It will prevent you from saving for the important things like a house, a new car, a vacation or retirement. You must set some financial goals and resist spending money on items that really don matter in the long run.
Impulse spending will not only put a strain on your finances but your relationships, as well. To overcome the problem, the first thing to do is learn to separate your needs from your wants.
Advertisers blitz us hawking their products at us 24/7. The trick is to give yourself a cooling-off period before you buy anything that you have not planned for.
When you go shopping, make a list and take only enough cash to pay for what you have planned to buy. Leave your credit cards at home.
If you see something you think you really need, give yourself two weeks to decide if it is really something you need or something you can easily do without. By following this simple solution, you will mend your financial fences and your relationships.
Tuesday, October 10, 2006
4 Weeks from Today Shanghai’s Secret Gov’t Gold Project goes Online —and could return 950%
FORBIDDEN for 53 years… gold is now legal again in China.
In order to meet the surging demand, the government hired
this tiny company to construct the largest gold mine in all
of China. Mining begins 4 weeks from today…
Dear Reader,
I want to let you in on the biggest secret in the gold business…
In a secluded region of Southern China—in one of the most gold-abundant regions of the world—a secret government project is in the works…
China is constructing a new gold mine… the biggest in all of Asia, according to the Xinhua News Agency (China’s biggest news corporation).
When completed, this new gold mine will be 3-times bigger than China’s largest existing mine… and 19-times bigger than the average Chinese mine.
It will have just one function… to supply gold to China’s red-hot, gold-hungry economy… a nation whose gold demand will triple in the next few years, according to the World Gold Council.
But here’s the best part…
One tiny company—working behind the scenes with the government—gets 80% of the mine’s profits. Today, you can buy this company for less than $6 a share.
Imagine what the demand of 1.3 BILLION gold-hungry people will do to the profitability of this mine… not to mention the share price of this tiny company.
As Australian Business News recently reported, because of this massive gold mine this small company “may become the biggest gold producer in China.”
But if you want to get in while things are still cheap, you simply must hurry.
This new gold mine goes into production four weeks from today. There’s no telling how high the share price will go as a result.
And right now, you have the chance to get in before news of China’s biggest gold mine reaches the mainstream press here in America.
It’s the single best opportunity in gold I’ve ever seen.
Let me give you all of the details…
The Biggest Gold Rush
the World has Ever Seen
In 1949, the government outlawed gold as an investment in China…
And for five decades, gold-starved Chinese routinely snuck into government-owned mines and dug up as much gold as they could backpack, pocket, or carry in their arms.
In one instance 50,000 peasants raided a small mine in China’s Gansu Province, and unearthed hundreds of pounds of gold in a single night.
Between 1990 and 1995, more gold was illegally mined in China than the world's #1 gold producing nation—South Africa—could produce legally.
Authorities could not stop the looting.
And those who chose not to dig or steal, often ventured to British-owned Hong Kong Island and other non-Chinese cities to purchase their gold… just to smuggle it back home.
The situation got so intense that heavily armed government soldiers—known as Red Guards—routinely stormed Chinese homes in search of hidden gold.
It was just a matter of time before something gave way…
Finally, it happened...
Little did anyone know that this one event would lead to the biggest and most obscene gold rush the world has ever witnessed…
And it’s taking place—right now—as I write this letter…
Banned for 53 Years…
Gold is Once Again Legal in China
Because of a recent law – Chinese citizens are once again allowed to own gold… for the first time in more than 50 years…
This puts an end to the digging, stealing, and smuggling of gold in China.
What’s happening now is the biggest money-shift in China’s history—as millions of would-be illegal miners are descending from the gold-ridden hills… and into the local gold shops.
“The gold rush is reaching a feverish pitch in major cities across China,” reports China Daily.
With half a century of pent-up demand—the Chinese are literally crowding city streets… unleashing a full-scale buying frenzy.
They dropped their shovels… and opened their wallets.
“Whenever gold bullions hit the counter,” reports Shanghai Daily, “they are sold out very quickly after being put on sale."
Look at some of the most recent reports from the streets:
• At China Merchant Bank, the line of buyers was so long that the bank stayed open late into the night. They sold 1,278 ounces of gold in just 4 days. One buyer bought more than $97,000 worth of gold.
• At Beijing Caibai Department Store, 10,582 ounces of gold bars sold out in just 7 hours. The next shipment of 7,055 ounces sold out twice as fast.
• When Shanghai Lao Feng Xiang Co. Ltd.—Shanghai’s biggest gold seller—put 529 ounces of gold up for sale on a trial basis, they sold out in less than 2 hours time.
In the blink of an eye, the Chinese gold market has gone from practically nothing to a $2.6 BILLION a year industry…
Only this gold rush (and the amount of money it’s generating) is getting bigger… much bigger…
What does all of this have to do with China’s biggest gold mine?
As you’re about to see… everything…
“Gold Rush in China,
People Line up to Buy Gold”
Shanghai Daily
You see, for the last half-century the Chinese had very few places to invest their money.
“Although people want to invest, they don't have many channels,” says Qi Jingmei, a senior economist with China’s State Information Center.
“As the third largest gold buyers market worldwide, China has attracted the attention of the World Gold Council, the world's largest gold promotion organization, which made China its major market in gold promotion in 2003.”
Beijing Review
As far as the Chinese are concerned, gold is the best investment out there…
“Share trading is viewed as too risky, and wealth management services are still in their infancy,” reports ABC News.
When gold was banned, money just piled up, collecting dust in the nation’s savings accounts. China’s savings rate is a whopping 40%–one of the highest in the world. They’ve accumulated an astounding $1.7 TRILLION over the past few decades, according to a recent Associated Press article.
Now that it’s legal again—the Chinese are unloading those savings into gold…
• “[China’s new gold law] is designed to create a new investment outlet for China’s huge pile of household savings,” reports the BBC News.
• “With more cash in their wallets,” reports China Daily, “many Chinese are looking for ways to diversify their investments to guarantee the security of assets and to even seek a profit. For many gold seems to be the favored choice.”
According to a recent study, an estimated 260 million Chinese are willing to put as much as 30% of their savings into gold over the next few years. That would be an injection of more than $36 BILLION into China’s newly formed gold markets, reports the Bank of China.
That much money would create demand for about 3,000 tons of gold, says Xi Jinahua, a Bank of China gold expert.
The problem is, the Chinese government only has about 600 tons of gold reserves ready to put into the economy – just one fifth of where demand will likely rise… “…far from enough to cope with the potential gold rush,” reports China Daily.
Said another way, China needs gold… lots of it… and fast.
They have just two options:
1. They can buy gold on the world markets and pay market price (which is at its highest level in 25 years)
Or…
2. They can mine Chinese gold and create thousands of new jobs across the country.
The choice is obvious.
“The implication is clear,” reports GFMS, the world’s foremost gold research group… “Either China steps up exploitation of its own resources, or it may be obliged to import large amounts of bullion.”
Which is why five years ago the Chinese government initiated a new gold project… Thanks to a massive gold deposit—in one of the last remaining gold-rich regions of the world—they’re building the ultimate gold mine.
One gigantic mine to help meet the demand of 1.3 BILLION gold-hungry Chinese.
As I mentioned, it goes into production four weeks from today…
“CHINA TO CONSTRUCT ASIA’S LARGEST GOLD MINE”
The Xinhua News Agency (China’s biggest news agency),
March 6, 2006
Most people don’t know it, but China is actually jam-packed with gold…
There’s an estimated 22,000 TONS of gold lying beneath Chinese soil—that’s enough to meet worldwide demand for the next quarter century.
But here’s the most exciting thing about gold in China…
As the map below indicates, more than half of China has NEVER been fully explored. So there are potentially mountains of gold still left to discover…
• “There is lots of potential and untapped opportunity in China for gold,” reports The World Council. “It has quite a lot of gold…”
• Stephen Chew – CEO of one of Australia’s biggest gold companies – Kismet Oberon, says, “China has barely scratched the surface of its vast gold potential…”
• There’s so much gold, in fact, that Investors Business Daily says China could surpass South Africa, Australia, and the United States to be the world’s #1 gold producer within the next 3 years.
How come there is so much gold in China—and more importantly—why has it never been mined?
You see, back in 1949 the government not only banned citizens from buying gold—they actually took control of the entire industry too… the exploration… the mining… the production… and the distribution—forbidding any non-Chinese firms inside its borders in the process.
“China’s gold industry itself was off limits to outsiders, with mining and refining controlled by parochial and xenophobic states officials,” reports the Economist magazine… “Indeed much of China’s gold production was traditionally shrouded in secrecy and managed by the military.”
And because the government ran the industry so poorly—it received very little funding—almost no money went into mining for most of that time (less than 1% of world exploration dollars went into finding gold in China).
Cheng Fumin, an official with China’s State Economic and Trade Commission says as a result, “China’s gold production technology and management is backward compared with major gold production countries in the world...” That’s why between 1949 and 1981, China never produced more than 20 tons of gold in a single year.
As you can see, China’s gold industry was heavily ignored, despite having some of the world’s biggest and richest gold deposits. Today, huge amounts of untouched gold are just sitting there, waiting to be extracted.
That’s why every gold company on the planet wants a piece of this untapped gold heaven. According to the Economist, “There has been no shortage over the past two decades of would-be foreign gold diggers rushing into China in search of treasure.”
“Traditional gold-mining centers—Australia, South Africa, and North America—have been mined like a piece of Swiss cheese,” writes Business Week. But not China… Which is why it is so attractive to so many gold companies right now.
That’s because “many parts of the country have gold reserves worth billions of dollars,” reports The Star (one of Asia’s biggest newspapers).
And since 1949—for a span of more than 50 years—no foreign company has ever been granted access to China’s gold rich soil.
That is… until now.
After more than a half century of forbidden mining, one tiny expert gold company has the first-ever Chinese gold-mining permit issued to a foreign company. Southern Cross Equities, an Australian brokerage firm, says this company is as much as 10 years ahead of other companies looking to become established in China’s gold industry.
They’ve even acquired exploration rights for China’s uncharted gold territories. So they’re in line to get in on newer and potentially bigger gold projects in China.
But the real story is the secret government project they’re working on right now…
And it’s taking place in the richest gold region of them all…
Mining Begins in Just 4 Weeks…
One area of China holds more gold than all the others…
It’s a region known simply as the Golden Triangle. “The Golden Triangle is the best gold-endowed region of China,” reports The Globe and Mail, Canada’s biggest newspaper.
Here’s why this area is so special...
According to the U.S. Geological Society, the Golden Triangle has a similar “gold signature” to a region in Nevada called the Carlin Trend. The Carlin Trend is a gargantuan gold deposit—one of the world’s biggest. It was discovered in back in the early 1970s.
Why am I telling you this?
Well, the Carlin Trend has produced a monstrous 60 million ounces of gold over the past 35 years—and it’s believed to hold at least 40 million more. It’s probably the world’s most famous gold deposit. That’s because it turned a tiny, unknown company called Newmont Mining into a $22 BILLION gold industry giant. (Their stock price shot up from $4 a share all the way to $60 after they began mining gold at the Carlin Trend).
And recently, another “Carlin Trend” deposit (a rare occurrence in the gold business) has been discovered again—8,000 miles away—in China…
“Every gold miner wishes he could discover a replica of the prolific Carlin Trend of Nevada. For most it’s just a dream. But in Southern China a discovery which replicates in many ways the Carlin ‘signature’ has been made,” reports Tim Treadgold, a commodities expert whose research has appeared in Forbes and Investors Business Daily.
It’s on this deposit (China’s “version” of the Carlin Trend), that the Chinese government is constructing the country’s biggest and most modern gold mining complex—with the help of one small company…
You see, as I mentioned earlier, the Chinese government doesn’t have the technology to extract this gold efficiently or cheaply. So they hired a tiny company that could.
This small firm can produce all this gold and get it into the Chinese economy for as little as $183 an ounce. Most of the world’s biggest and richest gold companies can’t produce gold that cheaply. Which is why they were awarded the first-ever foreign gold mining permit in China.
Even better, as part of their deal with the government, the small firm gets 80% of the mine’s profits. With gold selling around $600 (Barron’s reports it could go as high as $8,000) an ounce, this small firm stands to profit handsomely.
Together for the past 5 years, they’ve been working hard, constructing this massive gold mine, gearing it up for production… spending a verifiable fortune—hundreds of millions—on China’s biggest mine:
• Twelve kilometers of sealed access road surround the massive gold deposit, making even the most remote parts accessible.
• Forty-two kilometers of high voltage power lines supply electricity to the newly constructed mills, processing plants, and facilities.
• An entire village has been constructed to accommodate a workforce of more than 700 mine workers, diggers, and drillers.
• Three cellular phone companies have even erected towers on nearby hillsides in anticipation of new business.
• China’s biggest railcar provider, The China Railway Company has already signed on to haul out and disperse the gold all over China.
As Asia Business recently reported, when fully completed, this new mine will be “the largest producer of gold in China.” It has at least 12 years of proven gold reserves (as they drill deeper, new reserves are constantly being added).
“The Company’s strong financial position will fund the development of [this new gold mine] to become China’s premier gold mine, while continuing an aggressive exploration and acquisition strategy,” writes the Australian Mining Club Journal.
World-renowned geologist Greg Jones says right now, this gold mine is like the “Carlin [trend] back in 1970…” meaning, it’s an enormous gold mine that very few people know about.
But it probably won’t stay that way for long…
Already 45,000 tons of gold ore have been stockpiled, ready to process. And in about 4 weeks time—this fall—these huge blocks of ore will be whittled down into thousands of precious gold bars… bullion that will be in high demand across China—sold out very quickly—just like in the gold-buying frenzies I talked about earlier.
After that, one tiny company will begin raking in a fortune.
As I said, it’s the single best opportunity in gold I’ve ever seen. Now you see why.
But if you want to be a part of it all you have to get invested soon. Right now things are still cheap. While this tiny firm trades for under $6 a share, it’s not likely to stay that way much longer.
If this opportunity even remotely interests you, I suggest you take advantage of this situation now.
Here’s everything you need to know…
How much money should
you expect to make?
By now you must be wondering how much money you could make with China’s newest and biggest gold mine.
Of course, the exact amount is impossible to predict. But one thing is for certain...
Whenever a small company works on a big gold project—developing a major mine—their share price almost always goes up as a result.
The returns for early investors can be staggering (you’ll notice many of these firms used to be very small, but are now some of the world’s richest)...
• Lihir (Lihir Island mine) – 1,037%
• Newcrest (Cadia Hill mine) – 1,839%
• Buenaventura (Minas Congo mine) – 781%
• Goldcorp (Red Lake Mine) – 996%
• Newmont Mining (Carlin Trend mine) – 1,566%
• Randgold (Morila mine) – 677%
• Centerra (Kumtor mine) – 187%
• Dundee (Chelopech mine) – 173%
• Meridian Gold (El Penon mine) – 957%
• Kinross (Fort Knox mine) – 710%
• Agnico Eagle (Laronde mine) – 456%
• Northern Orion (Alumbrera mine) – 215%
• China’s biggest gold mine – Production begins this fall
These are just a few I can think of off the top of my head.
And when you find a small company getting ready to develop a major gold mine, like the one in China...
Well...
Let’s just say the prospects of researching this kind of environment were enough to lure me away from my academic studies and fieldwork to begin my own investment research service.
My name is Matt Badiali. I’m a geologist. I hold a masters degree in geology and I'm finishing up my PhD in the same field. I’ve spent the last twenty years studying, teaching, and working in this industry.
I know how and where to locate rare and valuable resources… precious commodities like oil, diamonds, copper, and of course, gold. I've used sophisticated seismic to find oil, I've studied the field techniques of ExxonMobil and Anadarko, and I have years of field experience.
Along the way I’ve worked as a field geologist for a variety of firms... supervised drilling teams... explored the mountains of Colorado... and even combed the gold-rich Nevada Carlin Trend...
About a year ago, I left academia to take a job as a geologic analyst with Stansberry & Associates Investment Research.
And I began a monthly investment advisory showing investors how to capitalize on the booming oil business. And this service has been nothing short of an astounding success. I’ve already helped more than 22,000 investors learn how to cash in and make money in the oil industry. Already, I’ve shown investors some lightning quick gains:
• 25.7% in less than 3 weeks with a small Texas oil refiner
• 42.5% in just 8 months with a small oil survey firm
• 25.7% in less than 3 months with an ethanol producer
• 32% in 8 months with an oil services company
• 23.9% in 3 months with an offshore drill manufacturer
• 31.1% in 3 months with a Canadian oil and gas company
I can’t give you the names of these firms here because all of them are still buys… and poised to go even higher.
But recently I had another idea for an investment research service.
For years I’ve wanted to take my expertise in precious minerals and help people understand the business… and make some good money at the same time.
Now I spend the majority of my time researching and analyzing every inch of the precious metals and natural resources industry… utilizing inside contacts... experience in deep underground mines... and thorough understanding of geological exploration… to report my best investment ideas for a new financial research service called The S&A Gold Report.
And for the past 6 months, I’ve been working on something very unique… my biggest project to date—researching the tiny firm constructing the largest gold mine in China.
I’ve just finished compiling a special report that details the situation in full. It’s called China’s Secret Gold Mine.
This comprehensive report reveals everything there is to know about the company building China’s biggest gold mine. For example it covers:
•
China’s biggest and most modern gold mining project.
•
The first and only foreign company to receive gold mining permits in China—the tiny company that’s constructing this massive gold mine.
•
Why they’re about to become the largest gold producer in China (This small firm could easily be the next Newmont Mining Corp.).
•
The other big and potentially profitable gold mines they own in China.
•
The exploration projects they have lined up in China’s uncharted gold regions (remember more than half the country has yet to be fully explored for gold!). Another big discovery could very well be on the way.
As you can tell, this is not your everyday investing situation. You probably won’t read about this stock in your favorite financial journal or hear about it from your broker...
It was only after months of deep investigation that I discovered this tiny firm.
And if my company didn’t have a policy against owning companies we recommend, I would personally stake a very large claim in this company.
And I’ll be honest, I’ve considered selling this report alone by itself. Information like this is as valuable as gold itself in the investing world.
In the end however, I decided this special report is perfect for a small, exclusive group of individual investors—the charter members of The S&A Gold Report.
I would like to invite you to become a charter member of this brand new, sophisticated research service. And in return, I’ll send you the research on my biggest project to date—China’s Secret Gold Mine—at no cost.
The S&A Gold Report is our newest research service. And I’ll be the first to admit… this new service is not for the average investor.
How do you know if it’s right for you? Here’s how to decide…
The new bull market is here
If you’ve been paying attention to the price of gold lately—and I’ll bet you have—you’ve noticed quite a run up in price since 2001.
It’s more than doubled.
And if you’ve been eyeing the prices of other precious metals and raw materials, the story is exactly the same...
Silver—up 143%
Platinum—up 140%
Copper—up 300%
Aluminum—up 77%
Oil—up 270%
Zinc—up 263%
Nickel—up 450%
Lead—up 125%
Amazingly, these prices have only begun to go up.
You see, I firmly believe these are the dawning days of a 20-year bull market in commodities and precious metals. That’s because the markets for these resources—like everything else—run in periodic and predictable cycles.
Let me show you what I mean...
Looking back, there were 3 commodities bull markets during the 1900s:
1906—1922
1933—1953
1968—1982
The shortest of these bull markets lasted 14 years and the longest lasted 23 years.
The one we’re in now began in 2000. Historically speaking, we have at least until 2014 before this bull market expires.
In my professional opinion, I think it’ll last until 2020.
How do I know?
Take the price of gold for example...
As I mentioned, gold prices have soared again. Since 2001, they’ve already gone from $256 an ounce to as high as $730. But compared to the bull market of the late 70’s, this is only the beginning... This may be the biggest gold bull market in history!
Check out the chart below. That’s the price of gold adjusted for inflation — in the value of today’s dollars as measured by the Consumer Price Index.
See the last part of the chart from 2000 until today? That last little part is the current gold bull market. Though gold has been climbing nonstop since 2001, it still has a long way to go before it reaches the same highs as it did in the past.
Take a look at the sidebar to the right. This is just a partial list of precious metals companies that exploded during the last bull market of the late 70s and early 80s. As I’ve shown, the same cycle starting over again.
For this reason, natural resource and precious metals stocks are going to be the best things to own for the next few years.
As Barron’s recently reported, “for gold mining stocks... this is the buying opportunity of a decade.”
Time magazine reports, “Gold-mining stocks have doubled since early 2003, and most pros expect more gains-for mining stocks and the metal itself.”
That’s why I began The S&A Gold Report.
Every month in The S&A Gold Report I’ll show you 1-2 recommendations that are likely to benefit from this trend.
Let me give you a few examples of ideas I have coming down the pipe:
• A company that owns the world's largest undeveloped gold and copper deposits... totaling 25.4 million ounces of measured and indicated gold reserves... and 6.4 billion pounds of copper.
• A gold and diamond explorer that's growing at twice the rate of the price of gold. In the past companies like this have exploded 2,400% to 4,300% and more.
• A natural resource that's already grown faster than gold, silver or oil... it's price has exploded 1,300% in just four years... yet most investors have heard nothing about it.
In today’s dollars, gold will have to reach $2,150 an ounce to reach the same high it reached on January 16, 1980. According to some experts, this gold bull market will be unlike any we’ve seen before.
• Bill Murphy, Chairman of GATA, the international watchdog organization monitoring gold markets, “gold should top $1,000 within two years on its way between $3,000 and $5,000.”
• France's largest bank's equity brokerage, Cheuvreux says, “we could see the gold price spike up much further, possibly to $2,000 an ounce or even higher.”
• Barron’s reports that gold prices could realistically go all the way to $8,000 an ounce.
No matter which new plateau gold reaches, it seems imminent that gold is headed in only one direction—up. But gold isn’t the only precious metal getting ready to take off (prices adjusted for inflation)...
Silver is still about 50% below its all time high
Aluminum is still about 67% below its all time high
Nickel is 50% below its all time high
Zinc is also more than 50% below it’s all time high
Copper is not near its all time high.
And consider that the last time we had a bull market in precious metals people in Asia were closed off. China is now the #1 consumer of copper, steel, and iron ore, and #2 in the use of oil and energy products to feed its economy, which is growing at 20% a year. Now that China has entered the picture the situation is completely different than any previous bull market.
All this adds up to what will probably be the biggest precious metals bull market the world has ever seen.
In other words, the best place to have your money over the next two decades will be in precious metals and raw materials.
That’s where I think our newest research service The S&A Gold Report can help you.
You see, when the prices of precious metals go up, something wonderful happens in the stock market.
While gold, copper, silver, or any other metals go up during a bull market, the prices of a small group of stocks take off in a much bigger way. I’m talking about the companies that explore, mine, and produce these resources. These companies are very small (often less than $5 a share). And their share prices often multiply exponentially with the price of metals. They can literally go up thousands of percent during a bull market.
As Money Magazine reports, “mining share prices do not just follow metals prices: they exaggerate them!”
Source from : stansberryonline.com
FORBIDDEN for 53 years… gold is now legal again in China.
In order to meet the surging demand, the government hired
this tiny company to construct the largest gold mine in all
of China. Mining begins 4 weeks from today…
Dear Reader,
I want to let you in on the biggest secret in the gold business…
In a secluded region of Southern China—in one of the most gold-abundant regions of the world—a secret government project is in the works…
China is constructing a new gold mine… the biggest in all of Asia, according to the Xinhua News Agency (China’s biggest news corporation).
When completed, this new gold mine will be 3-times bigger than China’s largest existing mine… and 19-times bigger than the average Chinese mine.
It will have just one function… to supply gold to China’s red-hot, gold-hungry economy… a nation whose gold demand will triple in the next few years, according to the World Gold Council.
But here’s the best part…
One tiny company—working behind the scenes with the government—gets 80% of the mine’s profits. Today, you can buy this company for less than $6 a share.
Imagine what the demand of 1.3 BILLION gold-hungry people will do to the profitability of this mine… not to mention the share price of this tiny company.
As Australian Business News recently reported, because of this massive gold mine this small company “may become the biggest gold producer in China.”
But if you want to get in while things are still cheap, you simply must hurry.
This new gold mine goes into production four weeks from today. There’s no telling how high the share price will go as a result.
And right now, you have the chance to get in before news of China’s biggest gold mine reaches the mainstream press here in America.
It’s the single best opportunity in gold I’ve ever seen.
Let me give you all of the details…
The Biggest Gold Rush
the World has Ever Seen
In 1949, the government outlawed gold as an investment in China…
And for five decades, gold-starved Chinese routinely snuck into government-owned mines and dug up as much gold as they could backpack, pocket, or carry in their arms.
In one instance 50,000 peasants raided a small mine in China’s Gansu Province, and unearthed hundreds of pounds of gold in a single night.
Between 1990 and 1995, more gold was illegally mined in China than the world's #1 gold producing nation—South Africa—could produce legally.
Authorities could not stop the looting.
And those who chose not to dig or steal, often ventured to British-owned Hong Kong Island and other non-Chinese cities to purchase their gold… just to smuggle it back home.
The situation got so intense that heavily armed government soldiers—known as Red Guards—routinely stormed Chinese homes in search of hidden gold.
It was just a matter of time before something gave way…
Finally, it happened...
Little did anyone know that this one event would lead to the biggest and most obscene gold rush the world has ever witnessed…
And it’s taking place—right now—as I write this letter…
Banned for 53 Years…
Gold is Once Again Legal in China
Because of a recent law – Chinese citizens are once again allowed to own gold… for the first time in more than 50 years…
This puts an end to the digging, stealing, and smuggling of gold in China.
What’s happening now is the biggest money-shift in China’s history—as millions of would-be illegal miners are descending from the gold-ridden hills… and into the local gold shops.
“The gold rush is reaching a feverish pitch in major cities across China,” reports China Daily.
With half a century of pent-up demand—the Chinese are literally crowding city streets… unleashing a full-scale buying frenzy.
They dropped their shovels… and opened their wallets.
“Whenever gold bullions hit the counter,” reports Shanghai Daily, “they are sold out very quickly after being put on sale."
Look at some of the most recent reports from the streets:
• At China Merchant Bank, the line of buyers was so long that the bank stayed open late into the night. They sold 1,278 ounces of gold in just 4 days. One buyer bought more than $97,000 worth of gold.
• At Beijing Caibai Department Store, 10,582 ounces of gold bars sold out in just 7 hours. The next shipment of 7,055 ounces sold out twice as fast.
• When Shanghai Lao Feng Xiang Co. Ltd.—Shanghai’s biggest gold seller—put 529 ounces of gold up for sale on a trial basis, they sold out in less than 2 hours time.
In the blink of an eye, the Chinese gold market has gone from practically nothing to a $2.6 BILLION a year industry…
Only this gold rush (and the amount of money it’s generating) is getting bigger… much bigger…
What does all of this have to do with China’s biggest gold mine?
As you’re about to see… everything…
“Gold Rush in China,
People Line up to Buy Gold”
Shanghai Daily
You see, for the last half-century the Chinese had very few places to invest their money.
“Although people want to invest, they don't have many channels,” says Qi Jingmei, a senior economist with China’s State Information Center.
“As the third largest gold buyers market worldwide, China has attracted the attention of the World Gold Council, the world's largest gold promotion organization, which made China its major market in gold promotion in 2003.”
Beijing Review
As far as the Chinese are concerned, gold is the best investment out there…
“Share trading is viewed as too risky, and wealth management services are still in their infancy,” reports ABC News.
When gold was banned, money just piled up, collecting dust in the nation’s savings accounts. China’s savings rate is a whopping 40%–one of the highest in the world. They’ve accumulated an astounding $1.7 TRILLION over the past few decades, according to a recent Associated Press article.
Now that it’s legal again—the Chinese are unloading those savings into gold…
• “[China’s new gold law] is designed to create a new investment outlet for China’s huge pile of household savings,” reports the BBC News.
• “With more cash in their wallets,” reports China Daily, “many Chinese are looking for ways to diversify their investments to guarantee the security of assets and to even seek a profit. For many gold seems to be the favored choice.”
According to a recent study, an estimated 260 million Chinese are willing to put as much as 30% of their savings into gold over the next few years. That would be an injection of more than $36 BILLION into China’s newly formed gold markets, reports the Bank of China.
That much money would create demand for about 3,000 tons of gold, says Xi Jinahua, a Bank of China gold expert.
The problem is, the Chinese government only has about 600 tons of gold reserves ready to put into the economy – just one fifth of where demand will likely rise… “…far from enough to cope with the potential gold rush,” reports China Daily.
Said another way, China needs gold… lots of it… and fast.
They have just two options:
1. They can buy gold on the world markets and pay market price (which is at its highest level in 25 years)
Or…
2. They can mine Chinese gold and create thousands of new jobs across the country.
The choice is obvious.
“The implication is clear,” reports GFMS, the world’s foremost gold research group… “Either China steps up exploitation of its own resources, or it may be obliged to import large amounts of bullion.”
Which is why five years ago the Chinese government initiated a new gold project… Thanks to a massive gold deposit—in one of the last remaining gold-rich regions of the world—they’re building the ultimate gold mine.
One gigantic mine to help meet the demand of 1.3 BILLION gold-hungry Chinese.
As I mentioned, it goes into production four weeks from today…
“CHINA TO CONSTRUCT ASIA’S LARGEST GOLD MINE”
The Xinhua News Agency (China’s biggest news agency),
March 6, 2006
Most people don’t know it, but China is actually jam-packed with gold…
There’s an estimated 22,000 TONS of gold lying beneath Chinese soil—that’s enough to meet worldwide demand for the next quarter century.
But here’s the most exciting thing about gold in China…
As the map below indicates, more than half of China has NEVER been fully explored. So there are potentially mountains of gold still left to discover…
• “There is lots of potential and untapped opportunity in China for gold,” reports The World Council. “It has quite a lot of gold…”
• Stephen Chew – CEO of one of Australia’s biggest gold companies – Kismet Oberon, says, “China has barely scratched the surface of its vast gold potential…”
• There’s so much gold, in fact, that Investors Business Daily says China could surpass South Africa, Australia, and the United States to be the world’s #1 gold producer within the next 3 years.
How come there is so much gold in China—and more importantly—why has it never been mined?
You see, back in 1949 the government not only banned citizens from buying gold—they actually took control of the entire industry too… the exploration… the mining… the production… and the distribution—forbidding any non-Chinese firms inside its borders in the process.
“China’s gold industry itself was off limits to outsiders, with mining and refining controlled by parochial and xenophobic states officials,” reports the Economist magazine… “Indeed much of China’s gold production was traditionally shrouded in secrecy and managed by the military.”
And because the government ran the industry so poorly—it received very little funding—almost no money went into mining for most of that time (less than 1% of world exploration dollars went into finding gold in China).
Cheng Fumin, an official with China’s State Economic and Trade Commission says as a result, “China’s gold production technology and management is backward compared with major gold production countries in the world...” That’s why between 1949 and 1981, China never produced more than 20 tons of gold in a single year.
As you can see, China’s gold industry was heavily ignored, despite having some of the world’s biggest and richest gold deposits. Today, huge amounts of untouched gold are just sitting there, waiting to be extracted.
That’s why every gold company on the planet wants a piece of this untapped gold heaven. According to the Economist, “There has been no shortage over the past two decades of would-be foreign gold diggers rushing into China in search of treasure.”
“Traditional gold-mining centers—Australia, South Africa, and North America—have been mined like a piece of Swiss cheese,” writes Business Week. But not China… Which is why it is so attractive to so many gold companies right now.
That’s because “many parts of the country have gold reserves worth billions of dollars,” reports The Star (one of Asia’s biggest newspapers).
And since 1949—for a span of more than 50 years—no foreign company has ever been granted access to China’s gold rich soil.
That is… until now.
After more than a half century of forbidden mining, one tiny expert gold company has the first-ever Chinese gold-mining permit issued to a foreign company. Southern Cross Equities, an Australian brokerage firm, says this company is as much as 10 years ahead of other companies looking to become established in China’s gold industry.
They’ve even acquired exploration rights for China’s uncharted gold territories. So they’re in line to get in on newer and potentially bigger gold projects in China.
But the real story is the secret government project they’re working on right now…
And it’s taking place in the richest gold region of them all…
Mining Begins in Just 4 Weeks…
One area of China holds more gold than all the others…
It’s a region known simply as the Golden Triangle. “The Golden Triangle is the best gold-endowed region of China,” reports The Globe and Mail, Canada’s biggest newspaper.
Here’s why this area is so special...
According to the U.S. Geological Society, the Golden Triangle has a similar “gold signature” to a region in Nevada called the Carlin Trend. The Carlin Trend is a gargantuan gold deposit—one of the world’s biggest. It was discovered in back in the early 1970s.
Why am I telling you this?
Well, the Carlin Trend has produced a monstrous 60 million ounces of gold over the past 35 years—and it’s believed to hold at least 40 million more. It’s probably the world’s most famous gold deposit. That’s because it turned a tiny, unknown company called Newmont Mining into a $22 BILLION gold industry giant. (Their stock price shot up from $4 a share all the way to $60 after they began mining gold at the Carlin Trend).
And recently, another “Carlin Trend” deposit (a rare occurrence in the gold business) has been discovered again—8,000 miles away—in China…
“Every gold miner wishes he could discover a replica of the prolific Carlin Trend of Nevada. For most it’s just a dream. But in Southern China a discovery which replicates in many ways the Carlin ‘signature’ has been made,” reports Tim Treadgold, a commodities expert whose research has appeared in Forbes and Investors Business Daily.
It’s on this deposit (China’s “version” of the Carlin Trend), that the Chinese government is constructing the country’s biggest and most modern gold mining complex—with the help of one small company…
You see, as I mentioned earlier, the Chinese government doesn’t have the technology to extract this gold efficiently or cheaply. So they hired a tiny company that could.
This small firm can produce all this gold and get it into the Chinese economy for as little as $183 an ounce. Most of the world’s biggest and richest gold companies can’t produce gold that cheaply. Which is why they were awarded the first-ever foreign gold mining permit in China.
Even better, as part of their deal with the government, the small firm gets 80% of the mine’s profits. With gold selling around $600 (Barron’s reports it could go as high as $8,000) an ounce, this small firm stands to profit handsomely.
Together for the past 5 years, they’ve been working hard, constructing this massive gold mine, gearing it up for production… spending a verifiable fortune—hundreds of millions—on China’s biggest mine:
• Twelve kilometers of sealed access road surround the massive gold deposit, making even the most remote parts accessible.
• Forty-two kilometers of high voltage power lines supply electricity to the newly constructed mills, processing plants, and facilities.
• An entire village has been constructed to accommodate a workforce of more than 700 mine workers, diggers, and drillers.
• Three cellular phone companies have even erected towers on nearby hillsides in anticipation of new business.
• China’s biggest railcar provider, The China Railway Company has already signed on to haul out and disperse the gold all over China.
As Asia Business recently reported, when fully completed, this new mine will be “the largest producer of gold in China.” It has at least 12 years of proven gold reserves (as they drill deeper, new reserves are constantly being added).
“The Company’s strong financial position will fund the development of [this new gold mine] to become China’s premier gold mine, while continuing an aggressive exploration and acquisition strategy,” writes the Australian Mining Club Journal.
World-renowned geologist Greg Jones says right now, this gold mine is like the “Carlin [trend] back in 1970…” meaning, it’s an enormous gold mine that very few people know about.
But it probably won’t stay that way for long…
Already 45,000 tons of gold ore have been stockpiled, ready to process. And in about 4 weeks time—this fall—these huge blocks of ore will be whittled down into thousands of precious gold bars… bullion that will be in high demand across China—sold out very quickly—just like in the gold-buying frenzies I talked about earlier.
After that, one tiny company will begin raking in a fortune.
As I said, it’s the single best opportunity in gold I’ve ever seen. Now you see why.
But if you want to be a part of it all you have to get invested soon. Right now things are still cheap. While this tiny firm trades for under $6 a share, it’s not likely to stay that way much longer.
If this opportunity even remotely interests you, I suggest you take advantage of this situation now.
Here’s everything you need to know…
How much money should
you expect to make?
By now you must be wondering how much money you could make with China’s newest and biggest gold mine.
Of course, the exact amount is impossible to predict. But one thing is for certain...
Whenever a small company works on a big gold project—developing a major mine—their share price almost always goes up as a result.
The returns for early investors can be staggering (you’ll notice many of these firms used to be very small, but are now some of the world’s richest)...
• Lihir (Lihir Island mine) – 1,037%
• Newcrest (Cadia Hill mine) – 1,839%
• Buenaventura (Minas Congo mine) – 781%
• Goldcorp (Red Lake Mine) – 996%
• Newmont Mining (Carlin Trend mine) – 1,566%
• Randgold (Morila mine) – 677%
• Centerra (Kumtor mine) – 187%
• Dundee (Chelopech mine) – 173%
• Meridian Gold (El Penon mine) – 957%
• Kinross (Fort Knox mine) – 710%
• Agnico Eagle (Laronde mine) – 456%
• Northern Orion (Alumbrera mine) – 215%
• China’s biggest gold mine – Production begins this fall
These are just a few I can think of off the top of my head.
And when you find a small company getting ready to develop a major gold mine, like the one in China...
Well...
Let’s just say the prospects of researching this kind of environment were enough to lure me away from my academic studies and fieldwork to begin my own investment research service.
My name is Matt Badiali. I’m a geologist. I hold a masters degree in geology and I'm finishing up my PhD in the same field. I’ve spent the last twenty years studying, teaching, and working in this industry.
I know how and where to locate rare and valuable resources… precious commodities like oil, diamonds, copper, and of course, gold. I've used sophisticated seismic to find oil, I've studied the field techniques of ExxonMobil and Anadarko, and I have years of field experience.
Along the way I’ve worked as a field geologist for a variety of firms... supervised drilling teams... explored the mountains of Colorado... and even combed the gold-rich Nevada Carlin Trend...
About a year ago, I left academia to take a job as a geologic analyst with Stansberry & Associates Investment Research.
And I began a monthly investment advisory showing investors how to capitalize on the booming oil business. And this service has been nothing short of an astounding success. I’ve already helped more than 22,000 investors learn how to cash in and make money in the oil industry. Already, I’ve shown investors some lightning quick gains:
• 25.7% in less than 3 weeks with a small Texas oil refiner
• 42.5% in just 8 months with a small oil survey firm
• 25.7% in less than 3 months with an ethanol producer
• 32% in 8 months with an oil services company
• 23.9% in 3 months with an offshore drill manufacturer
• 31.1% in 3 months with a Canadian oil and gas company
I can’t give you the names of these firms here because all of them are still buys… and poised to go even higher.
But recently I had another idea for an investment research service.
For years I’ve wanted to take my expertise in precious minerals and help people understand the business… and make some good money at the same time.
Now I spend the majority of my time researching and analyzing every inch of the precious metals and natural resources industry… utilizing inside contacts... experience in deep underground mines... and thorough understanding of geological exploration… to report my best investment ideas for a new financial research service called The S&A Gold Report.
And for the past 6 months, I’ve been working on something very unique… my biggest project to date—researching the tiny firm constructing the largest gold mine in China.
I’ve just finished compiling a special report that details the situation in full. It’s called China’s Secret Gold Mine.
This comprehensive report reveals everything there is to know about the company building China’s biggest gold mine. For example it covers:
•
China’s biggest and most modern gold mining project.
•
The first and only foreign company to receive gold mining permits in China—the tiny company that’s constructing this massive gold mine.
•
Why they’re about to become the largest gold producer in China (This small firm could easily be the next Newmont Mining Corp.).
•
The other big and potentially profitable gold mines they own in China.
•
The exploration projects they have lined up in China’s uncharted gold regions (remember more than half the country has yet to be fully explored for gold!). Another big discovery could very well be on the way.
As you can tell, this is not your everyday investing situation. You probably won’t read about this stock in your favorite financial journal or hear about it from your broker...
It was only after months of deep investigation that I discovered this tiny firm.
And if my company didn’t have a policy against owning companies we recommend, I would personally stake a very large claim in this company.
And I’ll be honest, I’ve considered selling this report alone by itself. Information like this is as valuable as gold itself in the investing world.
In the end however, I decided this special report is perfect for a small, exclusive group of individual investors—the charter members of The S&A Gold Report.
I would like to invite you to become a charter member of this brand new, sophisticated research service. And in return, I’ll send you the research on my biggest project to date—China’s Secret Gold Mine—at no cost.
The S&A Gold Report is our newest research service. And I’ll be the first to admit… this new service is not for the average investor.
How do you know if it’s right for you? Here’s how to decide…
The new bull market is here
If you’ve been paying attention to the price of gold lately—and I’ll bet you have—you’ve noticed quite a run up in price since 2001.
It’s more than doubled.
And if you’ve been eyeing the prices of other precious metals and raw materials, the story is exactly the same...
Silver—up 143%
Platinum—up 140%
Copper—up 300%
Aluminum—up 77%
Oil—up 270%
Zinc—up 263%
Nickel—up 450%
Lead—up 125%
Amazingly, these prices have only begun to go up.
You see, I firmly believe these are the dawning days of a 20-year bull market in commodities and precious metals. That’s because the markets for these resources—like everything else—run in periodic and predictable cycles.
Let me show you what I mean...
Looking back, there were 3 commodities bull markets during the 1900s:
1906—1922
1933—1953
1968—1982
The shortest of these bull markets lasted 14 years and the longest lasted 23 years.
The one we’re in now began in 2000. Historically speaking, we have at least until 2014 before this bull market expires.
In my professional opinion, I think it’ll last until 2020.
How do I know?
Take the price of gold for example...
As I mentioned, gold prices have soared again. Since 2001, they’ve already gone from $256 an ounce to as high as $730. But compared to the bull market of the late 70’s, this is only the beginning... This may be the biggest gold bull market in history!
Check out the chart below. That’s the price of gold adjusted for inflation — in the value of today’s dollars as measured by the Consumer Price Index.
See the last part of the chart from 2000 until today? That last little part is the current gold bull market. Though gold has been climbing nonstop since 2001, it still has a long way to go before it reaches the same highs as it did in the past.
Take a look at the sidebar to the right. This is just a partial list of precious metals companies that exploded during the last bull market of the late 70s and early 80s. As I’ve shown, the same cycle starting over again.
For this reason, natural resource and precious metals stocks are going to be the best things to own for the next few years.
As Barron’s recently reported, “for gold mining stocks... this is the buying opportunity of a decade.”
Time magazine reports, “Gold-mining stocks have doubled since early 2003, and most pros expect more gains-for mining stocks and the metal itself.”
That’s why I began The S&A Gold Report.
Every month in The S&A Gold Report I’ll show you 1-2 recommendations that are likely to benefit from this trend.
Let me give you a few examples of ideas I have coming down the pipe:
• A company that owns the world's largest undeveloped gold and copper deposits... totaling 25.4 million ounces of measured and indicated gold reserves... and 6.4 billion pounds of copper.
• A gold and diamond explorer that's growing at twice the rate of the price of gold. In the past companies like this have exploded 2,400% to 4,300% and more.
• A natural resource that's already grown faster than gold, silver or oil... it's price has exploded 1,300% in just four years... yet most investors have heard nothing about it.
In today’s dollars, gold will have to reach $2,150 an ounce to reach the same high it reached on January 16, 1980. According to some experts, this gold bull market will be unlike any we’ve seen before.
• Bill Murphy, Chairman of GATA, the international watchdog organization monitoring gold markets, “gold should top $1,000 within two years on its way between $3,000 and $5,000.”
• France's largest bank's equity brokerage, Cheuvreux says, “we could see the gold price spike up much further, possibly to $2,000 an ounce or even higher.”
• Barron’s reports that gold prices could realistically go all the way to $8,000 an ounce.
No matter which new plateau gold reaches, it seems imminent that gold is headed in only one direction—up. But gold isn’t the only precious metal getting ready to take off (prices adjusted for inflation)...
Silver is still about 50% below its all time high
Aluminum is still about 67% below its all time high
Nickel is 50% below its all time high
Zinc is also more than 50% below it’s all time high
Copper is not near its all time high.
And consider that the last time we had a bull market in precious metals people in Asia were closed off. China is now the #1 consumer of copper, steel, and iron ore, and #2 in the use of oil and energy products to feed its economy, which is growing at 20% a year. Now that China has entered the picture the situation is completely different than any previous bull market.
All this adds up to what will probably be the biggest precious metals bull market the world has ever seen.
In other words, the best place to have your money over the next two decades will be in precious metals and raw materials.
That’s where I think our newest research service The S&A Gold Report can help you.
You see, when the prices of precious metals go up, something wonderful happens in the stock market.
While gold, copper, silver, or any other metals go up during a bull market, the prices of a small group of stocks take off in a much bigger way. I’m talking about the companies that explore, mine, and produce these resources. These companies are very small (often less than $5 a share). And their share prices often multiply exponentially with the price of metals. They can literally go up thousands of percent during a bull market.
As Money Magazine reports, “mining share prices do not just follow metals prices: they exaggerate them!”
Source from : stansberryonline.com
Sunday, October 08, 2006
The Most Important Investment Principle of All
by Porter Stansberry
What I’m going to show you in today’s essay is, I believe, the most important investment principle you’ll ever learn.
If you follow it, as I do with my own money, you will never again have to worry about losing lots of money on any single investment. You will always know when to sell. And you will know how much money you should be investing in the first place.
For many years, I have maintained that 90% of the profits I make come from these “money managing” strategies. Most people think that because I’m a stock picker, my market-beating results stem from fundamental research and the advantage this knowledge gives me.
It’s true: Knowing a lot about a group of stocks helps you find the right ones to invest in, but this will only contribute about 10% of your gains over time. Most of the gains in stocks come from capturing swings in market sentiment.
I’ve found these swings to be, in large measure, impossible to predict. Instead, by using a simple, but reliable, strategy that I outline below, I have found I’m able to profit from the market’s upswings while strictly limiting my downside exposure.
This strategy is actually a two-step process of investing that I follow with every stock, bond, or currency.
Step #1: Letting your winners run and cutting your losses short
The first and most important principle of speculation is to let your winners run and cut your losses short. And even though the principle is well known, almost no one actually uses it. It’s just too hard emotionally.
When you’ve got profits on the table, every urge tells you “take ’em.” When you’ve got big, ugly losses staring back at you from your account ledger, every emotion says, “hold on – they aren’t losses until you take them.”
---------- Advertisement ---------
Why We’re Giving You a $1,000 Gift
We’d like to offer you a one-time gift.As you’ll see, it’s worth $1,000… and can immediately impact your wealth. Your gift could make you 5 times your money or more.
But if you’re interested, you must let us know by October 17th. After that, this gift will expire indefinitely.
Click here for the full details.
----------------------------------
Don’t do it. Instead, cut your losers early and often. Remember that you have to have capital to make more money. Nothing sets you back like a large loss. Take many small losses and no big ones and you’ll die a rich man. You can read exactly how to cut your losses with “trailing stops” here.
Step #2: How much to invest in any single investment
The second principle that applies to every investment has to do with diversified money management.
It doesn’t matter what you’re trading, or investing in. You shouldn’t put too many eggs in any one basket.
As a rule, I never put more than 5% of my total portfolio in any single investment idea.
The whole purpose of using a trailing stop is to prevent what I call a catastrophic loss. A catastrophic loss occurs when any single position in your investment portfolio experiences losses large enough to wipe out your other gains and/or jeopardize your livelihood.
One of the biggest differences between professional investors and amateur investors is the size of their positions relative to their total portfolio. Professionals consider a 2%-3% position enormous. Having 5% of your money in any one position is considered “gun slinging” by most professionals.
Meanwhile, at conferences, when I tell investors they should never allocate more than 4% of their portfolio to any stock initially, people look at me as if I’m nuts.
In fact, I would bet that 99 out of 100 individual investors wouldn’t even know how much money they can afford to invest in a given stock, limiting the position to only 4% of their portfolio. Instead, almost all individual investors measure their position sizes in terms of shares, typically round numbers, i.e. “I own 50 shares.”
Think like a pro – think about your positions as a percentage of your portfolio, not as a number of shares. Know the stop loss points of all your positions, at all times.
This doesn’t mean you have to check the stock tables every day.
Follow this two-step principle – by cutting your losing positions, and by minimizing your positions to no more than 4% of your overall portfolio - and I promise you, you’ll see better investment results, immediately.
Good investing,
Porter Stansberry
by Porter Stansberry
What I’m going to show you in today’s essay is, I believe, the most important investment principle you’ll ever learn.
If you follow it, as I do with my own money, you will never again have to worry about losing lots of money on any single investment. You will always know when to sell. And you will know how much money you should be investing in the first place.
For many years, I have maintained that 90% of the profits I make come from these “money managing” strategies. Most people think that because I’m a stock picker, my market-beating results stem from fundamental research and the advantage this knowledge gives me.
It’s true: Knowing a lot about a group of stocks helps you find the right ones to invest in, but this will only contribute about 10% of your gains over time. Most of the gains in stocks come from capturing swings in market sentiment.
I’ve found these swings to be, in large measure, impossible to predict. Instead, by using a simple, but reliable, strategy that I outline below, I have found I’m able to profit from the market’s upswings while strictly limiting my downside exposure.
This strategy is actually a two-step process of investing that I follow with every stock, bond, or currency.
Step #1: Letting your winners run and cutting your losses short
The first and most important principle of speculation is to let your winners run and cut your losses short. And even though the principle is well known, almost no one actually uses it. It’s just too hard emotionally.
When you’ve got profits on the table, every urge tells you “take ’em.” When you’ve got big, ugly losses staring back at you from your account ledger, every emotion says, “hold on – they aren’t losses until you take them.”
---------- Advertisement ---------
Why We’re Giving You a $1,000 Gift
We’d like to offer you a one-time gift.As you’ll see, it’s worth $1,000… and can immediately impact your wealth. Your gift could make you 5 times your money or more.
But if you’re interested, you must let us know by October 17th. After that, this gift will expire indefinitely.
Click here for the full details.
----------------------------------
Don’t do it. Instead, cut your losers early and often. Remember that you have to have capital to make more money. Nothing sets you back like a large loss. Take many small losses and no big ones and you’ll die a rich man. You can read exactly how to cut your losses with “trailing stops” here.
Step #2: How much to invest in any single investment
The second principle that applies to every investment has to do with diversified money management.
It doesn’t matter what you’re trading, or investing in. You shouldn’t put too many eggs in any one basket.
As a rule, I never put more than 5% of my total portfolio in any single investment idea.
The whole purpose of using a trailing stop is to prevent what I call a catastrophic loss. A catastrophic loss occurs when any single position in your investment portfolio experiences losses large enough to wipe out your other gains and/or jeopardize your livelihood.
One of the biggest differences between professional investors and amateur investors is the size of their positions relative to their total portfolio. Professionals consider a 2%-3% position enormous. Having 5% of your money in any one position is considered “gun slinging” by most professionals.
Meanwhile, at conferences, when I tell investors they should never allocate more than 4% of their portfolio to any stock initially, people look at me as if I’m nuts.
In fact, I would bet that 99 out of 100 individual investors wouldn’t even know how much money they can afford to invest in a given stock, limiting the position to only 4% of their portfolio. Instead, almost all individual investors measure their position sizes in terms of shares, typically round numbers, i.e. “I own 50 shares.”
Think like a pro – think about your positions as a percentage of your portfolio, not as a number of shares. Know the stop loss points of all your positions, at all times.
This doesn’t mean you have to check the stock tables every day.
Follow this two-step principle – by cutting your losing positions, and by minimizing your positions to no more than 4% of your overall portfolio - and I promise you, you’ll see better investment results, immediately.
Good investing,
Porter Stansberry
Thursday, October 05, 2006
This stock profile should be viewed as a paid advertisement. In order to enhance public awareness of Tradestar Resources and its securities through the distribution of this report, the publishers of Oil/Gas Elite Stock Picks Advisory have been provided a budget in the amount of up to $10,000/day from one or more third party shareholders of the featured company to cover our costs associated with online marketing and distribution of this report, and will retain any excess funds no so spent as profit.
Download a FREE REPORT
Download a FREE REPORT
Wednesday, August 16, 2006
HOW TO PROFIT FROM AMERICA AGING INDUSTRY
Today I surfing the site for aging industry. Finally I come to a FREE report offering from supernova stock.
After I read the 12 page report they show you the full information statistic and realistic figure that you will few hungry to rush for the goldmine.
You have taken the first step toward realizing some truly amazing profits by investing in sectors and specific companies that are poised for big growth as America's baby boomers head into their golden years.
You can go to their website subscribe and get a piece of the report.
http://www.supernovastocks.com/main.cfm
or you can go to my website to download too
http://www.babyboomerreport.com/report.cfm?email=mygoldvest@gmail.com
You will find that is an amazing report you have ever known.
Today I surfing the site for aging industry. Finally I come to a FREE report offering from supernova stock.
After I read the 12 page report they show you the full information statistic and realistic figure that you will few hungry to rush for the goldmine.
You have taken the first step toward realizing some truly amazing profits by investing in sectors and specific companies that are poised for big growth as America's baby boomers head into their golden years.
You can go to their website subscribe and get a piece of the report.
http://www.supernovastocks.com/main.cfm
or you can go to my website to download too
http://www.babyboomerreport.com/report.cfm?email=mygoldvest@gmail.com
You will find that is an amazing report you have ever known.
Thursday, August 10, 2006
The Currency Exchange Market
The currency exchange market is an inter-bank or inter-dealer market that was established in 1971 when floating exchange rates began to materialize. In addition, it is an Over-The-Counter market, meaning that transactions are conducted between any two counter parties that agree to trade via the telephone or electronic network. Trading is thus not centralized, as is the case with many stock markets (i.e., NYSE, ASE, CME) or as the case for currency futures and currency options, which trade on special exchanges. Dealers often "advertise" exchange rates using a distribution network, such as the one provided by Reuters or Bridge. Dealers then use the information obtained there (or directly) to "agree" to a rate and a trade.
The major dealing centers today are: London, with about 30% of the market, New York, with 20%, Tokyo, with 12%, Zurich, Frankfurt, Hong Kong and Singapore, with about 7% each, followed by Paris and Sydney with 3% each.
In terms of trading volume, the currency exchange market is the worlds largest market, with daily trading volumes in excess of $1.5 trillion US dollars. This is orders of magnitude larger than the bond or stock market. For example, the New York Stock Exchange has a daily trading volume of approximately $60 billion. Thus, the currency exchange market is by far the most liquid market in the world today. Because of the volume in trading, it is impossible for individuals or companies to affect the exchange rates. In fact, even central banks and governments find it increasingly difficult to affect the exchange rates of the most liquid currencies, such as the US dollar, Japanese Yen, Euro, Swiss Frank, Canadian Dollar or Australian Dollar.
The currency exchange market is a true 24-hour market, 5 days a week. There are dealers in every major time zone. Trading begins Monday morning in Sydney (which corresponds to 3pm EST, Sunday) and then daily moves around the globe through the various trading centers until closing Friday evening at 4:30pm EST in New York.
Today, over 85% of all currency exchange transactions involve a few major currencies: the US Dollar (USD), Japanese Yen (JPY), Euro (EUR), Swiss Frank (CHF), British Pound (GBP), Canadian Dollar (CAD), and Australian Dollar (AUD). In the currency exchange market, most of the currencies are traded only against the US Dollar. The term cross rate refers to an exchange rate between two non-dollar currencies. Trading between two non-dollar currencies usually occurs by first trading one against the US Dollar and then trading the US Dollar against the second non-dollar currency. Because of this, the spread in the exchange rate between two non-dollar currencies is often higher. (There are a few non-dollar currencies that are traded directly, such as GBP/EUR or EUR/CHF.) The following directly traded currency pairs make up the vast majority of the trading volume and are thus considered to be the most important ones: EUR/USD, USD/JPY, EUR/JPY, USD/CAD, EUR/GBP, GBP/USD, USD/CHF, AUD/USD, and AUD/JPY.
The currency exchange market is an inter-bank or inter-dealer market that was established in 1971 when floating exchange rates began to materialize. In addition, it is an Over-The-Counter market, meaning that transactions are conducted between any two counter parties that agree to trade via the telephone or electronic network. Trading is thus not centralized, as is the case with many stock markets (i.e., NYSE, ASE, CME) or as the case for currency futures and currency options, which trade on special exchanges. Dealers often "advertise" exchange rates using a distribution network, such as the one provided by Reuters or Bridge. Dealers then use the information obtained there (or directly) to "agree" to a rate and a trade.
The major dealing centers today are: London, with about 30% of the market, New York, with 20%, Tokyo, with 12%, Zurich, Frankfurt, Hong Kong and Singapore, with about 7% each, followed by Paris and Sydney with 3% each.
In terms of trading volume, the currency exchange market is the worlds largest market, with daily trading volumes in excess of $1.5 trillion US dollars. This is orders of magnitude larger than the bond or stock market. For example, the New York Stock Exchange has a daily trading volume of approximately $60 billion. Thus, the currency exchange market is by far the most liquid market in the world today. Because of the volume in trading, it is impossible for individuals or companies to affect the exchange rates. In fact, even central banks and governments find it increasingly difficult to affect the exchange rates of the most liquid currencies, such as the US dollar, Japanese Yen, Euro, Swiss Frank, Canadian Dollar or Australian Dollar.
The currency exchange market is a true 24-hour market, 5 days a week. There are dealers in every major time zone. Trading begins Monday morning in Sydney (which corresponds to 3pm EST, Sunday) and then daily moves around the globe through the various trading centers until closing Friday evening at 4:30pm EST in New York.
Today, over 85% of all currency exchange transactions involve a few major currencies: the US Dollar (USD), Japanese Yen (JPY), Euro (EUR), Swiss Frank (CHF), British Pound (GBP), Canadian Dollar (CAD), and Australian Dollar (AUD). In the currency exchange market, most of the currencies are traded only against the US Dollar. The term cross rate refers to an exchange rate between two non-dollar currencies. Trading between two non-dollar currencies usually occurs by first trading one against the US Dollar and then trading the US Dollar against the second non-dollar currency. Because of this, the spread in the exchange rate between two non-dollar currencies is often higher. (There are a few non-dollar currencies that are traded directly, such as GBP/EUR or EUR/CHF.) The following directly traded currency pairs make up the vast majority of the trading volume and are thus considered to be the most important ones: EUR/USD, USD/JPY, EUR/JPY, USD/CAD, EUR/GBP, GBP/USD, USD/CHF, AUD/USD, and AUD/JPY.
How currency trading is done traditionally
Currency trading is always done with currency pairs, such as EUR/USD, and so it is useful to consider the currency pair as an instrument, which can be bought or sold.
Buying the currency pair implies buying the first, base currency and selling (short) an equivalent amount of the second, quote currency (to pay for the base currency). (It is not necessary for the trader to own the quote currency prior to selling, as it is sold short.) A speculator buys a currency pair, if she believes the base currency will go up relative to the quote currency, or equivalently that the corresponding exchange rate will go up.
Selling the currency pair implies selling the first, base currency (short), and buying the second, quote currency. A speculator sells a currency pair, if she believes the base currency will go down relative to the quote currency, or equivalently, that the quote currency will go up relative to the base currency.
After buying a currency pair, the trader will have an open position in the currency pair. Right after such a transaction, the value of the position will be close to zero, because the value of the base currency is more or less equal to the value of the equivalent amount of the quote currency. In fact, the value will be slightly negative, because of the spread involved.
In todays currency market, a trade goes through a three-step process:
the trader communicates the currency pair and the amount he/she would like to trade with another dealer.
the dealer responds with a bid and an ask price
the trader responds to the bid and ask price with one of:
buy (by saying "Mine" or "I buy" or "I take")
sell (by saying "yours" or "I give you" or "I sell")
refuse.
The transaction occurs if the final response is either a buy or a sell. The dealer is required to quote a "good" market price, since he does not know whether the trader will buy or sell.
The currency exchange market described above is referred to as the spot market and the transaction described is referred to as a spot deal. A spot deal consists of a bilateral contract between a party delivering a specified amount of a given currency against receiving a specified amount of another currency from a second counter party, based on an agreed exchange rate, within two business days of the deal date, which is referred to as the settlement date. (The settlement date for USD/CAD is one business day after the deal date.) Speculators rarely deliver, however. Instead, they use what is referred to as a rollover swap. The rollover swap is designed to allow the changing of an old deal date to the current date by simultaneously closing an open position for todays date and opening the same position for the next day at a price reflecting the interest rate differential between the two currencies.
When a trader buys or sells a currency pair, the value of the currency pair, as an instrument, initially is close to zero. This is because (in the case of a buy) the quote currency is sold to buy an equivalent amount of the base currency. As the market rates fluctuate, however, the value of the currency pair position held will also fluctuate. Thus, if the rate for the currency pair goes down, the speculators long position will lose in value and become negative. To ensure that the speculator can carry the risk for the case where the position results in a loss, banks or dealers typically require sufficient collateral to cover those losses. This collateral is typically referred to as margin.
To limit down-side risk, traders often specify a Stop-Loss rate for each open trade. The Stop-Loss specifies that the trade should be closed automatically when the currency exchange rate for the currency pair in question reaches a certain threshold. For long positions, the Stop-Loss rate is always lower than the current exchange rate; for short positions, it is always higher. Traders, at times, also specify a Take-Profit rate for their trades in order to lock in a profit when the exchange rate reaches a certain threshold. For long positions, the Take-Profit rate must be above the current rate, while for short positions, it must be below the current rate.
A trader may also leave an order with a bank, broker or dealer. These so called leave orders are orders that a trade should be executed (in the future) when certain market conditions occur. There are three types of leave orders:
entry orders: specifies that a currency pair should be traded when it reaches a certain exchange rate. Entry orders are used when the trade would not offset a current position.
take-profit orders: are used to clear a position by buying (or selling) the currency pair of the position when the exchange rate reaches a specified level.
stop-loss orders: are used to clear a position by buying (or selling) the currency pair of the position when the exchange rate reaches a specified level.
Currency trading is always done with currency pairs, such as EUR/USD, and so it is useful to consider the currency pair as an instrument, which can be bought or sold.
Buying the currency pair implies buying the first, base currency and selling (short) an equivalent amount of the second, quote currency (to pay for the base currency). (It is not necessary for the trader to own the quote currency prior to selling, as it is sold short.) A speculator buys a currency pair, if she believes the base currency will go up relative to the quote currency, or equivalently that the corresponding exchange rate will go up.
Selling the currency pair implies selling the first, base currency (short), and buying the second, quote currency. A speculator sells a currency pair, if she believes the base currency will go down relative to the quote currency, or equivalently, that the quote currency will go up relative to the base currency.
After buying a currency pair, the trader will have an open position in the currency pair. Right after such a transaction, the value of the position will be close to zero, because the value of the base currency is more or less equal to the value of the equivalent amount of the quote currency. In fact, the value will be slightly negative, because of the spread involved.
In todays currency market, a trade goes through a three-step process:
the trader communicates the currency pair and the amount he/she would like to trade with another dealer.
the dealer responds with a bid and an ask price
the trader responds to the bid and ask price with one of:
buy (by saying "Mine" or "I buy" or "I take")
sell (by saying "yours" or "I give you" or "I sell")
refuse.
The transaction occurs if the final response is either a buy or a sell. The dealer is required to quote a "good" market price, since he does not know whether the trader will buy or sell.
The currency exchange market described above is referred to as the spot market and the transaction described is referred to as a spot deal. A spot deal consists of a bilateral contract between a party delivering a specified amount of a given currency against receiving a specified amount of another currency from a second counter party, based on an agreed exchange rate, within two business days of the deal date, which is referred to as the settlement date. (The settlement date for USD/CAD is one business day after the deal date.) Speculators rarely deliver, however. Instead, they use what is referred to as a rollover swap. The rollover swap is designed to allow the changing of an old deal date to the current date by simultaneously closing an open position for todays date and opening the same position for the next day at a price reflecting the interest rate differential between the two currencies.
When a trader buys or sells a currency pair, the value of the currency pair, as an instrument, initially is close to zero. This is because (in the case of a buy) the quote currency is sold to buy an equivalent amount of the base currency. As the market rates fluctuate, however, the value of the currency pair position held will also fluctuate. Thus, if the rate for the currency pair goes down, the speculators long position will lose in value and become negative. To ensure that the speculator can carry the risk for the case where the position results in a loss, banks or dealers typically require sufficient collateral to cover those losses. This collateral is typically referred to as margin.
To limit down-side risk, traders often specify a Stop-Loss rate for each open trade. The Stop-Loss specifies that the trade should be closed automatically when the currency exchange rate for the currency pair in question reaches a certain threshold. For long positions, the Stop-Loss rate is always lower than the current exchange rate; for short positions, it is always higher. Traders, at times, also specify a Take-Profit rate for their trades in order to lock in a profit when the exchange rate reaches a certain threshold. For long positions, the Take-Profit rate must be above the current rate, while for short positions, it must be below the current rate.
A trader may also leave an order with a bank, broker or dealer. These so called leave orders are orders that a trade should be executed (in the future) when certain market conditions occur. There are three types of leave orders:
entry orders: specifies that a currency pair should be traded when it reaches a certain exchange rate. Entry orders are used when the trade would not offset a current position.
take-profit orders: are used to clear a position by buying (or selling) the currency pair of the position when the exchange rate reaches a specified level.
stop-loss orders: are used to clear a position by buying (or selling) the currency pair of the position when the exchange rate reaches a specified level.
The Need for Currency Exchange
Currency exchange is necessary in numerous circumstances.
Consumers typically come into contact with currency exchange when they travel. They go to a bank or currency exchange bureau to convert one currency (typically, their "home currency") into another (i.e., the currency of the country they intend to travel to) so they can pay for goods and services in the foreign country. Consumers may also purchase goods in a foreign country or via the Internet with their credit card, in which case they will find that the amount they paid in the foreign currency will have been converted to their home currency on their credit card statement. Although each such currency exchange is a relatively small transaction, the aggregate of all such transactions is significant.
Businesses typically have to convert currencies when they conduct business outside their home country. For example, if they export goods to another country and receive payment in the currency of that foreign country, then the payment must often be converted back to the home currency. Similarly, if they have to import goods or services, then businesses will often have to pay in a foreign currency, requiring them to first convert their home currency into the foreign currency. Large companies convert huge amounts of currency each year; for example, a company such as General Electric (GE) converts tens of billions of dollars each year. The timing of when they convert can have a large affect on their balance sheet and "bottom line.
Investors and speculators require currency exchange whenever they trade in any foreign investment, be that equities, bonds, bank deposits, or real estate. For example, when a Swedish investor buys shares in Sun Microsystems on the NASDAQ, she will have to pay for the shares in U.S. Dollars and likely have to convert Swedish Krona to U.S. Dollars. Similarly, a Japanese real estate investor who sells a New York property may well want to convert the proceeds of the sale in U.S. Dollars to Japanese Yen.
Investors and speculators also trade currencies directly in order to benefit from movements in the currency exchange markets. For example, if an American investor believes that the Japanese economy is strengthening and as a result expects the Japanese Yen to appreciate in value (i.e., go up relative to other currencies), then she may want to buy Japanese Yen and take what is referred to as a long position. Similarly, if an American investor believes that the Euro will go down over time, then she may want to sell Euro to take a short position. Interestingly, investors and speculators can profit equally from currencies becoming stronger (by taking a long position) or from currencies becoming weaker (by taking a short position). Speculators are often day traders, trying to take advantage of market movements in very short time periods; buying a currency and then selling it again may happen within hours or even minutes. They are attracted to currency trading for numerous reasons, including (i) the size and daily volatility of the market, which gives them unparalleled excitement, (ii) the almost perfect liquidity of the currency exchange market, (iii) the fact that the currency exchange market is "open" 24 hours a day market, and (vi) the fact that currencies can be traded with no brokerage charges.
Commercial and Investment Banks trade currencies as a service for their commercial banking, deposit and lending customers. These institutions also generally participate in the currency market for hedging and proprietary trading purposes.
Governments and central banks trade currencies to improve trading conditions or to intervene in an attempt to adjust economic or financial imbalances. Although they do not trade for speculative reasons --- they are a non-profit organization --- they often tend to be profitable, since they generally trade on a long-term basis.
Currency exchange is necessary in numerous circumstances.
Consumers typically come into contact with currency exchange when they travel. They go to a bank or currency exchange bureau to convert one currency (typically, their "home currency") into another (i.e., the currency of the country they intend to travel to) so they can pay for goods and services in the foreign country. Consumers may also purchase goods in a foreign country or via the Internet with their credit card, in which case they will find that the amount they paid in the foreign currency will have been converted to their home currency on their credit card statement. Although each such currency exchange is a relatively small transaction, the aggregate of all such transactions is significant.
Businesses typically have to convert currencies when they conduct business outside their home country. For example, if they export goods to another country and receive payment in the currency of that foreign country, then the payment must often be converted back to the home currency. Similarly, if they have to import goods or services, then businesses will often have to pay in a foreign currency, requiring them to first convert their home currency into the foreign currency. Large companies convert huge amounts of currency each year; for example, a company such as General Electric (GE) converts tens of billions of dollars each year. The timing of when they convert can have a large affect on their balance sheet and "bottom line.
Investors and speculators require currency exchange whenever they trade in any foreign investment, be that equities, bonds, bank deposits, or real estate. For example, when a Swedish investor buys shares in Sun Microsystems on the NASDAQ, she will have to pay for the shares in U.S. Dollars and likely have to convert Swedish Krona to U.S. Dollars. Similarly, a Japanese real estate investor who sells a New York property may well want to convert the proceeds of the sale in U.S. Dollars to Japanese Yen.
Investors and speculators also trade currencies directly in order to benefit from movements in the currency exchange markets. For example, if an American investor believes that the Japanese economy is strengthening and as a result expects the Japanese Yen to appreciate in value (i.e., go up relative to other currencies), then she may want to buy Japanese Yen and take what is referred to as a long position. Similarly, if an American investor believes that the Euro will go down over time, then she may want to sell Euro to take a short position. Interestingly, investors and speculators can profit equally from currencies becoming stronger (by taking a long position) or from currencies becoming weaker (by taking a short position). Speculators are often day traders, trying to take advantage of market movements in very short time periods; buying a currency and then selling it again may happen within hours or even minutes. They are attracted to currency trading for numerous reasons, including (i) the size and daily volatility of the market, which gives them unparalleled excitement, (ii) the almost perfect liquidity of the currency exchange market, (iii) the fact that the currency exchange market is "open" 24 hours a day market, and (vi) the fact that currencies can be traded with no brokerage charges.
Commercial and Investment Banks trade currencies as a service for their commercial banking, deposit and lending customers. These institutions also generally participate in the currency market for hedging and proprietary trading purposes.
Governments and central banks trade currencies to improve trading conditions or to intervene in an attempt to adjust economic or financial imbalances. Although they do not trade for speculative reasons --- they are a non-profit organization --- they often tend to be profitable, since they generally trade on a long-term basis.
45 Hints to Avoid Losing Money In FOREX
1) Knowledge Deficiency ?Most new FOREX traders don take the time to learn what drives currency rates (primarily fundamentals). When news or a statement is due out they must close out their positions and sit out the best trading opportunities. They are taught to only trade after the market calms down. So essentially they miss the whole move and then trade the random noise that follows a fundamental price move. Just think for a moment about technically trading the aftermath of a price move; there is no potential.
2) Overtrading - Trading often with tight stops and tiny profit targets will only make the broker rich. The desire to ust?make a few hundred dollars a day by locking in tiny profits whenever possible is a losing strategy.
3) Over leveraged - Leverage is a two way street. The brokers want you to use high leverage because that means more spread income because your position size determines the amount of spread income; the bigger the position the more spread income the broker earns.
4) Relying on Others ?/SPAN> Real traders play a lone hand; they make their own decisions and don rely on others to make their trading decisions for them; there is no halfway; either trade for yourself or have someone else trade for you.
5) Stop Losses ?/SPAN> Putting tight stop losses with retail brokers is a recipe for disaster. When you put on a trade commit to a reasonable stop loss limit that allows your trade a fair chance to develop.
6) Demo Accounts ?/SPAN> Broker demo accounts are a shill game of sorts; theye not as time sensitive as real accounts and therefore give the impression that time sensitive trading systems, such as short-term moving average crossovers can be consistently profitably traded; once you start dealing with real money reality is quick to set in.
7) Trading During Off Hours ?/SPAN> Bank FX traders, option traders, and hedge funds have a huge advantage during off hours; they can push the currencies around when no volume is going through and the end game is new traders get fleeced trying to trade signals. There is only one signal during off hours ?stay out.
8) Trading a Currency, Not a Pair ?/SPAN> Being right about a currency is half a trade; success or failure depends upon being right about the second currency that makes up the pair.
9) No Trading Plan - Make money is not a trading plan. A trading plan is a blueprint for trading success; it spells out what you see your edge as being; if you don have an edge, you don have a plan, and likely youl wind up a statistic (part of the 95% of new traders that lose and quit).
10) Trading Against Prevailing Trend ?/SPAN> There is a huge difference between buying cheaply on the way down and buying cheaply. What was a low price quickly becomes a high price when youe trading against the trend.
11) Exiting Trades Poorly ?/SPAN> If you put on a trade and it not working make sure you exit properly; don compound the damage. If youe in a winning trade don talk yourself out of the position because youe bored or want to relieve stress; stress is a natural part of trading; get use to it.
12) Trading Too Short-term ?If youe profit target is less than 20 points don do the trade; the spread you pay to enter the trade makes the odds way against you when you go for these tiny profits.
13) Picking Tops and Bottoms - Looking for bargains works well at the supermarket but not trading foreign exchange; try to trade in the direction the price is going and youe results will improve.
14) Being Too Smart ?/SPAN> The most successful traders I know are high school graduates. They keep it simple and don look beyond the obvious; their results are excellent.
15) Not Trading Around News Time ?/SPAN> Most of the big moves occur around news time. The volume is high and the moves are real; there is no better time to trade fundamentally or technically than when news is released; this is when the real money adjusts their positions and as a result the prices changes reflect serious currency flow (compared to quiet times when Bank traders rule the market with their customer order flow.
16) Ignore Technical Condition ?/SPAN> Determining whether the market is over-extended long or over-extended short is a key determinant of near time price action. Spike moves often occur when the market is all one way.
17) Emotional Trading ?/SPAN> When you don pre-plan youe trades essentially it a thought and not an idea; thoughts are emotions and a very poor basis for doing trades. Do people generally say intelligent things when they are upset and emotional; I don think so.
18) Lack of Confidence ?Confidence only comes from successful trading. If you lose money early in your trading career it very difficult to gain true confidence; the trick is don go off half-cocked; learn the business before you trade.
19) Lack of Courage to Take a Loss ?/SPAN> There is nothing macho or gutsy about riding a loss, just stupidity and cowardice. It takes guts to accept your loss and wait for tomorrow to try again. Getting married to a bad position ruins lots of traders. The thing to remember is the market does crazy things often so don get married to any one trade; it just a trade. One good trade will not make you a trading success; rather it monthly and annual performance that defines a good trader.
20) Not Focusing on the Trade at Hand ?/SPAN> There is no room for fantasizing in successful trading. Counting up and mentally spending profits you haven made yet is mental masturbation and does you no good. Same with worrying about a loss that hasn happened yet. Focus on your position and have a reasonable stop loss in place at the time you do the trade. Then be like an astronaut ?sit back and enjoy the ride; no sense worrying because you have no real control; the market will do what it wants to do.
21) Interpreting FOREX News Incorrectly ?/SPAN> Fact is the press only has a very superficial understanding of the news they are reporting and tend to focus on one element and miss the point. Learn to read the source documents and understand it for real.
22) Lucky or Good ?Your account balance changes don tell you the whole story about your trading; fact is if your taking a lot of risk and making money you will eventually crash and burn. Look at the individual trade details; focus on your big loses and losing streaks. Ask yourself this; if I had a couple of consecutive losing streaks or a couple of consecutive big loses, how would my account balance look. Generally, traders making money without big daily loses have the best chance of sustaining positive performance. The others are accidents waiting to happen.
23) Too Many Charity Trades ?/SPAN> When you make money on a well thought out trade don give back half on a whim; invest your profits from good trades on the next good trade.
24) Courage Under Fire ?/SPAN> When a policeman breaks down the door to a drug dealers apartment he is scared but he does it anyway. When a fireman climbs onto the roof of a burning building he is scared but does it anyway; and gets the job done. Same with trading; it ok to be scared but you have to pull the trigger; no trigger ?no trades ?no profits ?no trader.
25) Quality Trading Time ?/SPAN> I suggest 3 hours a day of quality, focused trading time; that about all your brain allows. When your trading being 100% focused; half way is bullshit?it doesn work. Don even think that time spent in front of the computer watching the rates has any correlation to profitability; it doesn. Spend less time but when your trading be 100% focused on trading.
26) Rationalizing ?/SPAN> Killer. Absolute Killer. Put your trade on and let it run. If it hits your reasonable pre-determined stop your out. Think of yourself as a prizefighter; you just got knocked out. Moving your stop is like getting up after being crushed with a knockout blow; it pointless; things will only get worse. Don ignore the obvious; your wrong ?get out. Come back the next day and try again. A small loss will not hurt you; a catastrophic loss will.
27) Mixing Apples and Oranges ?Have you ever done this; you see the EURUSD trading higher so you buy GBPUSD because it asn moved yet? That a mistake. Most of the time the reason the GBPUSD hasn moved yet is because its already overbought or some 4:30am UK news was bearish. Don mix apples and oranges; if EURUSD looks bid buy EURUSD.
28) Avoiding the Hard Trades ?/SPAN> Bank FX traders have an axiom; the harder the trade is to do the better the trade. This I learned from experience; when I needed to buy EURUSD and it was hard to get them that when it necessary to pay up and get the business done. When it easy to get them then sit back and wait for better levels. So if your trying to get into a trade or more importantly get out of a trade don putz around for a few points; get your business done.
29) Too Much Detail ?/SPAN> If your trading more than 2 indicators then you need to clean house. Having many indicators stifles trading and finds reasons not to trade. A setup and a trigger is all you need.
30) Giving Up Too Easy ?/SPAN> Your first trade of the day may not be your best but certainly it no reason to quit. I have a preset daily trading limit and I use it; you can make money by making excuses; getting trades wrong is natural and should be expected.
31) Jumping the Gun ?/SPAN> Don be penny wise and dollar foolish; wait for your trade signal to be clear; put on your trade and give it a decent size stop loss so that you don get knocked out by random noise. Do trades don?buy lottery tickets (extremely tight stops).
32) Afraid to Take a Loss - trading is not personal; it business. Don think that a poor trade is a reflection on you. It could be your just ahead of your time or a commercial order hits the market and temporarily creates a small unexpected move. Again, place your stop beforehand and NEVER increase your pre-determined risk; if it going bad it will probably get worse; I think that Einstein n motion stays in motion?
33) Over-Relying on Risk Reward ?There is zero advantage in risk reward; if you put a 20 point stop and a 60 point profit your chances are probably 3-1 that you will lose; actually with the spread its more like 4 to 1 (from entry point if it goes down 17 points you lose or up 63 you win; 17/63 is close to 4-1).
34) Trading for Wrong Reasons ?Because the EURUSD is going up is not in itself a reason to buy. Buying EURUSD because its not moving so little risk is even worse; youe paying the toll (spread) without even a hint that you will get a directional move. If your bored don trade; the reason your bored is there is no trade to do in the first place.
35) Rumors ?Rumors are rumors almost 100% of the time; think about where in the motion you heard the rumor; if EURUSD is up 50 points in last 15 minutes and the rumor is dollar negative, well then you missed it. Whenever you trades determine where in the motion you are entering.
36) Trading Short-term Moving Average Crossovers ?This is the money sucker of the century. When the shorter term moving average cross the longer term moving average it only means that the average price in the short run is equal to the average price in the longer run. For the life of me I cannot understand why this is bullish or bearish. Easy to set up on software, complete with lights, bells and whistles, and good for the seller getting thousands for the software but in terms of creating profit it a zero.
37) Stochastic ?Another money sucker. Personally I think this indicator is used backwards; when it first signals an overdone condition that when I think the big spike in the verdone?currency pair occurs. To be overbought means strong and oversold means weak. Try buying on the first sign of overbought and selling on the first sign of oversold; youl be with the trend and likely have identified a move with plenty of juice left. So if %k and %d are both crossing 80; buy! (Same on sell side; sell at 20)
38) Wrong Broker ?A lot of FOREX brokers are horrible; get a good one. Read forums and chats in several different places to get an unbiased opinion.
39) Simulated Results ?Watch out for lack box?systems; these are trading systems that don divulge how the trade signals are generated. Great majority of them are absolute garbage. They show you a track record of extraordinary results but think about it; if you could build a trading system with half a dozen filters using the benefit of hindsight, couldn you too come up with a great system. Of course going forward is an entirely different story. High-speed number crunching capabilities allows for building great hindsight trading systems; BEWARE.
40) Inconsistency ?Every business (FOREX trading included) requires a business plan (trading plan). Unless you have taken the time to write down a set of rules that you can and will follow, it likely your trading will remain unfocused and directionless. Make a plan, have rules, follow them set goals that are realistic and you will achieve them.
41) Master of None ?Focus on one currency for technical trading; each currency has a unique way of trading and unless you get intimate with it you will never truly understand its underlying idiosyncrasies. Don spread yourself too thin ?focus ?master one currency at a time.
42) Thinking Long Term ?Don do it. Stay in the moment. Especially if youe a day trader. It doesn matter what happens next week or next month, if your trading with 30 to 50 point stops restrict your thought process to what happening right now. That is not to stay the long-term trend is not important; it is to say the long-term trend will not always help you when your trading a significantly shorter time frame.
43) Overconfidence ?Trading is not easy; statistics show 95% failure rate. If your doing well don take your success for granted; always be on the lookout for ways to improve what youe doing.
44) Getting Pumped Up ?/SPAN> The trick is to maintain an even keel; when you are in a trade you want to think exactly as you would if you didn have a trade on. To do this requires a relaxed disposition; this is not a football game; don get psyched up; relax and try to enjoy it.
45) Staying in the Game ?I don recommend demo trading because traders learn bad habits when trading with play money. I also don think etting it all hang out?right away is wise either. Start off doing trades and taking risk that is relatively small but still makes a difference to you if you win or lose; about a quarter to a third of what you expect to reach as your trading matures is reasonable.
Source from http://www.eurusdtrader.com
1) Knowledge Deficiency ?Most new FOREX traders don take the time to learn what drives currency rates (primarily fundamentals). When news or a statement is due out they must close out their positions and sit out the best trading opportunities. They are taught to only trade after the market calms down. So essentially they miss the whole move and then trade the random noise that follows a fundamental price move. Just think for a moment about technically trading the aftermath of a price move; there is no potential.
2) Overtrading - Trading often with tight stops and tiny profit targets will only make the broker rich. The desire to ust?make a few hundred dollars a day by locking in tiny profits whenever possible is a losing strategy.
3) Over leveraged - Leverage is a two way street. The brokers want you to use high leverage because that means more spread income because your position size determines the amount of spread income; the bigger the position the more spread income the broker earns.
4) Relying on Others ?/SPAN> Real traders play a lone hand; they make their own decisions and don rely on others to make their trading decisions for them; there is no halfway; either trade for yourself or have someone else trade for you.
5) Stop Losses ?/SPAN> Putting tight stop losses with retail brokers is a recipe for disaster. When you put on a trade commit to a reasonable stop loss limit that allows your trade a fair chance to develop.
6) Demo Accounts ?/SPAN> Broker demo accounts are a shill game of sorts; theye not as time sensitive as real accounts and therefore give the impression that time sensitive trading systems, such as short-term moving average crossovers can be consistently profitably traded; once you start dealing with real money reality is quick to set in.
7) Trading During Off Hours ?/SPAN> Bank FX traders, option traders, and hedge funds have a huge advantage during off hours; they can push the currencies around when no volume is going through and the end game is new traders get fleeced trying to trade signals. There is only one signal during off hours ?stay out.
8) Trading a Currency, Not a Pair ?/SPAN> Being right about a currency is half a trade; success or failure depends upon being right about the second currency that makes up the pair.
9) No Trading Plan - Make money is not a trading plan. A trading plan is a blueprint for trading success; it spells out what you see your edge as being; if you don have an edge, you don have a plan, and likely youl wind up a statistic (part of the 95% of new traders that lose and quit).
10) Trading Against Prevailing Trend ?/SPAN> There is a huge difference between buying cheaply on the way down and buying cheaply. What was a low price quickly becomes a high price when youe trading against the trend.
11) Exiting Trades Poorly ?/SPAN> If you put on a trade and it not working make sure you exit properly; don compound the damage. If youe in a winning trade don talk yourself out of the position because youe bored or want to relieve stress; stress is a natural part of trading; get use to it.
12) Trading Too Short-term ?If youe profit target is less than 20 points don do the trade; the spread you pay to enter the trade makes the odds way against you when you go for these tiny profits.
13) Picking Tops and Bottoms - Looking for bargains works well at the supermarket but not trading foreign exchange; try to trade in the direction the price is going and youe results will improve.
14) Being Too Smart ?/SPAN> The most successful traders I know are high school graduates. They keep it simple and don look beyond the obvious; their results are excellent.
15) Not Trading Around News Time ?/SPAN> Most of the big moves occur around news time. The volume is high and the moves are real; there is no better time to trade fundamentally or technically than when news is released; this is when the real money adjusts their positions and as a result the prices changes reflect serious currency flow (compared to quiet times when Bank traders rule the market with their customer order flow.
16) Ignore Technical Condition ?/SPAN> Determining whether the market is over-extended long or over-extended short is a key determinant of near time price action. Spike moves often occur when the market is all one way.
17) Emotional Trading ?/SPAN> When you don pre-plan youe trades essentially it a thought and not an idea; thoughts are emotions and a very poor basis for doing trades. Do people generally say intelligent things when they are upset and emotional; I don think so.
18) Lack of Confidence ?Confidence only comes from successful trading. If you lose money early in your trading career it very difficult to gain true confidence; the trick is don go off half-cocked; learn the business before you trade.
19) Lack of Courage to Take a Loss ?/SPAN> There is nothing macho or gutsy about riding a loss, just stupidity and cowardice. It takes guts to accept your loss and wait for tomorrow to try again. Getting married to a bad position ruins lots of traders. The thing to remember is the market does crazy things often so don get married to any one trade; it just a trade. One good trade will not make you a trading success; rather it monthly and annual performance that defines a good trader.
20) Not Focusing on the Trade at Hand ?/SPAN> There is no room for fantasizing in successful trading. Counting up and mentally spending profits you haven made yet is mental masturbation and does you no good. Same with worrying about a loss that hasn happened yet. Focus on your position and have a reasonable stop loss in place at the time you do the trade. Then be like an astronaut ?sit back and enjoy the ride; no sense worrying because you have no real control; the market will do what it wants to do.
21) Interpreting FOREX News Incorrectly ?/SPAN> Fact is the press only has a very superficial understanding of the news they are reporting and tend to focus on one element and miss the point. Learn to read the source documents and understand it for real.
22) Lucky or Good ?Your account balance changes don tell you the whole story about your trading; fact is if your taking a lot of risk and making money you will eventually crash and burn. Look at the individual trade details; focus on your big loses and losing streaks. Ask yourself this; if I had a couple of consecutive losing streaks or a couple of consecutive big loses, how would my account balance look. Generally, traders making money without big daily loses have the best chance of sustaining positive performance. The others are accidents waiting to happen.
23) Too Many Charity Trades ?/SPAN> When you make money on a well thought out trade don give back half on a whim; invest your profits from good trades on the next good trade.
24) Courage Under Fire ?/SPAN> When a policeman breaks down the door to a drug dealers apartment he is scared but he does it anyway. When a fireman climbs onto the roof of a burning building he is scared but does it anyway; and gets the job done. Same with trading; it ok to be scared but you have to pull the trigger; no trigger ?no trades ?no profits ?no trader.
25) Quality Trading Time ?/SPAN> I suggest 3 hours a day of quality, focused trading time; that about all your brain allows. When your trading being 100% focused; half way is bullshit?it doesn work. Don even think that time spent in front of the computer watching the rates has any correlation to profitability; it doesn. Spend less time but when your trading be 100% focused on trading.
26) Rationalizing ?/SPAN> Killer. Absolute Killer. Put your trade on and let it run. If it hits your reasonable pre-determined stop your out. Think of yourself as a prizefighter; you just got knocked out. Moving your stop is like getting up after being crushed with a knockout blow; it pointless; things will only get worse. Don ignore the obvious; your wrong ?get out. Come back the next day and try again. A small loss will not hurt you; a catastrophic loss will.
27) Mixing Apples and Oranges ?Have you ever done this; you see the EURUSD trading higher so you buy GBPUSD because it asn moved yet? That a mistake. Most of the time the reason the GBPUSD hasn moved yet is because its already overbought or some 4:30am UK news was bearish. Don mix apples and oranges; if EURUSD looks bid buy EURUSD.
28) Avoiding the Hard Trades ?/SPAN> Bank FX traders have an axiom; the harder the trade is to do the better the trade. This I learned from experience; when I needed to buy EURUSD and it was hard to get them that when it necessary to pay up and get the business done. When it easy to get them then sit back and wait for better levels. So if your trying to get into a trade or more importantly get out of a trade don putz around for a few points; get your business done.
29) Too Much Detail ?/SPAN> If your trading more than 2 indicators then you need to clean house. Having many indicators stifles trading and finds reasons not to trade. A setup and a trigger is all you need.
30) Giving Up Too Easy ?/SPAN> Your first trade of the day may not be your best but certainly it no reason to quit. I have a preset daily trading limit and I use it; you can make money by making excuses; getting trades wrong is natural and should be expected.
31) Jumping the Gun ?/SPAN> Don be penny wise and dollar foolish; wait for your trade signal to be clear; put on your trade and give it a decent size stop loss so that you don get knocked out by random noise. Do trades don?buy lottery tickets (extremely tight stops).
32) Afraid to Take a Loss - trading is not personal; it business. Don think that a poor trade is a reflection on you. It could be your just ahead of your time or a commercial order hits the market and temporarily creates a small unexpected move. Again, place your stop beforehand and NEVER increase your pre-determined risk; if it going bad it will probably get worse; I think that Einstein n motion stays in motion?
33) Over-Relying on Risk Reward ?There is zero advantage in risk reward; if you put a 20 point stop and a 60 point profit your chances are probably 3-1 that you will lose; actually with the spread its more like 4 to 1 (from entry point if it goes down 17 points you lose or up 63 you win; 17/63 is close to 4-1).
34) Trading for Wrong Reasons ?Because the EURUSD is going up is not in itself a reason to buy. Buying EURUSD because its not moving so little risk is even worse; youe paying the toll (spread) without even a hint that you will get a directional move. If your bored don trade; the reason your bored is there is no trade to do in the first place.
35) Rumors ?Rumors are rumors almost 100% of the time; think about where in the motion you heard the rumor; if EURUSD is up 50 points in last 15 minutes and the rumor is dollar negative, well then you missed it. Whenever you trades determine where in the motion you are entering.
36) Trading Short-term Moving Average Crossovers ?This is the money sucker of the century. When the shorter term moving average cross the longer term moving average it only means that the average price in the short run is equal to the average price in the longer run. For the life of me I cannot understand why this is bullish or bearish. Easy to set up on software, complete with lights, bells and whistles, and good for the seller getting thousands for the software but in terms of creating profit it a zero.
37) Stochastic ?Another money sucker. Personally I think this indicator is used backwards; when it first signals an overdone condition that when I think the big spike in the verdone?currency pair occurs. To be overbought means strong and oversold means weak. Try buying on the first sign of overbought and selling on the first sign of oversold; youl be with the trend and likely have identified a move with plenty of juice left. So if %k and %d are both crossing 80; buy! (Same on sell side; sell at 20)
38) Wrong Broker ?A lot of FOREX brokers are horrible; get a good one. Read forums and chats in several different places to get an unbiased opinion.
39) Simulated Results ?Watch out for lack box?systems; these are trading systems that don divulge how the trade signals are generated. Great majority of them are absolute garbage. They show you a track record of extraordinary results but think about it; if you could build a trading system with half a dozen filters using the benefit of hindsight, couldn you too come up with a great system. Of course going forward is an entirely different story. High-speed number crunching capabilities allows for building great hindsight trading systems; BEWARE.
40) Inconsistency ?Every business (FOREX trading included) requires a business plan (trading plan). Unless you have taken the time to write down a set of rules that you can and will follow, it likely your trading will remain unfocused and directionless. Make a plan, have rules, follow them set goals that are realistic and you will achieve them.
41) Master of None ?Focus on one currency for technical trading; each currency has a unique way of trading and unless you get intimate with it you will never truly understand its underlying idiosyncrasies. Don spread yourself too thin ?focus ?master one currency at a time.
42) Thinking Long Term ?Don do it. Stay in the moment. Especially if youe a day trader. It doesn matter what happens next week or next month, if your trading with 30 to 50 point stops restrict your thought process to what happening right now. That is not to stay the long-term trend is not important; it is to say the long-term trend will not always help you when your trading a significantly shorter time frame.
43) Overconfidence ?Trading is not easy; statistics show 95% failure rate. If your doing well don take your success for granted; always be on the lookout for ways to improve what youe doing.
44) Getting Pumped Up ?/SPAN> The trick is to maintain an even keel; when you are in a trade you want to think exactly as you would if you didn have a trade on. To do this requires a relaxed disposition; this is not a football game; don get psyched up; relax and try to enjoy it.
45) Staying in the Game ?I don recommend demo trading because traders learn bad habits when trading with play money. I also don think etting it all hang out?right away is wise either. Start off doing trades and taking risk that is relatively small but still makes a difference to you if you win or lose; about a quarter to a third of what you expect to reach as your trading matures is reasonable.
Source from http://www.eurusdtrader.com
Wednesday, August 09, 2006
Monday, August 07, 2006
Investment Forum You Can't Miss Out!
I alwasy surfing around to learn what people tought, Because I beleive the way they tought will influence their daily life, investment strategy, method or way to make decision and more.
European Social Investment ForumPan-European stakeholder network encourages and develops sustainable and responsible investment and...
www.eurosif.org/
Talkgold HYIP Investment ForumForum for discussion of high yield investment programs, foreign exchange, and general investing.
www.talkgold.com/forum/
UK Social Investment ForumMember association of the United Kingdom social, ethical, and green investment industry and community....
www.uksif.org/
US Social Investment ForumSIF online covers socially responsible investment, and green, environmental, ecological, ethical investing, by institutions, banks, organizations, ...
www.socialinvest.org/
1. The Motely Fool
2. Silicon Investor
3. Raging Bull
4. Yahoo Finance
5. StockChat
6. Stockhouse.com
7. Virtual Stock Exchange
8. Marketforum.com
9. BullandBear Financial Center
10. talkstock.com
I alwasy surfing around to learn what people tought, Because I beleive the way they tought will influence their daily life, investment strategy, method or way to make decision and more.
European Social Investment ForumPan-European stakeholder network encourages and develops sustainable and responsible investment and...
www.eurosif.org/
Talkgold HYIP Investment ForumForum for discussion of high yield investment programs, foreign exchange, and general investing.
www.talkgold.com/forum/
UK Social Investment ForumMember association of the United Kingdom social, ethical, and green investment industry and community....
www.uksif.org/
US Social Investment ForumSIF online covers socially responsible investment, and green, environmental, ecological, ethical investing, by institutions, banks, organizations, ...
www.socialinvest.org/
1. The Motely Fool
2. Silicon Investor
3. Raging Bull
4. Yahoo Finance
5. StockChat
6. Stockhouse.com
7. Virtual Stock Exchange
8. Marketforum.com
9. BullandBear Financial Center
10. talkstock.com
'Financial Intelligence & Financial Independence'- How to Achieve it?
Overview
A 2 hour candid talk on what it takes to achieve financial Intelligence and financial independence. The talk also enlightens the audience on ways to appreciate, save, make, grow and manage money. The talk creates an awareness in the audience on the need to have the Right Mental Attitude and Positive Financial Habits to achieve financial freedom.
Outline of Talk
At the end of the talk, the audience will be able to understand:-
v Myths and Truths about wealth
v The value of Money and the effects of inflation
v Financial Fitness Checkup - how healthy are you financially ?
v 10 mistakes people make in money management
v What is Financial Intelligence?
v 8 steps to achieve Financial Independence
v 20 Positive Financial Habits
v How to achieve the Wealth Ratio?
v The difference between Passive Income and Active Income
v Multiple streams of cashflow! ?how do you create it?
v The Right Mental attitude needed in achieving financial freedom
"TOO MANY PEOPLE SPEND MONEY THEY HAVE NOT EARNED, TO BUY THINGS THEY DON'T WANT, TO IMPRESS PEOPLE THEY DON'T LIKE.' Will Rogers
WHAT ABOUT YOU?
Date : 8th August, 2006 (Tuesday)
Time : 8.00pm sharp
Venue : Dewan Seroja, Kelab Golf Perkhidmatan Awam
Entry Fee : RM 20 Per person
PLEASE CONFIRM ATTENDANCE A.S.A.P AS SEATS ?????.ARE LIMITED!!!!!!
SPEAKER's PROFILE
Mr Karthigesu Sivalingam is the Principal Consultant of Global Dynamics, a training and consultancy firm. He obtained his Bachelor of Accountancy (Hons.) from University Malaya and his Masters in Business Administration (HR Management) from University of Warwick, UK.
Mr Karthigesu has more than 15 years experience in the field of training and consultancy. He has worked with Bank Negara Malaysia as an auditor and fulltime Trainer. He has also been a Resource person for Bankers Institute of Malaysia in the areas of Accounting , Financial Management , Credit Management , Cash Flow Analysis and Financial Analysis to train the employees of Commercial Banks , Finance Companies , Merchant Banks , Insurance Companies and Discounts Houses.
Mr Karthigesu has also researched, designed and facilitated training programs in the areas of Personal Development , Customer Service , Personality Profiles , Motivation, Communication, Change Management , Supervisory Skills , Leadership Skills , Management Skills, Team Building, Optimal Health and Financial Intelligence.
Some of his in-house clients are the Arab Malaysian Group, Akademi Percukaian Malaysia, Alstom Power, the Amanah Group, Bank Negara Malaysia, Bumiputra Commerce Bank Group, Caltex, Castrol, Celcom, the DRB Hicom Group, the Maybank Group, Malaysian Institute for Nuclear Technology, Malayan Rubber Board, MSE, Modenas, OCBC Bank, Star Publication, Sirim ,the Sunway Group, the Southern Bank Group etc.
He is currently on a quest to educate others on Financial Intelligence and Financial Independence. He has been conducting related talks for various corporate and non-profitable organizations in the past year. He is a much sought after speaker due to his frank, candid and humorous way of presenting his talks. The talks are very informative yet non-technical and easily understood by people of all levels.
Overview
A 2 hour candid talk on what it takes to achieve financial Intelligence and financial independence. The talk also enlightens the audience on ways to appreciate, save, make, grow and manage money. The talk creates an awareness in the audience on the need to have the Right Mental Attitude and Positive Financial Habits to achieve financial freedom.
Outline of Talk
At the end of the talk, the audience will be able to understand:-
v Myths and Truths about wealth
v The value of Money and the effects of inflation
v Financial Fitness Checkup - how healthy are you financially ?
v 10 mistakes people make in money management
v What is Financial Intelligence?
v 8 steps to achieve Financial Independence
v 20 Positive Financial Habits
v How to achieve the Wealth Ratio?
v The difference between Passive Income and Active Income
v Multiple streams of cashflow! ?how do you create it?
v The Right Mental attitude needed in achieving financial freedom
"TOO MANY PEOPLE SPEND MONEY THEY HAVE NOT EARNED, TO BUY THINGS THEY DON'T WANT, TO IMPRESS PEOPLE THEY DON'T LIKE.' Will Rogers
WHAT ABOUT YOU?
Date : 8th August, 2006 (Tuesday)
Time : 8.00pm sharp
Venue : Dewan Seroja, Kelab Golf Perkhidmatan Awam
Entry Fee : RM 20 Per person
PLEASE CONFIRM ATTENDANCE A.S.A.P AS SEATS ?????.ARE LIMITED!!!!!!
SPEAKER's PROFILE
Mr Karthigesu Sivalingam is the Principal Consultant of Global Dynamics, a training and consultancy firm. He obtained his Bachelor of Accountancy (Hons.) from University Malaya and his Masters in Business Administration (HR Management) from University of Warwick, UK.
Mr Karthigesu has more than 15 years experience in the field of training and consultancy. He has worked with Bank Negara Malaysia as an auditor and fulltime Trainer. He has also been a Resource person for Bankers Institute of Malaysia in the areas of Accounting , Financial Management , Credit Management , Cash Flow Analysis and Financial Analysis to train the employees of Commercial Banks , Finance Companies , Merchant Banks , Insurance Companies and Discounts Houses.
Mr Karthigesu has also researched, designed and facilitated training programs in the areas of Personal Development , Customer Service , Personality Profiles , Motivation, Communication, Change Management , Supervisory Skills , Leadership Skills , Management Skills, Team Building, Optimal Health and Financial Intelligence.
Some of his in-house clients are the Arab Malaysian Group, Akademi Percukaian Malaysia, Alstom Power, the Amanah Group, Bank Negara Malaysia, Bumiputra Commerce Bank Group, Caltex, Castrol, Celcom, the DRB Hicom Group, the Maybank Group, Malaysian Institute for Nuclear Technology, Malayan Rubber Board, MSE, Modenas, OCBC Bank, Star Publication, Sirim ,the Sunway Group, the Southern Bank Group etc.
He is currently on a quest to educate others on Financial Intelligence and Financial Independence. He has been conducting related talks for various corporate and non-profitable organizations in the past year. He is a much sought after speaker due to his frank, candid and humorous way of presenting his talks. The talks are very informative yet non-technical and easily understood by people of all levels.
Are You Winning? Calculating FOREX Profits and Losses
When trading currency you deal with much smaller divisions than when dealing with actual cash. For example the smallest denomination of US is currency is the penny ($0.01) but on the FOREX market it can be traded down to $0.0001. The smallest division that a currency can be traded at is known as a pip. A pip is short for Price Interest Point; this is sometimes also referred to as points. Currencies are traded in very large lots so even a small change in the value can create a significant profit or loss. If you are trading $100,000 in US dollars a single pip is worth $10 so a change of 60 pips or 6/10 of one cent will generate a profit or loss of $600 depending on the direction of the move.
When trading currencies various lot sizes are not unusual but 100,000 units are considered a standard lot. A single unit is what ever the name of that particular currency is for example when trading Japanese currency a single unit is the Yen. Some trades are done in lots of 10,000 these are commonly referred to as mini lots. Even though lots of various sizes are possible the majority of trades involve standard lots of 100,000 units.
The size of the pip is based on the currency type; different types of currencies have different pip sizes. For example the Yen pip is 0.01 where as the US dollar has a pip of 0.0001. Both the type of currency as well as the size of the lot determines the actual value of the pip. Using the US dollar as the quote currency (second currency) such as CAD/USD then the pip always equals $10 for a standard lot and $1 for a mini lot. For other currencies it is easiest to use a pip value calculator to determine the pip value.
In the FOREX market there are a variety of order types available for making trades. You need to have a solid working knowledge of the different order types to be a successful FOREX trader.
Market Orders - This is simply an order to buy or sell at the current market price. Market orders can be used to enter or exit a position. Market orders can be dangerous during times of high market volatility. The price can change significantly between the time that you enter your order and the time when it is actually recorded or executed. The amount that the market changes between the time that an order is placed and when it is executed is known as slippage. Depending on market conditions slippage can result in the gain or loss over several pips.
Limit Order - This is an order to buy or sell at a specific price. These are used to help you control your trades without having to constantly monitor the market. If you have a sell limit in place for a price higher than the current rate your order will be executed as soon as the market rate rises to match your limit. If you have a buy order in place to purchase a currency at below the current market price your order will not execute until the current rate drops to match your limit.
Stop Order - These are used to limit your losses if the market moves in the opposite direction of what you are expecting. This will cause your currency to be sold at below the market price or purchased above the current price. A stop loss is executed when the market crosses the threshold set by the trader when placing the order.
To be successful on the FOREX market it is essential that you learn to figure profit and losses and to use the various order types to their fullest potential.
About the Author
Ready to learn forex trading? Want to learn about FOREX Trading Signal.
Learn our FOREX day trading system completely free.
When trading currency you deal with much smaller divisions than when dealing with actual cash. For example the smallest denomination of US is currency is the penny ($0.01) but on the FOREX market it can be traded down to $0.0001. The smallest division that a currency can be traded at is known as a pip. A pip is short for Price Interest Point; this is sometimes also referred to as points. Currencies are traded in very large lots so even a small change in the value can create a significant profit or loss. If you are trading $100,000 in US dollars a single pip is worth $10 so a change of 60 pips or 6/10 of one cent will generate a profit or loss of $600 depending on the direction of the move.
When trading currencies various lot sizes are not unusual but 100,000 units are considered a standard lot. A single unit is what ever the name of that particular currency is for example when trading Japanese currency a single unit is the Yen. Some trades are done in lots of 10,000 these are commonly referred to as mini lots. Even though lots of various sizes are possible the majority of trades involve standard lots of 100,000 units.
The size of the pip is based on the currency type; different types of currencies have different pip sizes. For example the Yen pip is 0.01 where as the US dollar has a pip of 0.0001. Both the type of currency as well as the size of the lot determines the actual value of the pip. Using the US dollar as the quote currency (second currency) such as CAD/USD then the pip always equals $10 for a standard lot and $1 for a mini lot. For other currencies it is easiest to use a pip value calculator to determine the pip value.
In the FOREX market there are a variety of order types available for making trades. You need to have a solid working knowledge of the different order types to be a successful FOREX trader.
Market Orders - This is simply an order to buy or sell at the current market price. Market orders can be used to enter or exit a position. Market orders can be dangerous during times of high market volatility. The price can change significantly between the time that you enter your order and the time when it is actually recorded or executed. The amount that the market changes between the time that an order is placed and when it is executed is known as slippage. Depending on market conditions slippage can result in the gain or loss over several pips.
Limit Order - This is an order to buy or sell at a specific price. These are used to help you control your trades without having to constantly monitor the market. If you have a sell limit in place for a price higher than the current rate your order will be executed as soon as the market rate rises to match your limit. If you have a buy order in place to purchase a currency at below the current market price your order will not execute until the current rate drops to match your limit.
Stop Order - These are used to limit your losses if the market moves in the opposite direction of what you are expecting. This will cause your currency to be sold at below the market price or purchased above the current price. A stop loss is executed when the market crosses the threshold set by the trader when placing the order.
To be successful on the FOREX market it is essential that you learn to figure profit and losses and to use the various order types to their fullest potential.
About the Author
Ready to learn forex trading? Want to learn about FOREX Trading Signal.
Learn our FOREX day trading system completely free.
8 Penny Stock Strategies Separating the Gated Community Dweller from a Cardboard
Those who want to become successful traders need to know how to invest in penny stocks without losing their shirt. The list below contains 8 penny stock strategies that separate the successful (and rich) traders from the ones who jump in without a clue. If you have a desire for upper body warmth, ask yourself if you are using all of these strategies in your trading:
1. Don't trade on unregulated exchanges: The SEC regulates stocks sold on the NYSE and NASDAQ exchanges. These companies are required to fill out quarterly and annual reports. The reports give investors a detailed view of a company's overall financial health and future outlook. You can also read free reports such as ones from Reuters, giving gain access to all the latest inside information about a particular company. Don't buy a stock if you have no idea of its financial viability.
2. Diversify your Stock Investment: One very valuable tip to remember when trading penny stocks is to figure out a maximum percentage that you will invest in each stock. Also, purchase a variety of stocks so all of your money is not all in one place. This will of course minimize your risk of a devastating loss. Successful traders will tell you the secret to making money really lies in minimizing losses.
3. Beware of Stock Investment Scams: Don't invest in a company that you know very little about. If you aren't careful, you could end up with stock that has no real monetary value. Make sure you do your research and learn as much about the company in which you will invest before you make a decision to purchase stock the stock.
4. Prepare yourself for the Ups and Downs of Trading: Sometimes you will profit from of a trade and other times you will lose money. This will happen no matter how careful you are. If you lose, make sure you do not let your emotions get the best of you. Take a short break and analyze the previous moves you made while thinking of how you could improve in the future. If you have several losing trades in a row, don't purchase any real stock for a short time. Revert back to a stock simulation until your trades become profitable again.
5. Evaluate the risk of Stock Investment: Making money from penny stocks is not a sure thing. If you don't want to end up homeless and begging on the street, you will learn as much as you can about what works on the penny stock market and do your due diligence. If you are willing and prepared to accept the risk of investing in penny stocks, it could turn out to be a profitable investment avenue for you.
6. Educate yourself: Visit reputable websites that can teach you about all aspects of trading. Don't miss the ones offering stock trading simulation software, often known as paper trading. You can find investment information in various magazine and newspaper publications, as well as in other periodicals. Other ways of learning include purchasing ebooks, stock trading courses, or systems developed by successful traders. Make sure if you buy one of these that it has a money back guarantee. Also, if any of the information in this article is new to you, just type in the term in a search engine and make sure you know it inside and out. The more you know, the more you'll make.
7. Hire a Broker You Trust: Another aspect of trading is to make sure you hire a stockbroker that you can trust to complete honest and fair trading transactions. You will want to carefully consider all your options before choosing your broker.
8. Don't Believe Message Board Opinions: Where do you think all of the scam artists and stock manipulators go to try to get people to buy the stock they have already purchased? Yep, message boards or chat rooms. This should be obvious, but many people still believe that hot tip they are reading about, or insider info they become aware of can make them money.
Hopefully this article has given you some good ideas to use to improve your penny stock trading profits. You can view other similar articles at the links below.
Related articles:
How to find the best penny stocks: Best Penny Stocks
Those who want to become successful traders need to know how to invest in penny stocks without losing their shirt. The list below contains 8 penny stock strategies that separate the successful (and rich) traders from the ones who jump in without a clue. If you have a desire for upper body warmth, ask yourself if you are using all of these strategies in your trading:
1. Don't trade on unregulated exchanges: The SEC regulates stocks sold on the NYSE and NASDAQ exchanges. These companies are required to fill out quarterly and annual reports. The reports give investors a detailed view of a company's overall financial health and future outlook. You can also read free reports such as ones from Reuters, giving gain access to all the latest inside information about a particular company. Don't buy a stock if you have no idea of its financial viability.
2. Diversify your Stock Investment: One very valuable tip to remember when trading penny stocks is to figure out a maximum percentage that you will invest in each stock. Also, purchase a variety of stocks so all of your money is not all in one place. This will of course minimize your risk of a devastating loss. Successful traders will tell you the secret to making money really lies in minimizing losses.
3. Beware of Stock Investment Scams: Don't invest in a company that you know very little about. If you aren't careful, you could end up with stock that has no real monetary value. Make sure you do your research and learn as much about the company in which you will invest before you make a decision to purchase stock the stock.
4. Prepare yourself for the Ups and Downs of Trading: Sometimes you will profit from of a trade and other times you will lose money. This will happen no matter how careful you are. If you lose, make sure you do not let your emotions get the best of you. Take a short break and analyze the previous moves you made while thinking of how you could improve in the future. If you have several losing trades in a row, don't purchase any real stock for a short time. Revert back to a stock simulation until your trades become profitable again.
5. Evaluate the risk of Stock Investment: Making money from penny stocks is not a sure thing. If you don't want to end up homeless and begging on the street, you will learn as much as you can about what works on the penny stock market and do your due diligence. If you are willing and prepared to accept the risk of investing in penny stocks, it could turn out to be a profitable investment avenue for you.
6. Educate yourself: Visit reputable websites that can teach you about all aspects of trading. Don't miss the ones offering stock trading simulation software, often known as paper trading. You can find investment information in various magazine and newspaper publications, as well as in other periodicals. Other ways of learning include purchasing ebooks, stock trading courses, or systems developed by successful traders. Make sure if you buy one of these that it has a money back guarantee. Also, if any of the information in this article is new to you, just type in the term in a search engine and make sure you know it inside and out. The more you know, the more you'll make.
7. Hire a Broker You Trust: Another aspect of trading is to make sure you hire a stockbroker that you can trust to complete honest and fair trading transactions. You will want to carefully consider all your options before choosing your broker.
8. Don't Believe Message Board Opinions: Where do you think all of the scam artists and stock manipulators go to try to get people to buy the stock they have already purchased? Yep, message boards or chat rooms. This should be obvious, but many people still believe that hot tip they are reading about, or insider info they become aware of can make them money.
Hopefully this article has given you some good ideas to use to improve your penny stock trading profits. You can view other similar articles at the links below.
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How to find the best penny stocks: Best Penny Stocks
Friday, August 04, 2006
Choosing Your Investment Training Curriculum
The information and free online investment portfolio management resources available to us today via the internet have completely altered the process and amount of online portfolio management control that we as individuals have with our personal financial investment structure and goals. An online portfolio management structure in which you have almost full control that is sound and consists of a platform that is based around your personal financial characteristics is very feasible and much simpler than ever before.
The problem many individual investors have when first starting to construct a portfolio based on their personal financial goals and characteristics is where to begin and how to develop a management process that they are confident in and comfortable with. Although it may seem like a very daunting task and one that is extremely complicated the opposite is really the case.
To begin developing a sound financial portfolio there are two very important education criteria that an individual must acquire to form a solid foundation to build upon. First an education and basic knowledge of the fundamentals, terminology, analysis strategies, theories and tools must be acquired. Second an understanding of the process involved in research, where to find the research data and how to interpret it is of the highest necessity. A quality understanding and knowledge of these two factors are without question a must if one is to be successful. Now by an education this in no way implies that we must obtain a formal education such as a degree in finance or an MBA. If we want to manage a business or pursue a banking career then this type of formal education would most likely be appropriate. But we are only looking to control our financial future with confidence and success and this does not require the formal education previously mentioned. This education can be very easily gained through a quality home study course or a series of seminars. There are several quality individual investment related curriculum available in both seminar or home e-learning format.
The key is to ensure that you choose the right curriculum in which your investment education needs are based. It should be structured upon sound - realistic content not claims of overnight success and huge fortunes with small print disclaimers of "these are not typical results". Now I would recommend "Successful Online Portfolio Management", as it does deliver a very quality and full content scope curriculum, however it is important to remember I am not you therefore an investment curriculum that meets your specific characteristics providing a learning environment that you feel confident and comfortable with may not resemble my characteristics. Nobody knows what your personal financial situation and goals are better then you. Therefore while you should most definitely research any recommendations that you have by all means it still should be you who makes the final decision and that decision should be based on your financial overall characteristics.
Next, the content of the educational investment curriculum must not only contain quality but also the full spectrum. By this I mean that the curriculum should cover stocks, bonds, mutual funds, as well as cash investments (i.e. savings - CD's - money market accounts, etc.). Ensure that it covers both Fundamental and Technical analysis. An educational curriculum must also contain a variety of financial analysis tools, resources and the purpose for them. If the educational curriculum does not instruct you about principles of proper investment research it is not worth a single penny. If you do not know what to look for, where to find it and what to do with it once you have it there is no possible way that you can develop a portfolio that produces a return on your investment. You should just pay someone else to do it for you. I can not stress this enough, quality research is not very difficult given the screening software and other free online investment portfolio management resources on the internet. Therefore your curriculum must provide the locations of where, their purpose and when to use these tools. Sound research is probably the most important key to structuring your portfolio and there are so many free resources available. There is no excuse for any curriculum that does not provide this information. An effective and good curriculum will also provide other educational resources available that may offer greater detail or maybe tools that can be very useful. Such as it may cover the topic of risk management and the importance of its use, but it would also provide the URL location of a web site that is free, deals with this subject only and provides several analysis tools to properly evaluate your personal risk factors.
Any quality curriculum will offer an unconditional guarantee therefore you can actually experience it hands-on to ensure that it meets your learning needs. Take advantage of this as it places all risk on the publisher so if it is not of sound content you can simply return it and get your money back with nothing lost. One thing to remember though when doing this, make sure that the company you are purchasing your curriculum from is of high caliber as this will be a reflection of the caliber of their product. Look at their marketing tools for professionalism and clean presentation. Be careful not to get caught up in real fancy and flashy techniques. Web sites that have fancy animation and video can be easily constructed but really have nothing to do with quality of the products offered. Look at the structure and the content of the site for a feel of their professionalism; this will be a reflection of their product. If they have taken the time to develop a professional and quality web site then they most likely have developed a professional and quality product as well.
In summary let's go over what you will want to be looking for with your educational curriculum:1 - Check out the publishers marketing content for quality, sound content and professionalism.2 - Verify that the content covers the full spectrum including all the entities and available analysis strategies.3 - Demand that the where's and how's of research resources are included in the documentation.4 - Ensure that the curriculum provides information of other resources in which to further you education and knowledge.5 - Utilize the return policy to ensure that the product is specifically what you need.
When shopping for the educational curriculum you are going to use to build your understanding of the content, knowledge of principles and guidance in the analytical processes remember that your understanding will only be as good as the information you are provided. So, if you will follow these five things listed above you will know that what you have purchased will be well worth the money you have invested.
About the Author
Scott G. Henderson, BSE/MBA, has written many articles about the subject of financial portfolio management. After years of personal experience, education and research he spent over 18 months writing and developing the educational curriculum "Successful Online Portfolio Management". If you would like to know more please click on this link: http://www.onlineinvestmentguide.com/
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