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Posts Tagged ‘money’

Bonds are one of the main stream types of investment along with stocks and real estate, and if you want to learn how to trade bonds make sure that you get a good education in the subject 1st. There are a number of important points that you must understand about bonds before you start investing in them. Not fully understanding these things may cause you to purchase the wrong bonds, at the wrong maturity date.

Like all investments it is important to learn about what you are investing in, and certainly don’t just take the advice given to you by a bond seller without checking it out first yourself. The three most important points 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 cash back when the bond reaches maturity.

The maturity date is 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 ‘called’ 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 “called”.

The coupon rate is the interest rate that you will receive when the bond reaches maturity. This number is written as a %, and you must use other information to find out what the interest will be. A bond that has a par value of 00, with a coupon rate of 5% would earn 0 per year until it reaches maturity.

Because bonds are not issued by banks, many people don’t 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’t 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.

More advanced traders may try to buy and sell bonds to take advantage of the price movements, you can even swing trade them. But this is a very risky business if you don’t know what you are doing, you will need to take a swing trading course if this was something that wanted to, but again most people just buy and hold.

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Although it may seem obvious to most stock market swing traders there are a number of simple rules that you can follow which will ensure that you have more success when buying stocks:

In the USA stock market there are 3 major indexes which are each made up of a basket of stocks, they are the S and P 500 (also known as the S&P500), the DOW 30 and the Nadaq 100. These stock indexes generally only contain major blue chip stocks, as long as you buy from these 3 groups you will at least know that you are getting a well known solid stock.

For example the DOW30 contains major industrials and large multinational stocks such as Home Depot (HD) and Johnson and Johnson (JNJ) whereas the Nasdaq 100 mainly contains techical companies such as Apple (AAPL) and Miscrosoft (MSFT).

Always buy a stock that is liquid, this means that it is a highly traded stock, this will enable you to easily buy and sell at the price you want without having a delay. You will also get a smaller spread, thats the difference between the BID and ASK price of the stock. For a stock to be considered very liquid it should trade at least 500,000 shares per day, ideally even more.

It is best to aviod stocks that are bellow as this usually means the company is in trouble, although with the bear market of 2008/9 there have been a lot of good stocks at bargin prices between and . Avoid buying a stock that is below at anytime.

Another consideration is options, does the stock has options?, this will be important if you want to trade options around your stock, such as a covered call, or you may want to buy a PUT option inorder to protect your stock.

Be very cautious about buying a stock just before it’s earnings release, stocks often drop significantly if you come out with a poor report. Earnings releases are 4 times a year with one of them being the annual report.

If you are going to trade options make sure that you learn how to trade by getting some good education. There are many swing trading strategies that work well with stocks in todays volatile markets.

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Technical analysis of the stock market, or any other market such as Forex, Bonds, Futures, is how most traders and investors make their trading decisions. This is as opposed to fundamental analysis which most people more agree is pretty much done as a way of making trading decisions, unless of course you are Warren Buffet!.

You only have to think back to major stock market scams like Enron to know that it is almost impossible for the average, and even very sophisticated fund manager or hedge fund trader to really know what the real financial state of a company is.

Just by reading the balance sheet and other quarterly reports they release gives you a very limited insight into the real health of the company. Whereas the technical charts of the company tend to give the real picture of what the market thinks of the value of the company. In the case of Enron even simple technical analysis told you to SELL when the stock was in the $80-90 range, this is why technical analysis of stocks is so popular.

So what are the secrets to technical analysis?, I’m about to tell you, here are my golden rules:

* Only use 3-5 simple technical analysis indicators

* Make sure that you understand how the indicators that you have selected work, what the parameter settings are and in what market conditions they are effective

* After selecting your indicators and parameter settings don’t mess with them.

The real secret to technical analysis is to become VERY familiar with your choosen indicators, and really this can only be done by watching and studying the market, so that you get to the point that you TRUST them.

The fact is that in any market, for each bar period, there are only 5 pieces of information, the open, close, high, low and volume, yet there are now hundreds of indicators. Most of these indicators are displaying the same information and so are redundant.

For the record my set of indicators are:

* 4 Simple Moving Averages

* Bollinger Bands

* MACD

* Stochastics

But the way I use them is quite special, to learn more about how to become an expert at technical analysis visit:

Top Dog Trading Review

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Technical analysis of the stock market, or any other market such as Forex, futures, is how most traders and investors make their trading decisions. This is as opposed to fundamental analysis which most people more agree is pretty much done as a way of making trading decisions, unless of course you are Warren Buffet!.

You only have to think back to recent stock market scams like Enron to know that it is almost impossible for the average, and even very sophisticated fund manager or hedge fund trader to really know what the real financial state of a company is.

Just by reading the balance sheet and other quaterly reports they release gives you a very poor insight into the real health of the company. Whereas the technical analysis charts of the company tend to give the real picture of what the market thinks of the value of the company. In the case of Enron even simple technical analysis told you to SELL when the stock was in the $80-90 range, this is why technical analysis of stocks is so popular.

So what is the secret to technical analysis?, I’m about to tell you, here are my golden rules:

* Only use 3-5 simple technical analysis indicators

* Make sure that you understand how the indicators that you have selected work, what the parameter settings are and in what market conditions they are effective

* After selecting your indicators and parameter settings don’t mess with them.

The real secret to technical analysis is to get VERY familiar with your choosen indicators, and really this can only be done by watching and studying the market, so that you get to the point that you TRUST them.

The fact is that in any market, for each bar period, there are only 5 pieces of information, the open, close, high, low and volume, yet there are now hundreds of indicators. Most of these indicators are displaying the same information and so are redundant.

For the record my set of indicators are:

* 4 Simple Moving Averages

* Bollinger Bands

* MACD

* Stochastics

But the way I use them is quite special, to learn more about how to become an expert at technical analysis visit:

Top Dog Trading Review

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Affirmations Reprogram Subconscious Beliefs

Do reptiles get warm and fuzzy and fall in love? What on earth? Well, you have a reptile alive inside you now, so it is important to understand if it can. Yuck! We call it the “limbic system” but we got it from our dinosaur ancestors, but I’ve no idea what they called it.

Think like a reptile for a moment, what would you fear, what would you be interested in? If you saw a new thing, how would you feel? I imagine most reptiles only feel reproductive pressure, hunger and fear.

Imagine you are still that reptile, and you see something new. How would that reptile react? If it looked tasty, well chances are we’d try and eat it, or if it looked scary, we’d probably slither away.

Now step back into “you” again. Let’s be honest, our inner reptile has far more influence than we admit, wouldn’t you agree? We live in the illusion that we are one thing, a human being. But we are made up of thousands if not millions of different parts. Our brains are made up of three major parts, the stem or reptile brain, the mid-brain which deals with emotions and the rational brain. That’s just in our brain, but these LEGO set of life is in other parts of us too. If we zoom right into our cells, yes deep in there we have DNA, but DNA cannot directly interact with the body without RNA. So even the thing we think of as most representative of “us” our DNA, is in a sense foreign in our bodies since it needs RNA to communicate with the rest of the cells for it. Even our cells evolved from different primitive ancestors too. Our genetic “footprint” lives in a part of the cell called the mitochondria which we only get from our mothers. That raises some interesting questions!

Our being the sons and daughters of Eve is absolutely right. If you trace back any of our ancestors you arrive back in Africa about 6,000 generations ago. That is just the blink of any eye, so really, we are all African. The difference genetically between any two humans is barely measurable. The chimpanzee, our nearest relative, is only 2-3% different from us genetically.

So what’s with the evolutionary tour? Back to the brain, the limbic system is aware in a very vague way of other parts of the brain and frankly all it really cares about is survival. It does not care or even understand being rich, happy or fulfilled. Survival. Nothing else, just survival.

The subconscious is where the action is though. No one really knows which part of the brain it lives in, but it really does exist and much more importantly, it is where your accumulated beliefs live. Also, the subconscious does not understand negatives or have a sense of humor and is VERY literal in its interpretation of what you feed it.

The mid-brain has a richer emotional life and is aware far more than the limbic system, but it views life through an emotional lens. We were taught that our brains are completely rational and machine like. They absolutely are not. Thinking often acts more to stop action, that to prompt taking action.

Want an example, when you are at a store and the attendant comes over and starts to sell to you, if you are marginally keen, what’s the most common phrase people use? I’ll ____________ it.

Notice that interesting second word? Totally void of emotions there. Thought only tends to lead to more thought. May I give you the phrase anyway? I’ll think about it.

So in the end, we usually make emotional decisions and then justify them afterwards. For example, if we were to ask different people why they bought either product X or Y, we’d get very varied answers. In the end, they liked one more than the other. The decision was not made on the features of the product but on how it made us feel. We had a series of “filters” or beliefs that made one choice way more “logical” for us than the other one. Guess what happened next? Someone walked into the same store just after you did, and for them product Y was so obviously better than X, only a fool would by X. Is person A or B right? Either one take your pick. Take your pick. Both people made chances based solely on beliefs about the products, not the products themselves.

So what about our larger lives? Do our beliefs shape our world? Beliefs can also stop our actions as well. Let’s say you have a strong belief that you can’t swim (forget the “because’s for the moment”) well first off, you can’t swim because you have a negative belief around swimming which you can justify with lots of reasons and secondly, because you believe that chances are you’ll stop yourself from learning to swim. So of course it’s true you can’t swim!

Now let’s apply that to money. Goodness! The dreaded “M” word. Not THAT one boys, the one around the green stuff. There are probably more experts on money than anything else, and many of them are broke. Remember how “literal” minded the subconscious is. On this subject, everyone has an opinion, or ten. You could probably teach a course about sex easier than about money.

Why? Well, because money is an essential ingredient to living in the 21^st century, it is the means by which we can live our large dreams and achieve the kind of freedom deep down we all believe we can have. But up pop our beliefs and either say we do not deserve that life, or cannot have it because there is not enough to go around, or the rich are greedy bastards (and hey, who wants to be labeled a greedy bastard). Ever heard the phrase the “filthy rich”? In that world, to be rich you have to by filthy. Who deep down really wants to be filthy if that’s what it takes to be rich. How’d you like to be a filthy person? You have to be that before you can be rich.

How about “money is the root of all evil”? How many have heard of that one? I sure have. Bad is one thing, but evil is a whole different thing altogether. Bad is more of an attitude thing with a bit of non-conforming going on. Evil is a conscious and deliberate causing of harm to others for no purpose. It’s probably scary just reading that sentence. Imagine your reptile brain reacting to that one! Yup, that’s got “danger” written all over it, don’t you think?

It is our deepest, hidden beliefs that are guiding our lives. These beliefs seem so natural to us, like an old shoe, that we are scarcely aware of them. Our beliefs drive us to our target like a laser bomb. Do we end up with joy or sadness or worse? Depends on your beliefs about you, money, relationships and all the rest. If you are interested in changing those beliefs for more productive ones, The Science of Getting Rich is about wealth in more than just financial terms. You can also check out The Power of Simplicity.

You see, our reptile brain is alive and well, so are all the other parts of us. In our emotions, in our feelings, our thoughts and above all in our subconscious beliefs. With all this cast of characters, will the play of your life be a box office success or a flop?

Spiritual Growth is really just chucking out the junk we accumulate in life. Given that spirit is perfect already, we’ll leave that one to another post.

There is a lot of hype surrounding options trading, and for good reason, it’s a good way make a lot of money fast, or can be used to grow your capital consistently month after month.

There’s also a lot of hype about how complicated it is to learn and why you need to spend thousands of dollars on options trading education before you get started. Needless to say this last statement usually comes from trading seminar companies trying to sell your their trading course on options.

Lets cover a few of the basics about options trading and set you straight about a few important points. Firstly yes it is true that you can make a lot of money trading options, but of course you can also lose money just as fast.

When trading stocks your leverage is 1:1, if you go on margin you can get get 1:2 leverage, but thats about it. With options it is not quite as straight forward to calculate the leverage but generally speaking you can get between 1:5 and 1:10 when you buy an option on a stock, or ETF.

So with 1:10 leverage, when the stock increases by 5% your option can increase by approx 50%, and this can happen in just a few days, this is why swing trading strategies using options on stocks is so popular.

However the downside is that the reverse can happen, if the stock drops by 5% your option can also drop by 50%, at which point you may want to close the trade and save some of your option value, it really depends on what your stop loss and risk management plan is.

What I’ve just described is called directional option trading where you are betting on the getting the direction of the stock movement correct, this is highly speculative. Options can also be used in option strategies which are much more non-directional, such as covered call trades, credit spreads and Iron Condors. In these trades there is much lower dependance on getting the stock direction correct, but it still matters.

So should you learn to trade options?, in my opinion you should not do directional option trades until you become very good at trading stocks. This is because you must be very precise with your entry and exit strategy and trading plan, and be very good at technical analysis.

Whereas if you want to do non-directional option trades you don’t need to be such an experianced stock trader to be successful, but of course it does not hurt either.

Learning how to trade options is a very useful skill you have, but don’t rush into it and blow out your account. Make sure that you get a good options trading education before you start, and also make sure that you have a very solid stock trading education as well, such one from Top Dog Trading Review.

There is a lot of hype surrounding trading options, and for good reason, it’s a good way make a lot of money fast, or can be used to grow your capital consistently month after month.

There’s also a lot of hype about how complicated it is and why you need to spend thousands of dollars on options trading education before you get started. Needless to say this last statement usually comes from trading seminar companies trying to sell your their trading course on options.

Lets cover a few of the basics about options and set you straight about a few important points. Firstly yes it is true that you can make a lot of cash trading options, but of course you can also lose just as fast.

When trading stocks your leverage is 1:1, if you go full out on margin you get get 1:2 leverage, but thats about it. With options it is not quite as straight forward to calculate the leverage but generally speaking you can get between 1:5 and 1:10 when you buy an option on a stock, or ETF.

So with 1:10 leverage, when the stock increases by 5% your option can increase by approx 50%, and this can happen in just a few days, this is why swing trading strategies using options on stocks is so popular.

However the downside is that the reverse can happen, if the stock drops by 5% your option can also drop by 50%, at which point you may want to close the trade and save some of your option value, it really depends on what your stop loss and risk management plan is.

What I’ve described above is called directional option trading where you are betting on the getting the direction of the stock movement correct, this is highly speculative. Options can also be used in option strategies which are much more non-directional, such as covered call trades, credit spreads and Iron Condors. In these trades there is much less dependance on getting the stock direction correct, but it still matters.

So should you trades options?, in my opinion you should not do directional option trades until you become an expert stock trader 1st. This is because you do need to be very precise with your entry and exit strategy and trading plan, and be very good at technical analysis.

Whereas if you want to do non-directional option trades you don’t need to be such an experianced stock trader to be successful, but of course it does not hurt either.

Learning how to trade options is a very useful skill you have, but don’t rush into it and blow out your account. Make sure that you get a good options trading education before you start, and also make sure that you have a very solid stock trading education as well, such one from Top Dog Trading Review.

Bonds are one of the main stream types of investment along with stocks and real estate, and if you want to learn how to trade bonds make sure that you get a good education in the subject 1st. 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.

Like all investments it is important to learn about what you are investing in, and certainly don’t just take the advice given to you by a bond seller without checking it out first yourself. 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 cash you will receive when the bond reaches its maturity date. In other words, you will receive your initial investment cash 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, and the interest that your money has earned.

Corporate and State and Local Government bonds can be “called” before they reach their maturity, at which time the corporation or issuing Government will return your initial investment, along with the cash that it has earned thus far. Federal bonds cannot be “called”.

The coupon rate is the interest that you will receive when the bond reaches maturity. This number is written as a %, and you must use other information to find out what the interest will be. A bond that has a par value of 00, with a coupon rate of 5% would earn 0 per year until it reaches maturity.

Because bonds are not issued by banks, many people don’t understand how to go about buying one. There are 2 ways this can be done.

You can use a broker or brokerage firm to buy them for you or you can go directly to the Government. If you use a broker, you will more than likely be charged a commission fee. If you want to use a broker, you should shop around for the lowest commissions!

Purchasing directly through the Government is not nearly as hard as it once was. There is a program called Treasury Direct which will allow you to buy 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 paying a broker or brokerage firm.

More advanced traders may try to buy and sell bonds to take advantage of the price movements, you can even swing trade them. But this is a very risky business if you don’t know what you are doing, you will need to take a swing trading course if this was something that wanted to, but again most people just buy and hold.

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Are you in the market for easy ways to make additional money? In this article I write about a method my family has recently heard about which has helped us to pay some of those unwanted bills. This is by taking part in different surveys for a range of companies who are looking to find out more about their customers or potential customers. You may think just like I did that this would hardly be worth your time or effort, however you may be surprised when you realise you much these companies are willing to pay.

Just before I continue I would like to make it clear that this is by no way my line of business; I am in fact involved in various projects to do with various industries including web promotion, DVD duplication service and offering online guitar lessons for beginners.

A couple of days ago my step-daughters best friend was at our house to play and to to eat her evening meal. They have known each other since they were babies and are now both twelve years of age. This friend also stopped at our house for her evening meal and while at the dining table, eating her food, she started up quite an interesting conversation. She asked my step-daughter if she would be interested in joining her to take part in a survey which would be about the subject of childrens banking.

I started to ask this girl, who is called Emma, what would be involved. Emma replied that a woman would be visiting her house on the next Saturday morning and that she would be asking her some basic questions with regards banking; banking that is for a twelve year old. The lady continued to explain that they would earn £20 for attending the meeting that would last approximately ninety minutes. If she then also kept a form of diary for a week, she would then receive another £10.

My step-daughter suddenly became very interested and asked me whether she would be able to go as well, I told her that she could.

Emma then told our family that she regularly took part in these surveys and had been introduced to the idea by a friend of her mothers. She stated that on average she made around £100 a month from taking part and completing these surveys, not bad for a twelve year old. I joked by asking her whether I could also go around on the Saturday. Emma replied that this survey was only aimed at schoolchildren but that her parents also regularly took part in other surveys and that she would let me know when the next one was going to take place.

The Saturday arrived and I took my step-daughter to Emma’s house. I started talking to her parents while I waited for the meeting to finish. Her parents then told me about their own experiences of completing different surveys and stated that even though it is not a massive amount of money that it is a lot for what you have to do. They also stated that it also helps them to pay some of their household bills each month.

Would you like to proactively write a book and make money from it?

It is estimated that only 5% of authors become a bestselling author.

What is even worse is that around 1% of authors actually earn a living by writing . In fact most authors find it very difficult to earn back what sunk into their book.

How does that 1% do it? More importantly, how can you be one of them?

They’ve found the formula for how to write a book, make it a bestseller and earn lots of money.

And it’s not just luck, because some are able to do repeatedly.

There are many factors to writing a successful book, but I would like to focus on the three key success factors to writing a bestseller and making money from it.

If you figure out and implement these factors, you could receive an additional6 to 7 figures of income from each book you write from now on.

Key Factor 1 – Turn your book into a business so that you are creating highly desirable products that accompany each book.

A book is more than just paper with words all over it. Your book communicates your knowledge in a familiar format that others can enjoy and use. You will achieve more success when you realize that you can communicate the same information in other forms that sell just as well. When you’re thinking about your next book, proactively plan your other products so that your book fits into your business in an intentional way. Not only you have an additional income stream, but also a very effective marketing system, because everything sells the book and the book sells everything.

Key Factor 2 – When writing your book, add in all of the necessary ingredients and some of the enticing ones, and you’ll find your book is quite simple to advertise, market and sell.

There are a few ingredients which cannot be ignored when creating a bestseller, and some must be included from the start. There are also some highly desirable features which help to increase the marketability and value of your book. For example, you must have an ISBN number and a bar code, plus certain bindings and features so that retail stores can sell your book for you. There are also about 10 features that make your book much easier to promote. Some features that all New York Times Bestsellers have in common are: testimonials, resources listings, captivating stories that make a point, relevant quotes and an index.

Key Factor 3 – Be proactive and begin pre-selling your book while you are still writing and control pre-sales to as much possible so that your books will be purchased in the way and time that will do you the most good.

You need to learn what what criteria make your book a bestseller. For example, not all sales of books count toward becoming a bestseller and it’s crucial to know which ones do. Keep your attention to only those that matter and compress the sales during the best span of time and if you have done your homework and attracted the right amount of sales you’ll have a guaranteed winner.

ACTION POINT: If you want to learnhow to write a book that makes money and becomes a bestseller, then follow the secret formula that the top 1% use to successfully achieve that goal. Make a decision to use the Key Factors outlined above and keep your eye on the ball, and you’ll hit a home run every time.