So You’d Like To DayTrade(Or Not)

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During the heady .com days prior to 2001, (when Bush became president,) there were stocks, 3 or 4 times a week that went up from 30 to 200% a day.
It was possible, if you knew what you were doing, to check before the market opened to see which stocks were running in real time and why.
And, if you then had a fast electronic brokerage system you could dive into the market, buy a bunch and sell them the same day.

About 1% of people doing this consistently made money.
I saw one private individual make a million in one day shorting Corel. And then there was somebody who lost a bunch hanging on too long to the WWWF IPO.

daytrading, stock market, investing

How to (not) DayTrade
So you’d like to earn your living DayTrading?
You have all heard the stories of losing DayTraders running down the streets shooting people?

During the heady .com days prior to 2001, (when Bush became president,) there were stocks, 3 or 4 times a week that went up from 30 to 200% a day.
It was possible, if you knew what you were doing, to check before the market opened to see which stocks were running in real time and why.
And, if you then had a fast electronic brokerage system you could dive into the market, buy a bunch and sell them the same day.

About 1% of people doing this consistently made money.
I saw one private individual make a million in one day shorting Corel. And then there was somebody who lost a bunch hanging on too long to the WWWF IPO.
As a matter of fact the bottom line is that if you take inflation into account you’d have been better off putting your money in an old sock since 2001.
So what to do?

Give up on the Stock Market let alone give up on DayTrading?
Don’t give up on the Stock Market, if you use the right system which is a simple set of formulas you can still make 30% or more on your money annually.
Using this simple system $11,000 left in the market for 17 years would be worth more than one million dollars today.

But it is not DayTrading and you still would need a strong stomach to sit out these 17 years, because some of those years would give you negative returns.
The bottom line is this; if you want to DayTrade there is only one way to do this today.
And that is with MINDBLOWING News.
MINDBLOWING News along the lines of:
XYZ corporation finds cure for cancer. ABC Inc invents Eternal Life Pill DreamCar Corp invents car that runs on water.
You get the idea.

And then I am going to use another qualifier:
You should get this news BEFORE most other people get it.
How to do this:
For about $10 a month you can get a subscription to real-time market news.
Get your Real Time Market News at about 6 AM Eastern Standard Time.
Say you find the real time news that a company has invented a car that runs on water.

Check the time the news was first released, making sure that news item was not available yesterday.
Buy the stock now with money that you can afford to burn ALWAYS USING A STOP LOSS.

Most electronic brokerage firms today allow you to buy stocks on NASDAQ only as early as 6 AM EST.
Sell the stock at 9.28 AM EST to all the traders that are waking up.
You could conceivably double your money.
So would you then trade again in this stock after the market opens officially?
No,I would not.

Too many mindgames will be played by market makers during the first day with the stock that produced the mindblowing news.
Remember the statement above:
“There have been very few days since 2001 that any stocks actually went up more than 30% in one day, the oomph has disappeared from both the Nasdaq and the Dow.”

Never hold the mind blowing news stock overnight, because people in most cases will dump it on the second day.
One more tip:
Never buy IPO’s on the first day.
The most touted IPO(meaning almost all large brokerage houses were praising this IPO to the sky) cost people the most in decreased value on the second day after the IPO came out.

Who were the winners? The brokerage houses.
So, if you have money to burn, have a cast iron stomach and want to watch market news from 6 AM to 9.28 AM EST, DayTrading may be for you.

Saving For Post Secondary Education

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Post secondary education is very expensive in North America and unless you are fairly wealthy will be a worry for most parents. Obviously, not all kids go onto University or College but if they do and you haven’t planned for it you could find yourself with a large financial burden. This would probably happen just when most families are looking at finally having some financial security

A Registered Education Savings Plan – RESP – is vital for your financial health if you h…

finance, savings, RESP

Post secondary education is very expensive in North America and unless you are fairly wealthy will be a worry for most parents. Obviously, not all kids go onto University or College but if they do and you haven’t planned for it you could find yourself with a large financial burden. This would probably happen just when most families are looking at finally having some financial security

A Registered Education Savings Plan – RESP – is vital for your financial health if you have kids who you feel may want to go into post secondary education. An RESP is government sponsored (Registered with Canada Customs and Revenue Agency) and is allowed to grow tax free. Money paid from the plan at maturity may be taxed as income for the student.

The plans are administered by private companies/persons (Promoter) who will collect contributions and invest them accordingly. Up to $4,000 per beneficiary (student) can be contributed per calendar year, with a lifetime limit of $42,000 without any tax implications. Each student may have more than one plan but the limit is strictly per student.

The most important aspect of the RESP’s is that the Government will add 20% to the first $2,000 per calendar year ($400) up to and including the year of the students 17th birthday. This is called the Canada Education Savings Grant (CESG) and any amounts paid in are not included in the annual limit for tax purposes.

The maximum a student can receive from CESG is $7200 over the lifetime of the plan. Any amount of CESG not claimed each year will accumulate as up to $800 can be paid if not previously claimed. If the RESP is not eventually used for educational purposes any CESG payments will have to be repaid to the government.

To apply, the student must be resident in Canada and have a Social Insurance Number (SIN) which must be provided to the promoter at the plan inception. Also, the individual making the contributions will be required to provide their SIN.

Types of RESP Plans

There are 3 main types of Plan:

Non-Family – There can be only one beneficiary but anyone (grandparents/godparents etc.) can make the contributions whenever they want for however much they want to pay.

Family – There can be one or more beneficiary’s as long as they are blood relatives or adopted by the person/s making the contributions. There are no restrictions on when and how much is paid in (apart from the tax implications of over subscribing).

Group – These plans are normally offered by foundations who set how much is paid in and when. Each age group will have a particular plan and all members will take a share. There are some fairly complicated rules attached and should be thoroughly researched with the plan providers before committing.

RESP Termination

At termination/maturity, there are several options:

1. The intended student does not go into post secondary education. The contributions are returned tax free to the person who made them. The CESG is repaid to the government. Any income generated by the plan will be subject to taxation.

2. The student enrolls in a qualified program at a post secondary educational institution and completes the full program. Initially, $5000 can be paid from the plan, then after 13 weeks there is no limit to the amount paid as long as the student remains in the program. These payments are called Educational Assistance Payments (EAP’s). The student cannot be receiving EI (employment Insurance) or the program must not be part of the students employment (an apprenticeship for example).

3. The proceeds can be transferred to another RESP.

4. The proceeds can be paid to a designated educational institution.

More, detailed information can be found at http://www.onestopimmigration-canada.com/RESP.html

Openwave-Could the little company ever become king?

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Openwave Systems Inc. provides Communication Service Providers (CSPs), including wireless and wireline carriers, Internet Service Providers (ISPs), portals, and broadband providers worldwide, with the software and services they need to build boundary-free, multi-network communications services for their subscribers.

stock, wireless, cell phone, data, risk, asset management, portfolio management, investment advisor, money, browser, monopoly, communication, broadband

Openwave has a very unique and valuable business in the wireless data market. It has a dominate market share of 50% in both the browser and in the gateway transitions for mobile phones. Both products are a core element in the data cell phone market.

Our philosophy is to own the critical elements in markets that appear to have revolutionary growth. In January 2004 we wrote an article saying the wireless revolution has begun. Today based on very recent guidance from Texas Instrument (NYSE:TXN) Qualcomm (NASDAQ:QCOM) and other third party data it appears that wireless data market is actually accelerating. That appears opposite common wisdom judged by the way the world equity market and Openwave stock is trading for the last month. Usually revolutionary growth acceleration is misunderstood. I believe that robust growth from wireless data will catch many people by surprise when it is fully recognized.

The browser and the gateway business are key’s to Openwave’s success. Again it is our philosophy to own critical monopolistic elements inside an industry. We often equate our philosophy to a roof over your head and the gutter that controls the flow of water. Most water when it rain will land on a shingle but will collect in high volume in the gutters. Thus a single gutter can control as much water as all the shingles combined. This model of finding the essential elements or monopolist companies, judged by the many top rankings awarded to us by third party profession indicates a very successful approach.

In wireless data market the gateway and the browsers form what we believe are that critical element in the industry with Openwave a dominate position in both those markets. This dominance of the critical element/monopoly creates a natural mote or barrier as Openwave is in a better position to bundle, integrate, and test its products, thus become a natural extension of their browser and/or gateway for every new service they enters. This bundled approach as Microsoft has proven over time not only has a higher comfort advantage for it’s users but also often could be produced at a far lower cost which the phone companies enjoy. These many economies of scale of a dominate player is attractive to the phone companies when they are both reviewing new or existing services. Put yourself in the place of a large carrier do you want to work with a new firm, with no proven history which would include additional integration, testing, billing plus on going maintenance or would you prefer an existing firm to increase their service or possibly just bundle the service into a existing product. That’s why it’s very hard for new wireless firms to make a presence in the wireless data market and the more established companies to consolidate when newer wire data services form.

It appears industry wide that the consolidators including Comverse Technology Inc. (NADSAQ: CMVT) and Amdocs Ltd. (NYSE:DOX) appear to have advantage over many newer companies. Both of those companies specializes more on the back end. The higher growth market for phones will be with the data services and in my opinion Openwave is the best positioned as the industry continues to consolidate.

About 60% of Openwave quarter is already booked not including about an addition 10% is pay as you go. That means Openwave needs about 30% of addition new revenues in the quarter. That indicates that Openwave has far smaller hurdle rate than most companies. The data supports that the number of new data phones growing combined with the rising usage of each phone with no new major competitive threats entering the market the probability of carriers to reorder is increasing.

Openwave’s high valued license revenues.

Last quarter Openwave reported that licensing revenues was over 50% of total revenues and it had 97% gross margins. The licensing revenues make up over 70% of Openwave’s gross profit. Understanding Openwave’s business model is very simple if the licensing long term grows so will the profits so if licensing long term declines so will the profits.

The last quarter the licensing saw some of the best quarter over quarter growth of (16%) and year over year growth of (34%). Over the last two year period Openwave’s licensing revenues grew at a 23 % annualized rate.

Valuation.

Openwave is now valued at about 12 time future earning and when you add up its dominance in market: The profitability of it core business and the business outlook for the wireless data industry. My opinion is this company should trade at a premium to its data wireless peers.

Risk.

The market value of Openwave stock and the wireless data industry have had many very large fluctuations in stock market value over time compared to their peers. Investors seeking to lower volatility should look to other investments.

The major risk is that management underperforms. Since this is still a relatively new management team and the stock market saying with its large sell off of Openwave’s stock that this quarter will be a very difficult quarter, it’s now time to see if the management team can execute. The stock market in my opinion has already priced in a earning problem and any minor miss by management while still retaining their long term forecast , I believe would be rewarded.

Conclusion.

It’s my opinion this is what you look for in an investment, a company that has repeatedly demonstrated, since the new management has been in place, they are achieving their goals, and have echoed repeatedly said it’s on track for the long term. Openwave has a dominate position that is becoming more embedded in most major carriers every day. With it very high margins core business over time it can become very profitable business. It appears the market for its core products is accelerating and its stock market value is down significantly; again this is what I look for when I invest.

Stock Market Window Dressing: The Art of Looking Smart!

1045

At least four times per year, security prices are more a function of institutional marketing practices than they are a reflection of the economic forces that we would like to think are their primary determining factors. Do you remember the “Circle of Gold” chain letter from the seventies?

Mutual Funds Investing,money,invest,window dressing,mutual fund prices,trading,investing in mutual funds,stock market investing,stock market information,investor,fund,exchange traded fund,securities,stock,bond,shares,IRA investing,401k investing

As investors, and we all are investors these days, it is important that we understand the idiosyncrasies of the Stock Market pricing data we use to help us in our decision making efforts. On Wall Street, investing can be a minefield for those who don’t take the time to appreciate why securities prices are at the levels that appear on quarterly account statements. At least four times per year, security prices are more a function of institutional marketing practices than they are a reflection of the economic forces that we would like to think are their primary determining factors. Not even close… Around the end of every calendar quarter, we hear the financial media matter-of-factly report that Institutional Window Dressing Activities” are in full swing. But that is as far, and as deep, as it ever goes. What are they talking about, and just what does it mean to you as an investor?

There are at least three forms of Window Dressing, none of which should make you particularly happy and all of which should make you question the integrity of organizations that either authorize, implement, or condone their use. The better-known variety involves the culling from portfolios of stocks with significant losses and replacing them with shares of companies whose shares have been the most popular during recent months. Not only does this practice make the managers look smarter on reports sent to major clients, it also makes Mutual Fund performance numbers appear significantly more attractive to prospective “fund switchers”. On the sell side of the ledger, prices of the weakest performing stocks are pushed down even further. Obviously, all fund managements will take part in the ritual if they choose to survive. This form of window dressing is, by most definitions, neither investing nor speculating. But no one seems to care about the ethics, the legality, or the fact that this “Buy High, Sell Low” picture is being painted with your Mutual Fund palette.

A more subtle form of Window Dressing takes place throughout the calendar quarter, but is “unwound” before the portfolio’s Quarterly Reports reach the glossies. In this less prevalent (but even more fraudulent) variety, the managers invest in securities that are clearly out of sync with the fund’s published investment policy during a period when their particular specialty has fallen from grace with the gurus. For example, adding commodity ETFs, or popular emerging country issues to a Large Cap Value Fund, etc. Profits are taken before the Quarter Ends so that the fund’s holdings report remains uncompromised, but with enhanced quarterly results. A third form of Window Dressing is referred to as “survivorship”, but it impacts Mutual Fund investors alone while the others undermine the information used by (and the market performance of) individual security investors. You may want to research it.

I cannot understand why the media reports so superficially on these “business as usual” practices. Perhaps ninety percent of the price movement in the equity markets is the result of institutional trading, and institutional money managers seem to be more concerned with politics and marketing than they are with investing. They are trying to impress their major clients with their brilliance by reporting ownership of all the hot tickets and none of the major losers. At the same time, they are manipulating the performance statistics contained in their promotional materials. They have made “Buy High, Sell Low” the accepted investment strategy of the Mutual Fund industry. Meanwhile, individual security investors receive inaccurate signals and incur collateral losses by moving in the wrong direction.

From an analytical point of view, this quarterly market value reality (artificially created demand for some stocks and unwarranted weakness in others) throws almost any individual security or market sector statistic totally out of wack with the underlying company fundamentals. But it gets even more fuzzy, and not in the lovable sense. Just for the fun of it, think about the “demand pull” impact of an ever-growing list of ETFs. I don’t think that I’m alone in thinking that the real meaning of security prices has less and less to do with corporate economics than it does with the morning betting line on ETF ponies… the dot-coms of the new millennium. [Do you remember the “Circle of Gold” from the seventies? Isn’t GLD, or IAU, about the same thing?]

As if all of these institutional forces weren’t enough, you need also consider the impact of tax code motivated transactions during the always-entertaining final quarter of the year. One would never suspect (after watching millions of CPA directed taxpayers gleefully lose billions of dollars) that the purpose of investing is to make money! The net impact of these (euphemistically labeled) “year end tax saving strategies” is pretty much the same as that of the Type One Window Dressing described above. But here’s an off-quarter buying opportunity that you really shouldn’t pass up. Simply put, get out there and buy the November 52-week lows, wait for the periodic and mysterious “January Effect” to be reported by the media with eyes wide shut amazement, and pocket some easy profits.

There just may not be a method to actually decipher the true value of a share of common stock. Is market price a function of company fundamentals, artificial demand for “derivative” securities, or various forms of Institutional Window Dressing? But this is a condition that can be used to great financial advantage. With security prices less closely related to those old fashioned fundamental issues such as dividends, projected profits, and unfunded pension liabilities and perhaps more closely related to artificial demand factors, the only operational alternative appears to be trading! Buy the downtrodden (but still fundamentally investment grade) issues and take your profits on those that have risen to inappropriately high levels based on basic measures of quality… and try to get it done before the big players do. To over simplify, a recipe for success would involve shopping for investment grade stocks at bargain prices, allowing them to simmer until a reasonable, pre-defined, profit target is reached, and seasoning the portfolio brew with the discipline to actually implement the profit taking plan.

Yeah, I do miss the days when there were just stocks and bonds, but maybe I’m just a bit too old fashioned. Interesting place Wall Street…

Consumers Bear Brunt Of Cold Winter

349

Even though Americans are feeling some relief at the gas pump from last fall’s record prices, their checkbooks are still likely to take a hit this winter as natural gas and heating oil prices continue to soar.

Consumers Bear Brunt Of Cold Winter

Even though Americans are feeling some relief at the gas pump from last fall’s record prices, their checkbooks are still likely to take a hit this winter as natural gas and heating oil prices continue to soar.

In fact, the Energy Department predicts that those using natural gas to heat their homes can expect to see their monthly bills rise 48 percent from last year. If it’s an especially cold winter, the cost will be even greater.

This can be a difficult thing for consumers to contemplate – especially when most homeowners already average $4,100 per year for energy.

While it is not always easy to understand the geopolitics and economics of energy, rising prices always indicate that there is too much demand, and for years there has not been enough domestic supply. Consequently, America has had to rely on foreign sources for its natural gas, due in large part to the fact that prices are so much cheaper.

In Saudi Arabia, for instance, the price of natural gas is 75 cents per million Btu, and in Kuwait, it is $1.25 per million Btu. Compare this with the U.S. price of almost $13 per million Btu and it is easy to see why America opts to import its gas.

But companies like Mammoth Resource Partners Inc., a Kentucky-based oil and gas exploration company, are beginning to put a dent in skyrocketing natural gas prices by tapping into the gas-rich Appalachian Basin.

“The Appalachian Basin, in my opinion, is the largest opportunity in North America to reduce America’s dependence on foreign gas,” said Mammoth President Dr. Roger L. Cory, a frequent guest speaker on the topic of “peak oil.”

Much of the rise in heating oil and natural gas prices can be attributed to last fall’s hurricanes, which disabled refineries and terminals in the Gulf Coast. Until hurricane Katrina, many did not understand that gas from overseas is liquefied and shipped to the Gulf Coast for offloading and re-gasifying, whereas domestic supply, such as that explored by Mammoth Resource Partners, can safely pass through inland pipelines directly to domestic markets for use in America’s homes.

Lexar Bid is Inadequate

285

Article looks at Micron’s takeover bid for Lexar, which is too low.

stocks,investing,trading,options,technical analysis,george leong,money,finance,small cap stocks

On Friday, flash media maker Lexar Media (LEXR) received a higher revised takeover bid from Micron Technology (MU). The revised bid places the all-stock exchange offer at around $10 a share, up marginally from the initial bid.

But major shareholders including billionaire investor Carl Icahn along with hedge funds and portfolio managers have deemed the initial bid to be inappropriate. Elliott Associates believes the initial bid “significantly undervalues Lexar,” and feels Lexar is worth between $1.5 billion and $2.4 billion. The estimate is well above the revised takeover bid of about $827 million.

I must concur and say the revised takeover bid is way too low and needs to be rejected by shareholders. Micron wants to pay around 1.10x sales for Lexar while the market leader SanDisk (SNDK) is trading at 4.35x sales. Lexar also has a $400 million patent infringement lawsuit against Toshiba that it had previously won but is now subject to an appeal by Toshiba.

Think about it this way, a successful $400 million settlement in favor of Lexar would equate to around $4.83 per share in additional cash to add to the current $0.54 in free cash after debt that Lexar has. This means Micron would pay less than $5 a share for Lexar’s assets, which is low.

There is also speculation that SanDisk is seriously thinking about taking a run at acquiring Lexar. This would make sense since SanDisk would solidify its leadership position.

Moreover, SanDisk has a close working relationship with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to acquire Lexar.

Stay tune. A special shareholder meeting to review the takeover bid has been moved to June 16. In my view, the $10 bid undervalues Lexar. Question is will a white knight surface?

Financial Education Can Pay Dividends for Youth

337

According to statistics from the National Council on Economic Education, only seven states require high school students to take a personal finance course while eight others require courses with personal finance content.

Financial Education Can Pay Dividends for Youth

According to statistics from the National Council on Economic Education, only seven states require high school students to take a personal finance course while eight others require courses with personal finance content.

This was from a 2004 survey that also showed only nine states test personal finance knowledge. These numbers are beginning to change as the state of Missouri joins the fray and will require one-half unit of credit in personal finance instruction for graduation in 2010.

A 2004 national survey by the Jump$tart Coalition for Personal Financial Literacy measured 12th graders’ knowledge of basic personal finance. On average, students who participated in the survey answered correctly only 52.3 percent of the questions – an “F” in most high school classrooms.

Financial illiteracy isn’t a problem limited to students. Half of U.S. adults received a failing grade for their knowledge of basic economic concepts, according to the NCEE.

But there is hope in education. The National Endowment for Financial Education has confirmed that as few as 10 hours of classroom instruction can improve spending and saving habits.

Because financial literacy is fundamental to personal success and a benefit to society, American Century provides support for financial education.

In cooperation with a premier education consultant, the investment manager developed Tips for Kids and Tips for Life, curricula for use in the classroom. To date, these programs have been used by more than 3,000 educators in all 50 states. The free programs are delivered via the Internet to educators and are presented to education conferences to help users implement the programs in their schools.

American Century’s efforts to improve financial literacy extend beyond the Tips for Kids and Tips for Life programs. Free educational materials and tools are available on its Web site. And the information presented in American Century founder James E. Stowers’ “Yes You Can…” book series is designed to share the personal experiences and ideas that helped him become successful.

Educating today’s students on basic financial principles will pay dividends in the future because they are tomorrow’s social, political and economic leaders.

You buy and price falls,you sell and price rises.

337

You buy and price falls,you sell and price rises.Its a common investor problem.Doesi t always happen with you?…Then read.

Stock market,Investing.

One say’s “I bought “XYZ Company” at Rs.2200 and immediately after I bought the stock price dropped to Rs.2000.” I feel sad. Another comes with a different version “I sold “XYZ Company” at Rs.2000 and it went up to Rs.2400 same evening” I made an imaginary loss of Rs.400 per share.

Solution:

You can buy more shares @ Rs.2000 and reduce your overall buying cost. This has to be done only if believe in the fundamentals,management and the future prospects of the company.

To do this you need to keep money ready.whatever money you have and want to invest,split it into two parts. Then keep 50% cash aside, only invest with other 50%.So if need to buy more of any stock when the price falls you have ready cash.

Also now if you have 200 shares of XYZ Company 100@Rs.2200 and 100@Rs.2000.Then the price goes up to Rs.2400. Sell only 100 of the shares.Then if the price further shot up, you have some shares to sell And participate in the rally to make money.

Next You sold the share and the price went up. The solutoion to this is never sell all the shares at one time.Sell only 50% of your shares.So if he price goes up later you still have the other 50% to sell and make profit.

The golden Rule is to first do your own analysis of the stock before investing and buy on tips. Also invest only in companies which declare dividends every year. To be sure that you are not investing in loss making companies.

Every Market expert advices to do your stock analysis before investind in the stock market.
But nobody tells you how.

Well in my next article I will write about how to do stock anaysis using various tools such as financial ratios and by checking the track records of the comapnies you plan to invest in.

P.S: If you are not Indian then replace the Rs. into your own local curreny to understand the artilce 🙂

Wealth Is Made By Focusing In Stocks

289

STOP.

STOP trying to create the perfect trading system. There isn’t one.

Phew..what a relief. Stop spending all those hours creating more and more trading rules and realize this:

Money creation in the stock market is made from CONCENTRATION. That’s right. Trading the very best stocks atthe right time with enough capital to make a big difference.

You must go from wealth CREATION to wealth maintance in this game. Unless you plan on “investing” for the next 25+ y…

stocks

STOP.

STOP trying to create the perfect trading system. There isn’t one.

Phew..what a relief. Stop spending all those hours creating more and more trading rules and realize this:

Money creation in the stock market is made from CONCENTRATION. That’s right. Trading the very best stocks atthe right time with enough capital to make a big difference.

You must go from wealth CREATION to wealth maintance in this game. Unless you plan on “investing” for the next 25+ years and building wealth slowly.. this is my plan of how you can make millions in the stock market:

In Darvas’s book “How I Made $2 Million…”

How many looked at his position sizing? In his early trades Darvas only trade 1 or 2 stocks at any one time on MARGIN! Only when he got upto over $500,000 did he start diversifying a little. Most people overlook these facts.

MY Momentum Stock PLAN:

CONCENTRATION BUILDS WEALTH DIVERSIFICATION MAINTAINS WEALTH

END GOAL:

$2 MILLION+ ACCOUNT MAKING 20-30% P.A

Start with:
$50,000 Trade 2 stocks with half capital in each.

RISK Per TRADE = 5%

When at $100,000 Trade 3 stocks with 1/3 capital in each.

Risk Per Trade = 3%

When at:

$500,000 Trade 5 stocks with 1/5 capital:

Risk Per Trade = 2%

When at $2 Million Trade 8 stocks with 1/8 capital:

Risk Per Trade = 1.25%

You first have to create wealth in order to maintain it. Whilst trading only two stocks at a time may be deemed to “risky?by the “professionals?you must be very selective on the stocks you trade. Quality beats quantity. Especially when you concentrate so much.

This is the only way a small account can break into the big time. You must not only focus your efforts in the early stages but you must also onlytrade the top 0.1% of stocks in the marketand get yourtiming SPOT ON.

Why Land Beats Stocks And Shares

373

As small investors look for ways to ensure a good return on their money, land sales are increasing in popularity. Profits, whilst not guaranteed, are often better than those from the stock market, for several reasons:

Less risk, more profit

Whilst some investors have a significant investment in the stock market, often with a comprehensive, well-managed portfolio, for most smaller investors, their experience of the market is limited to one or two companies and they are t…

land investment, buy land, land banking

As small investors look for ways to ensure a good return on their money, land sales are increasing in popularity. Profits, whilst not guaranteed, are often better than those from the stock market, for several reasons:

Less risk, more profit

Whilst some investors have a significant investment in the stock market, often with a comprehensive, well-managed portfolio, for most smaller investors, their experience of the market is limited to one or two companies and they are therefore more open to stock market fluctuations and risks. Company share prices can be affected by many external factors, often beyond the company’s control and, unless you are watching the market carefully day by day, you usually have to hold onto your shares for many years in order to turn a good profit.

By contrast, if you select the right land, or take the advice of a reliable land agent, you can realise potentially fantastic profits in a much shorter space of time. This is because the land that’s normally made available to smaller investors has been carefully chosen. Big land investors buy and then bank land that they think will be ear-marked for development in the future, and then either hold onto it, or parcel it up and sell it to private investors, who reap the benefits if planning permission is granted at a later date.

No maintenance required

Once you’ve bought your piece of land, you own it outright and can sell it whenever you choose. You don’t need to maintain it as you would a property and you don’t need to follow its fortunes day in, day out, to find out whether you’re making any money. If you need to raise money, you can sell your land quickly, whereas if your shares are at a low price, you won’t be able to make enough cash.

The best of both worlds

If you have thought of investing in land, but don’t want to get out of the stock market completely, then just broaden your portfolio by reducing your shareholdings and investing in land as well. You get the best of both worlds, and the chance to make a very health profit if you choose the land wisely.