Finance and Investment

Debt Consolidation Tips From The Pros

2006-09-05T11:14:00.000+01:00

Here are some of the important debt consolidation tips to consider

Search on-line as well as off-line

While considering debt consolidation, you may want to search for companies on-line as well as off-line. Visit your favourite search engine and search for debt consolidation and your city and state. Review the results and narrow down a handful of companies from the listings. You can also review your yellow pages for debt and credit counseling and list down a few companies.

Chose a debt consolidation company wisely

Once you have chosen the companies, start making phone calls and ask them questions you have about debt consolidation. It is important to consider working for a company who can answer all your questions and provide best debt solutions possible. Some debt counselors are very busy and do not provide the best answers to you questions. In such cases, cross them off your list. You only want to work with debt consolidation companies where the counselors are willing to spend enough time for you.

Follow through on the advice

Debt counselors will help you create a budget and a debt management plan. Try to ask as many questions as possible and revert back to them if you need any further advise or assistance. It is by helping them you help yourself. Soon you will gain enough insight in the process and be comfortable about solving your debt.

Debt consolidation is no rocket science. However, it takes quiet an effort in choosing the right debt consolidation company. It helps asking for fees upfront and making sure there are no surprises down the line. If you know any friends or family members who have undergone debt consolidation, get necessary help since they are the best people who can provide you some insights on the best companies to work for.

Automated Forex Trading - 4 Benefits

2006-09-04T22:27:00.000+01:00

In the world of Forex trade, the concept of automating foreign exchange trading is becoming a new trend that a lot of people are looking into. Exchange-traded futures are the first group to seriously consider automated transactions. Also the Interbank spot FX market has decided to use the automated method as well. Why exactly are these groups looking to it? Let's take a closer look at automatic forex and see if we can figure out why.

1) Real-time Transactions: One of the reasons it has begun to become successful is because transactions can be conducted in real time. With manual systems it is very difficult to achieve this advantage that is offered by automated Forex systems. A lot of trades happen within milliseconds and this can be a huge push for auto transactions versus manual. A few other problems that can be greatly helped or avoided with auto Forex trading include when a trader is away from their desk or if they have had several losses in a row that hinders them from making new trades for a while. Both of these can be greatly helped by using auto trade as opposed to manual.

2) Greater Diversification: Having better options in regards to diversification can be an advantage when it comes to automatic transactions. This means that a single trader can trade in different markets in different time zones at once. This also allows them the option of multiple exchange models. Another great advantage when it comes to this advanced trading system is having models to analyze short-term data. An option that is not available in any other way. This therefore can help give those using this system a bigger advantage over other traders. This means they can then predict in as short a period of times as fifteen minutes to half an hour. This once again helps you out in trading in different markets at different times.

3) Greater Liquidity: Auto foreign exchange can also give traders more liquidity. This was discovered when futures exchanges had a huge rise in trades after they started using the programmed system. With all the advantages to this modern system, are there are any problems we need to look at? In fact there are. One of these problem areas is that some people are worried that the orders will increase too much if everyone adopts this automatic system. This can cause problems with lack of bandwidth or engine capacity trying to process all these trades in real time, though there are already people looking into how to avoid this problem before it happens.

4) Risk management: Another problem area for the auto system is risk management. There is always the consideration of checks having to be made when trades are being made. These checks need to happen in an environment where everything is properly synchronized. This is a technical problem and can be resolved when technology improves. Besides these two problems, there seems to be a lot more advantages, than disadvantages. This makes auto transactions the best option for most if not all Forex traders.

(c) Michael Williams. Check out http://www.forex-made-ez.com/ for more articles on forex trading systems and eminis futures trading.

Investor or Trader... Which Are You?

2006-09-03T17:18:00.000+01:00

Most market participants consider themselves to be "investors." But if you look at a list of the really big winners on Wall Street, you will see that most of those who make big profits, list themselves as "traders."

By "big profits" we mean doing better than the S&P 500 Index or Nasdaq 100 Index by a substantial margin over any three year period.

Investors

"Investors" put their money into stocks, real estate, etc., under the assumption that over time, the underlying investment will increase in value, and the investment will be profitable.

Typically, investors do not have a plan for what to do if the investment decreases in value. They hold onto the investment in hopes it will bounce back and again become a winner.

Investors anticipate declining markets with fear and anxiety, but unfortunately, they usually do not plan ahead of time how they will respond to them. When faced with a declining (bear) market, they hold their positions and continue to lose.

We all know investors. In many cases it was us before we realized how dangerous buy-and-hold investing can be to our savings.

Investors often have some knowledge of trading. But that knowledge is tainted by how it is all too often described in the financial press. "Trading" is risky, dangerous, foolish, bad, involves a great deal of work, etc. On the other hand "investing" is good, reliable and safe.

Investors had a taste of what "buy-and-hold" can do to their capital in the recent 2000-2002 bear market. But many do not realize just how far in the hole that bear market put them. The S&P 500 declined 50% and the Nasdaq declined 80%. How easy is it for the markets to regain those losses?

It takes a 100% gain to make up the losses for those invested in in the S&P. It takes a 250% gain to make up the losses in Nasdaq investments. When a powerful advance is measured in 20% to 30% moves, you can easily see how long it will take to regain those huge losses.

In the last several years of market gains, we have come nowhere near accomplishing this in the typical index fund. It is likely to take investors many more years to get back just to where they were in 2000.

Traders

On the other hand "traders" take a proactive approach to their investing. Traders have a defined plan and invest with one goal, to put their capital into the markets and "profit."

They "trade" with a plan that tells them what to do in any situation. When to enter and when to exit. They never allow large losses.

Being a trader does not mean you must move in and out of the markets frequently. This is a common misconception. A trader simply is one who has a plan for entering and exiting. They know what to do if their trade goes against them, and they know what to do when their trade is profitable.

Many traders go short (take bearish positions) as well as long (bullish) positions. Some are unable to go short, or they find short positions to be uncomfortable. Probably the majority of "traders" do not ever take short positions.

But traders "do" have a plan. This is where they differ from investors.

Every Trader Needs A Trend

If you think about it, you will quickly realize every trader needs a trend to be successful.

No matter what trading method is used, whether it is pattern trading, swing trading, long term buy-and-hold investing, fundamental analysis, technical analysis, buying or selling on news events, IPOs, splits, you name it. If the stock or mutual fund does not trend in the required direction after the trade is made, you cannot be profitable.

This also applies to all asset classes. Stocks, bonds, currencies, commodities. You must have a trend to profit.

Putting Trader & Trend Together

There are two major camps when it comes to deciding what method to use to plan a trade. There are those who follow a fundamental analysis approach and those who follow a technical analysis approach.

Investors use both methods to "forecast" future market direction. If combined with an exit strategy, either can be successful, but debate has raged for 30 years over which is the most successful strategy, as well as whether either method truly "outperforms" the markets over time.

Some very astute market players have said that both fundamental and technical analysis approaches, though they can be profitable, usually are "no more profitable than an index fund."

There is a scary thought. All that work when an index fund could do as well?

But there is another approach that is almost never discussed. It is used by many hugely successful traders though the financial press seldom mentions it. In fact, many who use it are very quiet about their successes. They do not try to publicly prove themselves right, they just trade and make money.

This approach is the use of price to determine trends. Price does not forecast and it does not predict. Price is always right. If prices are moving up, the markets are advancing. Down and the markets are declining.

At FibTimer we are "trend followers." We respond to what "is" happening instead of predicting or forecasting what might happen. We "follow" price and allow the changes in price to tell us "when" to enter or exit a position.

Using price to determine trend does not allow trend traders to enter at the exact bottom, or to exit at the exact top. in fact, trend traders do not try to forecast the market, but instead let the market tell them when to trade and in what direction.

Trend traders wait patiently for prices to tell them a trend has begun. Then they jump on board. If the trend fails, they exit quickly to control losses. Price tells them when to enter "and" when to exit. If the trend continues, trend traders have no predetermined profit goal. They stay with the trend until it reverses.

Cutting losses quickly and staying with a trend until it ends is how trend traders realize huge profits in the financial markets. The financial markets are trending "about" 80% of the time. That means trend traders are profitable 80% of the time. During the other 20% trend traders keep losses very small so that they are ready when the next trend starts.

Conclusion

Remember that "price" is determined by millions of investors and traders.

By using price, trend traders take advantage of the the combined wisdom of millions of investors and traders to trade a successful and profitable market timing strategy.

Yes, it takes patience to be a successful trend trader. Yes, it takes discipline to follow the strategy and make the trades which many times go against the prevailing wisdom. This is true of "all" winning market strategies.

But trend traders who use price to determine trends have been quietly "beating" the markets for many years. They will quietly continue to do so for many more.

Read also Following A Trading Plan = Profits by the same author.

The Pitfalls Of Day Trading Stock Online

2006-09-02T11:50:00.000+01:00

An intelligent trader once said, `The only difference between gambling at a cassino and day trading stock online is that you have to serve yourself drinks when sitting at your home computer.`

Sure... some day traders have made some decent money through day trading stock online. But these are the exception, not the rule. Most day traders lose in the long run and that `long run` aint too long at times!

You see, the trouble is... most day traders are seeking a `quick fix`. Their persona isn`t suited to mid term or long term trading. They quite likely have lost money in the past, either through gambling of some sort, or through losing patience with longer term trading strategies that turned sour. They most likely don`t have a large capital base, especially if they`ve been wiped out a few times in the past. And so the concept of... day trading stock online is incredibly appealing.

Unfortunately, far too many traders who`ve either made the switch to day trading - or who are brand spanking new to it and thereby lack basic risk management skills, embark on a journey they`ll never forget... for the wrong reasons!

For one thing, seduced by the apparent simplicity of it all, many traders approach the whole thing of day trading stock online without really knowing what they`re doing. Secondly, they have little or no concept of the underlying risks involved. Thirdly, as I`ve already alluded to, they often find themselves `horribly undercapitalized`. Fourthly, and most definitely a deal-killer...

They play with borrowed funds!

Not a good move... and a breach of fundamental trading basics to boot!

So, is it even possible to make a living from day trading stock online?

Yes it is. But the odds are stacked against you from day one. You absolutely positively HAVE TO HAVE A PLAN... or you`ll lose... simple as that.

For starters... you have to know your entry and exit points BEFORE entering the market. It`s no good waiting until the market has moved so far against you that you`re too frightened to take the loss! When you participate in day trading stock online you have to leave your emotions at the door and follow your plan like your life depends on it (which some might argue `it does`).

Suppose you buy 1,000 shares of abc-xyz at $1 per share - on a day trading basis... and you notice that the stock rises 30 cents a share before lunch. The left-side of your brain coolly advises you to `get out and pocket a massive $300 profit`. Hells bells... 30% in a morning is a good earn!

However, you also have this other side of your brain which has no basis in logic. It is commonly referred to as the `emotional side` or right-side of your brain. It also has a deeply embedded relationship with every gambler`s nemisis... `Greed`. Accordingly, you decide in your professional lack of wisdom to... `Just hold on in there a little longer... it`s bound to go higher`.

You go out and make some lunch, have a coffee... and smile...in the knowledge that you`re a day trading wizard who is on the brink of making a fortune. And it`s all so damn easy!

1.45pm...

The stock has reached intraday highs of $1.37... `Maybe it`ll hit $1.50 by closing bell?`

2.52pm...

News comes out that the company`s patent is invalid... the stock plunges to $0.60 in three minutes...

For you, the dream has not only been shattered, but the sky has just fallen in... and your $1,000 investment has reversed a $337 profit into a $400 loss... and it`s still falling.

You find yourself hurled into a maelstrom of helplessness, fear and chaos...but with no plan in place, you simply hang on in there.

3.30 pm...

Trading in the stock is suspended. The last trade went through at $0.42. You are so stunned you can`t even shed a tear. Your day trading career lasted precisely 6 hours, 22 minutes and 8 seconds...

`Welcome to the frenetic world of... day trading stock online`.

For some of you, this article may very well bring back some rather painful memories. For others, let it be a warning...

If day trading stock online is something that you are serious about and want to succeed in, then at least show you`ve got the intelligence, emotional control and discipline to survive the bad hits as well as bagging the big profits!

There are over 10,000,000 web pages in Google dealing with courses and coaching on the subject of day trading stock online. So, before you risk another cent... do yourself (and your bank account) a favour... and start researching the mentoring options out there... until you find one that suits.

(c) Jimmy Cox. Become A Daytrader. We Have Uncovered One Of The Most Sought After Scientific Trading Approaches Of All Time... And It`s Yours Free. Read It Now: http://www.becomeadaytrader.com/.

Online Stock Trading Tips

2006-09-01T19:24:00.000+01:00

Online Stock Trading Tips

Online stock trading has become available to anyone. You don't have to be in the Fortune 500 list to make money from online stock trading.

With starting capital of a few hundred, it is possible to build a good size portfolio on a small budget. By using the internet, the small investor has access to vast quantities of data relating to online stock trading and much of it is free.

You can find discount brokerages, technical trading tools, free market news, free analysis packages etc. You can also register for free data feeds giving up-to-the-minute pricing information about almost any stock anywhere in the world. Truly a global trading village!

Investment banks employ big stock research teams that cover the performance of stocks in great detail. Often you can be included on the mailing lists of these banks and receive investment newsletters free with valuable investing information.

Some Recommended Resources:

MSN http://moneycentral.msn.com/investor/home.asp

NYSE Arca http://www.redibook.com

Net Picks 2 Week Free Trial http://wetrack.it/netpicks/a/jl47

Technical Analysis of Stocks & Commodities http://www.traders.com

Ameritrade http://www.ameritrade.com

Knight Capital Group http://www.knight.com

Instinet http://www.instinet.com

NYSE Arca http://www.redibook.com

Stratasearch http://www.stratasearch.com

Big Charts http://www.bigcharts.com

Chart Advisor http://www.chartadvisor.com

With all this information on the internet, you should be able to keep your online stock trading costs down to a minimum.

Finally a caution about trading forums or message boards. Often these are used by fraudsters who post information about stocks in the hope of pushing the price up, and then selling and making a quick buck themselves. Many small shareholders have been burnt by this unethical practice!

(c) John Lynch. Do you want to start Online Stock Trading? Get a FREE 2 WEEK TRIAL with Net Picks - the premier online stock trading company. Click Here for FREE 2 WEEk TRIAL: http://wetrack.it/netpicks/a/jl47.

A look at different ways to make money fast online

2006-08-31T21:57:00.000+01:00

Making money online is all about learning strategies involved in doing business through the net, so that efforts put into the business can pay-off really quick. There are lots of ways to make money on the internet. Today's consumer is information driven and wants to understand all the features offered by any product or service before actually plunging into it. This means more and more people will be turning to the internet as their guide for consumer products and services.

Here's where you come into the scene. You can get into affiliate programs that enable you to get commissions from affiliate links you put up on your website. In an affiliate program, the site that belongs to the affiliate, features product advertisements. You can put a link in your website that connects to the affiliate's website. Whenever a visitor clicks on the links, you will be paid.

Another way to earn money through the net is, to create a website that provide specific information that internet browsers are trying to seek. The site's contents will generate traffic to the site. Use this site to promote your affiliate programs. You can choose to write about the subject for which you have signed up affiliate programs. Since you have written about the products that you are promoting through your affiliate program, you have more consumers reading about them and there are more chances of someone buying one of the affiliate program products. You can publish an "ezine" also known as electronic newsletter and when you start getting about 1000 subscribers you can start charging for the advertisement. This idea can be further expanded wherein you can create a home page for your e-zine and include links to your affiliate website in the home page.

If you are someone specializing in a particular skills or service, then go ahead and create your own website, where you give information related to your services and skills. This way you are letting people know that they can take up your services, if required. You could also join a network marketing company and create a content- based website that attract customer, then link from your website to the network marketing company's website. Visitors going through the link will generate payments for you.

Making money online depends largely on how smart you are and your business tactics. If you are able to promote products online and are able to successfully handle the issues related to online marketing and business, then you can see yourself soon as a successful e-entrepreneur.

Profiting From the Dubai Construction Boom

2006-08-30T14:36:00.000+01:00

Companies that offer the sexiest kind of investments are usually the ones that get investors drooling. Tech stocks remain the most attractive family of investment despite their tendency to fluctuate, but it's not necessarily due to their superior quality.

It's easy to overlook stocks that don't sound as cutting edge as those in the technology sector. (OTC:WWAG) is one stock not to be overlooked. World Wide Auctioneers Group, Inc. sells construction equipment in underserved regions outside of North America. Although they have franchise partners in countries like Australia, The Netherlands, Indonesia, and China, their primary auctions are based out of Dubai.

You've probably never heard of them. What's more, construction equipment auctions in the Middle East sounds boring, doesn't it? Think again. This investment has already enjoyed remarkable success and is perfectly positioned for more of the same.

The secret to scouring the earth for a great investment is not ONLY about looking at the company's numbers. There is another, much more fundamental question: Will someone buy the company's product? This was a lesson that investment guru Peter Lynch practiced in his investing.

Without buyers, products linger on shelves, operational expenses eat into capital, income drops, and companies close their doors. (During the tech boom of 2000, companies found mobs of investors even though they had no plans to produce sellable products... one of the factors that caused the tech bubble to burst).

So you're looking for a company that sells products to motivated buyers? For sellers of construction equipment, there are few places ON EARTH that are as good as Dubai. In 2005, Dubai's Department of Economic Development reported a 29% growth in construction. In December 2005, BBC reported that Dubai's economy - which has prospered for 30 years - grew four times faster than the US and has never experienced an economic crash in its 3 decades of growth. And in spite of our ideas about the Middle East, Dubai is politically stable and very entrepreneurial.

The world's tallest building and the Middle East's first indoor ski resort make up 2 of the thousands of buildings springing up. After all, this small region - with a population of about 960,000 people, sits on 10% of the world's oil.

The result? Massive oil exporting that brings in plenty of money. That money fuels massive construction. How much construction? In a June 2006 article, The Economist reported that the emirate expects to spend 100 billion on itself in the next 5 years... about a third of that in construction.

Massive construction needs equipment. Enter WWAG. This profitable company, one of the largest auctioneers of heavy equipment in the world, has a P/E of about 8. Since 2001 they have auctioned over $300 million dollars worth of construction equipment from its facility in Dubai.

As Dubai prospers, WWAG is likely to prosper, too, since it holds a 65% share of industrial auction sales in Dubai. You want to invest in a company that is poised for growth in a country that is flush with wealthy customers.

(c) Thomas McCarthy. Thomas J. McCarthy is an investor, entrepreneur and Dean of Education at http://www.CollegeStock.com. http://www.CollegeStock.com is the World's #1 School of High-Risk Investing.

Wealth Building - 3 Tips ANYONE Can Use To Build Serious Wealth

2006-08-29T13:20:00.000+01:00

We all want to make money fast and we all want to be wealthy however, most people don't achieve serious wealth.

The reason is, they make simple mistakes that prevent them reaching their goal of building serious wealth and the fact is there easy avoid, so let's look at them.

1. Someone else can make you rich

It's tempting to believe this, but of course the reality of building wealth is:

You need to do it for yourself and not rely on anyone else.

Lets face it, the people who say you can get rich with them charge you.

If they could do it for themselves they wouldn't need you, they could shut up and do it for themselves, most will appeal to your greed, take their fees and you will end up disappointed.

2. You can build serious wealth overnight

We have all read stories of people who made huge sums overnight, but let's be realistic:

Their minority and a small one at that!

That's not to say you can't build serious wealth quickly, however you need to be realistic and have a 5 - 10 year plan.

Many investors have turned $30 - $50,000 into a $1,000,000 or more in this sort of time frame by using the power of compound growth and a high return low risk investment to do it.

Would you be happy with that?

If you are, there is a way of building wealth this way (which we will return to later) but lets look at some other essential points first.

3. You have to work hard or be innovative to build wealth

No you don't.

You need to work smart, NOT hard.

The vast majority of people work hard but not many of them build wealth.

People think building wealth is all about hard graft, making some new discovery, but this actually prevents them from making money - You don't need to do this to build wealth.

Building wealth is all about compounding your money and making it work hard for you and there are lots of simple ways to do this.

4. If you want to build wealth play defence well

Any football team will tell you everything is based on defence.

If you can't defend you won't win, no matter how good your attack is and it's the same in building wealth.

You want to make your money build steadily, watch compound growth kick in and accelerate your gains.

If you lose money, it's a case of making up lost ground and catch up which takes time.

When you are trying to build wealth make sure you pick the best reward for the lowest risk you can get.

For example, would you prefer an investment that made you 300% annually with the chance of losing all your money, or the chance to make 100% with 10% loss potential?

Exactly - Now you see the point.

Now your wondering what is a good way to make money, that's simple, you can understand it, its cheap, easy to do and can make a tidy sum with low risk?

The secret of the worlds wealthiest families

We don't have time to cover it in this article but Howard Hughes made billions, Donald Trump still does, even comedian Bob Hope made millions and so do most of the richest investors in the world.

You may have never considered it before but it's buying land.

A simple way to build wealth open to all

You don't need to be rich (it's far cheaper than property) and all you need is the right location and you can turn in triple digit annual gains in many locations with low risk.

There is no better way for Mr Average to build wealth quickly with such low risk.

If you have never considered this then take a look and you will surprised at the profits that can be made with such low risk.

(c) Sacha Tarkovsky. FREE GUIDE - Building Wealth. For a FREE guide to building wealth in land and property with all the facts you need to know grap your report at http://www.net-planet.org/costarica.php.

Read also Creating Wealth - A Simple Way For Mr Average To Get Rich by the same author.

The Basics of Hedge Funds

2006-08-28T15:10:00.000+01:00

The hedge fund definition is an investment company that uses high-risk techniques, such as borrowing money and selling short, in an effort to make extraordinary capital gains. Hedge funds are similar to mutual funds in that investments are pooled together and managed by a professional, but other than that, the funds are two completely different animals.

Hedge funds are mostly unregulated which means that there are no set rules that the fund has to follow, unlike mutual funds. The reason for this is because in order to invest in hedge funds, you have to be accredited or qualified in certain ways. US law requires that most investors in the hedge fund have a large amount of investment knowledge, a net worth of at least $1 million and a certain amount of income per year.

Hedge funds are not limited to any one kind of investment. They invest in many different markets using unconventional strategies, they can hold long or short positions, and can use leverage and derivatives. Profit can be made in virtually any environment and for the most part managers attempt to "hedge" risk. Most investments made by hedge funds are speculative, so the risks tend to be high.

Managers of hedge funds receive a management fee and a performance fee in return for managing the funds. The management fee is typically 1%-2% of the funds assets and the performance fee is normally about 20% of the profits made that year. With assets of some hedge funds being in the upper hundred million to the few billion dollar range, and with profits or gains beating the S&P 500 on average, hedge fund managers have to potential to be very rich.

(c) Desiree' Harris. Desiree' Harris is a successful, full-time, active investor in a few avenues. For more investing information, visit Investlog where you can find articles on different methods of investing, tips, news, and product information.

Unusual Types of Investments

2006-08-27T12:17:00.000+01:00

Overall there are three different kinds of investments. These include stocks, bonds and cash. Sounds simple right! Well, unfortunately it gets very complicated from there. You see each type of investment has numerous types of investments that fall under it.

There is quite a bit to learn about each different investment type. The stock market can be a big scary place for those who know little or nothing about investing. Fortunately the amount of information that you need to learn has a direct relation to the type of investor that you are. There are also three types of investors: conservative, moderate and aggressive. The different types of investments also cater to the two levels of risk tolerance: high risk and low risk.

Conservative investors often invest in cash. This means that they put their money in interest bearing savings accounts, money market accounts, mutual funds, US Treasury bills and Certificates of Deposit. These are very safe investments that grow over a long period of time. These are also low risk investments.

Moderate investors often invest in cash and bonds and may dabble in the stock market. Moderate investing may be low or moderate risks. Moderate investors often also invest in real estate providing that it is low risk real estate.

Aggressive investors commonly do most of their investing in the stock market which is higher risk. They also tend to invest in business ventures as well as higher risk real estate. For instance, if an aggressive investor puts his or her money into an older apartment building then invests more money renovating the property, they are running a risk. They expect to be able to rent the apartments out for more money than the apartments are currently worth or to sell the entire property for a profit on their initial investments. In some cases, this works out just fine and in other cases it does not. It is a risk.

Before you start investing, it is very important that you learn about the different types of investments and what those investments can do for you. Understand the risks involved and pay attention to past trends as well. History does indeed repeat itself and investors know this first hand. Find a convenient Internet investment service that gives you 24hour access to your account for easy and secure online investing and to obtain real time market information. Access trusted sources of investment information and research to keep you up to date and informed about equities, mutual funds and fixed income investments. Make sure you can obtain current company news and invest from any personal computer with Internet access and the appropriate Internet browser.

Following A Trading Plan = Profits

2006-08-26T10:59:00.000+01:00

When it comes to making decisions, our minds tend to perceive and react to the information available to us, each in its own particular way. This is not something we think much about. It is a part of each of us. Trying to change this natural process is almost impossible.

This is usually not of any consequence in our everyday lives, but in the realm of investing, our perceptions and reactions, and the emotions they generate, are very often the opposite of what is needed to be successful.

How do we start making consistently "correct" trading and market timing decisions? How do we make decisions without emotions interfering? How do we trade with confidence?

The answer is simple. We follow an unemotional trading plan which keeps us on the path to profitability.

Gunslingers

Many traders, market timers, investors have no plan at all. They are like the proverbial "Gunslingers" of the old West. A news event causes the market to decline and BANG, they go short. An economic indicator comes in better than expected, the market rises, and POW they go long.

Trading by emotion, they make trades that seem solid at the time, and they hold that position until it becomes more painful to hold it than to not hold it. They may even make an occasional profit.

But that lack of focus...lack of planning, will ultimately lead to poor performance, and to outright losses.

Why do so many traders sell at bottoms, and buy at tops? It is such a well known fact that it is almost funny, except when "you" are the person at that top or bottom.

Have you (or someone you know) ever said, "well.. I finally decided to go long (or short), so expect the market to reverse on me... again." Actually expecting "ahead of time" that the trade will be unprofitable.

You will not hear that from someone following a "trading plan." He or she knows that not all trades will be successful, but that following the "plan" will avoid emotional trading errors, and lead to long term profits.

Disciplined Trading

Trading (market timing) requires "discipline" ... Some have it, and others that wish for success must learn it.

The benefit of of following a proven trading plan is twofold.

First - if you have a plan, you'll be able to ignore all the data that doesn't affect your trading. The media is rough on traders - at any given time, you could find ten reasons to buy and ten reasons to sell. That emotional roller coaster is a nightmare, but if you are following a plan, you won't talk yourself out of good trades, nor will you keep yourself in bad ones.

Second - our emotions cannot cause us to make unprofitable decisions. We have a plan! All we need do is follow the plan. Never second guess it. That is allowing your emotions to come back into play.

Only through following a trading plan will you save yourself a great deal of frustration, and successfully grow your investments.

Creating Wealth - A Simple Way For Mr Average To Get Rich

2006-08-25T15:18:00.000+01:00

Creating wealth is not as difficult as many people think. Many people think that creating wealth involves coming up with something different and being innovative.

The route to creating wealth is much simpler and we are going to discuss how to do it in this article.

Rule 1 It takes a bit of time

If you want to create wealth overnight this article is not for you however if you are prepared to look at a PROVEN method and a 5 - 10 year plan, to give you and your loved ones a better lifestyle then this article is for you.

Rule 2 High reward and low risk

What you need when creating wealth is the highest possible reward with the lowest downside risk.

There are plenty of quick risky ways to create wealth but only a few succeed, so here we are going to go with the highest reward and very low risk

RULE 3 You need to do it yourself

Fact is no one else is going to create wealth for you. Forget people selling MLM schemes and get rich books for a hundred dollars - is not you who will get wealthy! It's them.

If you try and create wealth by making someone else risk you won't.

Also avoid managed investments the reason people offer to manage your money is they cant do it themselves so no mutual funds, hedge funds, managed FOREX etc

Rule 4 Work smart not hard

Creating wealth is all about working smart not working hard.

You will put your money where it grows quickly and compounds with low risk.

This means making your money to work for you to make more money.

The billionaire's secret investment!

Howard Hughes did it, Donald Trump does even comedian Bob Hope did it and so do most of the worlds wealthiest investors - They invested in land.

You may have never considered this as a way to build wealth before, but the fact is:

Its got huge profit potential to risk and land is cheap and easy to invest in - It's the perfect investment to make money fast!

In certain countries land values are booming and many people are making money fast.

In Costa Rica for example many investors are making 100% annual gains with low risk and their getting rich

Why?

Because Americans are buying property in ever increasing numbers, at up to 70% less than in the US and these properties need to be built on prime land.

This trend is accelerating and will continue as baby boomers look for holiday homes and retirement homes and a slice of paradise at an affordable cost

Is it really possible to make triple digit gains with low risk

The answer is yes. Investors are already doing it and it's a simple investment to do and it's cheap

All you need to do is buy land in up and coming locations sell on development and move to next location and you will be creating wealth all along the way with low risk.

There is not enough room in this article to go into the massive wealth potential of buying land, however research the facts and you will see there is no simpler low risk way to create wealth longer term and secure your financial future.

(c) Sacha Tarkovsky. For a FREE report on how to investing in land to make huge gains with low risk and to see how easy it is to do, request your FREE report and find out at: http://www.net-planet.org/costarica.php.