Last Bank Standing – The Wall Street Mega-crash

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Dateline Washington, October 19th (get it?) 2010: the Peoples Bank & Trust of America has now established itself as the only bank of any kind in the USA, totally owned and managed by the US House of Representatives. A 2/3 majority must now approve all investment banking transactions; your district representative's staff reviews individual mortgage applications; and all 401(k), IRA, and remaining employer pension assets have been rolled into the Social Security Slush Fund.

Only federal and state elected officials are exempt from the 45% all purpose Income Tax. The estimated time to bring new companies public is 4.5 years; all individual account dividends and interest are paid directly into your IRS "grabber" account; CEO's salaries are limited to 50% of the amount paid to a first year congressman, and any government budget shortfalls are withdrawn from corporate earnings before any corporate obligations can be dealt with.

All employees receive the federal mandated minimum wage, except senior executives who are limited as mentioned above. Scary? This is a scenario that could play out if Congress (or the SEC) does not come to the rescue of the credit markets. You missed your opportunity to help stop it, but chances are a fix is on its way.

How many more businesses, jobs, and hopes will be killed by this irresponsible Congress? When will the average blogger realize that when a corporation fails, we all suffer? One would think that the informed and enlightened could take time out from their texting for a little research and education. Instead, they show their power by influencing public opinion numbers and the marshmallow politicians who worship them. As economist Irwin Kellner and I have pointed out, this is no bailout and we are not nearly approaching a recession.

Kellner's September 28th Market Watch article points out ten major differences between now and then: (1) In 1929, the DJIA plunged 40% in two months vs. around 30% in about a year. (2) In 1933, the jobless rate was 33% vs. 6% today. (3) The GDP shrank 25% then, but has increased 6% now. (4) Consumer prices actually fell 30% then but haven't ever since.

(5) Home prices dropped 30% then, but only 16% from the recent bubbly highs. (6) 40% of all mortgages were in default then vs. only 4% now. (7) 9,000 banks failed in the 1930s compared with just 25 or so (bigger and broader based ones) recently. (8) The Federal Reserve reduced the money supply, (9) raised interest rates, and (10) raised taxes on foreign imports.

Further, Kellner points out, we now have automatic stabilizers, deposit insurances, and market trading restrictions as protective elements. Today's Congress however, has never been good at connecting dots, has accomplished nothing under an unpopular president, and is ignoring its role as the primary creative force in today's problems. This transfusion is needed because: bad laws have obscured the values on financial institution balance sheets, and have created a clot in the credit arteries that keep the economy alive.

Educate yourselves on the Accounting Rule's that require institutions to book paying assets at pennies on the dollar. Find out why institutions are afraid to loan money to one another--- over night, at any rate of interest--- strangling the credit markets.

Doing nothing is killing jobs, killing companies, and deferring retirements for those who were counting on 401(k) and IRA dollars to provide them with income. Congress, of course has an old-fashioned pension plan, so it is unaffected by such financial realities.

Investigate the relaxation of lending standards that Congress orchestrated over the past few administrations, before blaming the companies that then extended credit to many speculators and other buyers who falsified application papers. Learn how the SEC was prohibited from regulating the CDOs and other multiple-leveraged credit market speculations. There are as many culprits outside the corporate executive suite as in it.

Congress is bursting with pride over bringing some of the Rich and Famous to their knees, and capping some of their obscene compensation arrangements at still shareholder pillaging levels. I've spoken often about how these salaries need to be controlled. But the multi-level-mortgage-marketing schemes that Congress encouraged must be unbundled somehow, and a buy out is the proper vehicle.

Congress has punished the entire world with its attack on Wall Street, and both parties are to blame. Representatives of the states listed below voted "no" to the credit transfusion, causing death and destruction that, in many instances, cannot be recouped. We have to replace them with better decision makers, representatives who can think in economic terms when they have to.

The number and letter code after the state designation indicates the number of representatives and their party: AL-1R, AK-1R, AZ-4D4R, CA-15D9R, CO-2D2R, CT-1D, FL-1D13R, GA-4D7R, HI-2D, ID-1R, IL-4D5R, IN-3D3R, IA-1D2R, KS-1D2R, KY-2D2R, LA-2D3R, ME-1D, MD-2D1R, MA-3D, MI-3D6R, MN-2D2R, MS-3D, MO-2D3R, MT-1R, NE-3R, NV-1D1R, NH-2D, NJ-3D4R, NM-1D1R, NY-3D1R, NC-3D5R, OH-3D7R, OK-3R, OR-3D, PA-3D7R, SC-1R, SD-1D, TN-1D4R, TX-8D14R, UT-1D1R, VT-1D, VA-1D5R, WA-1D3R, WV-1R, WI-1D2R (Names withheld, but available from the author.)

On Friday evening, candidates Obama and McCain gave their support to the Capital infusion, but neither bothered to explain why--- a huge audience was ready to soak up the information. Over the weekend, both attended meetings to support the plan and to generate support from their respective parties.

Is there enough time left to find a hero?

Spend Properly as The Stock Market is Full of Surprises

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The stock companies are one of the most significant sources for companies to improve cash. It helps in businesses to be exchanged openly, or increase additional resources for capital financial commitment by promoting stocks of the organization to public available market. Investment marketplaces are the future market with lot of growth and financial commitment. The raw merchandise is exchanged on merchandise transactions, in which the dealing occurs under consistent agreements. Commodities transactions usually trade commodity agreements on merchandise. With the amazing increase of the growing financial systems, over the years the commodity marketplaces are limited give large amount of financial commitment possibilities that can be used to grow your cash.

You can get useful commodity guidelines from the dealing sites helping you in wise financial commitment. Traders can recognize a financial commitment price catalog to obtain an inactive visibility in the commodity market.Like any other financial commitment stocks are also a determined decision that you need to take with health care and only then you can benefit from that. You need to recognize the appropriate stocks according to your anticipations from profits. It is important to understand that the dealing of an organization's stock does not straight include that organization. The stock you decide on mostly is determined by your overall way of earning cash with the stock market.

Stocks and stocks and the merchandise return is very unpredictable in its characteristics and hence performed carefully. If you know a little about the different commodity types, the intelligent level of the dealing of them will improve. A good dealing website will always keep you informed about the industry and will provide much needed value guidelines.The on the internet broker companies provide Commodities Broking Services, Securing Alternatives and Arbitrage Table to are eligible of all kinds of market members. The electronic marketplaces use wide computer systems to go with consumers, rather than human agents.

You should purchase more than one or two stocks so that lose in one stock can be retrieved from the benefit in another. It requires a lot of time, sources, and experience to evaluate discuss market styles, data styles and thus there are companies which provide their customer precise and successful commodity guidelines. One should keep himself open for new learning and find professionals for appropriate and professional guidance. If your software system is not working then there is no damage in talking to for better guidance. These small businesses are expertly certified to immaculately carry out the research of the budget of the organization and their standing at the stock market. You can benefit a lot from their value guidelines and discuss guidelines and make a success out of cash.

How To Go Public Without Reverse Mergers

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How To Go Public Without Reverse Mergers Or Public Shell Corporations
?Going Public? is the procedure of selling shares that were once held by a private company to the general investing public for the very first time; many times it has been called an IPO.

Numerous knowledgeable business owners have the grand vision of taking their private business public. The economic incentives and rewards of becoming a publicly traded company provide opportunities seldom offered to private companies. Of course, the prestige and glamour are indicators of success when a private business goes public. Nevertheless, the many ways of going public and, financial responsibilities of a public business, can create a challenging proposition. Taking your company public is a involved method requiring more than a few skills and business acumen; it can also be mystifying and baffling, even for trained professionals.

As companies contemplate going public, the biggest reason is to raise capital.
A necessary outlook of the many ways private companies can join the public markets, and what is the relevant securities law, is in order. The need to consider options with a sober mind is a must.

These are many of the benefits of entering the public markets:

? The available sources of capital will multiply, since your company will be able to approach many more prospective investors.
? All investors ? as well as company principals ? can take advantage of an exit strategy to sell their participation and regain their initial investment.
? Attracting capital is easier, and if the investment outlook about your business increases, it could uphold a secondary trading market for your stock issue.
? By providing stock options your public company can attract and keep key personnel.

In the past many companies used a procedure called a ?reverse merger with a public shell? as a way to go public.

In the above case, the publicly traded company is referred to as a "shell," since all that remains of the originating business is the organizational constitution.

A reverse merger involves this scenario:

In a public shell reverse merger ? also called a reverse take over ? the shareholders of a privately held company purchase control of the corporate shell company, and then merge it with the private business.

The private company's shareholders receive the biggest part of the shares of the public shell corporation, thereby keeping control of its board of directors.

Of course, the risks concerned with a reverse merger are numerous, and possibly a overview of the harmful aspects of a public shell reverse merger is needed.

The following are many of the hidden pitfalls of a reverse merger:

Most existing companies have a background, a history, and shareholders. The background and history can be bad, and can take many turns: sloppy paperwork and record keeping, lawsuits, and many other skeletons in the closet. Besides, public shells may have their share of dissatisfied investors very willing to "dump" at the first occasion, sinking the market for the company?s stock.

The best going public advice should be sought before contemplating a reverse merger, since many private company officers are lacking in experience and not aware of the perils of going public via a public shell reverse merger.

Thoroughness and seasoned guidance can assist your company to conquer all the pitfalls and take your company public in as little as 4 months.

Here are some more benefits of going public through an alternative program to a reverse merger or public shell:

? No reporting requirements
? No mandatory minimum revenue
? No Sarbanes-Oxley
? No asset requirements

Stock Market Strategy for Beginners

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First of all you need to obtain a basic knowledge of shares and the stock market. It goes without saying that without knowing the aspects of a Stock Tips or the concept of how the Equity market works it's impossible to know what your doing. You can gain all the basic knowledge of the Equity market in the basics section of the website. These are the key concepts that need to be learnt before moving onto learning to trade; Learn the aspects a share has e.g. dividends, bid/ask price, its chart what information is required to buy shares.Learn how the Equity market works know of the risk involved with trading shares Its important to have this knowledge before paying money for a trading course to enable you to fully understand the concepts being taught. By not knowing any basic Equity market information, parts of courses could easily fly by you, meaning that you will struggle to understand the information that you will have paid for! The New investors taking their first steps towards learning the basics of stock trading should have access to multiple sources of quality education.

there is so much written on the topic of investing for new investor. when you are investing money in Equity market keep it simple. keep your investment strategies such as examining data point making predictions and trading real simple to help insure you don't take on too many risk on company or stock without having market security. Understanding stocks and bonds Stocks and bonds are the staples of many investment portfolios. Equity represents a share of ownership in a corporation. A bond is a security that represents a debt owed by the corporation to the bondholder. A share of Equity is issued in a number of different ways - following are descriptions of the most common forms: Common stock Common stock - also called common shares, capital shares, or capital stock - represents units of ownership in a corporation. Purchasers of it is granted specific rights that may include the following: Voting at stockholder meetings.Selling or otherwise disposing of Equity.

Having the first opportunity to purchase additional shares of common stock issued by the corporation. Sharing dividends with other holders. Receiving annual reports and inspecting the corporation's books and records.Sharing in assets if the corporation is liquidated. A corporation may be authorized to issue more than one class of Equity. For example, a class of common stock might have enhanced voting rights. This Equity may be more expensive than regular shares. Preferred stock Preferred stock gets its name from the preferences granted its owners, which may include dividends or sharing assets should company liquidation occur. it generally doesn't carry voting rights. It is issued by a company to raise capital without jeopardizing the controlling interests of the common stockholders. Preferred stock is sometimes convertible to common stock.

Investor makes a good impact on the Equity market and with the brokers the market gives a very good results which in turn benefits investor as well as the market. Investor understanding gives a amount of options in the market. Analysis and regular watch brings a best and accurate results from the market which is a best tools, which can be provided by the advisors and brokers who trade in the market.

Bet Your Bottom Dollar? ? No Way, Unless You?ve Read The Daily Stock Report

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In as much as you would like the stock market to be the hen that lays the golden egg for you, much of the success from stock trading does not happen overnight. You have to go through your fair share of stock trading days. So you before you call it a night, why not read your Daily Stock Report?

You can?t bury your head like an ostrich after you?ve made an investment, and neither can you count your chicks before they are hatched. If you read between the lines, you have to be as patient and diligent as a spider weaving its web of tools and techniques that lure the profit in, day in and day out.

Speaking of webs, it is much cheaper to invest your resources in a stock trading website. You get instant results on your transactions with a minimal investment of time and money. When you?re down to your bottom dollar, you bet you?d better keep posted on your daily stock reports and keep updated with online stock market analyses. With the help of stock market visuals like charts and graphs, you do have a way of placing a good bet by determining what could happen to your stocks tomorrow. Stock prices have a way of trending up or trending down based on their past performance, and this is what assists you in predicting stock market results for the future.

Much closer to home, your very future lies in tomorrow. In stock market terms, that means your next trading day. It only takes your favorite news channel to get a hold of information a few minutes of every day. When it becomes a habit to watch the evening news and view your closing prices, you?re a few hours ahead in deciding your next move and you?re a step ahead of the rest of the day traders in your league. Even the most-seasoned practitioners in the stock market admit to reading daily stock reports as part of their discipline. From a practice which starts out as an occasional thing, it becomes purely habitual and it ends up as being ultimately beneficial to your stock trading days.

With your trading days far from over, you can always invest in some training days ahead. There are certain privileges to being associated with a stock trading and training website. Aside from rubbing elbows with other active day traders and retail stock traders worldwide, you could have easy access to a free Stock Trading Course. Educating yourself as an investor at your own time and in a manner free of charge reduces your gamble with fate. It adds to your credentials as a trader, and it widens your knowledge on the tricks of the trade. As a result, you become more successful in your money-making ventures. The true idea of stock trading should be less of a gamble you carelessly play and more of a wise investment you carefully work at. Every dollar counts down to the last piece in your pocket. If you want to make a sure bet, you simply can?t afford to ignore the information you could gain from this report.

Stock Market Trading: Learn Options Trading Now

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Being engaged in stock market trading is a tricky job. Stock market trading requires a lot of guts on the trader's part as well a dose of wits. The stock market is very unpredictable like the weather sometimes. You will never be sure of winning in stock market trading but you can definitely make your performance better by making a sound decision and calculated risks.
Going into stock market trading is too risky of a task especially for a new trader. It is best recommended that new traders must first be educated of the pros and cons of stock market trading. A careful evaluation of the market's status and your capability as an investor must be first made before going into the stock market trading. A novice trader must also possess the right strategy that can help him in being a better player in stock market trading.
One of the more popular strategies in stock market trading is option trading. Option trading involves an agreement between a buyer and a seller that gives the buyer the right, but not as an obligation, to buy or to sell a particular asset on or before the option's expiration time, at an agreed price. Option trading is a better bargain than holding a stock because it allows for more option trading a trader can choose to either be a call option or put option. Call options give the buyer the right to purchase the underlying asset while put options gives the buyer of the option the right to sell the underlying assets.
Although it seems that option trading looms as an ideal strategy in stock market trading, it also poses a lot of risks to the trader. Again, the efficacy of option trading is in proportion with how the market would go. Again, the success of option trading is in proportion with how the market would market might move easily towards your favor or the other way around causing you to lose a lot of money in bad investments. The dangers and other circumstance involved in trading options make it apparent that there is a need for an effective way to learn option trading.
Option trading is complicated and risky in nature, and to learn option trading is a great way to deal with it. An effective way to learn option trading is through option tutorial services. Option tutorial provides an in depth study and expert recommendations which can help you learn option trading to a full option tutorials, not only you can learn option trading but they can also help you become better with your decisions.
In many ways, option trading can impose serious threats as well as other unimaginable risks to a trader financially.Option tutorial provides the needed help in preparing you before going into the uncertain world of stock market trading.Option trading provides a better grasp of the downside and the risks involved with entering into trade options and must have an equally balanced options strategy to counter any of this downside and risks.Option tutorial can also help you in devising an equally balanced options strategy to counter any of this downside and risks.

Stock Options – The Greatest Wealth Building Tool Ever Invented

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It is a well known fact that serious investors seeking long term growth of capital have as their main objectives the two most basic goals in investing:

? to find an investment vehicle that would effectively preserve capital and minimize risk in the face of a fluctuating and constantly flexing economy
? the investment vehicle must provide better than decent yields in all economic conditions to promote constant growth of capital value.

With the stock market as the premiere choice due to its historical record of outperforming all other investments over time, people are increasingly turning to the stock market as their main investment vehicle for future capital growth. It is here where much higher rates of return can be made with a relatively small increase in risk to capital.

With thousands of books, manuals, internet sites, seminars and courses offering investment strategies and trading systems in the stock market and its derivatives, there are few, if any, that deliver the ideal investment vehicle sought by the long term investor in search of safety and high returns. Not only is there a near total absence of an ideal investment system but there are many that promise eye popping, mind boggling returns and, they are exactly that; mere promises.

Most of the trading systems offered are structured on strategies or activities that work when conditions are ideally suited to the program being peddled. Most of their successes are highly dependent on picking the right stocks at the right time. In other words you must be a good stock picker or use a stock picking service (for a high monthly fee) to select the right ones for you. Market timing is also an important factor in their systems. Again, you must be a good market timer or depend on a service that provides market timing signals (also for a high monthly fee). These supposedly high yield investment programs don't say anything about how bad things can be when conditions go against their predictions. These programs do exactly as promised: great when the going is good but disastrous when the going is bad. Without doubt many have been taken by these so-called services and while an investor/trader may be successful for a while, the end result over a long period of time is always the same - no better than if you had done the selections yourself.

While there is no one investment system or vehicle that can be an answer-all to the various goals of various investors, there are some investment alternatives that can come close to satisfying the two basic needs of safety and decent returns. Diversified mutual funds have been touted as the answer to these basic needs. But over the years these funds have shown that during downturns in the economy they perform just as badly as the whole investment market in general. And, over the long term, many of these diversified funds have failed to even match market performance in general, much less outperform it.

Enter market derivatives with emphasis options.

Trading in stock options has become very popular with institutional investors as well as private individuals as a sound money management system supplementing their investment portfolios. The ability of stock options to give the investor a wide range of choices is what has made the options market grow considerably over the last two decades. To quote one options expert: "Stock options are the greatest wealth producing tool ever invented on this planet. . . . if you know how to use them".

The key element of this statement is: . . . if you know how to use them.

For many people the mere mention of stock options, sends shivers up their spine. They look at options as synonymous with great risk. But isn't driving a car very dangerous for one who doesn't know how to drive? The ability of stock options to give the investor a wide range of choices in stock market investments is what has made the options market grow by leaps and bounds over the last twenty years. Statistics compiled by the Options Industry Council, a group that educates investors about options, show that volume in options trading has risen tremendously in recent years. Further, studies show that individual investors make up 60% of the market.

For the individual who has sufficient funds and is looking for more than a decent return on his capital and with controllable risk, stock options may be the answer.

There are dozens of option trading systems being employed by individual investors and institutions. Each system is designed to accomplish a specific investment goal. A financial institution may use long put options to hedge its winnings in stocks that have appreciated in value. Another investor may buy call options instead of stocks to enter a position in a security that has caught his fancy. Still another may sell calls against his stock holdings to generate income from his stock position, or what is popularly known as covered call writing.

Of the dozens of option trading systems there is one that can be carried out as a long term investment program offering a fair degree of safety and consistent high returns over time, thus satisfying the investor's two basic needs of safety and return.

This is the selling of uncovered or naked options.

But wait! Is it not said that selling naked options carries the risk of unlimited losses? Isn't this a contradiction?

Indeed selling naked options when done carelessly and without a disciplined strategic program is extremely risky!

But by using a carefully planned and disciplined system of trading, the so-called "unlimited risk" factor in selling options can easily be conquered. There is a three-pronged trading strategy being used by one successful options trader that is proving to be a consistent winner in all market conditions. It is a trading technique that couples naked option selling with a modified ratio credit spread and the use of the roll over feature. While naked option selling has acquired a bad rap of being highly risky, this three-pronged trading strategy allows the trader to defeat the risk. Not only is the system able to substantially reduce the risk, it also offers one the ability to become a savvy investor/trader without having to depend on picking the right stocks or timing the market.

It involves utilizing the system in any market condition using only one or a few stocks, ETFs or indexes (the latter two are more effective). One need not worry about finding the right stocks or timing the trades. The fact remains that stocks behave, more often than not, in crazy and irrational ways so that one can almost say that consistently choosing winning stocks is as good as a random walk down Wall Street. Rather than be proactive and try to predict and time the market, as many try to do, this three-pronged investment system is reactive. The prescribed trades are done in reaction to how the market has moved, not in anticipation of its future behavior.

This three-pronged trading system does not promise quick profits or mind boggling yields but steady annual returns in excess of 30%. Many are averaging returns of 50% to 60%. It would be prudent to say that in times of deep downturns the system may not deliver the promised returns but it will hold its own and will definitely outperform the market.

One options trader that has mastered this three-pronged trading technique has decided to share his knowledge of the system by writing an e-book on its methodology. Borrowing from that quote about options being a great wealth producing tool he has aptly titled his work: STOCK OPTIONS: THE GREATEST WEALTH BUILDING TOOL EVER INVENTED. In it he details the step by step methodology of this trading technique and gives an exhaustive series of sample trades covering several months of transactions. It shows the effectiveness of the system in an up market, down market and horizontal market using only one ETF stock. To this day the writer continues to use only one or two ETFs in all his options trades and he includes a web page that shows his current and actual trading results month by month on an ongoing frequency.

The Wait for the iPhone 5 Hits Asia Tech Stocks

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In the past, releases of the Apple iPhone have usually been well received by consumers, with sales numbers being quite good for Apple, even if not all users and technology reviewers were completely satisfied with the features of the device.Many are anxious to see what the iPhone 5 will be able to do when it comes out in September, but this waiting has started to have a negative effect on some Asian stocks. Apple's quarterly earnings have been below expectations lately, mainly because many consumers are holding off purchasing a new iPhone until the 5th edition comes out in a few months. This has had repercussions not only for Apple, but also for its supply chain.

While Apple has developed the device, it relies on a supply chain in Asia to manufacture many of its components, such as the circuit boards and the screen. It is thus normal that when Apple's numbers are down, Asian tech stocks belonging to firms in Apple's supply chain take a hit. Some of the companies whose stocks went down include Foxconn, the company that assembles the iPhone and makes some of its components.

This is because a large amount of revenue for the company comes from production of Apple devices, such as the iPhone and the iPad tablet. Japanese companies such as Ibiden, which manufactures circuit boards and Toshiba, who make memory chips, have also seen their shares go down.Anyone investing in Asian technology stocks should seek advice from a professional financial adviser, preferably one that has experience in tech stocks in the Asian market. While these shares may eventually rebound, exactly when this will happen is open to some speculation. Some market analysts are now predicting that Apple's earnings may not be too good for the next quarter and may continue to be low until the iPhone 5 launches later in 2012.

While current predictions say that the device is going to be ready for launch in late September of 2012, it should be noted that no official release date has been put forward by Apple for now. Therefore, the exact moment where the earning of Apple and tech stock prices in Asia are going to be up is not yet known.It makes sense that periods where stock prices are down would be times where it may be profitable to buy shares. However investors will need to know that the Asian tech market is subject to volatility, especially among companies where a large percentage of their revenue is tied to one specific device. Investors should be careful where they will be putting their money, diversifying their portfolio regularly and following technological news and trends so that they have a better idea of how their stocks will do.

3 Easy Ways to Boost Your Stock Market Profits

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People always want to know how they can improve their profits in the stock market. And I keep telling them it's simple. There are three easy things you can do right now to boost your returns. It's so easy.It really is.Here are the 3 steps you can take:1. Only buy the best ETFs - ones that are already going up 2. Avoid high fees 3. Keep a risk balanced portfolio.That's it. Those are pretty easy things you can implement immediately. If you can do this, you can make money in the stock market.

The rules for successful stock market trading aren't hard. But despite that, the average 401k investor in the stock market gets creamed by the stock market.A formal study from the stuffy Journal of Pension Benefits documents the horrible performance of most investors. Here's what it says:"The elephant in the room that no one seems to want to discuss is that individual investors as a whole do a poor job managing their own is, by and large, a recipe for has long been known that individual investors don't typically fare well in their efforts at do-it-yourself investing."This notion has been validated by numerous studies, including one by Dalbar, Inc., which revealed the staggering margin by which the average individual investor trails the returns of the broader market.

Here's what Dalbar, Inc. says:"Wow. Nobody wants to talk about it, it's that bad. When the stock market only makes 8% per year, giving away 6% eats up almost all of the possible returns. In fact, it's possible you'll get a better return from Social Security than you will from the stock market."Fortunately, there is help.Improving Your Returns with True DiversificationThere is more to making money than just blindly hopping on the trends.If you want to really make money, you need to take active control of your can't just sit back and gripe about your lousy returns when you're not doing anything to prevent best way to improve the performance of any trading strategy is to balance the risk taken on each trade.Diversification works wonders for increasing returns. But it only works when you actually diversify.Most people do not get similar exposure to the risk of their investments. They dramatically over-invest in some of their portfolio, and under-invest in others. It's like only watering ?? of your garden but expecting it all to grow.To get great returns, you need to give each and every investment a fighting chance to make money for your portfolio. Each investment needs to be able to provide meaningful returns for you to make real money.

Many people split their portfolio 50-50 or 60-40 between stocks and bonds. This doesn't work. It ends up being only slightly better than burning $100 bills in a fire. Why? Stocks are 3-4 times more volatile than bonds. All of the returns and risk are due to what happens to the stocks in the portfolio.The only way bonds will have equal impact on the portfolio is for the allocation to be 75% bonds, 25% stocks - or even higher.You can balance the dollar amount allocated to an ETF selection by the risk taken by each ETF. You can do this in your other accounts also.You can take into account how much risk each ETF has, and then adjust the amount of shares to trade. That way you know you get equal exposure to each of your investments. This came in extremely helpful this month for me because the month allocated extra dollars to real estate and preferred stocks,which have outperformed the S&P 500. That's how true diversification can help you also.As a result, your system could be up about .5%, while the S&P 500 is down nearly a full percent. Instead of under-performing the stock market by 6% a year, your system can outperform the stock market, in this case by nearly 8% per year.

When you create a system to allocate your funds, your system should tell you exactly how many shares of each ETF to buy so you're not under- or over-investing. Risk balancing works great for really pushing returns upwards. If you want to know the steps - and are a real math geek - here you go:1. Find ATR: Find the Average True Range (ATR) for each of your Stocks/ETFs 2. Find Volatility: Divide the ATR by the Price of the Stock/ETF 3. Invert Volatility: Take 1/(Step 2) for every stock Find Total Vol: Total up Step 3 for your entire portfolio 4. Find Percent Allocation: Divide Step 3 by the total given Step 4Step 5 will give you the percentage of your account that you should allocate to that investment. It's a bit complicated, but you can do it. An easier way would be to have someone else do it for you. Either way, you can outperform the S&P and give your accounts the boost you want.Copyright ?? 2012 Trend Following 101

Gain The Expertise To Identify The Perfect Time To Buy Shares

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People invest in shares and most of them do not make enough profits in selling them because they do not know the exact time to buy shares. Having the expertise to understand the movements of the market and the trends which indicate the correct time to collect shares from the market will help you to when get a substantial profit when you sell. There are experienced people in the share trading circle, who are able to identify the right time to buy shares of a particular chip.

The main indicator is the stock market, which has its own ups and downs resulting from different pressure points on economy. The stocks may even slide down during a positive economic trend and may push up even in when the economy is experiencing dull conditions. In short, there is enough scope to collect shares when the market is weak by paying lower prices for them. However, the true value of shares cannot be estimated in this condition. The indications spell out a simple formula to sell when the market is high and buy shares when the market is dull.

Make a study and buy shares
Study the value of the shares you are interested in before you buy shares. Dividend estimation is a qualified measurement scale for knowing the value of a particular share. The dividend yield is to be computed on the current price of the share and the dividend declared for the next phase. The market goes down with low dividend yields and the mood of the investor is always in favor of a higher dividend to buy shares.

The market may appreciate - lower prices with higher dividends - and may respond positively to them in this situation. The dividend yield can make a long-term trend of shares and you can buy shares during this condition. The price-dividend declaration is another important aspect of estimating the market for a particular share. This is the dividend yield expressed in terms of percentage.

Dividends are taken out of the company's earnings, but they do not fluctuate - unlike the earnings - and are always paid by the company to shareholders irrespective of the functioning of the company. When you are ready to make your investments and buy shares, you do not have to look at the earnings of the company. Instead, you must understand the dividends declaration from the company for your profits.

There is another aspect that you should also look into: the value of a share in the company?s book. This is the book value of a share of the company. It is estimated from the net worth of the company in relation to the number of shares. With the book value of a share, you are able to know the current condition of the price of the share - i.e., whether it is undervalued or overvalued. When the price of the share is low relative to the book value (or undervalued), you should buy shares in the situation. Conversely, when the price of a share is exceptionally high relative to the book value of the share, it is the right time to sell for profit.