Advanced Option Strategies » Investing

Bonds, Stocks, and Gold

admin — Mon, 25 Jan 2010 07:26:03 +0000

SCR’s Finance Research & Forecast for April 28, 2009

From our global research division and the subsequent strategy analysts, the following financial excerpts (including forecasts) are from report revisions recently completed:

Research Observation (from report No. D3: Optimal Finance Research™ (USA) Aggressive Investing):

Theme: Investment Bonds vs. High Yield Bonds

(1) Observation of the Relative Strength: Results in the relative strength analysis of G. Sachs Invest Top Corporate Bond (LQD) versus High Yield Corporate Bond (HYG) indicate that LQD is underperforming HYG on a relative basis. Since the relative strength ratio measures the strength of the numerator versus the denominator, it has predictive potential. In this observation, the price path of the numerator G. Sachs Invest Top Corporate Bond (LQD) is decreasing relative to the denominator High Yield Corporate Bond (HYG). Therefore, at least in the near term, the implication is that HYG has the potential of outperforming LQD. Caution: LQD price path is currently neutral with a fairly horizontal direction.

(2) Observation of the Price Performance: G. Sachs Invest Top Corporate Bond (LQD) shows a shift from an upward price direction to a flat path.

(3) Observation of Market Type: Security demand conditions (measured by money flows) indicate potential continuation of the current market direction because the change in money flow is weak. This is relative to strong money flows going into equities. However, this status is dependent on the outcome of upcoming economic statistics.

(4) Possible Implication: The overall implication of the stated observations for LQD is Neutral, and has near term Neutral implications; therefore, LQD has neutral trend potential for at least the short-term. The analysis of LQD relative to HYG is useful as a sentiment indicator. When G. Sachs Invest Top Corporate Bond (LQD) is underperforming High Yield Corporate Bond (HYG) on a relative bases, it indicates that bond investors are bullish on the economy as a whole and on small business growth in particular.

Theme: Growth Stocks vs. Value Stocks

(1) Observation of the Relative Strength: Results in the relative strength analysis of DJ Wilshire Large Cap Growth (ELG) versus DJ Wilshire Large Cap Value (ELV) indicate that ELG is outperforming ELV on a relative basis. Since the relative strength ratio measures the strength of the numerator versus the denominator, it has predictive potential. In this observation, the price path of the numerator DJ Wilshire Large Cap Growth (ELG) is increasing relative to the denominator DJ Wilshire Large Cap Value (ELV). Therefore, at least in the near term, the implication is that ELG has the potential of outperforming ELV.

(2) Observation of the Price Performance: DJ Wilshire Large Cap Growth (ELG) shows a continuation of an upward price direction.

(3) Observation of Market Type: Security demand conditions (measured by money flows) indicate potential continuation of the current market direction because the change in money flow is quite strong for most of the growth based ETFs. This is relative to weaker money flows going into value based ETFs.

(4) Possible Implication: The overall implication of the stated observations for ELG is Bullish, and has near term Bullish implications; therefore, ELG has bullish trend potential for at least the short-term. The analysis of ELG relative to ELV is useful as a sentiment indicator. When DJ Wilshire Large Cap Growth (ELG) is outperforming DJ Wilshire Large Cap Value (ELV) on a relative bases, it indicates that investors are bullish on the economy as a whole and on small business growth in particular. Whether this observation holds will be determined by the economic indicators going forward. Currently, growth stocks outperforming value stocks indicate the bets are predicting a bottom near-term to the U.S. economic recession. We’ll see.

Research Observation (from report No. RT-USA: Finance Trading – Strategically Ranked USA Securities):

Theme: Gold and Economy

(1) Observation of the Relative Price Performance: Market Vectors Gold Miners ETF (GDX), a top price performer, currently has a 3 month versus 6 month relative return in which the 3 month is dramatically less than the 6 month return. This indicates the rate of change in the 3 month return relative to the 6 month return is decreasing. Since the relative price performance measures the strength of money flows to a security, it has predictive potential. Thus, the implication indicates that GDX is strongly underperforming relative to 6 month historical performance. Therefore, at least in the near term, the implication is that GDX has the potential of continuing underperformance. The price performance of gold, and its derivatives, will depend on future economic developments.

(2) Observation of the Price Performance: Market Vectors Gold Miners ETF (GDX) shows a shift from outperformance during the last quarter of 2008 to a more neutral path during the first quarter of 2009. While having a more neutral price path, GDX still has shown dramatic volatility that can be seen in the year high of $51 with a year low of $15.

(3) Observation of Market Type: Security demand conditions (measured by money flows) indicate potential continuation of the current horizontal market because flows are quite weak. This will dramatically change, however, if the economy shows any further weakness.

(4) Possible Implication: The overall implication of the stated observations for Market Vectors Gold Miners ETF (GDX) is Neutral. While dramatically outperforming other asset classes over the last 6 months, its current performance indicates that most market participants are betting on the current U.S. economic contraction bottoming.

Hedge: Alerts, Exit Stops, or Options

In any strategy, possibly hedge your risk on positions taken by using alerts, exit strategies that contain protective stops, or options. Additionally, you might consider protecting your capital by possibly placing a small starter position (say 25% of the desired allocation) at first. If you choose to use actual exit stops, just realize that tighter stops will mean possibly getting “stopped out” frequently during volatile market swings.

Additional considerations:

First, for most investors, a diversified investment portfolio approach combining stocks, bonds, money market securities, etc., is optimal. While financial diversification cannot protect against a loss from a declining market, it can reduce the volatility of the overall portfolio.

Second, with the globalization of information technologies, college education becomes a prerequisite to most careers. Thus, a goal of successful investing in a variety of assets becomes crucial in providing the upper level education necessary for the future of your children. In consideration of that goal, studying the information available on this site, which has been kind enough to host our research in this article, will help. At www.StrategicCapitalResearch.com, we provide additional finance educational materials to what you find here in both investment books and videos. Between the two sites, you should be able to find enough information to get started toward achieving your education investment goals.

Third, to the above analysis excerpt, the usual disclaimers apply: (1) Company policy prohibits employee purchase of research securities until after an email has been sent to our revision notification subscribers; by the time this article is published, however, some SCR employees may own shares of the reported securities, and (2) Since all Strategic Capital Research publications provide research that is conducted using historical data, a reminder needs to be made that the analysis of past market reactions cannot predict future market actions. In particular, no amount of historical data can predict the sudden changes that occasionally occur in financial markets. In both types of risk scenarios, initial capital loss, and profit loss, we prefer prevention techniques that include exit strategies with stops that adjust for a security’s volatility. An “Ultimate Collection” that include these more advanced exit techniques is can be found on the “Strategies: By Type” page in the “SCR: Strategies” section of the SCR site. We recommend that you study and use the more advanced techniques.

Nothing Strange About the 2008 Market! November 14, 2008

admin — Sat, 23 Jan 2010 20:02:44 +0000

___________________

There have been a lot of comments in the media and among investors all year about how strange the stock market has been acting this year.

I don’t agree. Except for the wild day-to-day volatility (after the SEC allowed the abolishment of the up-tick rule on short-selling last year) the market has been acting quite normally.

It handled the turmoil created by the collapse of the housing bubble and the onslaught of the sub-prime mortgage mess last year quite well, reaching a new bull market high in October of last year.

Always looking ahead six to nine months, it then topped out normally in anticipation that those problems would finally have the overall economy slowing this year. As recently as the end of August, the S&P 500 was down only 18.1% from its peak of last October. That was normal, since in August Wall Street, the financial media, and even the Federal Reserve, were still assuring consumers and investors that, although the economy was slowing, it would not slow all the way into recession.

Then came recognition that we were headed into a recession. Having to factor that scenario into stock prices, the S&P 500 lost another 9% in September.

As the economic outlook then worsened further, the expectation becoming that the recession will be one of the more serious versions, perhaps as severe as that of 1973-74, the market lost another 17% in October. And the first half of November has not been any better, the S&P 500 declining another 11% in the first two weeks of this month.

I suspect not too many investors realize they have now experienced one of the worst bear markets of the last 70 years, already as bad as any the last generation suffered through.

At the close on November 12, the S&P 500 was down 46% from its peak of last October. In the bear market of 1973-74 the S&P 500 declined ‘only’ 45.1%.

You have to go back to the bear market of 1937-38, 70 years ago, to find a more severe bear market. (The S&P lost 49.1% of its value in that 1937-38 bear). Yes, the current bear market has already been the worst in 70 years, moving the dreaded bear market of 1973-74 back to second place over that period.

So is it possible the stock market has already factored in a recession like that of 1973-74? If so, can it soon look out six to nine months, and anticipate improving economic conditions? Was the October low the low from which smart money buys in anticipation of that?

Speaking of smart money, Warren Buffett’s article in the New York Times a month or so ago, saying it’s time to buy again, has been pretty much forgotten with the market’s further decline.

But here’s another interesting comparison to the market bottom in 1974. In my current book, Beat the Market the Easy Way, I wrote of how Buffett had pulled off one of the most exquisite market-timing moves of all time.

Buffett was not well known in the 1960s when he was running a very successful private investment firm, similar to the hedge funds of today. But after making huge gains in the mid-sixties bull market, he surprised everyone. He cashed out entirely in early 1969 and completely turned his back on the stock market. He liquidated his investment partnership and dispersed the assets back to his investors, telling them they would be better off in government bonds for the next several years.

Then five years later, in 1974, after the severe 1973-74 bear market, in a famous interview in Forbe’s magazine, he said, “This is the time to start investing again.” And he did, using Berkshire Hathaway, which he had taken control of and was running while on hiatus from the stock market, as the holding company for his new investing venture. And the rest is history.

And after another 46% bear market, Buffett is once again saying it’s time to buy? So far he has been early, and has paper losses on his latest known purchases, Goldman Sachs, and General Electric. But he apparently thinks a 46% bear market is sufficient to factor in the possibility of a recession as severe as that of 1973-74.

Food for thought anyway.

Sy Harding publishes the financial website http://www.streetsmartreport.com/ and a free daily Internet blog at http://www.syhardingblog.com/. In 1999 he authored Riding The Bear – How To Prosper In the Coming Bear Market. His latest book is Beat the Market the Easy Way! – Proven Seasonal Strategies Double Market’s Performance!

How To Select An Investment Strategy

admin — Thu, 21 Jan 2010 07:18:51 +0000

There are several critical factors that need to be considered in selecting the right trading system for you. Investors are always looking for a trading edge to exploit. Finding such an edge is akin to the quest for the Holy Grail and many would be traders spend their time bouncing from one system to another, constantly looking for the perfect system. If this sounds like you, let me suggest that you change your ways, quit searching, and start making money.
First, realize that every system will have loosing trades and there will be a series of such trades. The draw down is always a challenging time. You have to be prepared mentally and financially to ride out the draw downs. The way to prepare is to check the historical performance. The historical performance period should be appropriate for the number of trades and the rules in the system. What this means is that a system with many rules will need more trades to prove its validity. I like at least 50 trades per rule and be very conservative on the number of rules. For example, if the system is:
“Go long when the current price is greater than the 20 period moving average. Close when the price drops below the 20 period average.”
There are two rules in the above. One for the entry and one for the exit, which means I’d want to see a historical performance of at least 100 trades.
Another consideration is the average holding period and frequency for trading. Both these need to match your preferences or you will be soon looking for some other trading system. Some investors want a “set and forget” type of trading plan where they enter their trades and just make updates on a weekly, monthly or annual basis. For others this approach would be far too boring.
The major consideration is return on investment. There is no one answer as to what a reasonable number might be. It depends on several factors. First is the leverage used in the investment vehicle. For example, the least use of leverage would be to pay cash for shares of stock and own them outright. More leverage would be to purchase the stocks on margin or buy options on the stocks.
Even greater leverage would be commodities or currency trading. As the leverage goes up, returns should be greater to offset the increased risk.
Another consideration for acceptable returns is the frequency of trading. One would expect day trading to produce higher returns than a long term buy and hold approach, for example.
Let’s say that you’ve found the right combination of risk and reward. A strategy with trading frequency that suits your personality. What next? Paper trade! Always start by paper trading the strategy. The length of time to paper trade isn’t as important as the number of trades. Refer back to the previous section on number of trades to validate. The more the better, but at some point you just need to leap in. Ideally I’d like to see 25% or more of the total trades as calculated above.

Effective Investment Strategies

admin — Tue, 19 Jan 2010 07:23:20 +0000

Building your own retirement portfolio can be quite a daunting task. There are many different strategies you can adopt to help your investment dollars grow. The difficulty lies in choosing the strategies that will suit you the most.Many people believe in investing heavily in property. While residential property investments have been very popular for decades, many investors have not enjoyed strong gains simply due to poor decisions when they bought the properties. Buying property in slow growth areas, gearing too high and poor property management can leave many investors with a very sour experience, notto mention the opportunity loss.Over the past decade, share trading and investing have become far more popular. Many of the hassles of property investing do not exist with share investments. However, it still comes back to making the right decisions when purchasing, and then managing the investment well. The beauty of shares is that you can quickly, inexpensively and easily exit the investment if it is not performing. Conversely, you can quickly enter an investment if you feel it has strong potential.As more and more investors become interested in the stock market, many are discovering that there is far more to share investing than just buying shares and leaving them in the bottom drawer. Investors are discovering strategies such as “Writing Covered Calls” and “Spreads, Straddles and Strangles”. In fact, there are many different strategies which allow share and options traders to reduce their risk and/or increase their reward.One of the most exciting strategies is Writing Covered Calls. To many, these words have little meaning, but to those who know, these words mean everything. Writing covered calls has been hailed as one of the most powerful, yet simplest, forms of wealth creation.If you already own shares and would be prepared to sell them at a higher price then they are today, then writing covered calls may be for you. In return for the obligation to sell them at a higher price, you will be paid between 2%-6% of the value of the shares.Now, there are some restrictions and limitations. Not all shares have Exchange Traded Options (ETO) available, and hence, not all shares will allow you to write covered calls. In fact, only 64 company shares have ETO’s. The Australian market can be fairly illiquid for all but the largest companies, but once you understand the strategy, you can use it on the American markets, as that market offers the same opportunities. The only difference is that there are thousands of ETO’s available.Platinum Pursuits hosts investment seminars most weeks, as well as 3 day training workshops, where a variety of investment strategies are taught. Various Australian experts are invited to teach topics such as Option trading, writing Covered Calls, Self-Managed Super, Tax planning and effective international share investment. Be sure to secure your place at one of our upcoming seminars!© Platinum Pursuits 2006. All rights reserved. DisclaimerThe decision to invest or trade and the method selected is a personal decisions and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of our services for your circumstances. Platinum Pursuits Pty Ltd is an Authorised Representative (Rep. No. 286343) of Option Partners Pty Ltd, AFSL 298347.Information contained in all Platinum Pursuits products and websites is intended to be general advice only and should not be relied upon as financial product advice. You are warned that:1. The advice has been prepared without taking into account your objectives, financial situation or particular needs; and2. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs; and3. If the advice relates to the acquisition, or possible acquisition, of a particular financial product – you should obtain a Product Disclosure Statement relating to the product and consider the Statement before making any decision about whether to acquire the product.Equities and derivatives trading involves risk, Investors need a broker to trade equities and derivatives, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Investors are required and advised to request for and read the product disclaimer statements as provided by the particular profile they trade with.None of the information and data contained in this presentation or the Platinum Pursuits websites (www.platinumpursuits.com or www.ppmember.com) nor any opinion expressed constitutes a recommendation to purchase or sell a security, or to provide investment or financial product advice.The information contained on all Platinum Pursuits products is provided for general informational purposes, as a convenience to the customers of Platinum Pursuits Pty Ltd. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Platinum Pursuits Pty Ltd is not engaged in rendering any legal or professional services by presenting this general information or by placing these or any general informational materials on their websites.Platinum Pursuits Pty Ltd and its associates do not receive any remuneration (including commission) or other benefit from third parties by virtue of the advice provided.Platinum Pursuits Pty Ltd is an Authorised Representative (286343) of The International Securities and Derivatives Group Pty Ltd ABN 22 103 552 683, AFSL 227544.

Four Powerful Investing Strategies to Multiply Your Money

admin — Fri, 15 Jan 2010 19:23:29 +0000

I believe the questions you are probably have about investing are, “How do I get started? How do I actually achieve a 12.08% annual return by buying all the stocks in the Index” How can I achieve a 20-25% return a year by beating the market? “How do I select the right stocks”? How long will it take for me to achieve the returns I want?”
Well, strap on your seatbelt and get ready because I am going to share with you a whole range of strategies I use to multiply my money at millionaire returns. Through my own course of learning to invest over the years, I have found that there are many very different philosophies and strategies that experts use to select stocks to achieve above average returns.
Growth Strategy 1: Buying Markets & Sectors
The first growth involves achieving the same returns as the whole US stock market or Singapore Stock market by buying the market indexes such as the S&P 500 index, Dow Jones Index, NASDAQ composite Index and the Straits Times Index.
This is the most basic strategy that all novice investors should start off with. Executing this strategy successfully involves the lowest level of financial competence but it can make you consistent annual compounded returns of 10%-12.08%.
The holding period for such investments would be usually over one year or longer. Buy sectors or industries that may be performing very well within the whole stock market
Growth Strategy 2: Value Investing
Select specific stocks of individual companies that would outperform the general market and even the hottest sectors. Value investing is the strategy employed by Warren Buffett, the worlds greatest investor and second richest man.
In value investing, you will learn to buy high performing companies at a fraction of what they are worth. In other words, you will learn how to buy great companies when they are undervalued and to sell them for a huge profit once the market realizes its true value. This strategy has consistently made me profits of 15%-25% annually!
Growth Strategy 3: Momentum Investing
This next strategy will allow you to achieve much higher returns (of more than 25%) within a much shorter period of time (3-6 months). Momentum investing involves finding the hottest stocks that are ready to make great gains. Momentum stocks tend to already be priced above their fair value.
However, because of the entire market’s optimism about the stock’s potential, these stocks tend to increase significantly in price within a very short period of time before they are overbought and come tumbling down (this is when you sell and make huge profits).
Growth Strategy 4: Options Trading
Make 100%-500% returns on your money from as short as one day to a maximum holding period of 3 months. This final strategy requires you to have the highest level of financial competence and skill. This strategy is known as trading (as opposed to investing) and it involves the use of buying (or selling) stock options. Trading is different from investing in a few ways.
Investing usually involves making money by buying a stock and predicting that it will increase in value over a few months to a few years. However, in trading you are able to make profits whether the stock price moves up or down and you usually enter and exit a trade within a very short period of time.
The funny thing is that some of these strategies contradict each other. Where one expert says that you should thoroughly understand and love the business behind a stock that you buy, other experts say that you should treat stocks as commodities and trade them without any need for understanding the business.
Some experts have made their fortune purely by studying a company’s fundamentals (i.e. financial strength, profitability & business potential) while totally ignoring its historical price trends (i.e. technical analysis).
At the same time, I know gurus who have made millions purely through the analysis of a stock’s price movements and reading the psychology of the market, while ignoring the company’s fundamentals.
Some experts believe in buying and holding their investments over the long-term while others believe that you should be in and out of an investment within a few weeks! Some investment experts like Warren Buffett believe in buying undervalued stocks only when they are shunned by the market and then selling them for huge profits once they reach their fair value.
After studying and testing the many schools of thought (with my own money), I have discovered that all these different strategies WORK, when thoroughly understood and applied properly. Today, I use a whole range of different investment strategies myself, depending on the return I seek to achieve.

The 5 Most Effective Marketing Strategies for Real Estate Investors

admin — Wed, 13 Jan 2010 19:20:25 +0000

Having been involved in real estate investing for little while now, I’ve become very familiar with various marketing strategies. And along the way, I also found out which methods generated leads, and which ones didn’t.
One thing to note is that everyone will experience different results with their respective marketing campaign. Two different people in the same market could be doing the same exact thing and get very different results.
And two different individuals, in two different markets can get similar results. That’s just the nature of the beast.
But there is a secret to this; there is no secret! You have to test each strategy in your particular market to find out which one works for you. And when I say test, I mean test.
For example, don’t send out 5,000 letters to a mailing list that you’ve never tried. That defies all common sense. In that example, I would send out 200 letters and see what the results are before diving in headfirst.
I recommend that you apply this methodology across all the strategies below until you find the one that works the best for you.
So, in my opinion, the following are the top 5 real estate marketing strategies (in order of effectiveness and quality of leads):
1. Apparel/Human Advertising
2. Direct Mail
3. Cold Calling
4. Bandit Signs
5. Newspaper/Yellow Page Ads
Apparel/Human Advertising
This is my favorite way to generate leads. Why? Simple. Because leads come to me, instead of me chasing them. Let me first explain what “apparel/human advertising” is. I define it as “wearing your business,” meaning that you display and promote your services on your apparel and clothing.
I simply put on a shirt that markets my services whenever I go out — to the mall, grocery store, post office, doctor’s office, etc. — and people come up to me to talk about real estate and their specific situation. It will surprise you how many people will approach you.
And the quality of leads is also high. You know why? Because people instantly and clearly know that you are a real estate investor and will only approach you if they are serious.
For example, I wore my “Private Lender” t-shirt the last time I visited my doctor. Once he read my shirt, he couldn’t stop talking about real estate and how he has been looking for places to invest his money. Bingo, now he has the answer, and I secured another private lender to my stable.
And guess what? He has other friends who are doctors, dentists, and lawyers who have money to invest. Now you can see why I like this strategy so much.
-Most inexpensive method
-Instant, direct way of telling people what you do; face to face contact
-Only works if you wear the apparel
-Only works where you are
Direct Mail
There are several ways to employ a direct mail campaign. I’ve attended several seminars run by real estate “gurus,” and each guru will swear by their own program. So, being the pragmatist that I am, I tried a majority of them.
I’ve ran marketing campaigns using postcards, handwritten letters, professional letters, and even USPS priority mail. Out of all the campaigns, handwritten letters generated the most leads.
On a good campaign, I received 25% response, which is astronomical. Don’t expect this high of a response rate every time. My average response rate hovers around 10%.
-Direct mail isn’t cheap. It is the most expensive strategy.
-You must choose your mailing list wisely and get it from a credible source
-Depending on the list, you will receive letters that could not be delivered
-Most homeowners will respond only after multiple mailings (experts say 7 contacts is the magic number).
Cold Calling
How many people can truly say that cold calling strangers is something that excites them? Probably not many, because most people inherently avoid unfamiliar territory. It’s time to get past that fear and get out of that mindset, because cold calling is by far one of the most effective strategies out there, especially if you are going after the preforeclosure market.
First, you need to get a list of individuals to call. If you are marketing to preforeclosures, there are several services that will provide phone numbers of homeowners facing foreclosure. Second, you need to practice your call script. Know what you want to say and how to respond to objections. And practice this over and over until it is second nature–and then practice once more. You get the point.
Being able to respond intelligently to the homeowner’s concerns will build credibility and rapport. Those are the two most important things to construct during a cold call. Remember, you are a stranger who they know nothing about.
Thirdly, be able to prescreen each caller efficiently and effectively. Gain a true understanding of their situation, and obtain enough information to analyze the property to see if it fits your criteria. And finally, if the property meets your criteria, be able to close, whether it means getting an appointment to view the property or actually agree to sales terms.
-Very effective — when you get in contact with homeowner
-Targeted to only those you want to market to
-Easy way to build rapport with homeowner due to personal contact
-Calling strangers asking to buy their house is not on the top of most people’s list
-Can be time consuming and can only market to people you actually talk to
Bandit Signs
If you’re not familiar, bandit signs are those PVC signs you might see plastered around town, reading “I Buy Houses, Any Condition, Any Price.” They are usually attached to wooden posts near busy intersections.
Before you go putting these signs up, check with your city’s rules and regulations because bandit signs are illegal in many cities. You can be fined heavily if caught.
The effectiveness of bandit signs is up for debate. A few years ago, I would have said that bandit signs worked great. But now they are everywhere and commonplace, people might be numb to them. Nevertheless, if you are the only sign posted, people will notice.
And if you pepper your farm area heavily, you will generate leads from bandit signs. Bandit signs are relatively inexpensive, roughly $2/sign, and you can hire people to post them. But you might have to have to put the signs up every 2-4 weeks, depending on how fast the “sign police” in your market do their clean sweep of the area.
-Inexpensive strategy
-Can reach a broad audience if you want
-Not targeted; “shotgun” approach
-May be illegal in your city
-Frowned-upon by some individuals as “eyesores”
Newspaper/Phone Book Ads
Like all service providers, placing an advertisement in the newspaper or phone book is always an option. But let me stop you here. This type of marketing has been by far the least effective method for me. It is expensive, sometimes prohibitively costly depending on your market, and is not targeted.
Sure, it can reach a broad audience, but is not worth the cost of the ad for me. And like all other ads, you will be clumped together with all other companies that provide similar services. So it’s hard for you to stand out, relative to the other marketing strategies already covered.
Like I said, I’ve had very bad results from placing these type of ads. So bad, that for one of my phone book ads, I only received 2 calls over the course of a year. And one of them asked me if I buy mobile homes! That might be an opportunity for some investors, but that doesn’t float my boat.
-Can reach a broad audience
-Very costly
-Not targeted
-Doesn’t generate quality leads (for real estate investor purposes)
Now that I’ve covered the top 5 marketing strategies, I hope that you have a better understanding of what you want to employ in your business. But remember to test more than one strategy in your market to see what gets you the best results. This is the only way that you will find what works in your market. Go out there and make it happen!

The Greater Possibilities with Mini Forex Trading

admin — Wed, 06 Jan 2010 19:22:57 +0000

With the same freedom enjoyed by regular forex traders, a mini forex trader can trade as many lots as he likes. He need not be hesitant with his transactions as there is lesser capital involved. Ideal for those with smaller capital, the trader has a chance of investing in more areas of the market with lesser risk as there is lesser capital to be lost.

The key here is leverage. But if you’re just starting out, it’s wise to be cautious and think about your moves. For practice, a newbie in forex trading can practice through paper trading. But in the real market, he can start small with mini forex trading. This kind of leverage is greater than stocks or day trading. With a leverage of 200:1, the trader can trade in a commodity regardless of the amount of money available to him.

There is lesser capital involved and the practice builds up the trader’s trading gameplan for future explorations in regular, higher stakes forex trading. In the world of foreign trading, mini forex accounts provide the wisest and best option especially for a neophyte. It requires a smaller capital compared to regular forex accounts, a minimum of $3 With mini forex trading, you can control a $10,000 currency position.

In this way, the trader also builds up his confidence in his trading skills at the same time slowly increase his profit and trading position in the market. Of course, it is recommended to start with a manageable leverage that allows greater flexibility in transactions. Because of it’s high liquidity and speedy transactions, forex trading is becoming a popular game among players in the field of business and marketing.

It requires lesser capital, lesser emotional investment, and slowly builds up your skills and confidence as a trader. The trader likewise gets to develop a sound trading strategy without getting too emotionally involved in possible losses and profit. Forex trading is one of the most viable options for someone who’s looking at bigger possibilities, bigger profit and greater ease in trading and business.

With just a small stake involved, you get to enjoy free trading platform and benefits that regular forex traders get to enjoy. Because of leverage, a trader can trade in a commodity more than the money available in his account. Mini forex trading also allows for lesser losses as the contract size is only 1/10th the size of a standard forex account. He gets to manage his money before going for the higher stakes in regular forex trading.

What are the perks of mini forex trading? They say that business is for the risk-taker. Although the standard trade size is 10,000 units, you are free to trade as much as 50,000 units or more. If you trade in units of 10,000, the trader is given more flexibility in terms of customizing his trades and lessening the risks of loss.

While it’s traditionally for companies and corporations with big capital and experience in the field, it has also proven itself to be a good venture for a neophyte though what one calls a Mini Forex account or mini forex trading. On a regular account, a 25-pip stop loss is equal to a loss of $2 Since a mini forex account is just 1/10th of the standard forex account, this is amounting to $25 only.

In a way, it’s a way to prepare the trader for the higher stakes in the more advanced world of foreign trading. Say with a $250 deposit, one could trade a maximum of 5 mini lots. Mini Forex trading is good for people who have just started in the forex market and with not enough funds to open a regular account.

Getting Rich in Todayâs Market With Bank-Owned Foreclosures and âRent-Smartâ Lease Options

admin — Mon, 04 Jan 2010 20:11:14 +0000

Getting Rich in Todayâs Market

With Bank-Owned Foreclosures and âRent-Smartâ Lease Options

by Andy Heller

There are literally hundreds of wealthbuilding strategies available for real estate investors. Some are more lucrative than others, and many are simply way too much work for the money that an investor hopes to make. Fortune Magazine recommended Andy Hellerâs âBuy Low, Rent Smart, Sell Highâ strategy among the top five recommended strategies for real estate investors.Â Like so many of us, Andy started investing part time, pulling aside a few hours each week for his hobby. Scott Frank and Andy Heller have approximately 40 years of combined real estate investing experience.Â During this time, they have bought, rented and sold approximately 100 properties. They have done this while holding full-time jobs and putting their families first.

Getting Started

The lack of success of Andy and his partner Scottâs âbuy and flipâ plans led them literally by accident to a goldmine called buy low, rent smart, sell high.Â When Andy and Scott found buying properties from distressed sellers to be

tedious, hard work, and depressing, they discovered by accident a hidden gem in the foreclosure processâ¦BANK OWNED REAL ESTATE. With bank-owned real estate an investor is able to purchase MULTIPLE PROPERTIES from single sources, without emotions, and with clean and clear title.Â Once purchased, when Andy and Scott were

unable to flip their first home after 9 months on the market, they modified the typical lease/purchase deal to come up with their unique rent smart and sell high formula. Their SHORTEST lease is 3 years, and each of their tenants accepts responsibility for repairs and maintenance. High turnover, nightmare tenants, and lengthy vacancies are non-issues when you ârent smart.âÂ The Buy Low, Rent Smart, Sell High program offers at its core a win/win formula for

everyone the investor comes in contact with: sellers, tenants, and others. The seminar will cover the three pillars of real estate investing:

Buy Low

1.Learn how to consistently purchase real estate below market.

2.Learn how to identify the right type of property for your preferred investment model.

3.Learn about the best ways to buy discount properties today. Take a deep dive into the Buy Low, Rent Smart, Sell High preferred method of buying low: bank-owned foreclosures (aka post-foreclosures and REO Properties).

4.Learn what most investors do when calling banks without successâ¦and learn the Regular Riches way to successfully approach banks.

5.Learn about financing your purchases.

6.Learn our formula for establishing the Maximum Purchase Price for all types of properties, regardless of type, condition, or your investment strategy.

7.Learn how to negotiate to a successful purchase.

Rent Smart

1.Learn about Lease/Purchasing.

2.Learn how to establish the right lease/purchase terms.

3.Learn how to minimize Repairs and maintenance headachesâ¦let other landlords deal with themâ¦not you!

4.Learn how to reach out and advertise to find the best tenants.

5.Learn the ten point checklist for selecting the best tenants.

6.How buy and flip investors and buy and hold investors can benefit from lease/purchasing in todayâs real estate market.

Sell High

1.Learn how to sell properties without paying real estate commissions.

2.Learn how to sell properties for fair market value without discounting.

3.Learn how to quickly get your property under contract

Andyâs seminar will be interactive and the attendees will be engaged to work examples after Andy first presents how to do it.Â Andyâs seminar will be on September 12.Â Seminar attendees should bring calculators to the seminar.

SPECIAL DISCOUNT CODE!!

Use this code when checking out and receive a special discount:Â CFRI7772

Seminar will be held from 9:00 am to 5:00 pm on September 12th at the CFRI Education Center at 55 Skyline Drive, Suite 2850, Lake Mary.

Registration deadline is September 11.Â Please register online at www.cfri.net

The Central Florida Realty Investors Association (CFRI) is a not-for-profit organization dedicated to promoting ethical real estate investing.Â We provide over 20 networking and educational opportunities each month to investors in Central Florida to help members gain practical knowledge of real estate investing.Â

CCFRI is the oldest and largest Real Estate Investing Association (REIA) in Florida and the proud recipient of the 2004 community service award, and the prestigious 2007 & 2009 Honoring Excellence Award â the highest honor bestowed on any REIA in the nation by the National Real Estate Investors Association. In 2008, CFRI was awarded the National REIA Award forÂ Membership and Communications.Â

Learn from the best at http://www.cfri.net

New Powershare ETFs Give Exchange Traded Fund Investors New Ways to Profit in Down Markets

admin — Mon, 04 Jan 2010 07:52:56 +0000

The current markets are getting harder and harder to trade. It seems everything is going down. Domestic equities, Emerging markets, Asian markets, and even after a weeks rally, metals and energy markets have turned down again. So other then cash is there any place to put your money?

ProShares Advisors has come up with four new funds that address the problem. These funds are know as the UltraShort ProShares. These are the first Exchange Traded funds to provide magnified short exposure to major market indexes. These funds are designed to provide twice the daily inverse return of the NASDAQ 100 (QID), S&P 500 (SDS), S&P Midcap 400 (MZZ), and Dow Jones Industrial Average (DXD).

ProShares has timed the introduction of these funds well. Investor confidence is weak. Areas such as Emerging Markets, Japan, and commodities that have attracted a lot of investor confidence over the past year are now spotty.

Individually these new Exchange Traded Funds can be very volatile. Investors need to be very aware of what they are investing in when they invest in these funds. However, used as part of a larger strategy, these new funds can add a level of sophistication ETF investors have been looking forward to for a number of years. ETF investors have always had the option of shorting funds but this involves setting up a margin account and a level of risk that many investors are unwilling to take.

Investing in these new ultra short funds allows investors to make investments in markets going south without setting up a margin account and taking on high risk. Investors in these funds can even play it safer by using these funds as a hedge to their long positions in index or sector funds. In this way Exchange traded Fund Investors have even less at rish because if they are wrong about a market downturn, they also hold positions that will gain in market conditions are more favorable. Adding this to the mix is giving ETF investors many strategies they can use in many types of markets. Someone who understands the funds and understands the markets will find it possible to put together highly sophisticated strategies.

These funds will trade on the American Stock Exchange. Investors need to take into consideration that these funds move inversely at twice the rate of the indexes they track. If over the period of one month the NASDAQ is down 5%, the QID will gain 10%. This makes for very volatile investing so take care.

Stock Trading System – 4 Important Features Of Stock Trading System!

admin — Mon, 28 Dec 2009 19:55:38 +0000

Investors as well as traders, are greatly interested in the stock market. It has revealed itself as the best platform to help one’s capital grow, provided the person is in tune with current market trends and knows where to put his/her money. The popularity of this method has prompted people from the trading community to go in for an efficient stock trading system.
Another reason for the demand to have a good stock trading system in place is the rise in global stock markets. As a matter of fact, traders/brokers as well as investors/shareholders are finding that the task of trading in equities or shares or stocks is proving to be extremely complicated, considering that newer companies and institutions are being launched all the time. And the Internet has not helped by bringing the world closer to home!
What are the features of a stock trading system?
(1) What is meant by a stock trading system? It is a tool to enhance the success of investments, especially if it works effectively and efficiently. It includes strategies related to investments, market guides and trading schemes.
There are experienced analysts and professionals to guide the trader or investor as needed. This is achieved by providing a constant flow of information and analysis regarding market trends and movements in the stock market arena. Without this in place, it would be difficult for smooth functioning of the stock market.
Lastly, there is a timing system included in the package. Thus, every investor is aware of the time limits for investing in a particular stock.
(2) A stock trading system is not something that can be just bought at any marketplace! There are special individual distributors or operators available–they can be found locally too. These dealers offer a customer much more than just a system. They are truly worth it because they can lessen your headaches! All the more better to go to them if you have linked up with other business partners.
(3) Another option is to check out those special companies offering to sell systems that are dependable and have already been well promoted.
(4) Traditional or conventional methods of transactions are giving way to more modern methods. So there is the automatic/electronic stock trading system which is faster and more interactive in nature.
Since trading in stocks has become a global activity, it is difficult for investors to be present physically at all locations. He/she need not attend auction venues or trading places for the express purpose of buying or selling shares or trading stocks. Hence, the launch of electronic transactions.
This sort of a stock trading system is quick and convenient since it is supported by wireless Internet and wireless telephone. More advanced technology is sure to evolve in future.