Sunday, September 30, 2007

Estate- How To Lower The Price of Gas

Gas prices seem near all-time highs and the summer driving season hasnt even started yet! A recent email presented a simple solution that will force gas prices back to the $1.25 a gallon range. Read on for details and to learn basic principals that may make investing more profitable.

Have you ever received one of those chain emailsthe kind where you are supposed to forward it to 10 of your friends? My wife received one this morning. The email contained the simple solution to the gas crisis. Supposedly, the solution was created by a high-level executive at a major U.S. corporation and an engineer that worked for an oil services firm. These guys should know their stuff, right? Wrong.

The solution proposed was that we should all decide to stop buying gas from ExxonMobil. If we stopped buying gas from them then they would be forced to lower gasoline prices to tempt us to buy from them again. The email said that we consumers need to teach the Big Boys that we are in charge, not them.

The Laws of Supply and Demand, the basis for capitalism, are taught in Economics 101. The law says that the market price of a good or service will be determined based on how much of it is available and how much buyers are willing to spend for it. This principle is one of the underlying reasons that bond, real estate and stock prices move up and down.

Lets look at salt as an example. In centuries past, salt was hard to come by and many people needed it. At one time it was so valuable, it was worth its weight in gold.

Thats not the case nowadays. Salt is very inexpensive. The container its sold in probably cost more than the salt inside it. Why? Because the supply of salt is high and the demand for it is low. Salt is easily mined in vast quantities. Also, refrigeration and the use of other preservatives drastically cut demand.

This supply and demand law is the reason the simple solution to reducing the price of gasoline cant work. First, gasoline is a commodity product with a limited supply. If you only switch the outlet from which you purchase gasoline, you arent reducing the demand. The same amount of gasoline will be sold, keeping demand, and therefore the market price, level. It may hurt ExxonMobil but will help someone else.

Reducing the price of gasoline by decreasing demand will require that people use less gasoline. That means we need to carpool, ride bicycles, walk or drive more fuel-efficient vehicles. In the last year or so weve seen that demand remains strong even when prices rise by a dollar or more. So demand probably wont change until prices are much higher than they are today.

Second, the simple demand solution doesnt take into account the fact that there is a global market for oil. Gasoline is produced by refining oil. ExxonMobil doesnt set the price of oil, the market does. Even if demand is reduced in America, the demand elsewhere continues to increase. The demand in China and India is growing so rapidly that prices will go up even if we cut back here in America.

Third, the supply of oil must be factored into the equation. There hasnt been a discovery of a major oil-field in decades. The amount of oil pumped from an oil-field doesnt stay the same. It will naturally decrease over time. There have been improvements made in getting the oil out of the ground, but overall, the number of barrels a day pumped is declining. For instance, did you know that the production of OPEC is lower today than it was in 2005?

So this simple solution obviously wont work. I believe that there is little we can do in the United States to significantly lower the price of oil. There simply isnt enough oil to meet the needs of the world economy. Understanding that affects how I manage my clients portfolios.

As an investor, understanding the Laws of Supply and Demand will help you select where you should invest. Avoiding industries where supply is increasing faster than demand will reduce your losses. Investing in industries where demand is growing faster than supply can increase your profits.

Nationally-syndicated financial columnist and Certified Financial Planner Jeffrey Voudrie provides personal, in-depth money management services and advice to select private clients throughout the USA. Hell answer your financial question FREE at

10 Proven Tips for Stock Market Trading

The internet is jam packed with so-called independent experts who claim that they made a fortune trading stocks. They are only too willing to share those tips with you for a price. Maybe you recognize the name of the expert, maybe you dont. Which expert is right? Here are 10 tips common to the best stock market trading strategies.

1.Set financial limits. Dumping all your cash into a stock hoping for fast return is not investing. You might as well put that money on a horse in the fifth race and admit to gambling. Stock market investors decide how much money to put at risk before buying.

2.Buy low sell high. Thats the tried and true formula for making money in the stock market. The problem is determining those points. No magic here, just plenty of analysis and research to achieve that simple yet elusive goal.

3.Price rules, value drools. The best research may show that a stock is undervalued or overvalued but the proof is in the price. For totally absurd reasons a stock price may rise or fall regardless of what you and the experts believe is the value. As with anything, the actual price is what people are willing to pay.

4.What goes up, comes down. Even a Cinderella stock on a wild ride to the top is headed back to the bottom when the clock strikes midnight. Online stock traders must get off with some profits before riding their pride to a crushing loss.

5.Change happens. Stocks are subject to directional swings that make no sense. The trends may show it or the change may be due to external events. Either way, smart online stock traders live with it and move on. Asking why is not as important as deciding what now.

6.Yield for Curves Ahead. Once a market move is evident, watch for the direction and duration of the trend. Generally a trend move during a bull market is more likely to be positive. A trend move during a stalled or bear market is more likely to be negative.

7.Says who? The internet is jam packed with stock market trading advice from software vendors, online trading firms, stock market newsletters, analysts and people who want to make money from you. How reliable is their advice? Keep a healthy skepticism about whose advice you use in making trading decisions.

8.Expertise is no substitute for Instinct. If technical tools alone made for success than the market would be packed with millionaires. Instinct leads the pack when analysis shows up a day late and a few dollars short.

9.The Efficient Market does not exist. The Efficient Market Hypothesis is a myth. The idea that the stock market will benevolently work itself out from peaks and valleys to a level playing field only works in textbook models of capitalism.

10.Be True to Your School. Consistently apply your trading strategy. Flipping strategies only leads to confusion. If the latest hot tip does not fit your trading strategy, its not for you.

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All About The Stock Market

Does stock trading interest you? If it does, here are a few items to consider before jumping into the stock trading arena. First and foremost, what exactly is a stock? A stock is a representation of a share in the ownership of an incorporated company, you essentially own a piece of the company. When you purchase a stock, you are given the opportunity to watch the company and stock grow or decline. This is why research is needed before you begin purchasing stocks. You should always research the company , look at the trends of the company and the industry that the company is in. If you completed your research thoroughly, you can stand to earn a profit, given the industry that you picked is growing. Always be aware, the industry could turn at any moment and you could end up losing money.

Essentially the goal of stock trading is to earn a profit, this is done by purchasing stocks when they are low and trading them when the stock grows. Here are four different ways to go about trading stocks;

Scalping - Scalping involves buying large quantities of shares in a stock, and you are just looking for a small move in the stock price.

Day trading - Day trading is similar to scalping but you are looking for bigger moves in the price, and you do not hold the stock overnight.

Swing Trading - Swing trading is when you buy a stock and hold it for a short period of time looking for a substantial move in the price.

Buy and Hold - Buy and hold is when you plan on holding on to the stock for a long time. You believe the company is going to grow in value and the price is going to go much higher.

When you enter into the stock trading arena, you need to decide which kind of stock trader you would like to be. They all have their good and bad attributes, it just depends if you are looking for short term gains or long term gains in the stock market. We specialize in training you to become successful with Forex & Stock Trading! To gain an education in Forex and Stock trading, please take the time to visit us!

Investing Mining Stocks and Warrants

The Canadian Dollar is now one of the strongest currencies in the world and there have been many forecasts of parity with the U.S. Dollar and as of today, the Loonie is trading at 90.35 as we write this article.

The first and second charts below shows the strength of the Loonie over the last year and the third chart is of the XAU Gold Index. Observe the long term trends in all of the charts.

For investors around the world how can you best position yourselves to benefit from the rising value of the Canadian Dollar?

If you are like many of us, you are currently participating in the bull market in the commodities sector, specifically, in the precious metals, i.e., gold, silver, copper, zinc, etc. If you are not on board this rally perhaps we can enlighten you to some different ways to benefit not only from the Canadian Dollar but also from your investments.

When an investor purchases shares in the Canadian mining companies you are in essence invested in the Canadian Dollar. With the Canadian dollar increasing relative to your countrys currency, your investment is increasing. As the value of your Canadian investments increases, you win again. Thus, you gain from the increasing in the currency as well as the increase in your investments in the mining shares or perhaps, long-term warrants on the mining shares.

The point is, currently investors are experiencing the best of both worlds and we would expect this trend to continue with normal corrections along the way for at least several more years.

We, as investors ourselves, prefer to defer to the experts, Jim Dines, Doug Casey, Pam & Mary Ann Aden, James Turk and others as to the continued direction and strength of the current bull market.

Perhaps you are a conservative investor and neither you nor your investment advisor are currently aware of the bull market in the commodity sector. We believe that soon, within the next few months or within the year, you, yes, you will be investing in this sector, so the choice is yours, now or later.

Investors have many wonderful opportunities for investments from the gold and silver bullion, ETFs of gold and silver, mutual funds, mining shares and for those investors looking for additional leverage, long-term warrants on mining shares, some of which do not expire until 2011.

As the experts mentioned above believe, this bull market has strong legs and many years to run, we accordingly suggest investors position themselves and not to worry about the day to day fluctuations of the market.

The important thing for all investors is to recognize the big picture, take a position and enjoy what may be the ride of our lifetime.

Dudley Baker is the owner/editor of Precious Metals Warrants, a market data service which provides you with the details on all mining & energy companies with warrants trading on the U. S. and Canadian Exchanges. As new warrants are listed for trading we alert you via an e-mail blast. You are provided with links to the companies' websites, links to quotes and charts, tips for placing orders.

Kuala Lumpur Stock Market Outlook - Forecast for the day - 04 July 2007!

Dow rally and strength of ringgit keeps index alive. Re-enter property, construction stocks.

Technically speaking:

1. As at Tuesdays close at 1373.14 the KLCI was higher by 8.77 points or 0.64%. Gainers led losers 642 to 273. Volume traded reached 1.23 billion shares

2. Technically, many property, oil and gas and construction stocks were stopped out on Monday like EQUINE, SUNCITY, KEURO, E&O, E&O-WA, PLENITUDE, EDEN, FAVCO, SAAG, etc.

3. Some of these rebounded yesterday, but we were not wrong in calling for a buy on other property, construction and oil and gas stocks that triggered a buy.

4. Stocks like BRDB, YTLLAND and YTLLAND-PA were excellent.

5. We were also right about MRCB, BURSA, COMMERZ*, BURSA-CB, COMMERZ-CA, COMMERZ-CC*, GENTING-CB and new stock GENTING.

6. There is once again resurgence in interest in IDR stocks from the southern corridor yesterday. Stocks such as UEMWRLD, TEBRAU, EKOVEST are awakening again. So are other property stocks like MKLAND, SUNWAY, SUNWAY-WA, HUNZPTY, BRDB, FABER, etc.

7. Construction stocks like MRCB, GAMUDA, UEMBLDR, etc are also attracting buying interest.

8. In short see a resurgence of buying interest in many stocks, triggering buy signals in many of them. If we were stopped out of some of them, a chartist would re-enter buy.

9. GENTING was once a sell, but now its a buy again, and we would not hesitate to go with the flow to buy GENTING and its warrant. So is COMMERZ, AMMB, BURSA, MRCB, TEBRAU, UEMWRLD, UEBLDR.


11. Also, we would want to mention here that we expect the positive Dow to keep the KLCI strong. Hence longer-term investors would like to hold onto stocks, as we see the Dow hitting 14,400 and our KLCI hitting 1494.

12. The ringgit closed slightly lower yesterday, from 3.4320 to 3.4440 or 120 pips, but news of the Malaysian government determined to keep the ringgit strong, and CNN News advocating to buy the ringgit vs the U.S. dollar should help Malaysian stocks.

13. As the KLCI closed at 1373.14, higher by 8.77 points, the short-term buy signal is intact. CONCLUSION: We expect as a recovering Dow to rub off onto the Asian and Malaysian market this week. So far we are correct.

The KLCI stopped exactly at the lower Bollinger band support of 1348 and rebounded to close above it, at 1373.14. A breakout of the upper band at 1379 or higher today would be a good sign of a possible explosive rally.

Long-term Upside Targets:1492 (Target amended on 15/6/07).

Immediate downside targets: 1348/1319/1291/1222

Fred Tam is the owner of and F1 Trader Online - Know when to enter & exit the markets.

The Benefits Of A Mechanical Forex Trading System

Most everyone knows that a lot of money can be made in a short amount of time and with a relatively small amount of money (a few hundred to a few thousand dollars). Some people make a tremendous amount of money regularly in the forex market. But you need to have a proven system or systems. And, especially for new traders, the system or systems used should be easy to understand and easy to use. They should also be mechanical.

Why is it good to use one or more mechanical trading systems when trading forex? Because a lot of emotions can come into play, especially greed and fear, that can destroy even an experienced discretionary trader. To make money consistently you need mechanical systems that keep emotions out of the equation. Like Mr. Spock on Star Trek.

It is that emotionless, logical trading with mechanical systems that have been proven to work over months of testing that will make even the new forex trader a winner almost immediately. Emotion free trading is the way to go. You can be one of the best forex traders anywhere when using proven mechanical forex trading systems. You want systems that are easy to understand and use, and require only an hour or two of work a day to give you the freedom and time you need to enjoy the other activities of your life. Emotion free mechanical trading is essential for success!

By Roger Bovee, Editor And Publisher of Forex Trading Machine Blog. Grab Your Copy of GBP/USD Mechanical System No Cost Ebook That Averages 70 Pips Profit A Trade There Right Now! $39 Value