The Benefits Of Investing In ISAs

People are always looking for news ways in which to make cash savings or investments. One popular method of tax-free savings is by opting to save money in Individual Savings Account (ISAs), which were introduced by the UK government in 1999 to replace PEPS and TESSAs. Whether you choose to use an ISA to save cash or invest in stocks and shares, the benefits of ISAs are sure to be diverse and hugely rewarding.

In fact, the advantages of ISAs are numerous. For starters, there is no income tax to pay if you invest in an ISA, a factor which is a particularly strong selling point if you're a high rate tax payer. Under existing tax legislation, people paying higher-rate tax have to pay 25 income tax on every 100 received in dividends on an investment not held in an ISA. Therefore, investing money in an ISA eliminates this cost. And if you're not currently a higher-rate tax payer, investing in an ISA now will mean that if you move into a higher tax bracket in the future, you'll still avoid income tax on your investment.

Moreover, there are no capital gains to pay on an ISA. Capital Gains tax is a tax that is paid to the Inland Revenue on any rise in the value of savings and investments. Over the long term, small but regular payments into an ISA can generate tens of thousands of pounds - therefore, the long-term benefits of eliminating capital gains tax from your investment could be considerable, and certainly worth thinking about in advance.

Additionally, if you hold bonds in ISAs, you can still receive a tax free income. And even if you don't want to invest in bonds at the present time, there is always the possibility that you may want to in the future. In this sense, investing in ISAs is even more beneficial. Furthermore, you won't have to mention your investment in an ISA in your tax return form, which can be an arduous task. Ultimately, investing your money in an ISA means that you'll no longer need to worry about tax on your investment - a factor that is sure to be a huge weight off the mind of any tax payer!

Some of the best cash ISAs can be found in a range of locations, both online and on the high street, from a variety of sources. Many government institutions offer high interest ISAs, and banks and building societies also offer a selection of ISA accounts. But, wherever you choose to make your ISA investment, you can rest assured that the benefits are sure to be plentiful.

Adam Singleton is an online, freelance journalist and keen amateur photographer. His portfolio, called Capquest Photography is available to view online.

Lessons Learned From An E-Commerce Adventure

It is better to have tried and failed than never to have tried at all; and even more important to learn from your mistakes.

That is what I keep telling myself after having invested the time and cash equivalent to a Harvard MBA in an e-commerce start-up that has stalled and is winding down. Not a happy prospect in light of all the media pre-occupation with e-commerce success stories and the young millionaires watching their IPOs rocket into cyberspace. But the headlines ignore the more frequent stories of new e-commerce businesses that do not hit the stock market jackpot. Many of them either settle into a low-key niche or exhaust their resources and fold.

This is the story of an Internet venture that did not make the headlines, but offers some useful insights for entrepreneurs evaluating their own initiatives. The lessons learned are applicable to your own new venture or to an investment in someone elses.

In mid-1998 we launched a new company called nxtNet (www.nxtnet.com) with the slogan "taking you to the next level on the Internet".

My partner and I both had prior successful entrepreneurial experience in computer products and wanted to start a new venture together. We decided to develop a business that would catch the next wave of e-commerce services for mid-sized companies seeking to do business on the Internet. After long discussions, searches for a unique service offering, and many draft business plans, we developed a market strategy and then chose Intershop Communications as our software development platform. This product had the advantages of being suitable for single or multiple online storefronts, and offered a flexible, economic and comprehensive solution. We committed to the product, staffing, facilities and equipment to start training and development immediately. The two of us provided the time and cash required to get started.

By October 1998, we had an initial product with application as an online storefront for an associated computer business. At the same time, we realized that the application had wide appeal to other computer dealers and could be sold as a multi-user database service and e-commerce resource. We had developed a consolidated catalogue of 85,000 computer products from multiple distributor product databases that allowed rapid search and comparison for product information, pricing, and current sources. Users could access the catalogue from the Internet and find a product by manufacturer, category, and part number, key word or price range and immediately see the alternate sources and prices with links to more technical information, preferred dealer pricing and actual stock levels. Additional features allowed the catalogue to be customized so that any computer reseller could present the database as his own online storefront. This option offered all the search and product information features to his customers, but showed only retail pricing and enabled the online ordering process.

The product offering quickly received positive feedback and strong indications of support from all the participants resellers, distributors, and manufacturers. It was a comprehensive, powerful, and effective tool for buying and selling at all levels within the Canadian computer distribution channel. Resellers recognized the value in an online resource to save time and effort. Distributors and manufacturers saw the opportunity to promote their products, and major publishers in the industry wanted to offer complementary online services to their subscribers and advertisers. How could we fail with all this enthusiasm and support?

While the potential for success clearly existed, everybody had the same questions and reservations "Who is there now?" "How many are using it?" and "I dont want to pay until its bigger".

Reasonable objections we thought, so we added features and content for free. We promoted the product with free trials and low cost subscriptions for reseller access. Then we coaxed, persuaded, sold hard, and made deals. The "contra" became the standard for obtaining press coverage, free ads, mailing lists and promotion in exchange for free participation and future consideration. Activity on the Web site and catalogue grew to 3000 visitors per month with over 800 subscribers and the distributor list increased from three to twelve.

But revenue remained near zero as most reseller subscribers declined to pay for the service. Reasons were "it should be free let the advertisers pay", "I dont use it enough", "there are lower cost options", or "we built our own solution". The audience did not grow fast enough even after we offered it for free, to satisfy the advertisers and content providers. Without persistent and conspicuous sales and marketing efforts, all the participants quickly lost interest. Meanwhile the costs of database maintenance, ongoing development, site hosting, Internet access, sales, marketing, and administration were increasing.

Clearly the old entrepreneurial model of controlling costs and growing revenue was not going to apply. We had to realign our profile to show how zero revenue and high initial costs could still lead to significant investment returns like other well-known Internet ventures. So from early 1999 we started an aggressive search for financing, estimating our requirements at $500,000 to $1,500,000 over the next two years before achieving positive cash flow. More business plans, spreadsheets, and glossy presentations to demonstrate future valuations up to $20 million, even $40 million.

We knocked on many doors, from banks to government agencies, from angel investors to venture capital, from stock promoters to business consultants, and again received lots of encouragement, but no financing. So the founding partners were faced with a continuing cash drain, no relief in sight, and the limits of their own resources rapidly approaching. It was time to put the project on hold. Strategic partners or investors might still be developed to proceed with the project, but the ongoing expenditures were stopped in late 1999.

So what are the lessons learned? We already knew that nothing ventured, nothing gained. We now also knew that big successes in the new economy require big investments. Entrepreneurs may start small, but large investments will be required from new sources to achieve significant success. And no one will put significant money into a venture unless it is the only remaining requirement.

The concept, product, development, marketing and staffing all have to be in place before an investor will provide the final ingredient his cash. Exceptions are likely only where the management team has already succeeded in the same arena, or the investor himself can deliver the missing elements, such as customers or management skills. No investor is going to take the chance that the entrepreneur with a good concept or product will also be able to deliver the required management and marketing skills to succeed, after he has the cash.

Next time we will know better. And there are side benefits from this expensive learning experience. I can now admit that with the knowledge gained through our association with Intershop Communications, I was confident enough to make an investment in their stock on the German Neue Markt at 65 Euros last year. It went over 400 Euros last month and is still rising with their rapid growth and the prospect of a NASDAQ listing this year. Almost enough to recover my investment in nxtNet.

So the most important lesson is that education in the new economy is essential, and not free, but it can lead to success outside the original plan. Learn, be aware, and be aggressively opportunistic.

Del Chatterson

2000

Economic Survival in the 21st Century - the Three Key Questions to Ask

In this special report, I want to pose a few important philosophical questions to my readers. Firstly -- our Federal Reserve Chairman, Alan Greenspan, addressed the effects and implications of our aging population on things such as Social Security again in a speech that he made last Friday. Readers may remember that I also briefly mentioned this issue in my June 24th commentary. I urge you to keep this worldwide phenomenon of the aging population firmly on the back of your minds. If you are like most people, then you earn you living by producing a certain thing such as a consumer good, or a service that the masses want. Lets face it how many people really struck it rich by being pure traders or investment managers? The stock market and other financial markets are definitely very important to us investors/traders but this super secular trend of the aging of the worldwide population will impact every aspect of our lives, whether it is losing our relative competitiveness on the world arena, increasing pension and healthcare costs, or even a potential fundamental change of our political system.

The second question that I want my readers to think about is the potential end to the era of cheap energy prices an era which we have basically enjoyed for the last two decades without thinking of the long-term repercussions. The United States, with less than five percent of the worlds population, currently consume approximately 25% of the worlds energy each year. Supply is maturing while demand continues to surge as exemplified by the surging in demand from China and India. In the meantime, spare energy-producing capacity and inventory levels have been at all-time lows potential for a perfect storm?

Finally, I want to ask my readers the following question: What kind of investor are you? What investing style do you adopt and what investing style are you most comfortable with? Can you be a contrarian and buy when the crowd is selling or are you merely a follower who is only comfortable if you fit in? These are straightforward questions but these are questions that you really need to ask yourselves in order to truly make money in investing over the long run. If my readers take the time out to thinking about these three questions or issues and ultimately have a firm grasp of even just one of the issues then you will be in a much better economic situation than most Americans five to ten years from now.

To begin, what are the potential implications of the aging population phenomenon? Readers my recall that in my June 24th commentary, I stated: Assuming that the current level of benefits remain into the future and assuming the level of taxes is not raised, then public benefits to retirees would dramatically increase going forward. On the extreme end, Japan and Spain will see a more than 100% increase in their outlays to retirees. Clearly, this is not sustainable. Either things such as defense or education spending will need to be cut, or the above countries will need to raise their taxes. Neither of the two scenarios is optimal. Borrowing more of their funds is not a long-term solution. Cutting funding in defense and education will comprise a countrys future, and raising taxes will place a huge social and financial burden on the population of the developed world where taxes are already at a historically high level. Think about this: If you were a bright, young, French industrialist and you were forced to pay 60% of your income as taxes to support the elderly, what would you do? Why, you would vote with your feet and relocate to another country that is more tax-friendly and business-friendly and so will other great talent that may have been a great contribution to the French economy. The governments of the developed world recognize this but there are no easy solutions.

This picture gets grimmer when one takes note of a study that was done by the Bank Credit Analyst. In that study, the BCA predicts that by the year 2050, the percentage share of the developed countries of the global population will drop from over 30% in 1950 to less than 14% -- or about equal to the population of the Islamic nations of the world. Similarly, Yemen will be more populous than Germany in 2050; while Iraq will be 30% more populous than Italy (Iraq is less than 40% the size of Italy today). Russias population is projected to continue to decrease at a rate such that the population of Iran will be even higher to that of Russias in 2050. India will be the most populous nation in the world, and Pakistan will only lag the U.S. by approximately 50 million people. If the developed countries of today do not choose to work harder or become more efficient, then they will ultimately lose their comparative advantage, as the younger population of the world is inherently more hard-working, energetic, innovative, and creative. In todays globalized world, this will be a killer for the average worker in the developed countries the more so once the language barrier is eliminated (the successful commercialization of universal language translators is projected to happen in ten to fifteen years). I am generally more optimistic, as the elimination of the language barrier will greatly enhance business opportunities and efficiencies, but a person such as the average American worker will loss his or her comparative advantage in the global workforce. The availability of a huge supply of labor should also drive down wages in the global marketplace and most probably increase the maldistribution of wealth in todays developed countries.

Like I have mentioned before, there are no easy solutions. If the average American sees an increase of 10 years in his or her life expectancy, can he or she reasonably or logically retire at the current normal retirement age of 65 (which was determined during the Roosevelt administration during the 1930s) without placing an undue burden on the system? The answer is most probably no. Applying the same working-years-to-retirement-years ratio to his or her new life expectancy, then the average American should probably work around five to six years more thus giving a revised normal retirement age of 70 or so. Moreover, all this analysis is based on the outdated population distribution in the form of a pyramid where the younger and more able workers represent a majority of the population (and where the elderly represents only a small minority of the general population). The pyramid distribution has historically facilitated government support of the elderly as the monetary and social burdens have been shouldered by a relatively large younger population. The current experience of Europe and Japan suggests a more uniform distribution in the population of those countries going forward as the birthrate in those countries are now dismally below the replacement rate of the population. The situation in the United States is not currently as drastic (given our relatively lax immigration policy) but we are heading towards the same direction. Thus to maintain the current standard of living at retirement, my guess is that the general population will not only have to work longer, but work longer hours in the present (and save more) as well.

The situation is more alarming when one considers that the combined population of China and India makes up over 1/3 of the worlds population. The number of unemployed workers in China is greater than the entire labor force of the United States. The competition for relatively unskilled jobs will continue, and it promises to accelerate going forward. The average American who does not stay ahead of the curve or does not keep pace of the trend will find his or her job being outsourced not to mention the average wage being driven down by global competition. I, for one, believe that this continuing trend of globalization will make the world a better place, as hundreds of thousands of people will finally be empowered as they climb out of absolute poverty (again, over half of the worlds population currently live on less than two dollars a day) and as the prices of consumer goods are driven down still further. The average American will probably disagree, but the trend of globalization and offshoring will not stop. The last time the United States adopted economic and military isolationism we had a Great Depression and subsequently, World War II. I sincerely do not think that this was a coincidence.

The trend of the general aging population and globalization will have a profound impact on all Americans. Ultimately, I think all Americans will benefit although it may not be clear to people who are losing their jobs today. For the initiated and nimble, you will not only survive but thrive in these interesting new times. Imagine a market for your product that is over ten times the size of the population in the United States. China and India has historically disappointed as the citizens of those countries have historically been too poor to consume much U.S. goods and services. Globalization and offshoring will change all these. A world more equalized economically will also mean a much more secure and less conflictive world.

Now, I want to address a similar concern of all Americans as the era of cheap energy (basically the cheap energy prices as experienced by Americans for the last twenty years) comes to a close. While I think oil prices will decline in the short-term (i.e. for the next few months), I am longer-term bullish on both oil and natural gas prices (I will only discuss oil in this commentary). Consider the following:

• The world supply of oil is flattening out. Readers may not know this, but the United States today still produce enough oil to satisfy approximately 40% of total domestic demand. The United States also had 22.7 billion barrels of proved oil reserves as of January 1, 2004, eleventh highest in the world. According to the Energy Information Administration (EIA), the United States produced around 7.9 million barrels per day during 2003. This is down sharply from the 10.6 million barrels averaged in 1985. The peak of domestic oil supply occurred sometime during the 1970s. Today, total domestic production is at 50-year lows and still falling.
• While Saudi Arabia (the worlds top exporter and contains 25% of the worlds reported reserves) has claimed that there are and will be no supply problems for the next few decades, they have not been transparent with their reserves data. According to Simmons & Company International, five to seven key fields in Saudi Arabia produce 90% to 95% of its total oil output all but two fields are extremely old with the last major find reported in 1968. The last publicized reserves data was in 1975 when Saudi Aramco was still managed by Exxon, Mobil, Chevron and Texaco. In that report, the worlds best experts determined that all the key fields at that time contained 108 billion barrels of oil in recoverable reserves. If this holds true, then the peak of supply in Saudi Arabia will come soon. Moreover, if the report is correct, then there is really no plan B (unlike during the 1970s when the center of power shifted from the Texas Railroad Commission to OPEC due to the peaking of supply in the United States) crude oil prices will soar.
• The last frontier for the production of oil (namely the North Sea, Siberia, and Alaska) is now aging. Most companies are now struggling in order to even maintain their current production levels.
• World oil demand continues to grow. Oil demand in the early 1990s stayed relatively flat (at around 66 to 68 million barrels per day) but over the next ten years to today, world oil demand increased 14 million barrels per day. Today, total world oil demand is greater than 82 million barrels per day. The energy experts who in the early 1990s predicted a flattening of oil demand growth and who wrote off demand growth in developing countries were dead wrong.
• No new refineries have been built in the United States for the past two decades, even as refineries have been closing every year during that same time period. Refining capacity from 1981 to the mid 1990s also dropped drastically (this author estimates a drop of approximately 6 million barrels per day in refining capacity during that time period). Since 1994, however, an expansion in refining capacity at existing refineries has contributed to an increase in refining capacity from 15.0 million barrels per day to 16.7 million barrels per day (as of today). Despite this expansion, however, domestic refining capacity is still stretched to the limit, as utilization at U.S. refineries is now averaging nearly 90% -- leaving no cushion room if something unforeseen happens.

There are currently three factors at work which should contribute to a continued increase in the world oil price the maturing of supply, growing demand, and the lack of a cushion in refining capacity and low inventories. The culprit has usually been labeled as China, but it is interesting to note that the United States has had virtually no domestic energy policy (in terms of conservation and encouraging the development of alternative fuels) for the last twenty-something years. China demand, however, has soared over the last few years. It is now the second biggest oil consumer, having just surpassed Japan for the title. Demand for oil in China has more than doubled over the last 10 years (to todays 6 million barrels per day), and this amazing increase is projected to continue, especially given the fact that oil demand in China is still a lowly 2 barrels per person per year (compared to 25 barrels per person here in the United States). Furthermore, it is interesting to note that the number of cars in China only totaled 700,000 as late as 1993 and 1.8 million as late as 2001. Today, the number of cars in China totaled more than 7 million and this number could potentially have been much higher if not for the Chinese government intervention in limiting the number of cars that could be sold and driven each year. Now the most scary part: Current oil demand in India is only 0.7 barrels per person per year given this fact, oil demand in India could potentially explode over the next decade barring a huge worldwide economic recession or depression.

I believe my readers should be made aware of the current energy supply/demand situation. Given the above, what is the best course of action for the average American? How about the best course of action if you were the head of a motor company like GM or an airline pilot employed by a legacy airline like Delta? How about the best course of action for a mutual fund manager or a commodity fund manager? Since there are no easy solutions, there should be no easy answers either. In the short-run (three to five years), Americans will have to pay up if we want to drive gas-guzzling SUVs, and legacy airlines like Delta will have to continue to cut costs by probably further slashing labor costs as their first priority. A further improvement in extraction technology should help, but the serious development of alternative fuels will have to start now. I also believe that the next serious decline will be induced by a combination of an oil shock and a rise in interest rates. Readers may recall the relative strength chart that I developed in my August 15th commentary showing the AMEX Oil Index vs. the S&P 500 and the huge potential inverse heads and shoulders pattern in that chart. For now, the relative strength line should bounce around the neckline (the line drawn on that chart) possibly even for a few years but once the relative strength line convincingly breaks above the neckline, crude oil prices could rise to $80 or even $100 a barrel. I sure hope that my readers would not be taken by surprise if gas prices at the pump soars to $4.00 a gallon five to six years from now.

Finally, I want to pose to my readers the following question: Have you taken the time out to learn more about your psychological makeup and how it has affected your investment or trading decisions? What type of person are you when it comes to the market? Are you a so-called buy-and-holder, a swing trader, or a day trader? An independent thinker, a contrarian, a momentum investor or merely a follower? I am asking you these questions because of my following considerations:

• This author believes that we are currently in a secular bear market in domestic common stocks. While I believe that this current rally still have more room to go, I believe that a cyclical bear market will emerge in due time this upcoming cyclical bear market may even take us back or below the lows that we hit during October 2002. If this is true, then a buy-and-hold portfolio would definitely not work unless you were in natural resources or precious metals mining stocks.
• When this cyclical bull market tops out, all your friends, relatives, and the popular media will be telling you to buy more or to hold your common stocks. The bears and all bearish thoughts will be ostracized and frowned upon. This has happened in every bull market in everything in all human history. If you are in cash now, would you be able to remain in cash when the top finally comes or will you be unable to resist and buy in because you are afraid of the train leaving the station without you, so to speak?
• Most people are inherently not good day traders or even swing traders. To be good in even the latter, you need a huge amount of dedication and discipline.

Investing or trading has always been dominated by emotions and always will be. My thinking in starting www.marketthoughts.com has always been that that if I can get my readers to buy in now, it will be a much easier decision for them to sell and hold cash once the DJIA reaches 11,000 or 12,000 or so as opposed to being in cash and staying out for the rest of this secular bear market. 99% of Americans are just not disciplined or dedicated enough to stay in cash during a secular bear market not to mention staying in cash during the entirety of a secular bear market and buying and holding common stocks during the entirety of a subsequent secular bull market. The average human psyche is just not capable of doing this. Because of this, I sincerely believe that success in the stock market (for most people) during the next five to ten years would involve catching the swings at the right or near-right times. For readers who just cannot resist, I am also going to continue to recommend some common stocks at opportune times, but in no way should my readers take my recommendations as gospel and in no way should my readers put all their eggs in one basket. If you are a person who can stay in cash for the next ten years and wait until the Dow Industrials has a P/E below 10 and a dividend yield of over 5%, then more power to you you are either already rich who have no need to make money in the market anyway or you are a very disciplined and independent-thinking person. Most Americans just cannot do that but I am here to help.

Henry To, CFA, is co-founder and partner of the economic advisory firm, MarketThoughts LLC, an advisor to the hedge fund Independence Partners, LP. Marketthoughts.com is a service provided by MarkertThoughts LLC, and provides a twice-a-week commentary designed to educate subscribers about the stock market and the economy beyond the headlines. This commentary usually involves focusing on the fundamentals and technicals of the current stock market, but may also include individual sector and stock analyses - as well as more general investing topics such as the Dow Theory, investing psychology, and financial history.

Your Forex Trading Style - The Spider Or The Cat Approach?

Forex trading is a very individual activity and each trader has a particular Forex trading style depending on their personality type.

Being able to objectively analyze our own trading style is a great asset. We can then develop our style into a more consistent trading method by identifying positive and negative characteristics. The following analogy from the natural world is a tool we can use for self-analysis.

The Cat Versus the Spider

What's the difference?

Cat's Chase Their Prey

Cats by instinct chase their prey. They may stalk for a while and then pounce and chase, following their prey.

Applied to the foreign exchange markets, this type of Forex trading style involves watching for a price breakout or a substantial move in one direction and then joining it, effectively chasing the market.

Some traders like to have this confirmation that price is definitely moving in a particular direction before joining the momentum.

Spider's Net Their Prey

A spider on the other hand spins a web and patiently waits for the prey to come to them. The unsuspecting fly gets caught in the net and the spider gets a meal.

This analogy, as applied to a Forex trading style, exemplifies the trader who carefully examines price action in relation to previous support and resistance levels and anticipates where price is going to stall.

This trader now places an entry order at the strategic level and waits for price to come to them. When it does and fails to break through, instead retracing or bouncing, the trader gets paid!

Advantages Of The Spider Forex Trading Style

While many traders are successful in going with the momentum there are decided advantages to the spider method.

Entering a trade once price has already moved in a certain direction by 20 or 30 pips exposes one to the risk of a retracement. A bigger stop is necessary to cover the possibility that price may go back 20 or 30 pips to retest a previous line of support or resistance.

Also, price may abruptly stop just after we enter a trade moving rapidly in one direction and then retrace taking out the stop for a loss.

On the other hand, after carefully assessing major lines of support and resistance by looking at the higher time frames and seeing where price highs and lows have been over the last few days, we can predict where price is likely to stall or retrace.

Using Fibonacci calculations along with pivot points we can sometimes see 2 or 3 layers of support and resistance. If price has already moved a substantial number of pips during the trading session, it is likely to stall at a key support resistance level. Entering a trade at this point means we can set a smaller stop and we are nearer to getting our profit.

On the other hand, price may have moved a substantial number of pips, perhaps 30 or 40 in one direction, and is now retracing. By looking at the previous high or low, and by using Fibonacci, especially the 50% retracement level, we can predict how far price is likely to retrace before continuing in the direction of the trend.

Submitting an entry order to get into the market at that key retracement level often means we can set the stop just 20 to 25 pips away, beyond the price swing or high for safety, and collect a good profit of 25-40 pips at the Fibonacci 127% extension level.

The One That Gets Away

Of course, the spider will sometimes see a powerful fly go straight through the web and knock a hole in it! That's the one that got away.

The spider Forex trading style will sometimes see price go straight through a strong support or resistance level and not hesitate at all. Again, that's the one that got away!

However, more often than not, price will react at key support and resistance levels. By adopting a patient waiting attitude, allowing price to come to you rather than chasing it, a safer trading approach can be developed, one that can contribute to consistent substantial profits in the long run.

Once you have identified your personal Forex trading style, see if there are lessons you can learn and adjustments you can make using the cat and spider analogy. Try to develop the habit of netting your profits as opposed to chasing them!

Learn how the MACD indicator can help you avoid much anxiety:

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Become Financially Whole!

I was watching Suze Orman with my wife today. A woman called in who is trying to reestablish credit after a prior bankruptcy. She told Suze that she had gone to a restore your credit seminar where the speaker taught the audience to get two secured credit cards. Secured credit cards are where you go to a bank and give them something like $500.00 and they give you a credit card with a $500.00 limit (or whatever you plop down to secure the whole deal).

The woman wanted Suzes advice because after she ran the limit up on both cards she was downsized and the only work she could find paid a lower salary. She told Suze she could not pay the cards because she was now paid a lower salary and was late on one of the cards already. Suze told her that there was absolutely no advice she could offer the woman and hung up.

Why do you think she would say this? I mean the woman could go get another job. She could get a loan from a family member or a friend. So why would Suze say this?

Well, Suze said that as long as the woman blamed her financial problems on external problems that she would be stuck. This is completely in line with what I told you in my last e-mail about forgiveness. Suze was really vague (as usual) but let me give you concrete concepts that you can apply in your daily life so you never end up like the woman in the financial train wreck who called in to Suze.

We only have two emotions; fear or love. Fear really sucks because it causes ALL of the problems in our life like sickness, death, poverty, bad luck, and soured relationships with other minds. In our financial lives fear causes debt.

On the other hand love is really great because it causes all of the good in our lives like, health, wealth, and abundance of every kind. In our financial lives love allows us to achieve financial freedom in great part through elimination of debt because if you come from a love based thought system you will sagely recognizes that you dont need a lot of crap our modern day you gotta have this society waves in your face.

The truth is that many (if not most) super rich people are also super miserable because of all of the fear in their minds that someone is going to take it all away! The trick is to become rich AND happily content. The super rich that have achieved this have come to recognize that the most valuable thing in their life is something that nobody can take from them without their consent; peace of mind!

We wouldnt be in this nut case world if each of us did not have some fear in our minds. This would make you a super stock investor in the stock market. So if the trick to achieving everlasting peace of mind is erasing all fear from our minds then is there a where the rubber hits the road practical method that acts like a fear eraser? The answer is a resounding yes!

The practical method that will lead you to peace of mind is true forgiveness that I alluded to in the last e-mail. The Course In Miracles, as long as the darn thing is, really just teaches you how to forgive and nothing else. Once you erase the crap in your mind (which is really just fear) your life will transform your life in ways that will seem unbelievable because your interpretation of your life experience will change. Most importantly your financial luck will change as well. Remember always that we are minds not bodies. We are the dreamer not the dreamed and as such we can reset the rules through he application of forgiveness in our daily lives and become whole instead of fragmented by fear!

Dr. Scott Brown, Ph.D. a.k.a. The Wallet Doctor can teach you how saving the daily price of a cup of coffee at Starbucks can make you a millionaire in the stock market through long term stock investing. Dr. Brown's website is: http://www.walletdoctor.com/

Making Money In Forex Trading Fact or Fiction?

Find out the real truth about making money in forex trading.

Recently theres been a surge of everyday, average investors choosing to invest the majority of their portfolio in forex trading. If you talk with those people, you'll find many feel making money in forex trading is much easier than using more traditional types of investing.

The process used for making money in forex trading has a different set of strategies, and plan that trading stocks, mutual funds or bonds. The forex market is a little more complicated to learn, but once you understand the forex market and currency exchanges the possibility of making money in forex is good.

Making Money in Forex Trading - The Advantages

There are advantages to the forex market not available when you invest in the stock market realm. First off, industry changes and changes in company profits dont affect the forex market. Bull and bear markets wont cause major fluctuations as in normal stock trading.

Another advantage is the fact forex trading is open twenty-four hours a day, six days a week. Its not like learning about a major industry event in the evening news and not being able to do anything until the market opens on Monday. You can make your trades anytime of the day.

Learning about making money in forex trading has never been easier. Many online brokerage sites offer free information and education about learning how to invest the forex market. You can also train in real-life" trading without using any money. Its the online version of paper-trading. Youll be able to fine-tune your market strategies and analysis before you actually risk any of your own money.

As with any form of investment there is the potential for loss. Setting your stop points and minimizing your loss potential is not at all difficult, once you understand the forex lingo, and how currencies are traded.

Making money in forex trading occurs by buying and selling once currency for another. The trading is done in pairs. Quotes are displayed in the same manner. The money you make is determined by the change in pips.

Simply put forex (foreign exchange) trades are made according to the value of one currency as compared to another. These values of currencies are constantly changing. Quotes on prices are quoted in pips (percentage in point). If a particular currency quote goes higher, it means that currency is stronger. If it goes lower it means the currency weakening.

Learning to identify potential patterns and points of value changes in currencies is the basis for making money in forex trading. Theres lots of online help and education if you have an interest in the forex market. Youll also find you dont have to invest a large amount to begin to learn to trade. Some firms allow opening an account with as little as two hundred dollars. Plus, you get to practice before you make a trade with real money. What better way to learn and earn?

If you're getting started with forex trading or looking to learn more about forex trading, don't wait and click on over to http://www.Forex-Trades-Online.com

How To Invest in Mutual Funds

It Can Be Very Easy to Get a Piece of the Mutual Fund Action!

If you are anything like most people, you would like to see your money multiplying while you are not using it. It is for this reason that many investors, both large and small scale, have turned to the stock market to try to increase their wealth.

There have been years when this venture has been profitable and years when it has caused people to lose thousands or even tens of thousands of dollars. The problem with the stock market and other kinds of investments is that the regular people, those who dont have much to invest but who probably need the money most, would invest in are too complicated to research.

To be more precise, small investors can easily get distracted and overwhelmed if they opt to do their own research when choosing an investment in which to put their money. Today, and for the past decade, people have been turning to mutual funds to earn some investment money because mutual funds have many benefits and advantages over other investments.

Most mutual funds have managers or brokers who work with a particular fund and are knowledgeable in all the nuances and details of the money and the investment. They are generally the people who choose the stocks or investments that the mutual fund will put its money into so these managers provide a good source of information and advice.

However, in exchange for their time and expertise, they will also charge many fees and expenses so that the investors end up spending money to invest their money. The solution to this is for investors to look for no load funds, which means that the investors pay no fees. The no load funds have been shown to earn just as much, if not more than, the funds that have fees. Paying the unnecessary expenses, contrary to what novice investors may believe, does not mean that the earnings will be higher.

Potential investors and those looking to invest in mutual funds should also be aware of the glut of information available to the general public. There are myriad books, articles, websites, internet sources, companies, journals, magazines, newspapers, and pamphlets that can be acquired for no fee. These sources of information give investors all the data and facts that are required for them to become more informed shareholders.

That being said, the reason why so many of these resources are available is because it is very important that investors are aware of the terms and conditions of the ventures in which they take part. Sometimes there are fees that people may be unaware of, somewhat like hidden fees. These sources can offer hints and tips on how to recognize these fees and how to avoid them. Other sources of information, especially on the internet, can give the history and facts of individual mutual funds so that the performance can be tracked.

In conclusion, mutual funds are very easy to get a share in and they can yield excellent results and high returns. Getting information can be very easy and investors can make their own decisions on which fund is the best for them without using the help of brokers or fund managers. This empowers the investors and makes them in charge of their own finances, offering them more control and knowledge.

Get all the ins and outs of investing profitably in mutual funds at http://www.imutualfundsinvest.com

FOREX Trading Advice Which Is Best To Make Big Profits?

Many new traders want to take FOREX Trading advice to give them success, but what should they look for from an advisory service?

How do you pick FOREX trading advice that can make you profits?

Lets find out.

Here some of the things you should look for in terms of FOREX trading advice.

1. Know how the advisor makes trades

You will never make money following FOREX trading advice if you dont understand the logic the trades are based upon.

Why?

Quite simply any FOREX Trading advisory service will lose money at some point.

They all do, (dont believe track records that look to good to be true they probably are) so when the losses occur, unless you know how the advice is generated, you wont have the discipline to stay with it.

Currency trading success is based around the following equation

A logical method + the discipline to follow it = currency trading profits

If you dont have the discipline to follow the advice you will never make money and this comes from having confidence that a system can overcome losing periods and lead you to currency trading profits

2. Look for a real-time track record

A lot of FOREX Trading advice is presented with a hypothetical track record (lets face it we can all make a profit if we know past data) and they all look great but the acid test is trading in advance.

Look for a real time track record of the advisor making money in currencies. Thats real dollars and account statements.

Today, many e-book writers offer advice with simulated track records and simply appeal to the greed and stupidity of buyers Dont fall into this trap.

Get a real time track record and make sure the advisor has put their money where their mouth is and have a track record of success.

No track record? Then dont buy PERIOD.

3. Does the advisors strategy suit your mentality?

Does the FOREX trading advice suit your trading mentality?

For example, they may make 100% annual gains but with 80% drawdowns at times.

Can you cope with this?

Or

Are you happier with lower profits and lower drawdowns?

Some traders like to preserve their capital and others like to be more aggressive, so only pick a FOREX advisory service where you can cope with the worst drawdown (peak to valley) they have had in the past.

4. Look for a satisfaction guarantee

Most reputable sellers of FOREX trading advice will give you a satisfaction guarantee if not delighted, so only buy from one who does.

Final words

There is some great FOREX Trading advice you can buy but you need to be careful to get a service that has made money, to inspire confidence and one that suits your trading mentality.

No matter how good the service is, make sure you understand the logic it is based upon, so you can stick with it for bigger FOREX Profits.

MORE FREE BETTER TRADING INFO

On all aspects of becoming a profitable trader including info about legendary trader W D Gann who made a $50 million fortune trading go to our website for an exclusive Gann Trading Course visit our website at http://www.net-planet.org/index.html

Forex Course Trading

Nothing can help you better understand the nuances of the exciting tools and strategies of the forex market than a forex course trading. If you are a first time player or want to start as a foreign currency trader, a course in the forex market can guide you and build your confidence to face the real world.

The foreign currency market is highly developed with some of the most advanced trading systems and features available to make your decisions more scientifically. Whether you are a day trader or a long term player, you need to develop your own strategies to time the market and your entry and exit points. Forex course trading can help you in your understanding of the terms and concepts. As you learn the basic tricks of the trade, you can learn the advances strategies, straddle concepts, technical analysis indicators, charting software and other tit bits to gain your foothold in the forex market.

Forex market demands a fair bit of knowledge about the finer aspects of trading and techniques to be successful consistently. Hence it is all the more important that you are armed with right training. Forex course trading can fill that gap and make even a novice an expert in the field.

While it is true that no forex trading course can make you rich overnight, it is also true that there are no magic formulae to make money in the shortest possible time. It is only patience, hard work and consistency that brings dividend in the long run. A good course will equip you not only with the trading strategies but also how to handle exceptions and time your market moves.

Charting and Technical Analysis are one of the most important tools for predicting the future trends and fluctuations. Forex course trading will help you do that to give shape to your strategies for your good. A good trader does not spend his time and energy trading all day. He looks for 4 or 5 good trading opportunities in a week and place his orders based on that analysis. The timing is very important and so is the correctness of his prediction. This way you can earn better than the expected returns without having to time the market all the times. Hence an understanding of the trading systems and rules allow you to concentrate on exceptions rather than all the currencies and commodities for making an entry in the market.

If you are planning to take forex course trading, never be enamored by all those claims of making risk free profits by trading in currency spot and futures. Remember that there are no free lunches. Currency trading is a specialized field and has its own risk reward paradigm. In most of the cases, you will have to adjust your trading strategies to fit that paradigm to remain within the ranges. One wrong move and all your equity may be wiped out. The forex course trading will also help you to understand that sometimes it is better to cut losses than to cut a sorry figure later.

Thomas D. Houser
The key to successful Forex trading is knowledge.
http://www.bestforexcurrencyinfo.com/

Market Moods And Market Timers

Markets go up and markets go down. It shouldn't matter much, but many new market timers find that their own personal mood fluctuates with the markets, moving from extreme euphoria as the markets soar to new heights to deep despair when the markets plunge to new lows.

Why do market trends have such power over emotions?

They don't need to, but many new timers have difficulty cultivating an objective mind set. They allow fear and greed to influence their trading decisions.

They tend to follow the masses, and when they go with the crowd, they soon find that market trends not only influence their moods but their account balance as well.

Following The Crowd

There's a strong tendency to follow the crowd. There is a feeling of safety in numbers. When you see a steady upward trend, you feel secure. Everyone is buying. They are all doing the same thing.

When other people offer confirmation of your decisions, you feel safe and assured.

In a bull market, it isn't so bad to follow the crowd. When it's a strong bull market, the crowd is often right, and it makes sense to follow them.

However, when the market turns around, feelings of safety and security can turn quickly into fear and panic. Why? One reason reason is that many new market timers don't have the ability or financial resources to sell short, and take advantage of a bear market. But there's a psychological issue as well.

It is difficult to know how to handle falling stock market prices. For example, humans tend to be risk averse. When one is going long and the markets suddenly turn, it's hard to accept losses, and sell off a losing position before more damage is done.

Denial and avoidance set in. At that point, a trader with a losing position panics, hopes that things will turn around, and waits for events that are unlikely to happen.

Usually the price continues to fall, heavy losses are incurred, and as expected, disappointment and despair set in.

Emotions And Decision Making

It's crucial for your success as a market timer to stay calm and objective. Don't let your emotions interfere with your decision-making.

How do you stay detached and relaxed? First, it's important to accept the fact that you'll likely see small losses as a timer and that you should expect to see the markets turn against you. Small losses are an unavoidable part of dealing with the stock market. The trick is, keeping them small.

Follow a trading strategy that is well tested such as those at Fibtimer. And stick with the plan.

Don't allow your moods to fluctuate with the ups and downs of the markets. By trading in a disciplined, methodical manner, you can cultivate an objective, logical mind set that isn't overly influenced by market moods.

Armed with the right mind set, a disciplined trading approach, and a well tested trading strategy, you will be able to realize over time, the profits of successful market timers.

Size Counts!

What the heck am I talking about?

It is often said that to grow mentally, spiritually, emotionally and personally that you have to stretch and move out of your comfort zone. I definitely believe in this concept, however... When it comes to day trading, swing trading or position trading stocks, futures, options or forex, going outside your comfort zone can be dangerous!

Let me explain... Say, a trader is used to buying 100 shares of a stock at a time with the average value of $50/share. He/she is very comfortable with putting this amount at risk. They never experience any anxiety and can sleep well at night at this level. However, watch what happens when these traders decide to up their ante to 200 - 300 shares.

All of a sudden they are worried about every tick against them and start riding an emotional roller coaster based on the current price of the stock. At these levels they become much more emotional and their judgment becomes cloudy at times. Now they start making bad decisions that never occurred at the 100 share level.

A good idea is for you to take a good hard think about "what size trader" you are and where you are completely comfortable at. Write these numbers down and force yourself to never deviate from them. When the time does come to raise your bet size up, do it in increments over time. For example: If you want to go from 100 -200 shares, do 120 on week number 1, 140 on week number 2 etc.

I assure you, that by sticking to the concepts in this article that you will make trading a much more comfortable and profitable experience. Be patient and stay focused and the money may roll in at levels you never thought possible!

Dr. Jeffrey Wilde, a trading veteran with 16 years of experience is a trading coach to over 3500 traders in 63 countries. His new blog http://www.askjeffwilde.com offers free trading articles, tips and advice. He also teaches a variety of courses found at http://www.win-at-trading.com and http://www.fastforexprofits.com

Earnings Season: To Hold Or Not To Hold, That Is The Question

Holding a stock (day or swing) trade into earnings can very often lead to some fairly large profits. However, it can also lead to some very large disastersso large that it just may be the last trade you ever make.

When I was still an active day trader and now as moderator of Daytraders.com, I have witnessed both sides of this phenomenon from each perspective. I have lost big and was lucky enough to catch a few winners. Yet, after years of experience, observation and unscientific analysis of this practice, it is my opinion that I was just thatlucky.

First of all, holding overnight or even a few hours during the day waiting for an earnings report has removed you from a pure day trader status to a swing trader. There are merits of both methods of trading, which is fodder for a future article. Moreover, I will mention, that as common sense would suggest, that the longer you hold a stock as a trader, the more apt it is to move against you.

Most people, including most analysts, dont really knows what is going to happen until the company releases their earnings. Sure, there are a lot of folks that will profess to be a genius at predicting such things, but I havent seen it. In fact, I have yet to see anyone really much more accurate, if any, than that famous sitcom parrot that used to pick stocks using the Wall Street Journal lining the bottom of his birdcage. Yes, I said parrot, as in, Polly wants a cracker!

When someone asks me if they should buy such and such stock because they are about to release earnings, I always tell them the same thing, As a trader, holding onto earnings may be the single most dangerous thing you can do. I suggest that if you are not willing to hold that stock for the next three to four months and into the next earnings period, then you should avoid the trade. If you hold into earnings and it misses their numbers, you may forced to hold the stock until the next reporting period or selling it a big lost. Or it could mean holding into, yet, another earrings report, and the beat goes on. If that be the case, you are not trading now. You are an investor, and as an investor you should have done your due diligence on the stock or not invested!

Too many traders focus strictly on the numbers, rather than what the company made or lost and how their actual numbers compared to analyst and company estimates. However, very often these numbers will have little of no bearing on how the stock will react to other information that is released at the same time. Guidance, where the company sees the future, may be the bigger item to be considered. Beyond that there is often bomb shell news in the reports that is all too often overlooked in the first few minutes or even hours or days after the release. These might be items like investigations by the SEC or some other law enforcement agency. They could be announcements of lost contracts, lawsuits, patent disputes and on and on. Any number of negative factors can far outweigh how the stock will trade as this information is dissimulated and digested by the street.

Adding to the additional risk of trading stocks on earnings is the somewhat questionable practice of some companies. They try to soften the reaction to what they know will be seen as earnings by releasing good news a few days or even a few minutes before releasing the bad.

I have seen companies release news of a huge contract win the day before they report earnings, and I watched the stock move up a considerable percentage. They know darn well that the next day they will be releasing a poor earnings report that will send the stock much lower. These positions can fall 8-10%, and in some cases I have seen stocks lose 25-30% of their value.

Traders that find themselves holding these shares will take a huge loss in their trading accounts, and all too often it will put them out of the trading game.

If you feel you just have to take the chance and try for the big gain on earnings, I suggest you dont hold a very large position. Maybe or the number of share you would normally buy. If the stock moves against you, you can cut your loses with minimal damage or buy in at the bottom and try to average out.

I also suggest you only do this if you have some extra money lying around, money you dont mind losing. And if you do have some extra money you dont mind losing, can you please send some of it my way? I have been around a long time, and I have yet to see any of that money. I have seen a lot of just plain ordinary money, but Ive never seen any money that was extra enough for higher risk behavior like holding into earnings.

My final piece of advice is: Dont Do It!!!

Happy trading!

No permission is needed to reproduce an unedited copy of this article as long as the About The Author tag is left in tact and hot links included. Send all comments and questions to: floyd@TraderAide.com.

Floyd Snyder has been trading and investing in the stock market for three decades. He was on the forefront of the day trading craze that swept the nation back in the late 1990's, both as a trader and as the moderator of one of the Internet's largest real time trading rooms, http://Daytraders.com He is the owner of http://www.TraderAide.com and Strictly Business Magazine at http://www.sbmag.org

Wall Street to Main Street: News, Views and Commentary: April 12, 2006

Political Front

On Tuesday Iranian President Mahmoud Ahmadinejad said that Iran has joined the club of nuclear countries by successfully enriching uranium for the first time. Iran claims that their venture into the nuclear arena is purely a peaceful energy program. Now if they expect the world to believe that their intentions are noble then they have another thing coming as the United Nations is sending their nuclear watchdog to Iran. Keep in mind that Uranium enrichment can be used to produce fuel for a nuclear reactor or an atomic warhead.

It looks like China, ahead of the United States visit from Chinese President Hu Jintao, may lift the ban on U.S. Beef imports as a goodwill gesture. China has been making deals from airplanes to technology, they are gearing up to be a player in global business.

Movers and Shakers

Some major movers in yesterdays trading session include Brilliance China Auto (NYSE: CBA) trading up $2.64 to close at $18.94, Piper Jaffray (NYSE:PJC) trading up $5.90 to close at $61.10, Advanced Medical Optics (NYSE: EYE) getting a boost from Bausch & Lombs (NYSE: BOL) woes, the stock traded up $3.01 to close at $48.48, Blue Dolphin Energy (NASDAQ: BDCO) trading up $2.03 to close at $7.09, Green Plains Renewable Energy (NASDAQ: GPRE) trading up $3.50 to close at $49.02, Mexco Energy Corp (AMEX: MXC) trading up $1.24 to close at $9.99, Hi Shear Technology (AMEX: HSR) trading up $1.67 to close at $5.45 and Columbia Sportswear (NASDAQ: COLM) trading up $3.53 to close at $56.60.

Genentech

Genentech (NYSE: DNA) reported net income of $421 million, or 39 cents a share, which included the expensing of stock options. This compared with $284 million or 27 cents a share a year ago. But sales of Rituxan, its non-Hodgkin's lymphoma drug, which recently won approval to also treat rheumatoid arthritis, were down from the previous quarter and Genentech shares slipped almost 1 percent in after-hours trading.

Nasdaq and the LSE

The Nasdaq (NASDAQ: NDAQ) may have left the table but they are not out of the game, in a bold move to leap ahead of the New York Stock Exchange (NYSE: NYX) and any possible bid from them, the Nasdaq acquired the 13.8% stake in the London Stock Exchange that was held by the U.K fund manager Threadneedle Investments, along with another 1.2%, for 1,175 pence a share, or $781.7 million. This pushed the value of the LSE to $5.2 billion, if you recall the Nasdaqs bid for the LSE was in the $4 billion range.

According to U.K. takeover rules once the Nasdaq withdrew their bid they were banned from issuing a new bid for a period of at least 6 months, unless a rival bidder would come to the table. But snapping up 15% of the LSE would be a big deterrent to a bid from either the Euronext, the NYSE Group or the American Stock Exchange..

Google to expand in China

Ahead of the U.S. visit from Chinese President Hu Jintao, Internet giant Google (NASDAQ: GOOG) expects to see substantial revenue growth in China.

Google CEO Eric Schmidt said in a news conference in China that they expect to have over 100 software engineers in China by mid 2006 and eventually thousands as they solidify their position in the Chinese market. As we said in other segments we see Google to have continued growth and possibly trade as high as $550 to $600 in 2006 and at that point you may see a stock split.

Stocks to Watch

The following are companies that you should know about, we are just making mention of them on Wall Street to Main Street and will have a more in depth profile on these companies, along with our outlook. Remember that only subscribers to the NAMC Newswire will be able to read the Investors Corner segment in its entirety, so go to www.namcnewswire.com to subscribe, its fast and free.

Abercrombie & Fitch Co (NYSE: ANF) the stock closed at $56.55 on Tuesday and in the upcoming Investors Corner segment well give our take on the company and their direction.

American Eagle Outfitters (NASDAQ: AEOS) the stock closed at $29.38 on Tuesday.

Las Vegas Sands Corp (NYSE: LVS) the stock closed at $59.88 on Tuesday.

China Medical Technologies (NASDAQ: CMED) the stock closed at $25.66 on Tuesday.

Investors Bancorp (NASDAQ: ISBC) the stock closed at $13.03 on Tuesday.

Readers Speak

We received an email from one of our readers/listeners Jerry from Massachusetts, he wanted to know why we havent mentioned Alanco Technologies (NASDAQ: ALAN) on WSMS for a while.

Jerry, our mission is to introduce our readers/listeners to companies that we feel represent value and have potential to excel in their industry. We like the technology system that Alanco Technologies has but the slow movement in regards to additional contracts limits their growth. We understand that this is partially due to legislation but the company needs to venture out of prison facilities and perhaps look at the other uses for their system as they await approval for additional prison contracts. So until they either get a major contract or venture into other areas they are at a standstill. However we will expand on that thought in an upcoming segment of the Investors Corner this month.

We cannot stress enough that investors need to do their due diligence, call the companies, get the information, consult with your investment advisor and if you do not have one consider getting one. Put the same time into investigating these companies as you do when you go to purchase a new television, its only for your protection. When it comes to thinly traded securities stagger your orders or put a limit order in to avoid a run up.

NAMC Newswire Note

Go to the NAMC Newswire for updates at www.namcnewswire.com and you can listen to the NAMC Radio for the audio version of Wall Street to Main Street at http://www.namcnewswire.com/namcradio

To register to receive the Wall Street to Main Street Free Daily Newsletter Click Here or go to our site and click on the Newsletter section. http://www.namcnewswire.com/newsletter CEOs that want to contact us can do so by going to http://www.namcnewswire.com or call us at 888-463-9237.

Louis Victor
NAMC Newswire
888-463-9237

Disclaimer:
None of the information contained on the NAMC Newswire constitutes a recommendation by the NAMC Newswire, its journalist, nor its parent company that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific investors or person. Each individual investor must make their own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy featured on the NAMC Newswire or NAMC Radio Any past results are not necessarily indicative of future performance. The NAMC Newswire, its journalist nor its parent company does not guarantee any specific outcome or profit, and all investors should be aware of the real risk of loss in following any strategy or investments featured on the NAMC Newswire or the NAMC Radio. The strategy or investments discussed may fluctuate in price or value and investors may get back less than you invested. Before acting on any information featured on the NAMC Newswire website or the NAMC Radio segment, investors should consider whether it is suitable for their particular circumstances and strongly consider seeking advice from their own financial or investment adviser. Investors are also urged to do their own due diligence before investing in any security.

All opinions featured on the NAMC Newswire or NAMC Radio are based upon information that is considered to be reliable, but neither the NAMC Newswire, its journalist, its parent company, affiliates nor assigns warrant its completeness or accuracy, and it should not be relied upon as such. The statements and opinions featured on the NAMC Newswire by its journalist are based on their outlook at the time of the statement or opinion, and are subject to change without notice. NAMC may at times hold a position in the companies that it features, in these cases appropriate disclosure is made.

Forex Trading - What's It All About Then?

What is this, I ask myself. It is short for foreign exchange trading it would seem. It sounds complicated and deeply involved, and probably mathematical. No, Im sure it is not so scary that I need scratch my head every time someone utters a mention of Forex.

Forex Is simply the abbreviated name for the market where currencies are traded between nations, since an Englishman will probably find it somewhat difficult to purchase a magazine or umbrella or tooth brush if all he carried in his pocket were South African Rands. So therefore a lot of the time money will move between countries as industry & commerce must function & thrive. So how much trading occurs within this market? The answer is a lot, as it is the biggest trading market in the world one hundred times larger than the New York Stock Exchange. An estimated 1.5 Trillion United States Dollars get traded over the Forex market every day. There is no central governing or managing body that controls this mega entity; it occurs on a natural course all on its own. The forex market runs 24 hours a day - very nearly the entire week - simply because of the nature of the worlds industrial & commercial fervency.

Trading on the forex market has proven preferable for many, for a series of reasons. It is easy to buy currency, and unlike most other markets, it is also very easy to sell currency. This immense fluency makes it incredibly safe to trade and on top of this one can start trading with a very small amount of collateral. There is also the fact that brokers on the forex market dont take commission, the profit from the bid/ask spread. Since the selling of currency is not at all difficult, one can abandon ship on a falling market before the take on too much damage.

Its not as simple as counting beans, however, to trade and profit on the forex market. In order to make money, one must have formulated a trading plan, and tested it thoroughly, as to avoid losing a significant portion of ones trading capital. Also very important, a throughout understanding of the way the market works, flows and changes is absolutely essential to the success of an individual on the forex market.

Basically one can list the major currencies that are traded on the forex market. They are the US Dollar, the British Pound, the Australian Dollar, the Canadian Dollar, the Japanese Yen and the Swiss Franc. These are just the main ones - not all that are traded. It is easier to trade on the forex market than on the stock exchange, since one can focus on a small portion of the currencies at a time, as apposed to the thousands of stocks one must disperse their precious time and concentration on when playing the stock market. Just where do you invest in a situation like that? That is what I would like to know. Does it even make sense? Why do people even bother to learn the stock market when the Forex Market Is right there, inching its nose around the corner, slowly, whispering into your ear, begging for you to go and catch it and ride it to financial completion.

So I hope this is a start to those who want to get more involved. I certainly learned something highly valuable in writing it, so good luck with your trading journey!

Phil Smulian is a reviewer for currency trading experts who can help you understand more about the forex seminar, Euro Forex Trading System

Earning Money Through Online Trading of Stocks

The first thing you need to know when you decide to trade shares by joining an online trading of stocks system is to visit the websites of the best online trading brokers available. These companies offer a wide variety of market flow previsions and developments in the online trading of stock futures. When you decide to open an account, you must know that this is generally free of charge, but you have to pay every time you engage in a stock or security bonds transaction.

After completing this process, you must choose between several available broker-services specialised in online trading. The cheapest solution to your problem is an execution broker. This type of online trading service provides only an electronic transaction option consisting in buying or selling shares or stocks, without any stock futures prevision, counselling or any other advisory support in finding realistic market trends.

Like all the participants in the stock exchange, you can only decide between three types of operations. The first one is buying, while the others are selling and holding. The single time when you require a broker is when you decide to buy or sell. You dont need the assistance of an online trading broker to hold your personal stocks or already established stock futures.

The most important advantage in having an online trading account is the enhanced speed with which you can either buy or sell stocks. Of course, youll have a limited period of time to transact your stocks or stock futures, but once you get accustomed to the online trading market, you can start earning big money.

Obviously, this is normally easier said than done! To become an ace in the online trading of stocks and in the online trading of stock futures you must frequently analyze (usually daily) the prices evolution caused by the development in the leverage balance between demand and offer. This market leverage is widely generated by the market-makers or as, theyre also known, big fish. The market-makers are powerful companies that operate on the stock market and set the value for a specific stocks-class (for instance coffee). One of their main goals is to gain control and implicit wealth by speculating in online trading of stock futures. This way, they can raise their income by using the variation leverage of the stock market value in the online trading of stocks system.

The average stock holders and participants both in online trading of stocks and in online trading of stock futures dont normally have any chance in front of these market giants. Of course, this is not the case for you! Now, there is help available for you on the Internet. You can choose among many free online trading services provided by PhD specialists in the evolution of the stock market.

The online trading of stocks has become an extremely appreciated occupation for many nine to five working class citizens who have rapidly transformed into expert stock holders. To add more points, the even more complex online trading of stock futures has generated even more over the night millionaires.

Nowadays, online trading has become one of the few domains in which you can start with little, and quickly earn a fortune. This is a real opportunity available for almost anyone! You only have to think of a realistic plan in buying or selling shares for the online trading of stocks or for the online trading of stock futures. Its a great chance you should not miss.

Interested in making money? Then Online Trading of Stocks and Online Trading of Stock Futures are the best way to go. Go ahead, find out more about them!

Currency Trading Success using Technical Analysis

Anyone can achieve currency-trading success you can learn everything about trading currencies by simply investing the time necessary.

Fundamental Analysis

A currency trader who makes trades based upon fundamental analysis, will look at the supply and demand situation relevant to the particular currency studied, and try and predict the impact of such factors as:

. The health of the economy . Interest rates . Balance of payments . Employment . Trade deficit . Other factors

Technical Analysis

Technical analysis is the study of a currency, based strictly on using only the price history of the currency.

Technical analysis uses no information about the currencies supply and demand situation - it simply focuses on price action. The secret of currency trading success is using technical analysis to spot them.

Long Term or Short Term Trading

For long term currency-trading success, is it better to be a long-term trader, rather than a short-term trader.

While traders can, and do make money with short-term methods of trading, the fact is, currencies trend longer term and these are the trends that yield the biggest profits.

Choosing a Trading Method

While there are many ways to achieve currency-trading success, all methods have the following salient points in common:

1. Simplicity

Most of the best trading systems are simple. There is no correlation between how complicated a strategy is and how successful it will be.

2. Liquidate Losers Quickly and Run Big Profits:

The basis of any successful trading systems that deals in leveraged products is:

You need to be able to run the big profitable trends and exit losers quickly.

3. Understand your Method

This may sound obvious, but you need to understand your trading method, and the logic behind it, so you can execute it with confidence and discipline.

4. The Importance of Discipline

Currency trading success is rooted in a successful method applied with discipline. This means a trader has a method and follows it. This however is much harder in practice than many traders believe.

The more disciplined you are in trading, the more profits you will make longer term.

You should not underestimate the need for discipline, if you want long-term currency trading success.

Robust trading method + discipline = currency trading success

There are a number of variables involved in longer-term currency trading success and the above are the salient points to keep in mind when deciding how to trade currencies.

New! A valuable FREE Currency Trader CD containing 9 critical trading reports, tips, strategies and currency trading info. Visit our web site now and grab your CD http://www.tradercurrencies.com

Online FOREX Trading - Profit Opportunities Live Update

Yesterday we looked at 3 trading opportunities. Today, we are going to look at one shaping up in the euro currency, a possible profit opportunity and update the others. Lets take a look first at the euro. We are using the chart service futuresource.com and indicators RSI, Bollinger bands and stochastic in making our observations. This report is written at 10AM Central European time.

Euro
The euro is in a firm up trend against the dollar and prices have recently retreated from contract highs. Prices are now at the middle of the Bollinger band and are looking to hold around this level. RSI has fallen back from overbought levels and stochastics are down, but oversold. Support lies at 1.34 and 1.32. Watch for stochastics to bottom and cross with bullish divergence to indicate a shift in momentum, accompanied by rising RSI. This looks like a correction in a bull market. Wait for the correction to run its course, by watching for the above indicators to give you a signal and shift the momentum back to the bulls.

Other trades we looked at yesterday were:

US V Canadian Dollar
Same comments apply as before:
We expect a bounce. RSI very oversold and the dollar is trying to hammer a bottom out above the key 1.10 level. Stochastics remain flat. If they cross with bullish divergence, expect a move up. A close below 1.10 means all bets are off.

US V Japanese Yen
We expect the dollar to hold above the breakout point. Stops should be below the breakout if long if not, to go long look for stochastic to turn up with bullish divergence. The yen is the weak currency of the majors against the dollar and we would expect the dollar to hold its up trend.

Today, should give a clearer indication of near term direction. Short term momentum is down in the dollar. Watch the breakout point and stochastic momentum.

British Pound V US Dollar
The trend in the pound is up but short term momentum is down. We expect the pound to move up after the recent correction, but need to see a shift in near term momentum.

Prices have broken the mid Bollinger band and are drifting lower. RSI is no longer over bought. Stochastic momentum is over sold and down. To enter a long trade watch for a cross in momentum on the stochastic with bullish divergence and also a rising RSI. With all trades dont predict wait for confirmation of shifts in near term momentum before attempting positions.

Good luck and good trading.

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Forex Education visit our website at http://www.net-planet.org/index.html

Your Mother Could Make Money In Forex Trading

The question would be not whether she could but rather would she enter the Forex trading market. The Forex day trading arena is a veritable snake pit ripe for scam artists to bilk money out of unwary investors. On the other hand, it is a forum for educated traders with the correct education, tools, and trading strategy to make a handsome income.

Becoming a successful Forex trader basically comes down to four things; 1) attaining the correct education, 2) using Forex tools which 3) use your own personal trading strategy, and 4) finding the correct Forex broker to fulfill your requirements. Lets look at these individually:

1)Attaining the correct education. Your Mother may not know the difference between a Forex PIP and one of the backup singers for Gladys Knight. So would you send her to one of those infomercial Forex riches classes to find out? We hope not! There are literally hundreds of training courses and materials out there for proper training. Word of mouth recommendations might be the best path to follow here.

2)Forex tools can also do many things like send trading signals and various buy/sell alerts to your desktop or mobile device based on what your personal trading philosophy dictates. Many of these tools are software based and some are provided via your favorite Forex trading sites. Not all people base decisions based on these signals though and use things like technical and fundamental analysis to determine when to buy or sell.

3)It also is essential to develop your own personal trading strategy. Your ability to assume certain risks might not exactly be what other traders or your broker recommends. A Forex trading strategy is not something generic and involves your personal game plan.

4)Before trading FOREX you need to set up an account with a FOREX broker. You may feel overwhelmed by the number of brokers who offer their services online. Deciding on a broker requires a little bit of research on your part, but the time spent will give you insight into the services that are available and fees charged by various brokers.

One of the most important ways to make the greatest return (and, also carry a greater loss risk) in Forex trading is with the use of a margin account. These accounts may let you trade as much as $100k in currency for as little as $1000. Margin accounts are the lifeblood of FOREX trading, so be sure you understand the broker's margin terms before setting up an account. You need to know the margin requirements and how margin is calculated. Does margin change according to the currency traded? Is it the same every day of the week? Some brokers may offer different margins for mini and standard accounts.

Used correctly and together, the above items can lead to a comfortable part or full time income. If you dont use all the information available to you, though, you may as well let Mom take the weekend visit to Vegas with her money to see Gladys Knight. Make sure that she has developed her own Forex trading strategy and has used paper trades many times before actually beginning trading for real. Better that ole Mom is equipped to make some real money rather than throwing it away on the gaming tables.

Wayne Watson is editor and publisher of Forex Market Explained, a site dedicated to beginning Forex traders. This site is one of many development projects that he has created or contributed to in the past.

http://www.forexmarketexplained.com

Learn FOREX Trading in 6 Simple Steps

This article is for anyone who wants to learn FOREX trading with the view to making big profits.

Its a well-known fact that anyone can learn FOREX trading - but very few traders make big profits.

Here we are going to show you how to learn the basics and apply them with the right mindset to succeed.

The Six Steps:

1. Attitude

Firstly, its a well-known fact that the traders who make the money, approach FOREX trading with the attitude they will do what it takes to succeed. This means they dont listen to gurus or read tip sheets - they do it for themselves.

Too many novice traders think they can follow someone else and be successful - but the only person who can give you success is you!

2. Method

If you are going to trade FOREX, you need a method - and this does not involve day trading - it involves long term trend following. The big currency trends last for months or years - and your aim is to lock into these currency trends, and make big profits.

The best way to catch these long-term trends is to use a breakout method - this is a PROVEN way to make money, and breakout methods form the basis of many top-trading systems.

Good software is available form such vendors as Omni trader, Trade station, and Supercharts any of these programs will allow you to test a method, and then when youre confident, trade it.

3. Discipline

By developing a method you are confident in, means that you will be apply to apply it to the markets - and stick with it, even through loosing periods.

Most traders who follow gurus and tip sheets cant do this and as they havent developed a method themselves, they soon throw in the towel and discipline goes out the window.

4. Knowledge

You can learn a breakout method very quickly - but you still need to overcome the psychological pitfalls of trading. Read some books that focus on this area - some of the best include:

Jack Schwagers Market Wizards and New Market Wizards

Edwin Le Feurves Remisenences of a Stock Operator

Also, any books by: Jake Bernstein and Larry Williams.

These books are motivational, and will keep you focused on the your task.

Trading is all about applying a trading system with discipline - and these books will help you achieve this.

5. Taking a Risk

When learning FOREX trading, most traders try and restrict risk above all else. However, they do it to such a degree, that they end up taking losses as they get stopped out the market. In many instances, the direction they chose was right but they just didnt give the trade enough room on the downside.

If you want to make big money by FOREX trading, keep in mind that with risk goes reward.

Taking calculated risks is quite different from being rash - you simply need to wait for the right opportunity, and have the courage of your conviction.

6. Trade in Isolation

Trade in isolation to stay focused - keep in mind that if you are subject to the opinions and views of others, which may differ from your own - it will put you off.

The fact that you may be doing trades no one else may agree with, is good - Why? Simply, because 90% of traders lose - so the mass opinion is not the one to follow.

Learn FOREX Trading

If you want to learn FOREX trading, and make big money - you can do it. The proof is an experiment over two weeks, with a group of novice traders. These traders were nicknamed the turtles and they went on to become some of the most famous traders of all time.

If you want to learn FOREX trading, dont fall into the trap of believing that you can follow someone else. Get the knowledge - and then take responsibility for your own financial success. You will then be doing what 90% of traders dont do - and you can then enter the elite 10% of traders who pile up huge profits consistently.

New! A valuable FREE Currency Trader CD containing 9 critical trading reports, tips, strategies and currency trading info. Visit our web site now and grab your CD http://www.tradercurrencies.com.

Online Forex Trading - 6 Common Errors That Will See You Lose

If you are looking at online forex trading, in this article you will find some common errors that will see you lose.

Many of these are accepted ways to make a profit and you will see many writers give convincing stories that they will help you make money, but they wont.

Make these errors and you will lose, so here they are:

1. You can day trade and make money

Yawn. How many times do you see day trading touted as a way to make money?

All the time.

Fact is it does not work and cannot work, as its based on logic that is simply not correct.

Any experienced trader knows that short term volatility is random, within daily and hourly time frames.

If you cant judge where volatility will go in short time frames you cant get an edge or the odds in your favour.

So, if volatility is random how you can get the odds in your favour and make money?

You cant!

Dont believe me? Then consider this:

There are millions of traders in the market each day trading trillions of dollars and the huge majority are not looking at daily ranges.

Try and find a day trader with a real time track record of profit ( let me know when you do) as most are selling systems and not dumb enough to trade themselves.

Good story, but a great way to lose your money period.

2. You can use moving averages as a timing indicator

Really? This is a real gem.

How can you time entry with a lagging indicator?

Think I will stick to momentum indicators.

3. Brokers can make you lose

This is a story put around mostly by day traders who want to justify why they get stopped out.

Brokers hunt stops!

No they dont consider this:

The only participant with the potential to move a market and pick off stops by themselves is a central bank and even they dont achieve this every time.

A broker trying to pick stops in a market that trades trillions of dollars a day is laughable.

Dont fall for this story.

4. Currency trading is risky

A statement of the obvious!

To a degree this is of course true, but so to is life.

Crossing the road is risky, so do is driving a car, but there are two aspects to risk.

The market you are trading + your approach = Risk

You can make online forex trading as risky as you want, or you can control it by prudent money management and a sound trading method.

5. Paper trading and dummy accounts are useful

For what?

Big deal you can trade without money and place orders ( which is easy) but this is absolutley no use when you come to trade with real money.

It then becomes an emotional experience and the heat is on unlike in paper trading and you will feel very different.

Don't think that because you can paper trade successfully you will make money in the market.

5. You need to work at trading and gain experience

Why? Once you have a method thats it.

You just need to place your orders each day and thats it.

Experience does not make you a better trader.

Trading is not something that has to be constantly worked at once you have your method your all set.

There are many more misconceptions about being a forex trader but the above ones are very common and if you believe them you will lose.

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Jim Rogers: Will the US Dollar Disappear from the World's Stage

We talked, in a taped telephone interview at his home in Singapore, with Billionaire Jim Rogers, legendary commodities trader, who picked the bottom of the commodities bull market in 1999. With George Soros, Jim Rogers co-founded the Quantum Fund in 1970.

Over the next decade, Quantum Fund grew by more than 3,300 percent. Rogers retired, later a guest professor of finance at the Columbia University Graduate School of Business, and still later circumnavigating the globe to firsthand discover new investment opportunities. He is widely and often quoted in the media about his views on the commodities market. Bestselling author, investment biker, adventure capitalist and widely followed, Jim Rogers talks about what he's now investing in. StockInterview: Is the United States heading toward the same demise as previous colonialists: England, France, Holland, Germany and even previous world powers, such as Spain and Portugal?

Jim Rogers: If all powers, which have risen, have eventually peaked, plateaued, and then declined, we of the U.S. certainly have things going on which would indicate that we are. I dont think anybody would dispute that we are a mature economy and a mature society. Whether were still growing or not is another question. I see many factors where were overextended financially, overextended geo-politically, and overextended militarily. I would suspect the U.S. is in a plateau phase, and perhaps has even gone over the line and is in a decline, certainly on a relative basis.

StockInterview: Who, then, would replace the U.S.? Russia, India, Japan or China?

Jim Rogers: Not Russia. No, Russia is a disaster spiraling downward into a catastrophe. I see little hope for India replacing anybody. India is more likely to break up into a few countries in the next few decades than it is to become the world power. Japan has serious demographic problems. Japans population is in decline for the first time in recorded history. Unless something happens demographically in Japan, Japan is going to have huge problems in the next few decades. Theyve got gigantic internal debt, which somebodys got to pay off. With a declining population and internal debts rising, I think theyve got serious problems. The only one I can see on the horizon is China.

StockInterview: What, then, will become of the U.S. dollar?

Jim Rogers: The same thing that happened to sterling; the same thing that happened with the guilder. You know, the guilder used to be a great international currency. The peso used to be a great international currency. You dont see people using guilders anymore to settle their international debts or finance their wars. They decline and sort of disappear from the world stage. I would certainly get out of the U.S. dollar. Its already losing its status as the worlds reserve currency, as the worlds medium of exchange. We in the U.S. owe the rest of the world at least eight trillion dollars -- thats trillion with a T and its increasing at the rate of one trillion U.S. dollars every 15 months. There are serious problems in the U.S. with the U.S. dollar. I wouldnt own U.S. dollars if I were you.

COPYRIGHT 2007 by StockInterview, Inc. ALL RIGHTS RESERVED.

James Finch contributes to StockInterview.com and other publications. StockInterviews Investing in the Great Uranium Bull Market has become the most popular book ever published for uranium mining stock investors. Visit http://www.stockinterview.com