Plan For Stock Market Success

To be a successful investor or trader, a written investment plan is a must! In fact, most broking firms will not allow its professional traders to trade money without a trading plan!

Each and every trader must submit their plan and have it approved to be able to start trading money on behalf of clients. The trader is then judged and compensated for how well he follows his own plan and how well he does financially. If he violates his own plan, he may be subject to immediate dismisssal!

So it’s crazy for us non-professionals traders to start trading without a plan, especially when things don’t go our way, and they won‘t always go our way, you can be assured of it!

Now, before we begin to write our plan, take just a moment to think about your true investment objective. What do you want to accomplish with this trading account? Simply saying “ I want to make money” is not an investment objective. You have to have a specific objective, like, “To outperform the All Ords by at least 10% annually”. That’s an objective.

Then you must decide what type of industry and sector of shares you are going to invest in. The energy sector, the housing sector or the retail sector are unlikely to outperform the All Ords. That means you might have to look at the more volatile, but more rewarding sectors, like the computer sector, telecommunications, etc. This will likely give you lots of volatility in your portfolio and you’ll have to accept it or don’t get involved in that sector in the first place.

There are 7 necessary ingredients in your investment plan:

Reasonable investment objective

What growth factor do I want to achieve? Be realistic. Are you actively trading or long-term investing?

Risk tolerance statement

What industries, sectors and types of shares will I invest in?

Diversification plan

How many different types of companies do we buy on average? Between 10 –20 should be a maximum.

Price range of the shares we buy
Do we buy $30 shares, or only the sub $10 shares? Do we invest only in Australia, or overseas too?

A defense strategy

How much price decline are we willing to accept? Be sure to use a Stop-Loss!

Contingency / Repair plan

What do we do in a potential large market correction? How do we prevent and/or repair large market losses?

Timeframe

How often do we, or will we, re-assess our investment strategy? It should be reviewed every 3-6 months and updated if and when the market conditions change.

To help tailor your investment strategy, try asking yourself these questions:

Do I usually average down in price, or do I take a small loss?
How many shares do I buy and sell everyday and do I diversify well?
What is the usual size of my trades? 500 shares, 1000 shares, or even more?
When do I take my profits? When I’m up 10%, 20% 50% or more?
If I have a profit in a stock, do I hold it overnight?

When you have considered all the above aspects, you will be well underway to finalising a very valuable and effective investment plan.

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Whats 2 trillion dollars anyway ???

As if we did not have enough negative news regarding the current housing debacle and the accompanying mortgage crisis, Goldman Sachs analysts came out with a report stating that 2 trillion dollars of loan reductions could be possible and could initiate an ensuing credit crunch. The implications are obvious ,obtaining a loan would become more arduous which would put us closer to a Recession. Being dependant on almost $100 dollar a barrel oil and foreign investment is only adding fuel to the fire. It is very interesting how just several short months ago the US mortgage system was the envy of the world. Now unfortunately it seems the US mortgage system is imploding.

In the early 1980's we were going through another financial crisis. Then as in now, times were becoming very difficult. However one major difference was the fact the Government did not come in and bail out the financial institutions. They were allowed to fail. There was a proverbial wringing of excess. Possibly due to this wringing of excess we enjoyed one of the longest running bull markets. Mr. Bernanke and his colleagues have taken a different approach. They have lowered interest rates.

In life, as different as things seem to be,many times they are similar.What I am referring to was in the late 1980's Japan's stock market was at a parabolic high. Japanese investors were buying up US real estate assets as well as companies. Easy credit and cheap money was flowing like water ( sound familiar to the situation in the US up until recently).

In 1989 the Japanese stock market which hit a high of approx 39,000 started to implode. The financial strength of Japan started to unravel. The Japanese government thought it was prudent to lower interest rates to bail out the lenders. In retrospect it is very clear that this did not work. For the last 15 years Japan has been experiencing virtually an economic disaster. The Japanese stock market has been down for now almost 18 years and sits at less than half of it's former value at 15,154.61.

Zero rates did not lead to economic growth!

What I have learned from all my years of investing is that anything can happen and PRUDENCE is Paramount to Return. I have had this discussion regarding Japan with clients and not one thinks this can happen in America. In 1929 it took 25 years for the Dow to get back to 1929 levels. Regardless of your beliefs and bias on the markets. Have a plan, it is obvious when your investments and trades work but more importantly when they do not work out ,know when to exit according to your plan.

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Investment Tips

Investment Tips give you all you need to know about High Yield Investment Programs (HYIP). Online Investing tips review of the most reliable proven and profitable online investment programs based on online investment info and online investment articles.

Most HYIP disclose little or no detail about real identity and location of their underlying management. They are sometimes presented with some form of an emotional appeal and promises that they will help investors achieve financial freedom. HYIP is a dangerous business for those who are interested in investing in High Yield investments with high returns.

It is common knowledge for anyone that has spent any time on the internet, that the vast majority of online investment programs are outright scams and those that aren't are often run with very poor professional and investment standards.

Investment programs here can merely be define as Foreign Exchange (Forex) Trading, Online Digital Currency Exchanger, Stocks, Option, Index, Betfair or Sport Arbitrage, commodities and other high profit markets.

As many investors may know, Online Investment Programs offered via the internet are mostly end up with losses or scam. Extensive due diligence in credible and worthwhile offshore investment programs is substantially needed prior to invest your monies in. It should be noted that there are major difference between real investment programs and HYIP.

The main characteristics of HYIP are define as follow:
1. High daily rates
2. Compounding system is allowed
3. Low minimum initial deposit (principal as minimum as 1 usd)
4. Long holding periods of principal (usually takes 6 months or 1 year)
5. Referral commission is available

If you willing to play your monies with fun, HYIP can be a money game you are looking for. You should know when to get in and when to get out of the game, since HYIP adopt a ponzi/pyramid scheme which means the new comers pay the old members.

It just a matter of time when this program will collapse (short period in fact, when the number of new comers is less than or even the same as the old members). Hence the chance to get win as an old members is higher than the new comers.

But if you really are a genuine investor you should be wise enough not to have a look at that one. Here are several indications of real investment:
1. Reasonable monthly rate (less than 5%), more than that can be categorized as a high risk investments
2. No compounding
3. High minimum initial deposit (minimum principal is 50, 100, 1000 or sometimes 5000 usd)
4. Short holding periods of your principal (usually takes 1 month to 6 months)
5. No referral commission

Now the question is, if you successfully find an online investment programs that fulfilled all criteria above, are you assured that your monies will be working for you as a clock work without any delay? I would like to point out the difference between an ordinary investor and a smart investor below.

Following my previous statement, here some Investment Tips I would like to share with you in order not to become an ordinary investor but a smart investor. Some good online investment programs indicated by:
1. They give you ID of traders + fund manager, office location and respective phone number.
2. They give you proof of their trading.
3. Due Diligence by third party will be an added value.
4. Usually they become hot topics on many investment blogs and forums.

Few things need to be highlighted once you willing to get in or already inside the investment program in regards to rules changing (terms and conditions) of each investment.
1. Adding minimum deposit
2. Going private
3. Profit rate or principal withdrawal takes a longer time than it should be.

If you aware, these might be a red flag or a true sign that the investment program you are referring to is experienced problems. Get out quickly because you do not know on the next day they will gone with your monies. Several excuses will be provided by them such as:
1. Trading loss
2. Site and payment processor being hacked
3. fraudulently deceived by a single individual who has full control of assets

At my last Investment Tips, I would like to emphasize NEVER ever double you money in one investment program. Takes your monies once their reach 20 – 30% in profit. Put the maximum 50% in profit if you confidence enough with your investment program and move to another venture. Its better to play safe though and hope stay on the right track making money to fully possible extent.

Currently only one online investment program is worth investing in at the moment.
Life Holdings

Have a look at and see what you think. I do not want to encourage or discourage anyone from joining. That is a personal decision that one should make after checking all the facts. Don’t put all of your money in one single investment program. Please invest responsibly at your own risk within your limits. Profits are expected, but there is not explicit guarantee. I will not be liable for any losses since high returns imply inherent high risks. Only invest what you can afford to lose.

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Business Insurance

When you started your business, you probably dreamed of the freedom you would have doing something every day that you love. However, you may find that running a business doing something you love also brought with it other responsibilities, like finding business insurance. When you find the right business insurance for your organization, though, you will see that it brings you more peace of mind than the burden of responsibility.

When it comes to running your business and obtaining business insurance, you have a number of options. Knowing that one type of business insurance does not fit all will enable you to open your mind to finding the right business insurance for your company. Your first step in finding business insurance is to do a quick assessment of your type of business, your financial situation, and the laws in your area. These three things will help you determine what you need your business insurance policy to accomplish.

The first type of business insurance that you may want to consider is business owner coverage. This is an all-encompassing type of business insurance coverage that allows you protection in the case of fire and other accidents. This type of business coverage also offers a minimal amount of liability coverage, too. Also, you have another option in property insurance. This type of business insurance coverage will enhance the property coverage included in your business owner insurance.

An important type of business insurance that you may want to consider is liability insurance. We are in a society where people sue one another on whims, so liability insurance covers any damage to property or injuries to another person for which you may be responsible. Product liability insurance is another type of liability business insurance that protects you if your product causes harm to a person.

If you run a service-based organization, product liability may not be an issue, but errors and liability insurance is an important type of business insurance for your organization. This type of business insurance protects you if you make an error or forget to do something that causes harm to one of your clients. Also, you may want to consider business income insurance, which provides a source of income to you should something happen that causes your business to cease or limit operations. Finally, if any employee operates a vehicle for your business, you will want to purchase business insurance for your automobiles.

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Warrent Buffett Passes Gates as the World's Richest Man ???

Move over, Bill Gates. With a whopping $62 billion in net worth, Warren Buffett is now the world's richest man, according to Forbes magazine. Buffett's wealth increased $10 billion over the past year through February 11, Forbes notes, mostly thanks to gains in shares of his company, Berkshire Hathaway.

Meanwhile, Gates—who had topped the magazine's annual list of global billionaires for the past 13 years—grew his net worth by $2 billion, to $58 billion. The Microsoft chairman fell to third on the list behind Mexican telecommunications mogul Carlos Slim Helú, who has an estimated net worth of $60 billion.

Buffett's is a self-made fortune. As a graduate student at Columbia University in the early 1950s, he studied economics under legendary value investor Benjamin Graham and later went to work for Graham's company. When Graham retired, Buffett went home to Omaha and started his own investment company. He was 25. Seven years later, in 1962, Buffett began buying shares of a textile firm, Berkshire Hathaway. He purchased a controlling stake in 1965. Today, Berkshire's A shares fetch about $137,000 each.

The United States had 469 of the world's 1,125 billionaires, according to Forbes, followed by Russia, which overtook Germany as the No. 2 country with 87 billionaires. (Germany, which held that spot for the past six years, has 59.) Although half the world's top 20 billionaires came from the United States in 2006, only four made the list in 2007: Sheldon Adelson, CEO of Las Vegas Sands, and Larry Ellison, founder and CEO of Oracle, along with Buffett and Gates. India also had four billionaires in the top 10.

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