Investing

Rules of Simple IRA Your Business Needs to Know

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Discipline in Trading and Investing

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The one thing I can think of that most affects both trading and investing has to be self-discipline.
Being disciplined is fully 50% of the job of trading or of investing. I don’t care how good your trading system is, without the discipline needed to follow the system you don’t have much of a chance for success in meeting your goals.
It doesn’t matter how great a planner or organizer you are, without discipline your plans will most likely fail to bear fruit.
Discipline involves self-control, and self-control involves your ego. If you want to succeed, you must learn to trade without your ego getting in the way.
Don’t be fooled. A person’s self image must be separated from his trading or his investing. When personal self-worth gets tangled up with your business activities, it not only wrecks your best trading or investing intentions, but it also damages your self-esteem.
You hear and read about great traders and investors who have done amazing things. They tell about how great they are. They talk about “The Big” trades they made. They talk about “Big” numbers. It all derives from their oversized egos.
Don’t be misled. Sooner or later, there are “Big Downfalls.” It goes with the territory.
For a moment, let’s look at the results of what a huge ego can do. Due to his oversized ego, Nick Leeson brought down the Barings Bank. Victor Niederhoffer ran his fund into deficit. John Merriweather was so sure his strategies would work that he ended up threatening the health of the entire banking system by betting more than fifty times his capital that he could forecast, without any chance of a loss, the direction of various bond markets.
As we study the examples of these three men, there seems to be a pattern of temporary real success followed by a collapse for themselves and for those caught up in blindly following them.
Here are the kinds of problems that arise from putting your ego into the mix.
- Not putting in stops: You don’t want to be proven wrong.
- Hesitation before entry: You want reassurance before you act.
- Overtrading: You want to prove how really big you are.
- Not getting out when you should: You have married your trade and just don’t want to get a divorce. Getting out would mean you were wrong.
- Adding to a losing trade: You are making a massive effort to prove you were originally right.
- Grabbing a profit too soon: You want affirmation that you did the right thing.
- Missing an opportunity because you can’t pull the trigger on a trade: You are still living with past mistakes.
In my 47 years of trading, I have seen great traders and investors come and go. All too many of them lost everything they had ever made. The great W.D. Gann died a pauper. The legendary Jess Livermore was flat broke when he committed suicide.
I have known dozens of traders who lost money because their egos got in the way.
I agree 100% with the following statement by Marty Schwartz, the great S&P 500 daytrader.
“I’ve said it before, and I’m going to say it again, because it cannot be overemphasized – the most important change in my trading career occurred when I learned to DIVORCE MY EGO FROM THE TRADE. Trading is a psychological game. Most people think that they’re playing against the market, but the market doesn’t care. You’re really playing against yourself. You have to stop trying to will things to happen in order to prove that you’re right. Listen only to what the market is telling you now. Forget what you thought it was telling you five minutes ago. The sole objective of trading is not to prove you’re right, but to hear the cash register ring.”
To that I would add, “trade what you see, not what you think.” You cannot afford to get your ego or your opinion involved in your trading activities.
Because both trading and investing are uncertain businesses of probabilities filled with uncertain outcomes, a huge ego or a fragile ego can easily get smashed. Defending your ego saps you of energy, distorts your perception, and will eventually destroy your business.
If your self-esteem is connected to your trading and investing choices, if it goes up and down with the results of your activities, you and your business are in trouble. Your self-image needs to be strong, not at the mercy of the outcome of your trading or investment choices.
To succeed in the markets, you have to have confidence in what you are doing and confidence in yourself. But self-confidence must not become confused with self-image. Remember not to marry a market or a trade. If you see you are not right, be quick to get out. Run your trading or investing as a business. Practice self-discipline. You’ll be glad you did.
All the best in your trading,
Joe Ross
Trading Educators Inc.

http://www.tradingeducators.com/?source=ezinearticles

Joe Ross has been trading for more than 47 years, and is a well known Master Trader. He has survived all the up and downs of the markets because of his adaptable trading style, using a low-risk approach that produces consistent profits.
Joe is the creator of the Ross hook, and has set new standards for low-risk trading with his concept of “The Law of Chartsâ„¢.” Joe was a private trader for most of his life. In the mid 80’s he shift his focus and decided to share his knowledge. After his recovery, he founded Trading Educators in 1988 to teach aspiring traders how to make profits using his trading approach.
He has written 12 major books on trading. All of them have become classics and have been translated into many different languages.
Joe holds a Bachelor of Science degree in Business Administration from the University of California at Los Angeles. He did his Masters work in Computer Sciences at the George Washington University extension in Norfolk, VA.
Joe still tutors, teaches, writes, and trades regularly. Joe is still an active and integral part of Trading Educators.

Trend Following

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Trend following also called momentum trading is the simplest and safest method of stock market investing. It puts you in stocks and mutual funds that are going up and gets you out when they start down. Properly done there is no guess work.
How many times have you bought a stock or fund because of deep analysis? You have gone to Morningstar and bought their extensive reports – many of which are months old, but you don’t know that. Maybe your broker sent you a bushel of pretty reports about how wonderful is this particular company. Unfortunately each time you bought it the stock or fund either did not go up or went down.
Once you are touted about some equity you can be sure you are not the first and you might be the last one who bought at the top of the move. What can you do to avoid this kind of Wall Street trap?
Where can you find a stock or fund that will actually go up after you buy it? One thing I will say is not to try to pick individual stocks. Leave that to the pros. The best place for your money is in a no load mutual fund (that’s no commission) or an ETF, Exchange Traded Fund (a type of mutual fund that trades like a stock). A fund has a professional money manager who should be capable of buying good stocks. He spends his whole life doing this where you have another occupation.
There are many places on the Internet that rank mutual funds by performance such as Yahoo.com, stockcharts.com, barcharts.com and many others. Performance means it is going up more and faster than all other mutual funds. You can also find a listing of funds in Investor’s Business Daily or you could subscribe to a service that does all this for you such as NoLoad FundX. Forget Morningstar and their star ratings which are meaningless.
To determine whether to buy or sell you can use a very simple 200-day moving average and you don’t have to do the computation. Go to www.bigcharts.com and click on their Interactive charts. In the left column you will find a place to type in 200 and then that line will appear with the fund symbol you entered. When the fund is above the line you want to own it. When it is goes below the line you will want to sell it. Yes, it is that simple.
There is no Holy Grail trading method, but trend following comes about as close to it as the average person will find. A trend follower understands there will be occasional losses, but he also knows that when any major trend starts he will be participating for at least 60% to 70% of the profit of the move. He knows when to buy and more importantly when to sell.

Al Thomas’ best selling book, “If It Doesn’t Go
Up, Don’t Buy It!” has helped thousands of
people make money and keep their profits with his
simple 2-step method. Read the first chapter and
receive his market letter at http://www.mutualfundmagic.com
and discover why he’s the man that Wall Street
does not want you to know. Copyright 2005

When It?s Too Late to Save for Retirement

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You are 55 years old (or somewhere around
there) and your company is going to force you to
retire at 65. You have $35,000 saved in your
401K and that’s all. The house will be paid for
by then so you will have a place to live. The
company pension will pay about $1,000/month and
so will Social Security. What will my life style
be like at that time?
Let me give you a clue. You are going to need
just about as much as you are making now even
with the house paid for. If you are lucky you
might have health insurance with your pension,
but don’t count on it. You hope Uncle Sam will
help out. But don’t count on it.
When that savings you have runs out maybe one
of your kids will let you and the misses have
the spare room. Scary, huh! Maybe one kid lives
in Minnesota where you can spend the summer and
the other in Florida where the winters will be
nice. But don’t count on it.
You might get lucky and buy one of those stocks
that skyrocket from $2.00 to $200. Those chances
are 1 in 100 and you don’t have enough money to
be taking chances. But don’t count on it.
Whatever time you have left between now and
retirement you should start managing your assets
to have them grow and compound better than in
the past. If you continue to do what you have
done you are going to have the same results. It
is a choice between cat food and filet mignon.
A better portfolio manager is not the answer.
Saving more will help, but you need to live
today. Having your house paid for is a huge
plus. A second job with all that income going to
savings makes sense – if you can do it.
One of the better solutions is starting a
business you can run from home. The Internet has
many offers. My caveat here is never send anyone
upfront money. It takes the Avon lady 3 to 5
years before she makes any money. There are many
legitimate small businesses like this that can
provide a second income, but you must invest
both time and effort and be persistent. You must
work it every day.
Don’t choose any business that requires a
substantial capital investment. If you have a
friend or relative that has a home-based
business you will want to spend time with him.
Even if you don’t use that vehicle you can learn
plenty from that person.
You local library has hundreds of books devoted
to helping folks start a business. The Internet
is a great source. Take time to investigate and
don’t take anyone’s word for their
pie-in-the-sky story. Always get references and
carefully check them. You want to talk to
someone who recently started in that business
about 6 months ago, another about a year before
and a third about 2 years prior. Maybe several
of each. Once you make the commitment you must
hit the ground running and don’t stop. Either it
will work in a few months or it won’t. Hard work
is the only way you will find out.
It is not too late provided you start NOW.

Al Thomas’ best selling book, “If It Doesn’t Go
Up, Don’t Buy It!” has helped thousands of
people make money and keep their profits with his
simple 2-step method. Read the first chapter and
receive his market letter at http://www.mutualfundmagic.com
and discover why he’s the man that Wall Street
does not want you to know. Copyright 2005

Learn To Be Wisely Frugal But Selectively Extravagant!

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Have you ever wondered why so many solid businessman drive
cruddy, old cars from a dingy, run down offices to their
palatial homes in the suburbs? Warren Buffet, perhaps the
greatest investor alive is known for this. The reason they live
this life style is not because they are cheap misers but because
they have a high level of financial intelligence that you can
develop as well.
They understand that if they have $90,000.00 that they could
either put that money into 1. reducing their debt 2. invest it
into the stock market 3. selective home improvements 4. improve
the appearance of their business facilities (I am assuming that
this doesn’t have an appreciable impact on their profitability
and believe me it almost never does despite excuse mangers make
to blow money) 5. buy a new Mercedes Benz for themselves 6. buy
their children a new car.
The first two choices increase your net worth (equity) which is
always a good thing and equity is not taxed. The third choice
increases your enjoyment (utility) of your home. If you remodel
your kitchen or bath appropriately you may also increase your
equity. So if you have spare cash in excess of your debts and a
solid investment, savings plan than this can be a good choice as
well.
The fourth and fifth choices are TOTAL wastes of money because
your business sits there for you to suck money out of and
nothing else. A car loses a quarter of its value the moment it
is driven off of the lot and then continues its downward slide
to nothing. Depreciating assets are not investments they are
financially undesirable necessities if you can’t walk everywhere
you need to go. An automobile is a financially undesirable
necessity, nothing more, nothing, less.
The very last choice is the worst possible use of your money.
Not only do you waste your money but you also teach and
reinforce financial mismanagement in the minds of your
offspring. Your children learn that they do not have to work for
anything they want. Worse still they will mentally assign a
value to the automobile relative to the amount of effort it took
for them to acquire it and that is zero.
In Steven Silbiger’s book “The Jewish Phenomenon” he describes
in other ways why this concept of being prudently frugal yet
selectively extravagant is a major key to the extraordinary
wealth of the Jewish ethnicity. He shows clearly how Jewish
families use this wisdom to convert their income into lasting
wealth. Don’t forget that this wisdom is not restricted to Jews
and in fact is the underlying lying cause of financial stability
in high income families of low income ethnicity. The most
enduring wealth of course is a debt free life style with
adequate passive income and the knowledge to recoup it all if
lost.
Dr. Scott Brown a.k.a. “The Wallet Doctor” holds a Ph.D. in
finance from the University of South Carolina and is a professor
of finance at the University of Puerto Rico. Dr. Brown 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/

Trading Psychology – Consecutive Loses AND The Trading Psychology Spiral

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You go long and the market immediately goes down – you go short
and the market immediately goes up. That’s 2 consecutive losses,
and you are getting a little ‘anxious’ so you don’t take the
‘next’ trade. Of course, this trade is a winner. Now to make the
situation worse, you then ‘chase’ the move, and as soon as you
enter the trade it immediately reverses, thus giving you another
loss – this is now 3 in a row. Ok one more ‘try’ – this can’t
happen on every trade can it?
This time though, you will be real clever. You have noticed that
the market is in a range, and it’s the bounce from the
low/retrace from the high that is causing all the problems. So
this time, the next trade you take will be a range extreme fade
AND the hell with your trading method. The market is at the
range low, and per your new ‘on the fly’ trading plan, you go
long. Instead of bouncing again, the range immediately breaks
out to the downside. Not only does this give you consecutive
loser 4, but the loss occurred from trading against one of your
‘best’ method trade setups, and becomes a trade which is giving
enough profit to pay for the previous 3 losers, and make you net
ahead.
Now what are you supposed to do – QUIT? AND to be sure that
there is no more temptation – your throw your computer out the
window, and dive out right behind it. You are in a trading
psychology spiral.
WHAT is a Trading Psychology Spiral?
I think of a trading psychology spiral as the transition from
trading losses that you have accepted both as a part of your
trading method, and as something that is inevitable in trading,
into a surge of emotions that continually builds to a point
where you can no longer accept anything. As this eventually
’spirals’ out of control – trading method becomes completely
ignored, and is then replaced by emotional responses and
decisions for everything that is done. Even if quitting was
really the only viable thing to do at the time, the trading
psychology spiral can cause an emotional response where this
isn’t even considered, until the situation becomes so desperate,
that the trader can’t take it any longer AND does have to quit.
This isn’t a discussion about emotions and trading, and the
various fears and issues that keeps a trader from trading to
begin with; as we know, emotions are an inherent part of trading
- you learn to control them OR you can’t trade. This is a
discussion about emotions that are typically controlled well
enough so that you ‘can’ trade, but then something happens where
the trader loses that control, and their emotions spiral. A
series of consecutive losing trades, especially those caused by
deviating from the trading plan, are a root cause for this
happening.
This also isn’t about something that happens only to
inexperienced and unprofitable traders. There are going to be
those times where nothing a trader does will work, and that
result is going to be a series of consecutive losers. So the
situation is the same, it’s the reaction that may be different.
For instance, traderA may go into a panic causing them to spiral
out of control, losing all self-confidence and self-trust, and
ultimately more money than was intended. On the other hand,
traderB may go into a period of revenge trading, coupled with an
increase of their trading size, as they are ’sure’ that each
next trade is going to bring them back to even. Also, a spiral
out of control, and the losses continue – AND also a loss of
more money than was intended. WHAT does traderC do?
Controlling The Trading Psychology Spiral
Consider: each time a tpsych spiral occurs AND you go out of
control – the quicker the next spiral is going to occur, and the
faster you will go out of control when it happens. This is going
to continue, until trading becomes too painful, and you will not
be willing to trade any longer.
Consider: it is better to work through the emotions instead of
quitting. Quitting is too easy, and this provides no solution or
aid in preventing this from coming back and intensifying each
time you have a rough period. As well, you have lost the ability
to ‘count’ on yourself when you need to do so the most. To
control a tpsych spiral, before you go out of control, is a
tremendous win in and of itself. Do this, and get your trading
back on track, and you will have made gains the value of which
you can’t imagine, as you will know that you may have losing
periods BUT you can trust yourself to remain in control, and not
magnify the damage.
In light of this, take what you believe to be your key trading
issues, write them on an index card, and stick them on to your
monitor. The objective is realization and awareness, thus making
these issues available to your conscious as a reminder, instead
of only available to your subconscious as a problem. As you make
your notes BE SURE that you are writing short non-judgmental
notes – DON’T let the ’solution’ make the ‘problem’ worse.
For instance, consider the combination of a build of emotions
coming from consecutive losses which are also occurring during
congestion – write notes similar to these on your card:
a build in emotions may come from a series of quick consecutive
losses quick consecutive losses often come from trading inside
of congestion are your losses ‘base’ congestion method trades OR
are you overtrading there is nothing wrong with ‘base’ method
trade loses your trading results are fine when you ‘base’ method
trade
Now consider the same situation BUT different notes:
don’t be a stupid idiot and overtrade congestion like you always
do you are going to lose your ass and end up with another losing
day like usual you do this same crap every day and the same
thing happens you have no reason to even trade if this is all
that you are going to do
Remain Neutral
Remain neutral – another note for your index cards.
Another approach may be to write notes that include the things
you can remember yourself doing or feeling as you transition
from acceptable emotion to tpsych spiraling, for instance:
shortness of breath – sweating – squirming in your chair -
unable to sit down. AND as the spiraling becomes more intense:
cussing – screaming – throwing things – breaking things. UNTIL
the spiraling is out of control: panic – desperation. Clearly,
there is a whole list of physical responses to uncomfortable
emotional situations; realizing them as they occur may be a step
in controlling them before they ‘take-over’ and lead to
spiraling.
Be Aware
I want to know the potential for the spiraling situation. It is
VERY important to acknowledge that you have emotions, and not
try to ignore them or hide from them as a solution to the
problem OR because you perceive them to be a sign of weakness.
This actually will just make the situation worse. You are human
- humans have emotions – emotions become more intense in more
difficult situations. So, I don’t need to know how I am going to
have responded as I go out of control. I do need to know, and
have something to remember, and/or think about, that can keep
this from happening – that can keep me as neutral as possible,
in what would be the more difficult trading periods – something
that will ‘push’ me back to tmethod AND ‘away’ from tpsych.
WHAT does traderC do?
traderC is the trader who remains the most neutral in winning
and losing; the most neutral in all situations. It’s this
neutrality that becomes essential in keeping the emotions from
becoming a trading psychology spiral, as the trader can
‘accurately’ evaluate their losses in terms of method. This
trader will only trade their most ‘base’ method setups after any
difficult period AND IF these lose, so be it, that possibility
has already been accepted. Go on to the next method trade – it
probably will be a winner.

HYIP Guide

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HYIPs, or High Yield Investment Programs, skyrocketed in
popularity with the advent of e-currencies, such as StormPay,
e-gold and the like. A significant reason behind such immense
popularity is the fact that HYIP organizations offer enticing
interest rates of around 1% per day or even more. It is evident
that, on an annual basis, the yield far exceeds even the most
generous of schemes in the financial markets. Furthermore, it’s
easy to get the gist of HYIPs, and they allow investors to
invest even a scanty amount upfront.
However, the unusually high yield is a telltale sign that the
scheme does have associated risks. In general, as far as
investment is concerned, high yield involves high risk.
Therefore, a HYIP can be either a lucrative investment option or
an outright scam orchestrated by a bunch of swindlers. Several
phony HYIP schemes make use of the ponzi or pyramid structure.
In such a scenario, new entrants provide the cash to pay
existing members. Such fake schemes are bound to fall apart
eventually, when there is a dearth of new investors. Thus it is
imperative that you distinguish between scams and authentic High
Yield Investment Programs.
All HYIPs are not out and out scams. Many legitimate HYIPs offer
great returns on even the most diminutive investment. HYIPs are
all about astute investment. That is, you must possess an
uncanny knack of good judgment. This would enable you to pull
out early if the situation gets a bit wobbly, and you presume
that the HYIP is likely to fall apart. Nevertheless, as long as
you keep getting a decent amount of referrals, the HYIP would
typically continue to pay the promised returns.
There are a few guidelines that you may follow when investing in
HYIPs. This would ensure that you don’t fall prey to a fake HYIP
scam:-
a) Some investors go flat-out and invest a great deal in a
particular HYIP. Investing too much too early is not advisable.
b) As such, HYIPs are met with skepticism. It is imperative that
you test the withdraw function as soon as possible. This would
help build trust in the particular HYIP, and then you could go
on investing sizeable amounts for a longer duration. c) A
telltale sign of a fake HYIP is when you are unable to attain
even your initial investment amount within a reasonable
timeframe. d) Don’t get greedy and invest scads of money in a
particular HYIP. Instead, divide your investment funds in an
astute fashion, and apply them towards different HYIPs. This
would help protect you from bankruptcy, even if one of your
HYIPs falls apart. e) There is no point saving up for that one
big withdrawal. It is recommended that you carry out investments
with intermittent withdrawals. f) You must track your returns
with discretion. Handling investments in an imprudent fashion
could leave you in a hole. In a gist, HYIPs can be a viable and
lucrative investment opportunity. However, it is imperative that
you carry out a comprehensive research as to which HYIP to go
for.

Buy to Let Mortgage Tips from the Professionals!

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Buy to Let investment can yield a significant profit if
undertaken in the right way at the right time and this is one of
the reasons that Buy to Let investment has become increasingly
popular in recent years. Low interest rates have made Buy to Let
mortgages more affordable, and rental income has seemed more
attractive than possible earnings on other investments. If you
are thinking of investing in Buy to Let then why not have a look
at some of our Buy to Let tips found below. Buy to Let Mortgage
Tips
*The Application – One of the main differences you will come
across when applying for a Buy to Let mortgage is that the
mortgage lender will take into account the rental income you
will receive as a result of the letting as well as your normal
income. Some lenders will consider the rent money on its own
whilst others will consider both the rental money and your
salary. *Interest Rates – A Buy to Let mortgage may be more
expensive than a standard mortgage. Generally Buy to Let
mortgage rates have decreased as the amount of Buy to Let
mortgages on the market have increased but on the whole the Buy
to Let mortgage rates are still higher than the standard
mortgage. *Deposit – Generally the amount of money required for
the deposit on a Buy to Let mortgage is higher than with a
standard residential one. On the whole the lenders will require
a minimum of a 15% deposit. It is also worth noting that the
more deposit you put down, the more competitive the proposed Buy
to Let mortgage deal will be. *Rental Income – Many buy to Let
mortgage lenders require that the projected rental income
exceeds the mortgage payment by a minimum of 125%. This amount
can sometimes go up as high as 150%. *Equity – If you already
have a mortgage on the property that you are living in, and are
considering taking out a Buy to Let mortgage on another property
then it is worth bearing in mind that you may be able to free up
some of the equity in your home to put down as a deposit on the
property you are planning to let. It could be worth raising this
with the mortgage broker you visit. *Profit – The biggest tip we
can give you on how to ensure that you make the profit you
require on your Buy to Let property is to regard the Buy to Let
adventure as a long-term investment. If you are looking to make
a quick buck then the Buy to Let market is not the one for you.
*Tax Relief – Although there is no direct tax relief on a Buy to
Let mortgage, you can offset interest payments on your mortgage
against tax on rental income, along with other expenses such as
agents’ fees and maintenance costs.

Holy Grail of the Capital Markets

Somalia Calling Cards
HOLY GRAIL OF THE CAPITAL MARKETS
Introduction
Ever since I have retired at the age of 28 (You can too! Learn
how from my Free Reports at
http://www.mastersoequity.com/MOE_FREE_REPORT.htm ), I have been
doing a lot of thinking into these “Tough Cases” of the
investment world. What I present today hopes to unveil the most
mysterious of them all, the Holy Grail of The Capital Markets
and I will be giving you my argument as to why it truly exists
and to help you find your personal Holy Grail of Trading and
Investments by the time you finish reading this report.
So let’s go treasure hunting…
The Fabled HOLY GRAIL…
We have heard it a thousand times; investors and trader, young
and old have sought it for hundreds of years and countless more
are attempting to create it everyday. It is the fabled, urban
legend of the investment world… the Holy Grail of the Capital
Markets; A trading or investment system or strategy that will
never fail.
Some believe in it, others don’t and many maintained that such a
strategy or system doesn’t exist or simply impossible. Many have
claimed to have perfected such a system but when tried by people
other then themselves, it fell from Holy Grail to torn, leaking
paper cup.
The Wrong Perception
There was once a warrior near the end of the dark ages whom
heard of the power of a new weapon… a weapon that can kill
from ten paces away and can penetrate almost any known amour at
that time… a GUN. It was supposed to be an invincible weapon
and he spent everything he had in order to acquire one of these
weapons. Once he had that weapon, he wasted no time to duel the
most powerful warrior known in that land. He fired many shots
but missed and his life was taken under the blade of the veteran
warrior.
Like the gun, we expect that the Holy Grail strategy to be
invincible at all times. We imagine that we will never again
lose money once we acquire that knowledge. We can’t be more
wrong. The question really is, are we suitable for this
invincible weapon?
The Truth Behind The Holy Grail
We all think of the Holy Grail as a strategy that can’t fail.
However, we completely ignore the Human Factor! Study all the
famous battles of any and all ages and we will see that many of
the battles were lost not because of the strategy used but
BECAUSE THEY ARE BADLY EXECUTED. Most of these strategies are
good until screwed up by us… HUMAN!
You are right. We, human, make and break every Holy Grail that
ever existed. We are the “Stand” or the Base of the “Cup”.
Yes, we COMPLETE the Holy Grail through the effectiveness of our
execution. We are truly the stand that completes the strategy
and therefore we must all make sure we are the right stand for
the right cup!
I am sure this sounds like you as much as it was me some time
ago… You purchased strategies that claimed to work wonders but
no matter how hard you try, you bend some of its rules and end
up hurt. That’s your prove that matching your psyche with the
right strategy is so important. (Here is a free to download
psychometric test to see what kind of trader you are and what
kind of strategy you are suited for. Go now to
http://www.mastersoequity.com/MOE_FREE_REPORT.htm )
You tried to stick to the rules, didn’t you? But what did you do
when your portfolio starts going into the red and the rules says
“STOP OUT NOW, AT THIS POINT!”? That is why we need to
understand what kind of stand we are BEFORE trying to understand
the cup and eventually the market!
What Cup to What Stand?
Now that you have found your stand, it is time now to find the
right cup to complete your personal Holy Grail. Unfortunately,
not all strategies are worth the title “Holy Grail”. Many of
these strategies are fundamentally unsound or that they have not
been molded in the flames of real life trading. Therefore, a
worthy cup to complete your personal Holy Grail needs to be:
1) Tested and True in real life trading with proven track record
2) Fundamentally sound 3) Logically sound 4) Tested and
developed in your market of interest!
That last point got some of you baffled didn’t it?
Yes, if you want to trade the US markets, your strategy needs to
be developed and proven in the US markets and if you want to
trade Asian equities, your strategy needs to be developed and
proven in the Asian markets. Why is this so? Due to fundamental
differences between the markets such as liquidity, investor
sentiments and behavior, level of participation of institutional
players and investor sophistication. Most strategies need to be
optimized for the market it was developed for and therefore
using it in other markets may result in a terrible loss due to
different price behaviors that results in making your profit or
loss taking point obsolete.
So why do I trade only the US markets? I trade the US markets
due to the fact that it has the highest level of sophistication
and its investors execute strategies which are little known in
other markets. This makes sure that whatever you try to do in
this market, It has the LIQUIDITY to ensure your profitability!
It is akin to a huge departmental store whereas some other
markets are small grocery stores at best.
And hey, we all know that there are more promotional and good
value items in a department store than most grocery stores can
afford to give, don’t we?
Convinced why the US markets are our best choice yet? … Good.
Where to Find YOUR Cup?
While there are a lot of good strategies out there, I wish to
recommend that you go to
www.mastersoequity.com/MOE_startradingsystem.htm (for aggressive
traders) or www.mastersoequity.com/MOE_ridetheflow.htm (for long
term traders). Both of these strategies are:
1) Tested and True with proven track records 2) Fundamentally
sound 3) Logically sound and 4) Developed and tested in the US
Markets!
CONGRATULATIONS, you have now in your possession, your personal
Holy Grail of trading and investments!

Easily Finding A Good Stock

Solomon Isl. Calling Cards
There is a tremendous amount of software,
complicated high priced newsletters, radio and
TV stock pickers and Internet web sites that
will help you find a stock that is going to make
you rich.
The problem is you don’t know if this is talk
or are these gurus putting their own money where
their mouth is. Until I know for sure this
“expert” has his own cash on the line I don’t
want to buy it. If he doesn’t have confidence in
his own picks than why should I put my money at
risk?
Wall Street wants you to do research. Find out
everything you can about a company before you
buy their shares. Your broker will send you tons
of information on full color click paper, pink
sheets, blue sheets, yellow sheets and more.
Morningstar will be very happy to sell you a
complete report.
One important fact is that if you and everyone
else can have this information then it can’t be
worthwhile because once a bit of news is known
it is immediately factored into the price of the
stock. That is why research is worthless. What
you want to know is if you buy it will it go up.
Obviously there are no guarantees.
Furthermore, do you have the time to pour over
hundreds of pages of scores of companies to find
one that will go up? If you follow those “hot
stock” tipsters that send email every day you
are sure to lose your money. Surely someone
should know something, but how do you find that
person. Here is the secret.
On the Internet you can find many sites that
rate mutual funds by performance. Performance
means those that are making more money during
the last one month or 3 months than all the
others.
Be careful of those who advertise the “Top 25
Mutual Funds”. It may not mean by performance.
It might be those that have the most assets and
that doesn’t mean squat. Size is not a criteria
of quality.
There is one advisory service that will sell
you a monthly list of best performing mutual
funds and has them listed by 1, 3, 6 and 12
month performance. It is NoLoad FundX. A free
subscription can be had to Successful Investing
that tracks the best funds weekly at

http://www.successful-investment.com/StatSheet/SS012005.htm

on the Internet.
Now that you have found the best performing
funds you can easily see what stocks they have
in their portfolio either by requesting a
prospectus or by checking online at Market Watch
web site

http://www2.marketwatch.com/tools/quotes/intchart.asp?seiteid=mktw.

Type in the symbol for the best performing fund
and you will be able to locate the stocks they
own. Looking through their top picks you will
soon be able to find a few stocks that are
going up now. Do this with several funds and you
will have good equities from which to choose.
What you have done is pick the brain of the
manager of the currently best performing fund to
find stocks on which he has done all the
research.
Here is a free method of easily finding good stocks.

Al Thomas’ best selling book, “If It Doesn’t Go
Up, Don’t Buy It!” has helped thousands of
people make money and keep their profits with his
simple 2-step method. Read the first chapter and
receive his market letter at http://www.mutualfundmagic.com
and discover why he’s the man that Wall Street
does not want you to know. Copyright 2005