Financial and business risk is inevitable because there is danger in everything you do, including - doing nothing - and above.
There is market risk - the risk that adverse market movements will cause you to lose money.
There is opportunity cost risk - the risk that you let a great opportunity pass you by.
There is interest rate risk - the risk that you will try to be by investing for income only to see interest rates much higher "conservative" while locked in at a much lower rate.
There is inflation risk - the risk that your investments will lose value over time due to the loss of purchasing power.
There are things - the risk that you will lose money in a company.
So choose your poison. Choose the type of risk you because you can not avoid preferred.
To make money, you have to be a little worried. Because if you do not worry, you're not risking enough. Adventure is part of what makes life worth living. So do not be afraid to take risks. In fact, if you want to get rich taking calculated risks is essential.
Do not invest in a way that makes you feel comfortable. If you play a meaningful commitment you are going to be worried. Someone said that concern is the hot sauce and cake of life. Once you get used to it, you can actually enjoy. If you do not at least a little worried, you're probably not risking enough.
Of course, playing a meaningful commitment does not mean you should ignore reckless and sound money management principles. It simply means that it is difficult to be a successful investor if you are making small bets to sleep better at night. You have to risk enough to be meaningful, but you also need to keep if you want to stay in the game your capital.
And not to diversify - the kind of diversification that is recommended by many financial planners say to put a little money here and a little there, and a little something else, until you spread out all over the place. You may not have much to lose, but you're not going to be a successful investor, either. More than diversification also means that it is difficult to get rich. In bonds, CDs and other fixed-income investments
Conventional wisdom says to put all your eggs in one basket. But my experience is that really successful people do the opposite - they put all their eggs in one basket and watch that basket like a hawk.
So to achieve financial freedom to take risks. Make it meaningful - meaningful enough that you might have a little worried. But you will live life to the fullest. And, who knows, you may end up being very successful.
And, above all, enjoy the journey.
Copyright 2005
Friday, 30 May 2014
Thursday, 15 May 2014
The Commitments of Traders Report - How To Profit From Legal Inside Information
The commitments of Traders Report (COT) is a weekly government report, which is very valuable to know what the "smart money" is doing in various futures markets. There is a report for each futures market. Although COT reports are there for years, the average investor not only do not know how to use it, but do not even know it exists.
How the COT report
Here's what happens - the government, in particular the Commodity Futures Trading Commission (CFTC), requires all those contracts above a certain limit to report to their positions in the possession of a number of futures. For example, the limit for the S & P futures are currently 1,000 contracts. So only need to register. The really big players But they keep 70% to 90% of all outstanding contracts.
The report was released on Friday (except holidays) based on data from the previous Tuesday. So that the information is released three days after the fact. That's OK, because it's time enough valuable.
The column headings at the top of the report will be labeled NON-COMMERCIAL, COMMERCIAL, and NONREPORTABLE POSITIONS.
When an account is reported to the CFTC as holding positions above the specified reporting level number of contracts, the CFTC determines whether the account is a commercial hedger or large speculator.
Commercial - The CFTC classifies a futures account that the reporting level as a "commercial" if that account holder files a statement of the Commission says that it is commercially involved in activities covered by the use of futures markets requirements. They are the ones we are most interested in. For example, the commercial traders of S & P futures are the largest institutional players such as banks, pension funds, mutual funds, hedge funds and trading arms of Wall Street firms.
Noncommercial - These are classified as non-commercial "big speculators." They do not concern themselves with the resources as a part of doing business. An example of a large speculative bill would be a great resource pool (a fund) that trades futures for speculative profit. Managed futures accounts have become the billions of dollars and if they meet the reporting levels, their positions would be reported to the CFTC for monitoring.
Nonreportable positions - all traders, speculative and commercial, which are smaller than the reporting level positions are considered to be the "small speculation." In other words, they are all participating in the futures -. "Little boys" the proverbial
The three players
To know how to use the COT data is important to have a look at the three types of players that focus of the report to take - the commercial trader, the great speculator, and the small speculator. We want to know what each of them drives.
Commercial traders dominate the market. That fact is not really a surprise to anyone given the nature of those commercials are to be. For example, in the S & P futures market they are banks, pension funds, mutual funds, Wall Street brokerage houses and the like. They have large research departments and have inside information that is simply not available to the average investor in a timely manner.
They also dominate because of their enormous size. They are so big that they actually become the market. So that commercial traders are the ones we are most interested, we want to try to determine what they do and shadowing. History has shown that the commercial operators in most futures markets, for that matter as a great part of the time. And when they are wrong, they are rarely wrong for very long. They will eventually end up on the right side of the market, whether it is on the upward or downward.
The large speculators tend to trend followers. After the market has established a trend up or down, they will go the direction of the trend. It is interesting to know what they are doing in the market, but it should not be critical to your decision.
The small speculators are usually on the wrong side of the market. In fact, it is estimated that 90% of small traders lose money in the futures markets. They tend to serve as "cannon fodder" for the large commercial traders. After all, the "smart money" to someone on the other side of their profession to take it. The small speculator is usually willing to accept that role. Consider the Harlem Globetrotters vs. the Washington Generals. The commercials are the Globetrotters. The small speculators are the generals - the scapegoats who are bound to lose.
The commercial traders to follow ones. They are the smart money. When they have an extremely long or short position in relation to their positions in the past, it is a reliable indicator of market direction.
How the COT report
Here's what happens - the government, in particular the Commodity Futures Trading Commission (CFTC), requires all those contracts above a certain limit to report to their positions in the possession of a number of futures. For example, the limit for the S & P futures are currently 1,000 contracts. So only need to register. The really big players But they keep 70% to 90% of all outstanding contracts.
The report was released on Friday (except holidays) based on data from the previous Tuesday. So that the information is released three days after the fact. That's OK, because it's time enough valuable.
The column headings at the top of the report will be labeled NON-COMMERCIAL, COMMERCIAL, and NONREPORTABLE POSITIONS.
When an account is reported to the CFTC as holding positions above the specified reporting level number of contracts, the CFTC determines whether the account is a commercial hedger or large speculator.
Commercial - The CFTC classifies a futures account that the reporting level as a "commercial" if that account holder files a statement of the Commission says that it is commercially involved in activities covered by the use of futures markets requirements. They are the ones we are most interested in. For example, the commercial traders of S & P futures are the largest institutional players such as banks, pension funds, mutual funds, hedge funds and trading arms of Wall Street firms.
Noncommercial - These are classified as non-commercial "big speculators." They do not concern themselves with the resources as a part of doing business. An example of a large speculative bill would be a great resource pool (a fund) that trades futures for speculative profit. Managed futures accounts have become the billions of dollars and if they meet the reporting levels, their positions would be reported to the CFTC for monitoring.
Nonreportable positions - all traders, speculative and commercial, which are smaller than the reporting level positions are considered to be the "small speculation." In other words, they are all participating in the futures -. "Little boys" the proverbial
The three players
To know how to use the COT data is important to have a look at the three types of players that focus of the report to take - the commercial trader, the great speculator, and the small speculator. We want to know what each of them drives.
Commercial traders dominate the market. That fact is not really a surprise to anyone given the nature of those commercials are to be. For example, in the S & P futures market they are banks, pension funds, mutual funds, Wall Street brokerage houses and the like. They have large research departments and have inside information that is simply not available to the average investor in a timely manner.
They also dominate because of their enormous size. They are so big that they actually become the market. So that commercial traders are the ones we are most interested, we want to try to determine what they do and shadowing. History has shown that the commercial operators in most futures markets, for that matter as a great part of the time. And when they are wrong, they are rarely wrong for very long. They will eventually end up on the right side of the market, whether it is on the upward or downward.
The large speculators tend to trend followers. After the market has established a trend up or down, they will go the direction of the trend. It is interesting to know what they are doing in the market, but it should not be critical to your decision.
The small speculators are usually on the wrong side of the market. In fact, it is estimated that 90% of small traders lose money in the futures markets. They tend to serve as "cannon fodder" for the large commercial traders. After all, the "smart money" to someone on the other side of their profession to take it. The small speculator is usually willing to accept that role. Consider the Harlem Globetrotters vs. the Washington Generals. The commercials are the Globetrotters. The small speculators are the generals - the scapegoats who are bound to lose.
The commercial traders to follow ones. They are the smart money. When they have an extremely long or short position in relation to their positions in the past, it is a reliable indicator of market direction.
Wednesday, 30 April 2014
Glittering Gold - A Rare Opportunity
The price of gold is higher than it is in the 17 years. And it is likely to go much higher. Why?
There is a very interesting article in the October 10, 2005 edition of the New York Times. The article is actually about how gold mining companies are harming the environment. But, as an investor, here are some important points that I consider important for the gold market ...
The amount of gold still to be mined is very small and it comes from the poorest countries in the world. 70% of the gold mined in now in poor countries.
To get to make a ring, an ounce of gold miners to dig and haul away 30 tons of rock and sprinkle it with diluted cyanide.
According to the Environmental Protection Agency, the cost of cleaning up metal mines reach 54000000000 $.
According to the World Gold Council, jewelry sales rose to a record $ 38000000000 last year.
Only in the last year, gold sales are up 11% in China and a whopping 47% in India, a country with nearly one billion people who are huge gold consumer.
The United States is the second leading consumer of gold (second to India). The U.S. government has 8134 tonnes of gold in reserves. The Federal Reserve and other major central banks have an agreement for the sale of their reserves severely restricted. This will serve to support. The price of gold
Even experienced investors have a renewed interest in gold as a hedge against inflation and a falling dollar.
So we have a classic supply / demand imbalance that will last for years. The long-term fundamentals are very favorable for gold investments.
Larry Holmes invites you to Your common sense guide to financial and investment success. Visit
There is a very interesting article in the October 10, 2005 edition of the New York Times. The article is actually about how gold mining companies are harming the environment. But, as an investor, here are some important points that I consider important for the gold market ...
The amount of gold still to be mined is very small and it comes from the poorest countries in the world. 70% of the gold mined in now in poor countries.
To get to make a ring, an ounce of gold miners to dig and haul away 30 tons of rock and sprinkle it with diluted cyanide.
According to the Environmental Protection Agency, the cost of cleaning up metal mines reach 54000000000 $.
According to the World Gold Council, jewelry sales rose to a record $ 38000000000 last year.
Only in the last year, gold sales are up 11% in China and a whopping 47% in India, a country with nearly one billion people who are huge gold consumer.
The United States is the second leading consumer of gold (second to India). The U.S. government has 8134 tonnes of gold in reserves. The Federal Reserve and other major central banks have an agreement for the sale of their reserves severely restricted. This will serve to support. The price of gold
Even experienced investors have a renewed interest in gold as a hedge against inflation and a falling dollar.
So we have a classic supply / demand imbalance that will last for years. The long-term fundamentals are very favorable for gold investments.
Larry Holmes invites you to Your common sense guide to financial and investment success. Visit
Tuesday, 15 April 2014
Shorting ETF's, the Little Guy Gets the Shaft - Again
I am shocked to discover all that the rapid spread of the new Exchange Traded Funds has resulted in private investors are routinely their right to benefit from short opportunities promoted by sponsors, underwriters, exchanges and brokerage firms denied.
Since their inception in 1993, ETFs were advertised as available for short, many without the burden of uptick rules or the need to riskier strategies such as options, futures, use. With a lever However, given the average retail investors of the shaft, while institutional investors and brokers trading desks do easily.
This is a flammable and potentially scandalous situation. Since the mutual fund trading scandal rocked Wall Street in 2003, ETFs have become the preferred alternative to conventional mutual funds. This has led to an explosion of ETF issuance. At the same time the demand for short, most market sectors either rising or trading ranges thus less clear. At some point, this may change market position. Investors to strategically hedge their portfolios or speculate popular ETFs may find difficult, if not impossible, to short.
"No Stock Available" for Short ETF Trades?
Like so many other investors, for a long period, we just followed the main ETFs - the QQQQ, SPY, and IWM - and highly liquid short-circuit these funds was both easy and routine.
We of the ETF Digest invoked representations of all promoters that all ETFs were short bootable. Some time ago we published our first short recommendation for each ETF in a long time - TLT (the Lehman 20 + year Treasury Bond ETF). Although I was able to be implemented by means my broker, subscriber feedback indicates that a significant number of them were not able to make this transaction. This transaction These persons were engaged in a wide range of well-known online brokers, and were routinely told that there is "no TLT stock available" for short.
This was a shock! TLT were on average about one million shares in daily trading. How could a TLT million shares traded daily without stock are available?
Upon further investigation, knowledgeable insiders explained that a large part of the volume we were seeing was of shares institutionally traded or, more likely, from stock held by the proprietary trading desks of major brokerage firms - in other words, "phantom volume." That is why private investors were deprived of the opportunities enjoyed by shorting a handful of brokers and institutions.
Upon further investigation, it was pointed out that many new ETFs may not be short-circuited by a lack of forward contracts which specialized companies can offset risk. But surely this was not the case for TLT, an adequate and readily available Treasury bond futures contracts.
What's the problem here?
It is true that time zone differences for some single-country funds that trade in the U.S. can make it more difficult for specialists to manage, despite adequate apparent volume risks. But as specialized companies and brokers want private investors to meet, they are always able to create synthetic offsetting positions with other brokers -. 'If they want "the operative sense
Moreover, other feedback suggests that brokers may prefer not to short for their retail clients, because they can be called as the "risk" going short sales wrong. This is nonsense! Many of these same companies are option strategies for the same customers they have a short position refused orders. And, unleveraged short circuit is arguably less risky than many option strategies.
Cynical, sponsors this issue major new 50-110K blocks share benefit from additional fee income through the new issue. Short circuit for retailers is to deal with existing shares simply means that there is no increase in commission income and no incentive.
Most of the explanations offered for ETF shorting problems distract attention from the core retail edition: institutions and brokerage trading desks get preferential treatment at the expense of retail investors.
We also see a number of other related problems:
ETF sponsors and exchanges have been sloppy in their presentation of new ETFs. It seems that they just "cut and pasted" the short benefit function language from older established for new ETFs. They can not even aware that their new products benefit non-professional clients, as promoted.
The hasty creation of new ETFs, especially those not linked to a known or listed index, presents further difficulties. Without hedge, a matched-index specialists are even less likely to run short trades for customers.
The "phantom volume" exhibited by TLT also exist for other popular ETFs such as EEM (Emerging Markets ETF, EFA (Europe / Asia Far East ETF, IYR (REIT ETF), and much more. Taking advantages for the "big boys "while shutting out" the little guy "are the conditions that understandably turn private investors away from the markets.
Bureaucratic laziness exists when brokers and specialized firms encounter unmet retail customer needs. Back Offices and specialists lack initiative when it comes to serving individual, low-volume investors.
We believe ETF sponsors, exchanges, insurers and brokers have not adequately thought through the process to complete the creation of new ETFs.
Solution
Shorting opportunities are identified as a major product advantage in all promotional literature ETFs. Exchanges, brokers, insurers and sponsors can and should work together to deliver as promoted these opportunities.
To address this problem release "inverse" ETFs (those that move in the opposite direction of an index) would solve all pleasure. Insiders would benefit from a greater fee income, while investors the tools they need to get.
Dave Fry has more than 30 years dedicated to the business of trading and portfolio management. His registration as an arbitrator in both the National Association of Securities Dealers (NASD) and the National Futures Association (NFA) attests to his extensive experience and spotless compliance record.
Dave founded the ETF Digest in 2001 and was one of the first to the need for a publication that individual investors with information and advice on ETF investing see.
Since their inception in 1993, ETFs were advertised as available for short, many without the burden of uptick rules or the need to riskier strategies such as options, futures, use. With a lever However, given the average retail investors of the shaft, while institutional investors and brokers trading desks do easily.
This is a flammable and potentially scandalous situation. Since the mutual fund trading scandal rocked Wall Street in 2003, ETFs have become the preferred alternative to conventional mutual funds. This has led to an explosion of ETF issuance. At the same time the demand for short, most market sectors either rising or trading ranges thus less clear. At some point, this may change market position. Investors to strategically hedge their portfolios or speculate popular ETFs may find difficult, if not impossible, to short.
"No Stock Available" for Short ETF Trades?
Like so many other investors, for a long period, we just followed the main ETFs - the QQQQ, SPY, and IWM - and highly liquid short-circuit these funds was both easy and routine.
We of the ETF Digest invoked representations of all promoters that all ETFs were short bootable. Some time ago we published our first short recommendation for each ETF in a long time - TLT (the Lehman 20 + year Treasury Bond ETF). Although I was able to be implemented by means my broker, subscriber feedback indicates that a significant number of them were not able to make this transaction. This transaction These persons were engaged in a wide range of well-known online brokers, and were routinely told that there is "no TLT stock available" for short.
This was a shock! TLT were on average about one million shares in daily trading. How could a TLT million shares traded daily without stock are available?
Upon further investigation, knowledgeable insiders explained that a large part of the volume we were seeing was of shares institutionally traded or, more likely, from stock held by the proprietary trading desks of major brokerage firms - in other words, "phantom volume." That is why private investors were deprived of the opportunities enjoyed by shorting a handful of brokers and institutions.
Upon further investigation, it was pointed out that many new ETFs may not be short-circuited by a lack of forward contracts which specialized companies can offset risk. But surely this was not the case for TLT, an adequate and readily available Treasury bond futures contracts.
What's the problem here?
It is true that time zone differences for some single-country funds that trade in the U.S. can make it more difficult for specialists to manage, despite adequate apparent volume risks. But as specialized companies and brokers want private investors to meet, they are always able to create synthetic offsetting positions with other brokers -. 'If they want "the operative sense
Moreover, other feedback suggests that brokers may prefer not to short for their retail clients, because they can be called as the "risk" going short sales wrong. This is nonsense! Many of these same companies are option strategies for the same customers they have a short position refused orders. And, unleveraged short circuit is arguably less risky than many option strategies.
Cynical, sponsors this issue major new 50-110K blocks share benefit from additional fee income through the new issue. Short circuit for retailers is to deal with existing shares simply means that there is no increase in commission income and no incentive.
Most of the explanations offered for ETF shorting problems distract attention from the core retail edition: institutions and brokerage trading desks get preferential treatment at the expense of retail investors.
We also see a number of other related problems:
ETF sponsors and exchanges have been sloppy in their presentation of new ETFs. It seems that they just "cut and pasted" the short benefit function language from older established for new ETFs. They can not even aware that their new products benefit non-professional clients, as promoted.
The hasty creation of new ETFs, especially those not linked to a known or listed index, presents further difficulties. Without hedge, a matched-index specialists are even less likely to run short trades for customers.
The "phantom volume" exhibited by TLT also exist for other popular ETFs such as EEM (Emerging Markets ETF, EFA (Europe / Asia Far East ETF, IYR (REIT ETF), and much more. Taking advantages for the "big boys "while shutting out" the little guy "are the conditions that understandably turn private investors away from the markets.
Bureaucratic laziness exists when brokers and specialized firms encounter unmet retail customer needs. Back Offices and specialists lack initiative when it comes to serving individual, low-volume investors.
We believe ETF sponsors, exchanges, insurers and brokers have not adequately thought through the process to complete the creation of new ETFs.
Solution
Shorting opportunities are identified as a major product advantage in all promotional literature ETFs. Exchanges, brokers, insurers and sponsors can and should work together to deliver as promoted these opportunities.
To address this problem release "inverse" ETFs (those that move in the opposite direction of an index) would solve all pleasure. Insiders would benefit from a greater fee income, while investors the tools they need to get.
Dave Fry has more than 30 years dedicated to the business of trading and portfolio management. His registration as an arbitrator in both the National Association of Securities Dealers (NASD) and the National Futures Association (NFA) attests to his extensive experience and spotless compliance record.
Dave founded the ETF Digest in 2001 and was one of the first to the need for a publication that individual investors with information and advice on ETF investing see.
Sunday, 30 March 2014
Discipline Is The Key To Investing And Trading Success
Here's what trading and investing legend Richard Dennis, said about making money in the markets ...
"I always say you could publish rules in a newspaper and no one would follow them. The key is
consistency and discipline. "
The above quote is from the book "Market Wizards" by Jack Schwager. Dennis is a man who, as a trader, took a measly $ 400 and grew to an estimated $ 200 million dollars in a matter of years - not decades - by being disciplined and following his rules. He is a legend that a number of other "Market Wizards" interviewed in Schwager's book described Dennis with the comment, "I'm not in his league."
There are probably thousands of investment and trading systems to make them. Money Some make big money. But the truth of the matter is that some of the users of these systems will ever make money.
Why?
Few people have the discipline to stick with a winning system or strategy. They go through an inevitable period losses and impatient. They start tinkering with their rules or completely abandon them.
Have you ever had one of those mountain charts marketed by the investment funds that show that if you had invested $ 10,000 in 1950, or when, your investment would have grown to $ 10 million or so seen in 2005? I bet you do not know one person who ever did that. And it's not because it's not true. It is the absolute truth. It's not hype. That's what the investment would have done. But that is not what the investor would have done.
The typical investor would have saved within a few years, once the market took a fall or when the money was needed to buy a boat. Or another toy Or the average investor would have taken off in what the "hot" investment was always buy a given time, at the peak price.
As Dennis says, the key is consistency and discipline. So do not spend time looking for the holy grail of investments or trading systems. It does not exist. The Holy Grail is within you. It is not the investment that will determine success or failure. It is the discipline of the investor.
Larry Holmes invites you to Your common sense guide to financial and investment success. Visit
"I always say you could publish rules in a newspaper and no one would follow them. The key is
consistency and discipline. "
The above quote is from the book "Market Wizards" by Jack Schwager. Dennis is a man who, as a trader, took a measly $ 400 and grew to an estimated $ 200 million dollars in a matter of years - not decades - by being disciplined and following his rules. He is a legend that a number of other "Market Wizards" interviewed in Schwager's book described Dennis with the comment, "I'm not in his league."
There are probably thousands of investment and trading systems to make them. Money Some make big money. But the truth of the matter is that some of the users of these systems will ever make money.
Why?
Few people have the discipline to stick with a winning system or strategy. They go through an inevitable period losses and impatient. They start tinkering with their rules or completely abandon them.
Have you ever had one of those mountain charts marketed by the investment funds that show that if you had invested $ 10,000 in 1950, or when, your investment would have grown to $ 10 million or so seen in 2005? I bet you do not know one person who ever did that. And it's not because it's not true. It is the absolute truth. It's not hype. That's what the investment would have done. But that is not what the investor would have done.
The typical investor would have saved within a few years, once the market took a fall or when the money was needed to buy a boat. Or another toy Or the average investor would have taken off in what the "hot" investment was always buy a given time, at the peak price.
As Dennis says, the key is consistency and discipline. So do not spend time looking for the holy grail of investments or trading systems. It does not exist. The Holy Grail is within you. It is not the investment that will determine success or failure. It is the discipline of the investor.
Larry Holmes invites you to Your common sense guide to financial and investment success. Visit
Saturday, 15 March 2014
The Best Silver Miner in the World
Before our vision of the best silver miner in the world need a little background information. First, the reader should ask why invest in mining at all? The answer to us is covered invest in our third line of silver below.
This third rule of Silver Investing can be found in the global-investor book of Investing Rules.
This rule is one that many silver investors know very well and the joy of watching you to outperform the rise in gold prices by a factor of two or more 3-1 mining stock is exciting. However, leverage works both ways, and when the price of the precious metals fall back the mining shares fall back hard. This is normal market behavior and should be anticipated by the smart investor metal.
Again, mining shares analysis is difficult and almost impossible in the speculative area. Due to this fact, it is important to do your own homework. You can also subscribe to a service that provides insight in this area. We do our best to diversify and to give clear signals to the environment that we merit think. But we are only human and have made mistakes in the past. It is the nature of investing that you are not 100% accurate, although our report had nothing but winners. For the first two years Those days are over and in today's market it is more important that ever to be careful and use proper money management.
If you do not want to put in the time and effort needed to succeed in this area of investment, we recommend you to consider a gold fund. Even with professional management companies are not all winners, but with the right distribution results reflect the overall gold stock market. Unfortunately, there is not a silver investment at this time. This is a question often asked.
The Ten Rules of Silver Investing was only available to paying subscribers, but we have decided to make available free to everyone who made our free email list joins ...
Requirements of a well-run mining company
Best Silver Miner in the world should not only anticipate the future, but also contains as much cost as possible. This can be done in varying degrees, but fixed costs are major expenses and variable costs are becoming more "variable" by the minute. The cost of electricity, water and labor seem to be increasing without end.
The infrastructure should be examined for roads, electricity, water and the environment. The political climate is a key factor in determining the value of a project, especially in the current global environment.
Of course, the geology of the utmost importance. An accurate geological model must be developed that data from boreholes, test pit sampling, quality and grade analysis, and which may include additional drilling needed. Sufficient data must be checked for a Canadian company to National Instrument 43-101 compliant.
A preliminary financial analysis includes the expected cost of capital and what is expected for the prices of minerals for the future. Wrong guess here and your whole project can be compromised.
So now you know most of the risks and would like our opinion the best Silver Miner in the world. It's just Berkshire Hathaway Warren Buffet yes sir may prove to be the best silver miner of all time!
Why should we consider Berkshire to be? The best in the world
1. No environmental impact statement is required for this mine.
2. No explanation was necessary 43-101
3. All geological data is redundant
4. Low overhead - very few employees
5. Political problems significantly reduced
6. Fix known cost - price of silver at the time of purchase
7. Variable costs (known?) Storage Costs
Why Berkshire is the best miner? Profit, yes profit, even adjusted for inflation Berkshire has a gain in silver, this is not the case for almost the entire silver mining. Some may argue this is not a miner at all, and of course that point is clear, what is not so obvious is how smart it is to let mine silver at a loss, and then pick up the end fungible product at a cost lower than others those of them.
Ted Butler had a nice article about Buffett buying silver. What is so fascinating is that Buffett mined silver right off the exchange at a cost lower than what most miners can do. In fact, like last year, not a primary silver miner showed a profit for the full year. A few quarters of profits, yes, but not on an annual basis! This will change for the fiscal year 2005 in our eyes and one of these companies is now in our speculative list for some time. Please note that we speak of the total costs, non-cash items that miners are so fond of talking about the neglect of the actual costs associated with the extraction of ore.
However, the point to be made is that a synthetic mining is exactly what the market needs right now. The synthetic silver miner takes just under the actual (total cost) one of the production and the shops. This would entail a silver purchase program dealing with real silver obtained under strict requirements that should yield positive returns for investors.
At present, the preparatory work has been carried to such a synthetic mining begin. The initial conditions require that institutional investors are only allowed to participate, but once established, another may be available to the general public to invest are. But this plan silver version should be corrected at the current price of inflation. If silver shoots up from here, then the proposal would simply not as effective. In other words, Buffett is a lock or duplicate someone else remains to be determined. A free market approach of the proposed Silver ETF may be something the market needs at this time.
In fact, the proposed Silver ETF some very interesting points, for example, we find:
The Official Sector
Unlike gold, there are no official statistics published by the International Monetary Fund, Bank for International Settlements, or national banks on silver holdings by national governments. The main reason for this is that silver is generally not considered as a reserve active. Consequently, there are very limited silver reserves of the state. According to GFMS Limited World Silver Survey 2005, at the end of 2004, the government held silver bullion stocks total 164 Moz. Silver holdings held by central banks and governments to match only 10 weeks up while gold is estimated that governments hold about the equivalent of 10 to 12 years of supply. Recently, countries like Russia, China and India reduced their holdings of silver.
What is also interesting is what the proposed Silver ETF to say about the U.S. dollar.
Between 2002 and 2004, the price of silver rose as a result of several factors. Among these factors are the decline of the U.S. dollar against other currencies, the poor performance of the major stock markets U.S. and other, an increase in demand for investment in commodities as an asset class generally, strength in manufacturing demand, and low level of forward selling by mining companies.
Sounds bullish for you? It certainly does for us.
The most important fact that very few outside of the precious metals community even consider what Ibbitson Associates 2 stated in their conclusion on portfolio diversification with gold, silver and platinum.
Quoting: Of the seven asset classes, precious metals asset class is the only one with a negative average correlation with other asset classes. Excluding cash, precious metals is the only asset class with a positive correlation coefficient with inflation. Precious metals provide a significant hedge against inflation and a positive return when they were most needed. End of quote.
Later in the conclusion section of this report, investors may be in conservative, moderate and aggressive asset allocations improve the reward-to-risk ratio by including precious metals with allocations of 7.1%, 12.5% and 15.7 %.
Because many financial planners basically use a "cookie-cutter" approach to the preparation of pension plans Ibbitson this study will certainly any astute in that industry that keep learning upset. What would a CFP say to a customer who had paid only later found our that there is no exposure to the precious metals was given? For proper diversification Especially if this client knew the precious metals is the only asset with a negative average correlation with other asset classes.
We have proposed that will start to move in the precious metals as well. To the sector and many private investors during the second stage of this great bull market that more institutions will move Now Certified Financial Planners have a tool and knowledge to move into real physical metal can have an impact.
Returning to Berkshire Hathaway, a special report on Buffett and silver was written several years ago and is free to our paid subscribers, but one of the most profound aspects of his purchase is that it was less than two percent of Berkshire's and by the time. If Buffett would be to provide to Berkshire's conservative seven percent as measured by Ibbitson Associates it would be more than twice the amount of silver present on the Comex necessary at this time.
Certainly there is much more to the story than silver supply and demand, in fact one of the main points is a good spread of the portfolio.
The Silver Investor
The official site for the Serious Metals Investor
October 20, 2005
1 Total costs include keeping all direct and indirect operating cash costs directly related to the physical activities of producing metals, including mining, processing and other plant costs, refining interests and marketing costs, on-site general and administrative costs, royalties and mining production taxes, net of by-product revenues earned from all metals other than the primary metal produced at each unit. These costs vary as quality, labor and energy, transportation, and other third party costs rise.
2 Ibbotson Associates 225 North Michigan Avenue Suite 700, Chicago, Il 60601 Professor Roger G. Ibbotson, founder and chairman, pioneer used in asset allocation and to quantify the benefits of diversification. In collecting the necessary data The company continues to provide investment and financing problems for a diverse set of market solutions. Ibbotson / Associates fills a growing need in the financial sector as a single-source provider of investment knowledge, expertise and technology.
David Morgan has a BS in Engineering and a Masters in Business (finance and international business). David is a private economist and precious metals analyst for over twenty years. He adheres to the Austrian School of Economics, although his degree is not the Mises Institute.
Mr. Morgan is a contributor to FreeMarketNews.com and has written numerous articles, some of which can be viewed Mr. Morgan also writes Silver-Investor.com newsletter. In the Gold-Eagle His e-mail newsletter is published on a monthly basis and includes economic news, overall financial health of the global economy, currency problems ahead. Mr Morgan pour on almost any metal, economic and financial news and business publication and digests it to his readers to save valuable time and money! Reviews current trends, long-term fundamentals, and specific information necessary for an investor, especially the serious or silver bullion investor.
This third rule of Silver Investing can be found in the global-investor book of Investing Rules.
This rule is one that many silver investors know very well and the joy of watching you to outperform the rise in gold prices by a factor of two or more 3-1 mining stock is exciting. However, leverage works both ways, and when the price of the precious metals fall back the mining shares fall back hard. This is normal market behavior and should be anticipated by the smart investor metal.
Again, mining shares analysis is difficult and almost impossible in the speculative area. Due to this fact, it is important to do your own homework. You can also subscribe to a service that provides insight in this area. We do our best to diversify and to give clear signals to the environment that we merit think. But we are only human and have made mistakes in the past. It is the nature of investing that you are not 100% accurate, although our report had nothing but winners. For the first two years Those days are over and in today's market it is more important that ever to be careful and use proper money management.
If you do not want to put in the time and effort needed to succeed in this area of investment, we recommend you to consider a gold fund. Even with professional management companies are not all winners, but with the right distribution results reflect the overall gold stock market. Unfortunately, there is not a silver investment at this time. This is a question often asked.
The Ten Rules of Silver Investing was only available to paying subscribers, but we have decided to make available free to everyone who made our free email list joins ...
Requirements of a well-run mining company
Best Silver Miner in the world should not only anticipate the future, but also contains as much cost as possible. This can be done in varying degrees, but fixed costs are major expenses and variable costs are becoming more "variable" by the minute. The cost of electricity, water and labor seem to be increasing without end.
The infrastructure should be examined for roads, electricity, water and the environment. The political climate is a key factor in determining the value of a project, especially in the current global environment.
Of course, the geology of the utmost importance. An accurate geological model must be developed that data from boreholes, test pit sampling, quality and grade analysis, and which may include additional drilling needed. Sufficient data must be checked for a Canadian company to National Instrument 43-101 compliant.
A preliminary financial analysis includes the expected cost of capital and what is expected for the prices of minerals for the future. Wrong guess here and your whole project can be compromised.
So now you know most of the risks and would like our opinion the best Silver Miner in the world. It's just Berkshire Hathaway Warren Buffet yes sir may prove to be the best silver miner of all time!
Why should we consider Berkshire to be? The best in the world
1. No environmental impact statement is required for this mine.
2. No explanation was necessary 43-101
3. All geological data is redundant
4. Low overhead - very few employees
5. Political problems significantly reduced
6. Fix known cost - price of silver at the time of purchase
7. Variable costs (known?) Storage Costs
Why Berkshire is the best miner? Profit, yes profit, even adjusted for inflation Berkshire has a gain in silver, this is not the case for almost the entire silver mining. Some may argue this is not a miner at all, and of course that point is clear, what is not so obvious is how smart it is to let mine silver at a loss, and then pick up the end fungible product at a cost lower than others those of them.
Ted Butler had a nice article about Buffett buying silver. What is so fascinating is that Buffett mined silver right off the exchange at a cost lower than what most miners can do. In fact, like last year, not a primary silver miner showed a profit for the full year. A few quarters of profits, yes, but not on an annual basis! This will change for the fiscal year 2005 in our eyes and one of these companies is now in our speculative list for some time. Please note that we speak of the total costs, non-cash items that miners are so fond of talking about the neglect of the actual costs associated with the extraction of ore.
However, the point to be made is that a synthetic mining is exactly what the market needs right now. The synthetic silver miner takes just under the actual (total cost) one of the production and the shops. This would entail a silver purchase program dealing with real silver obtained under strict requirements that should yield positive returns for investors.
At present, the preparatory work has been carried to such a synthetic mining begin. The initial conditions require that institutional investors are only allowed to participate, but once established, another may be available to the general public to invest are. But this plan silver version should be corrected at the current price of inflation. If silver shoots up from here, then the proposal would simply not as effective. In other words, Buffett is a lock or duplicate someone else remains to be determined. A free market approach of the proposed Silver ETF may be something the market needs at this time.
In fact, the proposed Silver ETF some very interesting points, for example, we find:
The Official Sector
Unlike gold, there are no official statistics published by the International Monetary Fund, Bank for International Settlements, or national banks on silver holdings by national governments. The main reason for this is that silver is generally not considered as a reserve active. Consequently, there are very limited silver reserves of the state. According to GFMS Limited World Silver Survey 2005, at the end of 2004, the government held silver bullion stocks total 164 Moz. Silver holdings held by central banks and governments to match only 10 weeks up while gold is estimated that governments hold about the equivalent of 10 to 12 years of supply. Recently, countries like Russia, China and India reduced their holdings of silver.
What is also interesting is what the proposed Silver ETF to say about the U.S. dollar.
Between 2002 and 2004, the price of silver rose as a result of several factors. Among these factors are the decline of the U.S. dollar against other currencies, the poor performance of the major stock markets U.S. and other, an increase in demand for investment in commodities as an asset class generally, strength in manufacturing demand, and low level of forward selling by mining companies.
Sounds bullish for you? It certainly does for us.
The most important fact that very few outside of the precious metals community even consider what Ibbitson Associates 2 stated in their conclusion on portfolio diversification with gold, silver and platinum.
Quoting: Of the seven asset classes, precious metals asset class is the only one with a negative average correlation with other asset classes. Excluding cash, precious metals is the only asset class with a positive correlation coefficient with inflation. Precious metals provide a significant hedge against inflation and a positive return when they were most needed. End of quote.
Later in the conclusion section of this report, investors may be in conservative, moderate and aggressive asset allocations improve the reward-to-risk ratio by including precious metals with allocations of 7.1%, 12.5% and 15.7 %.
Because many financial planners basically use a "cookie-cutter" approach to the preparation of pension plans Ibbitson this study will certainly any astute in that industry that keep learning upset. What would a CFP say to a customer who had paid only later found our that there is no exposure to the precious metals was given? For proper diversification Especially if this client knew the precious metals is the only asset with a negative average correlation with other asset classes.
We have proposed that will start to move in the precious metals as well. To the sector and many private investors during the second stage of this great bull market that more institutions will move Now Certified Financial Planners have a tool and knowledge to move into real physical metal can have an impact.
Returning to Berkshire Hathaway, a special report on Buffett and silver was written several years ago and is free to our paid subscribers, but one of the most profound aspects of his purchase is that it was less than two percent of Berkshire's and by the time. If Buffett would be to provide to Berkshire's conservative seven percent as measured by Ibbitson Associates it would be more than twice the amount of silver present on the Comex necessary at this time.
Certainly there is much more to the story than silver supply and demand, in fact one of the main points is a good spread of the portfolio.
The Silver Investor
The official site for the Serious Metals Investor
October 20, 2005
1 Total costs include keeping all direct and indirect operating cash costs directly related to the physical activities of producing metals, including mining, processing and other plant costs, refining interests and marketing costs, on-site general and administrative costs, royalties and mining production taxes, net of by-product revenues earned from all metals other than the primary metal produced at each unit. These costs vary as quality, labor and energy, transportation, and other third party costs rise.
2 Ibbotson Associates 225 North Michigan Avenue Suite 700, Chicago, Il 60601 Professor Roger G. Ibbotson, founder and chairman, pioneer used in asset allocation and to quantify the benefits of diversification. In collecting the necessary data The company continues to provide investment and financing problems for a diverse set of market solutions. Ibbotson / Associates fills a growing need in the financial sector as a single-source provider of investment knowledge, expertise and technology.
David Morgan has a BS in Engineering and a Masters in Business (finance and international business). David is a private economist and precious metals analyst for over twenty years. He adheres to the Austrian School of Economics, although his degree is not the Mises Institute.
Mr. Morgan is a contributor to FreeMarketNews.com and has written numerous articles, some of which can be viewed Mr. Morgan also writes Silver-Investor.com newsletter. In the Gold-Eagle His e-mail newsletter is published on a monthly basis and includes economic news, overall financial health of the global economy, currency problems ahead. Mr Morgan pour on almost any metal, economic and financial news and business publication and digests it to his readers to save valuable time and money! Reviews current trends, long-term fundamentals, and specific information necessary for an investor, especially the serious or silver bullion investor.
Friday, 28 February 2014
Generate Consistent Passive Income Through Credit Spread Writing
Many traders and investors dream about making consistent profits in the stock market. Typically, investors would turn to fundamental analysis for the medium to long term capital gains while traders would try to time the market using technical analysis to spot reversals or advantageous entry and exit with the first signs of trouble. Unfortunately for everyone, the stock market is a zero-sum game. What this means is that you should lose to someone else. Profits The market exchanges serves as a distribution center of wealth. Essentially, without knowing it, many novice investors and traders are actually trading against the professional and institutional traders. Who do you think will win most of the time? The answer is obvious. Credit Spread is one of the lesser known trading strategies available to the options trader. This strategy is call "credit spread" because you actually collect a profit upfront or a credit when you are in a credit spread position. Credit spreads are directional plays - bull or bear. The bull spread is called Bull Put Spread while the bear spread is known as the Bear Call Spread.
The Credit Spread Option Trading Strategy can be constructed to have a low risk investment vehicle. Using this strategy, we are able to use options prices to our full benefit. At the time Time decay works to our advantage the closer it gets to expiration. With this in mind, the time may very well be in our quest for profit. Our ally We just need to know how to use them to help us. Your time
Fact - about 80% of all options expire worthless, it is logical that serious and long-term investor only needs to write credit spreads for a living.
How will we benefit from Credit Spread?
Assuming that we are writing a Bull Put Spread:
If the stock moves up, we make money.
If the stock moves sideways, we make money.
If the stock moves lower, but is above the strike price we sold our bucket, we still make money.
I do not know about you, but any trade that you make when your stock moves higher, as it moves sideways, or even when it moves lower improve your chances of winning. Complete profit Writing credit spread is a powerful trading strategy because, if written correctly, it offers room for error and you would still profit even if you're wrong.
The closer it is to expire (most of the time 3 rd Saturday of the month), the better it is for us. We make money with the passage of time. Many seasoned credit spread traders like to see if their pay day. 3rd Saturday of the month
The biggest problem in Stock Options Trading is the race against the clock. Over 80% of options expire out-of-money or, in simpler terms, expire without value. If you bought options, this means that you would have lost in trading your money. So with this fact in mind, use an Options Trading Strategy that you would put on the other side of the table. And that is a time benefit trading strategy called using Credit Spread.
Copyright 2005 William Tan
The Credit Spread Option Trading Strategy can be constructed to have a low risk investment vehicle. Using this strategy, we are able to use options prices to our full benefit. At the time Time decay works to our advantage the closer it gets to expiration. With this in mind, the time may very well be in our quest for profit. Our ally We just need to know how to use them to help us. Your time
Fact - about 80% of all options expire worthless, it is logical that serious and long-term investor only needs to write credit spreads for a living.
How will we benefit from Credit Spread?
Assuming that we are writing a Bull Put Spread:
If the stock moves up, we make money.
If the stock moves sideways, we make money.
If the stock moves lower, but is above the strike price we sold our bucket, we still make money.
I do not know about you, but any trade that you make when your stock moves higher, as it moves sideways, or even when it moves lower improve your chances of winning. Complete profit Writing credit spread is a powerful trading strategy because, if written correctly, it offers room for error and you would still profit even if you're wrong.
The closer it is to expire (most of the time 3 rd Saturday of the month), the better it is for us. We make money with the passage of time. Many seasoned credit spread traders like to see if their pay day. 3rd Saturday of the month
The biggest problem in Stock Options Trading is the race against the clock. Over 80% of options expire out-of-money or, in simpler terms, expire without value. If you bought options, this means that you would have lost in trading your money. So with this fact in mind, use an Options Trading Strategy that you would put on the other side of the table. And that is a time benefit trading strategy called using Credit Spread.
Copyright 2005 William Tan
Saturday, 15 February 2014
Samsung the Elephant
Samsung dominates life in his own country like no other company in the world. But the slogan "what is good for Samsung is good for South Korea" is open for debate.
The South Korean economy is a paradox. It has become the third largest economy in Asia after Japan and China. Its 48 million citizens in a generation enjoyed a leap in their standard of living and no country has more than South Korea benefited from the rise of China, which has become an important export. Its sovereign credit rating was recently upgraded due to reduced tensions with North Korea and it enjoys the foreign exchange reserves of more than $ 200 billion dollars. The Korean people have full satisfaction for a job well done, but instead are rather a disgruntled lot.
The per capita income is about a third that of the OECD average. Economic growth is expected in the 3-4% range closer to a mature economy than an Asian tiger. Unemployment is still a problem and a stronger currency and relatively high wages are shrinking exports which account for 40% of its economy. Output with only 7% this year after a 31% jump last year. After a credit binge, average net consumer loans is equal to 100% of disposable income and the Bank of Korea has recently bumped its benchmark rate for the first time in three years.
What is going on here? Somewhat surprisingly, South Korea is experiencing many of the same issues that Americans complain outsourcing. It was the largest investor in China last year with more than $ 6 billion fixed investment. His biggest steelmaker Posco announced 12 billion dollar investment in a steel plant in India, where the 24 steel companies is already running. Hyundai produces 600,000 cars in China and its subsidiary Kia makes 150,000 more.
Meanwhile, Samsung Electronics has Asia's largest technology company by market capitalization become (bigger than Sony), and its largest maker of memory chips and flat-panel displays and mobile phones. Samsung has a credit rating higher than sovereign rating of South Korea. With 62 branches, the Samsung group dominates life in Korea like no other company in history. It represents 15% of the country's total economic activity, 25% of the capitalization of the KOSPI stock market and the taxes it pays represent almost 10% of total government revenue!
Samsung, an increase of 25% so far this year, is still attractive at about 11 times consensus 2006 earnings forecasts and operating profit increased by 29% in the third quarter. Despite third quarter net profit falls 30%, it is expected a strong fourth quarter. There is a shortage of LCD television panels and flash memory chip global market share of over 60%. If prices have fallen flash chip sales have risen 40%.
But the company is not a great game on the South Korean economy. Rather, it is a global game in three major markets and the expected payoff of his extraordinary commitment to R & D. The South Koreans are dissatisfied because the five largest companies are growing outside the country more than in it and at a stage of development where it should be more competitive production. Onshore The challenge is the low cost production platform with massive scale just next door - the problem is China. Samsung already has 29 factories and 50,000 employees in China.
Because China has already begun to things such as machine tools, that the South Koreans were busy exporters in 2003 and 2004 produce, South Korean planners believe must quickly transform into a finance, communications and transportation hub - akin to the role of Singapore and Switzerland. The question then they have the right companies, the right skills and what is its competitive advantage?
Together, Samsung, POSCO, KEPCO (Korea Electric Power) and SK Telecom accounted for nearly 50% of the South Korean stock exchange's market capitalization. For a basketball analogy, the South Korean starting five used are strong, but the bench is a little thin and his team has lost.'s Home advantage The problem is not Samsung, but rather that they need about ten more Samsungs.
The top four companies also make up 40% of South Korea iShare (Ewy) ETF is up 29% so far this year. Samsung alone accounted for 23% of this ETF and buying the iShares gives you more exposure to the top ten South Korean companies. I trim our position in the iShares South Korea to take some profits off the table and with the expectation that the stronger won and higher interest rates will lead to a slowdown in exports. Together with the likely return of the North Korean problem, this may very well undermine investor confidence.
Bottom line: buy Samsung based on valuation and top notch global reach and R & D, but expect tougher going for the South Korean economy as China changes its robust export market for direct competitor.
The South Korean economy is a paradox. It has become the third largest economy in Asia after Japan and China. Its 48 million citizens in a generation enjoyed a leap in their standard of living and no country has more than South Korea benefited from the rise of China, which has become an important export. Its sovereign credit rating was recently upgraded due to reduced tensions with North Korea and it enjoys the foreign exchange reserves of more than $ 200 billion dollars. The Korean people have full satisfaction for a job well done, but instead are rather a disgruntled lot.
The per capita income is about a third that of the OECD average. Economic growth is expected in the 3-4% range closer to a mature economy than an Asian tiger. Unemployment is still a problem and a stronger currency and relatively high wages are shrinking exports which account for 40% of its economy. Output with only 7% this year after a 31% jump last year. After a credit binge, average net consumer loans is equal to 100% of disposable income and the Bank of Korea has recently bumped its benchmark rate for the first time in three years.
What is going on here? Somewhat surprisingly, South Korea is experiencing many of the same issues that Americans complain outsourcing. It was the largest investor in China last year with more than $ 6 billion fixed investment. His biggest steelmaker Posco announced 12 billion dollar investment in a steel plant in India, where the 24 steel companies is already running. Hyundai produces 600,000 cars in China and its subsidiary Kia makes 150,000 more.
Meanwhile, Samsung Electronics has Asia's largest technology company by market capitalization become (bigger than Sony), and its largest maker of memory chips and flat-panel displays and mobile phones. Samsung has a credit rating higher than sovereign rating of South Korea. With 62 branches, the Samsung group dominates life in Korea like no other company in history. It represents 15% of the country's total economic activity, 25% of the capitalization of the KOSPI stock market and the taxes it pays represent almost 10% of total government revenue!
Samsung, an increase of 25% so far this year, is still attractive at about 11 times consensus 2006 earnings forecasts and operating profit increased by 29% in the third quarter. Despite third quarter net profit falls 30%, it is expected a strong fourth quarter. There is a shortage of LCD television panels and flash memory chip global market share of over 60%. If prices have fallen flash chip sales have risen 40%.
But the company is not a great game on the South Korean economy. Rather, it is a global game in three major markets and the expected payoff of his extraordinary commitment to R & D. The South Koreans are dissatisfied because the five largest companies are growing outside the country more than in it and at a stage of development where it should be more competitive production. Onshore The challenge is the low cost production platform with massive scale just next door - the problem is China. Samsung already has 29 factories and 50,000 employees in China.
Because China has already begun to things such as machine tools, that the South Koreans were busy exporters in 2003 and 2004 produce, South Korean planners believe must quickly transform into a finance, communications and transportation hub - akin to the role of Singapore and Switzerland. The question then they have the right companies, the right skills and what is its competitive advantage?
Together, Samsung, POSCO, KEPCO (Korea Electric Power) and SK Telecom accounted for nearly 50% of the South Korean stock exchange's market capitalization. For a basketball analogy, the South Korean starting five used are strong, but the bench is a little thin and his team has lost.'s Home advantage The problem is not Samsung, but rather that they need about ten more Samsungs.
The top four companies also make up 40% of South Korea iShare (Ewy) ETF is up 29% so far this year. Samsung alone accounted for 23% of this ETF and buying the iShares gives you more exposure to the top ten South Korean companies. I trim our position in the iShares South Korea to take some profits off the table and with the expectation that the stronger won and higher interest rates will lead to a slowdown in exports. Together with the likely return of the North Korean problem, this may very well undermine investor confidence.
Bottom line: buy Samsung based on valuation and top notch global reach and R & D, but expect tougher going for the South Korean economy as China changes its robust export market for direct competitor.
Thursday, 30 January 2014
Don't Just Pick Any Dividend
Dividend income is distributed to shareholders in the form of cash. Now, not all listed companies pay dividends. Most of the dividend-paying companies are profitable or have long history of profitability. This is important because in the long run, I think the profit will dictate stock price movement. Therefore, choosing a good dividend paying stocks will pay off in the long run.
What is the criteria that you should look for in dividend paying stocks? Basically we want our companies to maintain its dividend for a long time or increase. The following guidelines will help you paying stocks. Identify the good dividend
Long history of profitability. I prefer companies that have at least 3 years of profitable years before dividends. Business tends to fluctuate and I want to make sure that the company is solid profitable before they start dividend payments.
Average payout ratio of less than 75%. Payout ratio is the ratio of dividend versus net profit. For example, Bank of America (BAC) gives out $ 2.00 per share of the dividend, while earn $ 4.15 per share. This brings its payout ratio to 48%. Payout ratio of less than 75% ensures continuous dividend, even when things are less than stellar. Moreover, even enough money for his company to expand as needed the company.
Predicted Earning growth of 0%. That's right. Earning must remain constant at least. If earn pours, the dividend will eventually be cut. No, we do not demand profits grow by X amount. We just have to be constant. If you calculate that a stock is undervalued already earning growth of 0%, it will deeply undervalued when their earning is growing. When earning grows, will follow dividend.
Net cash of at least $ 0. What I meant here is the amount of the net cash available to the company's balance sheet. Net cash is calculated as cash and cash equivalents with long-term debt. For long-term debt exceeds cash, the value of the net cash negative. We prefer companies that have a positive net cash. In this way, even if the business falters, it is still enough money for his company to work or perhaps continue the dividend.
Clean Bill of Health. This is important. Some companies meet all the above criteria, but its accounting is being investigated by the SEC. What good does it do? So make sure that the company in question has a clean book and SEC is not to investigate. Accounting practices
What is the criteria that you should look for in dividend paying stocks? Basically we want our companies to maintain its dividend for a long time or increase. The following guidelines will help you paying stocks. Identify the good dividend
Long history of profitability. I prefer companies that have at least 3 years of profitable years before dividends. Business tends to fluctuate and I want to make sure that the company is solid profitable before they start dividend payments.
Average payout ratio of less than 75%. Payout ratio is the ratio of dividend versus net profit. For example, Bank of America (BAC) gives out $ 2.00 per share of the dividend, while earn $ 4.15 per share. This brings its payout ratio to 48%. Payout ratio of less than 75% ensures continuous dividend, even when things are less than stellar. Moreover, even enough money for his company to expand as needed the company.
Predicted Earning growth of 0%. That's right. Earning must remain constant at least. If earn pours, the dividend will eventually be cut. No, we do not demand profits grow by X amount. We just have to be constant. If you calculate that a stock is undervalued already earning growth of 0%, it will deeply undervalued when their earning is growing. When earning grows, will follow dividend.
Net cash of at least $ 0. What I meant here is the amount of the net cash available to the company's balance sheet. Net cash is calculated as cash and cash equivalents with long-term debt. For long-term debt exceeds cash, the value of the net cash negative. We prefer companies that have a positive net cash. In this way, even if the business falters, it is still enough money for his company to work or perhaps continue the dividend.
Clean Bill of Health. This is important. Some companies meet all the above criteria, but its accounting is being investigated by the SEC. What good does it do? So make sure that the company in question has a clean book and SEC is not to investigate. Accounting practices
Wednesday, 15 January 2014
Jesse Livermore
The man accused of the 1929 crash and for precipitating in every market break from 1917 to 1940.
For the reader who is fascinated, as I have always been the life of Jesse Livermore, the King of Speculators, I can recommend that you read through the most popular and best-selling book ever written on the stock market,
"Reminiscences of a Stock Operator."
Livermore about the rise of no-where to get the best speculator in ever. Read his reputation Read how he and painfully lose his multi-million dollar fortune, time after time.
Ever thought where such exchange wisdoms such as:
"Fear your losses and let your profits run"
"It was never my thinking that made me money but my sitting tight"
"Markets are never wrong, opinions are"
Comes from? The man himself. Read and engrave these quotes in your mind if you want to survive as a trader!
An equally large speculator as Livermore I think was the greatest education one can take from this book is to realize it does not matter how much money you make in the markets is keeping the guard that is important. Livermore never quite understood this part.
In my mind, Darvas was as good as Livermore in making money, but more importantly Darvas realized the importance of the company that profits in difficult market conditions.
Another work that is available is Livermore's 1940 classic, "How Stocks Trade". This is his legacy to the speculator for all time, which he states his philosophy of trading and establish some ground rules. He reigns effort to follow yourself.
For the reader who is fascinated, as I have always been the life of Jesse Livermore, the King of Speculators, I can recommend that you read through the most popular and best-selling book ever written on the stock market,
"Reminiscences of a Stock Operator."
Livermore about the rise of no-where to get the best speculator in ever. Read his reputation Read how he and painfully lose his multi-million dollar fortune, time after time.
Ever thought where such exchange wisdoms such as:
"Fear your losses and let your profits run"
"It was never my thinking that made me money but my sitting tight"
"Markets are never wrong, opinions are"
Comes from? The man himself. Read and engrave these quotes in your mind if you want to survive as a trader!
An equally large speculator as Livermore I think was the greatest education one can take from this book is to realize it does not matter how much money you make in the markets is keeping the guard that is important. Livermore never quite understood this part.
In my mind, Darvas was as good as Livermore in making money, but more importantly Darvas realized the importance of the company that profits in difficult market conditions.
Another work that is available is Livermore's 1940 classic, "How Stocks Trade". This is his legacy to the speculator for all time, which he states his philosophy of trading and establish some ground rules. He reigns effort to follow yourself.
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