Guiding principles of buying low and selling high: introduction. Preface. Guiding principles of buying low and selling high: introduction 1
|
|
- Edith Washington
- 8 years ago
- Views:
Transcription
1 Guiding principles of buying low and selling high: introduction 1 Guiding principles of buying low and selling high: introduction Profitable stock trading based on patterns and logic It is impossible to know how high a stock will rise and how low it will fall. However, if you know the value of a stock then you know when its list price is too low and the stock is worth buying and you also know when its list price is too high and it should be sold. This is the only way to systematically buy low and sell high, realizing the largest possible profit. Copyright IRvalue.com All rights reserved. Terms of Use on Preface Those who are uninformed on the matter still regard systematically buying low and selling high to be somewhat of a delusion. Until about a decade ago systematically buying low and selling high was effectively impossible because there was no quick and accurate way of calculating the value of a company and instantly processing any changes that influence the value of a stock. In the mid-nineties IRvalue.com s research lead to the development of a computer model that can not only calculate the value of a company quickly and accurately but can also instantly process any change in the underlying, value-determining components of the company. The model allows us to see the value of a stock at any time based on known underlying factors. Each day the website publishes the adjusted value of the stocks that IRvalue.com tracks. When you know the value of a stock you also know to what extent the stock is under or overvalued on the stock market. Based on those facts you can systematically buy stocks that are fundamentally undervalued and sell them when they are fundamentally overvalued. This means that buying low and selling high (every investor s ultimate dream since stock trading began) can now be fulfilled. Of course there are many side notes to consider as discussed below.
2 Guiding principles of buying low and selling high: introduction 2 Introduction When you buy something in every day life, the first thing you do is to compare the value of the product with the price that you have to pay for it. For example, you would never buy a house without having a good idea of its value. However, in the world of investing most people buy stocks without knowing the current fundamental value of the stock. As a result, stock prices are often very different from the stock s current fundamental value. Sometimes stocks list at an inconceivably low price compared to their value and at other times they list way above their value. The under- and overvaluation of stocks is particularly exaggerated by investors herd instinct and the general mood on the stock market. Therefore, in order to do well on the stock market you first need to know the value of the stocks in order to buy low and sell high based on that value. If you know the current value of a stock and have a good idea of its probable future value, then you can also react more calmly when prices tank during a panic or if they climb to inconceivable highs during a market state of euphoria. However, you never know how far a stock will rise or how low it will fall. If you know the value of a stock then you do know when it is listed too low and is worth buying and you know when it is listed too high and should be sold. This is the only basis upon which you can systematically buy low and sell high and realize the largest possible profit. Even when things sometimes happen unexpectedly that significantly alter the value of a stock and in some cases lead to a loss, systematically buying when a stock is listed too far under its value and selling whenever it lists too far above its value still leads to the largest possible profit on the stock market. Such unexpected events that lead to losses should be viewed as exceptions that validate the rule. In order to make an optimal investment you not only need to know the value of the stocks but you also need to bear in mind the patterns, truths and certainties cited below. The emphasis, however, should still be on the intrinsic ability of a company to realize profits in the future. The intrinsic ability of a company to realize profit in the future (the Future Profit Potential) is the most evident basis upon which to determine the value of a stock. It is also the foundation for successful stock trading.
3 Guiding principles of buying low and selling high: introduction 3 Evident truths that matter when investing on the stock market (1) Successful stock trading is achieved when you manage to systematically buy low and sell high. Succeeding on the stock market by systematically buying low and selling high may indeed be a truism but it can only be applied if the value of the stock is known at all times. The value of a stock results from the intrinsic ability of a company to realize profits in the future (the Future Profit Potential). The value of a stock as well as the intrinsic ability of a company to generate profit in the future is calculated on a daily basis using a model developed by IRvalue.com. The up-to-date values can be accessed on the website. A detailed explanation of the Future Profit Potential of a company will be discussed later. (2) The stock market price increase potential increases as a stock lists further below its value. Obviously if the current fundamental value of a stock has not changed, the price increase potential of that stock on the stock market increases as the price declines below its value. When prices decline the herd gets more and more uneasy and at some point a panic sets in. The number of fearful investors wanting to get rid of their stocks at any price increases as the stock price continues to decline. Prices often tank without the current fundamental value of the stock being considerably affected. Investors who follow the current fundamental value of a stock buy at the lowest price. Clearly though, you should only buy once you are sure that there is in fact nothing wrong with the company. If you are unsure then you should wait patiently until things become clearer. You should never be in a rush to buy; there are always new buying opportunities for investors who know the current fundamental value of stocks. (3) Buying during a declining trend increases risk. The biggest risk is buying overvalued stocks during a declining trend. As long as the trend is still going up the investors just fan the flames as they each continue to buy even when the stocks are fundamentally overvalued. There is a mad rush for the stocks because everyone is afraid to miss the upward trend. At a certain point the increasing price trend stops because investors who know the current fundamental value of the stocks begin to sell. When the trend turns it is all over. The fire is put out and the overvalued stocks turn downward. Clearly the biggest risk with a declining trend is overvalued stocks. As described above, there is often panic during a declining price trend and stocks are offered for sale on the stock market no matter how low the price. Each successive decline causes more unrest and provokes yet another decline. The decline doesn t even stop once a stock is listed far under its value. You can never tell how low the price will fall. It is better to just stand on the sidelines until the decline stops. After the dust has settled there are usually plenty of chances to jump in at a low price. Things usually calm down again once the price stops declining. Investors are no longer putting stocks up for sale at any price they can get and more and more investors begin to realize that the stocks are listed far too low. The price then automatically rises towards the current fundamental value of the stock again.
4 Guiding principles of buying low and selling high: introduction 4 (4) The greatest profit can be made by buying undervalued stocks just as a declining price trend has turned into a rising price trend. Once an upward price trend has started there is often no stopping it. At that point everyone wants to buy again and the price often increases to way above the current fundamental value of the stock. There is a regular dip in price during a rising trend but the overall driving upward forces usually stay strong until the price has risen above the value of the stock. Therefore, the best chances of making a profit are after a decline when the price is listed way below the value of the stock and the price trend is starting to rise again. Certainties in price course patterns Most investors believe that nothing is for certain when it comes to the stock market. However, not only do certainties exist on the stock market, they form an essential basis upon which to achieve better results. Success on the stock market rests on knowing the current fundamental value of the stocks but you can get even better results by thinking logically and taking price course patterns into account. Four important conclusions can be drawn from historic price patterns on the stock market. (1) Prices move in waves. Stock market price courses are a succession of rising and declining movements. After a rise, prices decline and then rise again. Stock market price is a constant succession of waves. If you employ a certain amount of good will you can see a pattern in the length of the waves. If you look at the price charts of the Dow Jones from the last 100 years you can see, for example, that there are quite a few waves that are around 4 years in length. These price movements lasting around 4 years are called secondary waves. In normal stock market years with a moderately rising market you can see that most of the stocks have price waves lasting about 3 to 4 months. Price movements that last 3 to 4 months are called tertiary waves. (2) The stock market over exaggerates in both directions. The stock market usually rises way too high and falls way too low. Stock prices are a result of fundamental and psychological factors. Price rises always cause optimism in the investor world. Everyone affected starts to see the fundamental factors that determine the value of a stock through rose-colored glasses. The positive factors are inflated while the negative factors are ignored. The longer the rise lasts the more positive the reports become; favorable economic figures are expected as well as a continuing market rise. Investors start to become afraid that they might miss the market rise. This kind market mood can result in a buying panic. Everyone wants to own shares whatever the cost, yet as the price rises investors loose their grasp of economic reality. Prices continue to rise to unsubstantiated levels. When a price declines the exact opposite occurs. Price declines always cause a certain amount of pessimism. People start to ask questions about the value of the stock. This time, however, there is an air of negativity and the very worst case scenarios are
5 Guiding principles of buying low and selling high: introduction 5 contemplated. People ask themselves what the stock could be worth if the negative predictions come true. This leads to fear of what is to come and more stocks are put up for sale, which in turn leads to an accelerated price drop. Sometimes panic arises whereby investors completely loose touch with reality. Prices decline to unsubstantiated lows. Some investors recognize that the prices are too low but they sell anyway in the hope that they will be able to buy the stocks back at an even lower price later on. (3) Stock prices increase over the years. Results of well-run companies increase over the years. The stock values of such companies increase as the companies profit increases. The price on the stock market simply follows the value of the stocks and therefore, overall, it increases over the years. A price decline follows a price rise and a rise follows a decline etc. The increases are steadily larger than the declines and the price highs and lows form a rising trend line. Therefore, if you buy a basket of relatively safe stocks now you can almost say with mathematical certainty that you will be able to sell at a higher price a few years later. (4) Price constantly swings around the value of the stock. The price of a stock is constantly moving around its value. Price regularly increases above the value of the stock only then to decline below the value of the stock. Sometimes the price is way above the value of the stock and then it declines to unrealistic lows. The price will ultimately move in the direction of the current fundamental value of the stock. In the long term the price simply follows the value of the stock. More explanation of the IRvalue.com method, the Company Reports and the Price Increase Potential Screenings on the IRvalue.com website can be found in the following articles: The intrinsic ability of a company to generate future profit The relationship between a company s results and its stock price The Fundamental Value Indicator The fundamental basis of the Future Price Channel
TIMING: When and When not to invest in the Stock Market Popular Delusions
TIMING: When and When not to invest in the Stock Market Popular Delusions Is there a right time to invest in the stock market? That s the magic question people have asked for as long as the stock market
More informationThree Investment Risks
Three Investment Risks Just ask yourself, which of the following risks is the most important risk to you. Then, which order would you place them in terms of importance. A. A significant and prolonged fall
More informationThe Stocks with the Largest Price Increase Potential. How to maximize your stock market earnings in a world full of unexpected changes?
1 The Stocks with the Largest Price Increase Potential Now every day at How to maximize your stock market earnings in a world full of unexpected changes? You make the highest earnings on the stock market
More informationHow should beginners approach investing in the stock market?
How should beginners approach investing in the stock market? Manshu OneMint.com Introduction The stock market moves in cycles and every few years when the market goes up rapidly, there are a number of
More information27PercentWeekly. By Ryan Jones. Part II in the Series Start Small and Retire Early Trading Weekly Options
By Ryan Jones Part II in the Series Start Small and Retire Early Trading Weekly Options Important My 27% Option Strategy is one of the best option trading opportunities you will come across. When you see
More informationWhat is a day trade?
Greg Weitzman DISCLAIMERS THERE IS SUBSTANTIAL RISK INVOLVED IN TRADING AND IT IS NOT SUITABLE FOR ALL INVESTORS. A LOSS INCURRED IN CONNECTION WITH STOCK, FUTURES OR OPTIONS TRADING CAN BE SIGNIFICANT
More informationBest time to invest in stock market.
Best time to invest in stock market. The Colombo stock market has gone up by over 1,000 points (more than 20%) during the last few weeks. With this growth, a large number of investors are either trying
More informationBONUS REPORT#5. The Sell-Write Strategy
BONUS REPORT#5 The Sell-Write Strategy 1 The Sell-Write or Covered Put Strategy Many investors and traders would assume that the covered put or sellwrite strategy is the opposite strategy of the covered
More informationContrarian investing and why it works
Contrarian investing and why it works Definition Contrarian a trader whose reasons for making trade decisions are based on logic and analysis and not on emotional reaction. What is a contrarian? A Contrarian
More informationTrend Determination - a Quick, Accurate, & Effective Methodology
Trend Determination - a Quick, Accurate, & Effective Methodology By; John Hayden Over the years, friends who are traders have often asked me how I can quickly determine a trend when looking at a chart.
More informationValuing Stock Options For Divorce and Estate Planning
REPRINTED FROM THE APRIL 2001 ISSUE Valuing Stock Options For Divorce and Estate Planning by: Michael A. Paschall, ASA, CFA, JD Husband to family law attorney: My ex-wife has stock options in a public
More informationHow to Trade Intra-Day Gold and S&P500 with Low Risk Setups. by Chris Vermeulen
How to Trade Intra-Day Gold and S&P500 with Low Risk Setups by Chris Vermeulen Last week was an incredible week for trading the intraday charts. With rising volume and volatility prices began to move up
More informationIdeas for improving your trading in 2010. Trader_Dante
Ideas for improving your trading in 2010 Trader_Dante Copyright Trader_Dante 2010 Page 1 of 18 Disclaimer All reasonable steps and due diligence have been taking in preparing this document. However, it
More informationThis document contains a lesson from the National Council on Economic Education's Learning, Earning and Investing High School publication.
This document contains a lesson from the National Council on Economic Education's Learning, Earning and Investing High School publication. To purchase the Learning, Earning and Investing materials, visit:
More information10 STEPS TO A GREAT INVESTMENT PORTFOLIO
10 STEPS TO A GREAT INVESTMENT PORTFOLIO T he best portfolio is the one that accomplishes your long-term financial goals with as little risk as possible. We have outlined the 10 steps that we follow at
More informationStock Market Basics Series
Stock Market Basics Series HOW DO I TRADE STOCKS.COM Copyright 2011 Stock Market Basics Series THE BULL AND THE BEAR In stock market related articles and news, we often hear the phrases like bull market
More informationHow Do I Pick A Stock?
How Do I Pick A Stock? Keep it Simple An investor wrote me an email a few days ago, asking me a very simple question. She wanted to know how I pick stocks for portfolios that I manage. I often find inspiration
More informationA Case Study In Behavioral Finance
A Case Study In Behavioral Finance We Are All Human Behavioral Finance is a field of study that combines psychology, economics, and finance to offer an explanation for why investors make irrational financial
More informationCOMPARATIVE ANALYSIS BETWEEN THE FUNDAMENTAL AND TECHNICAL ANALYSIS OF STOCKS
COMPARATIVE ANALYSIS BETWEEN THE FUNDAMENTAL AND TECHNICAL ANALYSIS OF STOCKS Prof. Nada Petrusheva Ph.D FON University Skopje, Republic of Macedonia natka.petrusheva@fon.edu.mk Igor Jordanoski, MSc FON
More informationTrendline Tips And Tricks
Tantalizing! Trendline Tips And Tricks How do you capture those medium- to longer-term moves when trying to enter and exit trades quickly? D by Sylvain Vervoort aydreaming about trading? Get in a trade
More informationHow to see the market context using CCI Written by Buzz
How to see the market context using CCI Written by Buzz Towards the end of September 2003, I decided to stop trading the S&P e-mini for a while and focus on the Russell 2000 e-mini. The swings seemed to
More informationc01_1 09/18/2008 1 CHAPTER 1 COPYRIGHTED MATERIAL Attitude Is Everything in a Down Market http://www.pbookshop.com
c01_1 09/18/2008 1 CHAPTER 1 Attitude Is Everything in a Down Market COPYRIGHTED MATERIAL c01_1 09/18/2008 2 c01_1 09/18/2008 3 Whether you think you can or you think you can t, you are right. Henry Ford
More informationWHAT I LEARNT AS AN INVESTOR
WHAT I LEARNT AS AN INVESTOR BY GUERRIC DE TERNAY We all want to make money by investing our savings but investment seems confusing. We do not know how to organize our investment. Where should we start?
More informationInvesting in shares became all the rage during the late 1990s. Everyone
In This Chapter Knowing the essentials Doing your own research Recognising winners Exploring investment strategies Chapter 1 Exploring the Basics Investing in shares became all the rage during the late
More informationDow Theory. The Key To Understanding Stock Market Movement
Dow Theory The Key To Understanding Stock Market Movement Christopher M. Quigley B.Sc.(Maj. Accounting), M.I.I. Grad., M.A. The Dow theory has been around for almost 100 years. Developed by Charles Dow
More informationShort and Simple Guide to Bonds
Short and Simple Guide to Bonds Paul Puckett Introduction The purpose of The Short and Simple Guide to Bonds is to provide investors with the basic information they need to understand bonds, the purpose
More informationFUNDING INVESTMENTS FINANCE 738, Spring 2008, Prof. Musto Class 4 Market Making
FUNDING INVESTMENTS FINANCE 738, Spring 2008, Prof. Musto Class 4 Market Making Only Game In Town, by Walter Bagehot (actually, Jack Treynor) Seems like any trading idea would be worth trying Tiny amount
More informationThree Secrets For Profitable Straddle Trading
Three Secrets For Profitable Straddle Trading Introduction Welcome to our free report, "The Three Secrets To Profitable Straddle Trading". It's no secret that options have exploded in popularity over the
More informationTrading Basics Series
Trading Basics Series HOW DO I TRADE STOCKS.COM Copyright 2011 Trading Basics Series MANAGING EXPECTATIONS One lesson of life that is pervasive in nearly every activity that we pursue is that we must all
More informationINVESTMENT CONSULTING SERVICES DISCLOSURE BROCHURE
INVESTMENT CONSULTING SERVICES DISCLOSURE BROCHURE PREFACE My advice to investors (who cannot give full time to a study of investments) is to seek out some trusted investment counselor. The emergence of
More informationSupport and Resistance: Trading by Reading a Market
Support and Resistance: Trading by Reading a Market 2009 [Published by] www.investija.com Page 1 Contents 1.0 Trading method Market Types...3 1.1 Trading method Drawing Lines...7 2.0 The Time...11 3.0
More informationProfessionally Managed Portfolios of Exchange-Traded Funds
ETF Portfolio Partners C o n f i d e n t i a l I n v e s t m e n t Q u e s t i o n n a i r e Professionally Managed Portfolios of Exchange-Traded Funds P a r t I : I n v e s t o r P r o f i l e Account
More informationMore informed trading Exchange Traded Funds (ETFs)
Exchange Traded Funds (ETFs) Expert Level Exchange-Traded Funds (ETFs) Exchange-traded funds (ETFs) are investment funds traded on stockmarkets. They are not mutual funds yet they offer all of the benefits
More informationThe Logic Of Pivot Trading
Stocks & Commodities V. 6: (46-50): The Logic Of Pivot Trading by Jim White This methodology takes advantage of the short-term trends in the market and applies a pivot trading technique to earn superior
More informationHow to Collect a 162% Cash on Cash Return
How to Collect a 162% Cash on Cash Return Today we are going to explore one of the most profitable, low-risk income strategies I ve come across in my 27 years of trading. This income strategy produced
More informationTHE POWER OF FOREX OPTIONS
THE POWER OF FOREX OPTIONS TOPICS COVERED Option basics Call options Put Options Why trade options? Covered call Covered put Hedging your position using options How to repair a trading position THE POWER
More information2014 S&P500 Bulletin Review
2015 I Am in Wall Street Ltd Registered in England No. 9440096 Director: Daniele Prandelli W: www.iaminwallstreet.com E: info@iaminwallstreet.com T: 0044 75 212 46 792 2014 S&P500 Bulletin Review +124
More informationDISCLAIMER ANY AND ALL FORWARD LOOKING STATEMENTS HERE OR ON ANY OF OUR SALES MATERIAL ARE INTENDED TO EXPRESS OUR OPINION OF EARNINGS POTENTIAL.
DISCLAIMER The author and publisher of this book and the accompanying materials has used his best efforts in preparing this information and system. The author and publisher make no representation or warranties
More informationBINARY OPTION TRADING. Lesson #1
BINARY OPTION TRADING Lesson #1 1 Table of Contents Forward. 3 Introduction to Binary Option... 4 Benefits of Trading Binary Options. 5-6 Binary Option Basics 7 Types of Binary Option. 8-10 Unique OptionBit
More informationChallenges in the Life Insurance Industry
Challenges in the Life Insurance Industry Remarks by Superintendent Julie Dickson Office of the Superintendent of Financial Institutions Canada (OSFI) to the 2010 Life Insurance Invitational Forum Cambridge,
More information5 Biggest Mistakes Most Home Buyers Make and 3 Guaranteed Ways to Get Approved for a Home Loan
5 Biggest Mistakes Most Home Buyers Make and 3 Guaranteed Ways to Get Approved for a Home Loan This Complementary Special Report was prepared by: Jose A. Rodriguez Jr. Vice President of Sales & Marketing
More informationChapter 3.4. Forex Options
Chapter 3.4 Forex Options 0 Contents FOREX OPTIONS Forex options are the next frontier in forex trading. Forex options give you just what their name suggests: options in your forex trading. If you have
More informationINTRODUCTION TO COTTON FUTURES Blake K. Bennett Extension Economist/Management Texas Cooperative Extension, The Texas A&M University System
INTRODUCTION TO COTTON FUTURES Blake K. Bennett Extension Economist/Management Texas Cooperative Extension, The Texas A&M University System Introduction For well over a century, industry representatives
More informationWhether you re new to trading or an experienced investor, listed stock
Chapter 1 Options Trading and Investing In This Chapter Developing an appreciation for options Using option analysis with any market approach Focusing on limiting risk Capitalizing on advanced techniques
More informationEmotions and your money
Emotions and your money 5 potentially costly mistakes that your financial advisor can help you avoid Emotions can cost investors Break the cycle of emotional investing by partnering with an experienced
More informationTraditionally pension schemes invested in four main asset classes: Shares (Equities or Stocks), Bonds, Property and Cash.
Asset Classes Traditionally pension schemes invested in four main asset classes: Shares (Equities or Stocks), Bonds, Property and Cash. Shares (also called Equities or Stocks) are shares bought in quoted
More informationThere are two types of options - calls and puts.
Options on Single Stock Futures Overview Options on single Stock Futures An SSF option is, very simply, an instrument that conveys to its holder the right, but not the obligation, to buy or sell an SSF
More informationA Beginner s Guide to the Stock Market
A beginner s guide to the stock market 1 A Beginner s Guide to the Stock Market An organized market in which stocks or bonds are bought and sold is called a securities market. Securities markets that deal
More informationHow to Sell Your Municipals at the Right Price
How to Sell Your Municipals at the Right Price Back in the fifties and sixties, when the municipal bond market as we know it today was in its infancy, it was difficult to feel assured that you were getting
More informationEUR/USD, USD/CAD, GBP/USD
Learn how to trade EUR/USD, USD/CAD, GBP/USD or Any other major currency pair by mastering a system That combines top level mathematics with the Fundamental principles of human behavior - simplified In
More informationChapter 17 DAY TRADE VS POSITION TRADE. For years, the arguments have gone up and back: which is better, day trading or position trading?
Chapter 17 DAY TRADE VS POSITION TRADE For years, the arguments have gone up and back: which is better, day trading or position trading? We have heard many day traders say they prefer day trading because
More informationINVESTMENT MANAGEMENT SERVICES DISCLOSURE BROCHURE
INVESTMENT MANAGEMENT SERVICES DISCLOSURE BROCHURE PREFACE My advice to investors (who cannot give full time to a study of investments) is to seek out some trusted investment counselor. The emergence of
More informationIn the Richard D. Wyckoff method on stock market science and techniques, the fourth step of his
Wyckoff: Buying And Selling Tests by Craig F. Schroeder In the Richard D. Wyckoff method on stock market science and techniques, the fourth step of his approach is explained thus: Determine each stock's
More informationBROKER SERVICES AND PLATFORM
BROKER SERVICES AND PLATFORM A broker is an individual who executes buy and sell orders and get commission in the form of SPREAD (I will talk about SPREAD in the subsequent lessons). You trade through
More informationPerspective. Economic and Market. Has Stock Market Stability Increased Vulnerability?
James W. Paulsen, Ph.D. Perspective Bringing you national and global economic trends for more than 30 years Economic and Market April 6, 2015 Has Stock Market Stability Increased Vulnerability? The emotional
More informationBonds, in the most generic sense, are issued with three essential components.
Page 1 of 5 Bond Basics Often considered to be one of the most conservative of all investments, bonds actually provide benefits to both conservative and more aggressive investors alike. The variety of
More informationInvesting Offers Rewards And Poses Risks. Investment Basics: The Power of Compounding. How Do Americans Invest Their Savings? (HA)
How Do Americans Invest Their Savings? (HA) Learning how to save money for future use is an important first step in reaching your long-term goals. But saving alone is not enough. You will also need to
More informationStrategy:10. Rob Booker s. Low risk/high return forex trading
RISK DISCLOSURE: Rob Booker s Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for
More informationChapter 5. Risk and Return. Copyright 2009 Pearson Prentice Hall. All rights reserved.
Chapter 5 Risk and Return Learning Goals 1. Understand the meaning and fundamentals of risk, return, and risk aversion. 2. Describe procedures for assessing and measuring the risk of a single asset. 3.
More informationAsset Something of value to an individual or a company. The major financial asset classes are stocks, bonds, and commodities.
THE FINANCIAL MARKETS OBJECTIVES: Students will be able to: Understand the trade-off between risk and reward in investing Identify and define the three major financial asset classes Explain what factors
More information20472 Chartwell Center Drive, Cornelius, NC 28031-1-888-658-7638 - www.vectovest.com
20472 Chartwell Center Drive, Cornelius, NC 28031-1-888-658-7638 - www.vectovest.com Gold Fever As we start a new decade, we can look back in stunned disbelief at the financial and economic wreckage that
More informationReputation Management for Local Businesses: Protect Your Image
By: James Iannelli RI Reputation Management www.reputationmanagementri.com (401) 316-2931 1 Introduction As a business owner, you already know that managing a business is a LOT of work; from keeping the
More informationIntroduction... 4 A look at Binary Options... 5. Who Trades Binary Options?... 5. Binary Option Brokers... 5 Individual Investors...
Table of Contents Introduction... 4 A look at Binary Options... 5 Who Trades Binary Options?... 5 Binary Option Brokers... 5 Individual Investors... 5 Benefits of Trading Binary Options... 6 Binary Option
More informationDiscussion Paper: Trading Periods. Written by: John Howell & Andrew Dimitri. Planet Wealth Trading Room
Discussion Paper: Trading Periods Written by: John Howell & Andrew Dimitri Planet Wealth Trading Room Bar Charts - OHLC There are many different ways to identify what is actually happening in the market.
More information5 Little Known Facts About Bankruptcy In Utah Other Attorneys May Not Tell You About.
Lewis Adams & Associates Utah Bankruptcy Attorneys Personal Reliable Professional (801) 396-0856 www.utah-bankruptcy.org 5 Little Known Facts About Bankruptcy In Utah Other Attorneys May Not Tell You About.
More informationKeys to prevailing through stock market declines.
FOR ADVISOR USE ONLY Keys to prevailing through stock market declines. The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.
More informationOption Theory Basics
Option Basics What is an Option? Option Theory Basics An option is a traded security that is a derivative product. By derivative product we mean that it is a product whose value is based upon, or derived
More informationAnswers to Concepts in Review
Answers to Concepts in Review 1. Puts and calls are negotiable options issued in bearer form that allow the holder to sell (put) or buy (call) a stipulated amount of a specific security/financial asset,
More informationReading Gaps in Charts to Find Good Trades
Reading Gaps in Charts to Find Good Trades One of the most rewarding and challenging things I have done in my 40-year trading career is teach elementary school students the basics of technical analysis
More informationIs Your Financial Plan Worth the Paper It s Printed On?
T e c h n o l o g y & P l a n n i n g Is Your Financial Plan Worth the Paper It s Printed On? By Patrick Sullivan and Dr. David Lazenby, PhD www.scenarionow.com 2002-2005 ScenarioNow Inc. All Rights Reserved.
More informationThe Real Story About Life Settlements
The Real Story About Life Settlements Inform yourself about an oftenmisunderstood and potentially powerful tool in your advisor s toolbox If you re like most advisors, the following words may pop into
More informationLessons On Buying Stocks
Lessons On Buying Stocks 1. Earnings: The Indispensable Element Of Great Stocks Insist on the best earnings performance, not just a promise of earnings. This way, you will pick stocks with the best probability
More informationHow to find the big winners in the stock market.
How to find the big winners in the stock market. Big Winners = Stocks in the positive right-hand tail of the distribution of returns Distribution of returns Normal vs. Fat Tails Theoretical distribution
More informationFactual statements in this course are made as of the date the course was created and are subject to change without notice.
1 HOW TO AVOID CHOPPY MARKETS Dr. Barry Burns Copyright 2007 Top Dog Trading IMPORTANT-READ CAREFULLY: Reproduction, translation, or distribution in any form or by any means, or storage in a data base
More informationProbability and Expected Value
Probability and Expected Value This handout provides an introduction to probability and expected value. Some of you may already be familiar with some of these topics. Probability and expected value are
More informationThe Binomial Option Pricing Model André Farber
1 Solvay Business School Université Libre de Bruxelles The Binomial Option Pricing Model André Farber January 2002 Consider a non-dividend paying stock whose price is initially S 0. Divide time into small
More informationBuy, Sell or Hold?: An Overview of Investing
Buy, Sell or Hold?: An Overview of Investing LESSON 21: TEACHERS GUIDE Most of us take financial gambles every day. For example, we might hold off on purchasing a new video game or smart phone in hopes
More informationBefore we discuss a Call Option in detail we give some Option Terminology:
Call and Put Options As you possibly have learned, the holder of a forward contract is obliged to trade at maturity. Unless the position is closed before maturity the holder must take possession of the
More informationMethods to Trade Forex Successfully for Quick Profits
Methods to Trade Forex Successfully for Quick Profits This article is devoted to the techniques that are used to trade Forex on an intraday basis for quick profits. The aim is to make the trading a successful
More informationCHAPTER 8: TRADING STRATEGES INVOLVING OPTIONS
CHAPTER 8: TRADING STRATEGES INVOLVING OPTIONS Unless otherwise stated the options we consider are all European. Toward the end of this chapter, we will argue that if European options were available with
More informationChapter 3.1. Hedging with CFDs
1 Chapter 3.1 Hedging with CFDs 0 HEDGING WITH CFDS Successful share and CFD traders realize that protecting the money they have is just as important, if not more so, than earning more money from trading.
More informationFeedback is welcomed. I hope to welcome you soon as a member.
As you save for retirement, maximize your return and minimize your risk. Dear Inquirer, Thank you for looking into this proactive rotational allocation C-lect strategy. C is the riskadjusted relative strength
More informationOption Basics: A Crash Course in Option Mechanics
1 chapter # 1 Option Basics: A Crash Course in Option Mechanics The concept of options has been around for a long time. Ancient Romans, Greeks, and Phoenicians traded options based on outgoing cargoes
More informationWelcome to your FX365i and the Forex Quick Start course!
Welcome to Your Forex 365 Institute QUICK START Course! Welcome to your FX365i and the Forex Quick Start course! During this course you will learn exactly what it takes to be a professional Forex trader.
More informationOption pricing. Module 3
Course #: Title Module 3 Option pricing Topic 1: Intrinsic value and time value... 3 Intrinsic value... 3 In-the-money, out-of-the-money, at-the-money... 3 Time value... 4 Topic 2: What affects an option's
More informationLecture 6: Portfolios with Stock Options Steven Skiena. http://www.cs.sunysb.edu/ skiena
Lecture 6: Portfolios with Stock Options Steven Skiena Department of Computer Science State University of New York Stony Brook, NY 11794 4400 http://www.cs.sunysb.edu/ skiena Portfolios with Options The
More informationHow To Know When A Market Is In A Strong Trending Phase
The 3 Rules of Successful Swing Trading Trade with the Wind at Your Back The Rule That Hits Home Runs & Be In the Right Place at the Right Time by Michele Mish Schneider, Director of Trading Research &
More informationThe Equity Evaluations In. Standard & Poor s. Stock Reports
The Equity Evaluations In Standard & Poor s Stock Reports The Equity Evaluations in Standard & Poor s Stock Reports Standard & Poor's Stock Reports present an in-depth picture of each company's activities,
More informationManaged Futures Counter-Trend vs. Trend Following. Executive Briefing
Managed Futures Counter-Trend vs. Trend Following Executive Briefing Managed Futures Strategies The managed futures corner of the alternative investment space is one of the first places astute investors
More informationClub Accounts. 2011 Question 6.
Club Accounts. 2011 Question 6. Anyone familiar with Farm Accounts or Service Firms (notes for both topics are back on the webpage you found this on), will have no trouble with Club Accounts. Essentially
More informationExit Strategies for Stocks and Futures
Exit Strategies for Stocks and Futures Presented by Charles LeBeau E-mail clebeau2@cox.net or visit the LeBeau web site at www.traderclub.com Disclaimer Each speaker at the TradeStationWorld Conference
More informationFAQ. (Continued on page 2) An Investment Advisory Firm
FAQ An Investment Advisory Firm What is QASH Flow Advantage? It is a time-tested model that includes three strategic components: A portfolio of carefully selected Exchange-Traded Funds (ETFs) for diversification
More informationInternational Academy of Exchange Trading. Lesson 7: Fundamental Analysis
Lesson 7: Fundamental Analysis Contents Lesson 1: All you need is... Lesson 2: Forex lowdown Lesson 3: Leverage (a little help from your friends) Lesson 4: Orders Lesson 5: A beginner s guide to technical
More informationBuy Stocks; Sell Bonds
June 16, 2012 Buy Stocks; Sell Bonds Since the turn of the millennium, investors have experienced a -1% return in equities. Despite this miserable return, P/E 10, the ratio of prices to a 10-year moving
More informationThe Trading Method That Proves Even a Beginning Trader Can Become a Profitable Trader in Just Hours by Trading with the Rhythm of the Market.
The DecisionBar Trading Manual The Trading Method That Proves Even a Beginning Trader Can Become a Profitable Trader in Just Hours by Trading with the Rhythm of the Market. Part 1 By Les Schwartz Welcome
More informationLearn the secrets to becoming a great leader. LEADERSHIP. Questionnaire. Brian Tracy WWW.BRIANTRACY.COM
Learn the secrets to becoming a great leader. LEADERSHIP Questionnaire Brian Tracy WWW.BRIANTRACY.COM LEADERSHIP QUESTIONNAIRE BRIAN TRACY 1 LEADERSHIP QUESTIONNAIRE The only limit to our realization of
More informationINVESTMENT OBJECTIVE & RISK TOLERANCE QUESTIONNAIRE
INVESTMENT OBJECTIVE & RISK TOLERANCE QUESTIONNAIRE INVESTMENT OBJECTIVE & RISK TOLERANCE QUESTIONNAIRE 1. Desire for Potential Growth Relative to Safety of Principal: A. Stability of my account balance
More informationTruth. The. About Real Estate Advertising COTTER $49.00. Cell: (805) 680-0769 Website: www.patticotter.com Email: Patti@PattiCotter.com.
$49.00 Real estate agents tell you advertising is for your benefit. Find out who's really benefiting from their ads and how to select the right real estate professional for your needs. The Truth About
More informationLet s begin. Great breakout on volume maybe we hold until the target is hit maybe we don t it depends on the overall market.
Day Trading vs. Swing Trading by ChartSpeak Sunday, August 1, 2004 ---------------------------------------------------------------------------------------------------------------------------------------------------------------
More informationPremium Drivers. A quarterly motor insurance savings index by comparethemarket.com
Premium Drivers A quarterly motor insurance savings index by comparethemarket.com September 2015 Introduction The sixth Premium Drivers report from comparethemarket.com, which analyses the difference between
More information