Understanding Market Risk and the solutions available to mitigate or eliminate financial loss in today's global market.First of a two part articleFund managers, whether they be equity or bond traders, know all too well that returns are not simply a result of their asset selection prowess. Many external factors come into play. But what are the issues facing the professional money manager. Management of risk is one of the most important, and not...more
If you are new to real estate investing, you are probably wondering where am I going to find my first real estate deal? There are actually a number of very effective methods you can use. Below I will touch on 7 different methods to find deals. They are a pre-foreclosure listing service, major newspapers, post cards & fliers, bandit signs, MLS, a realtor, and a wholesaler.Method one is to purchase a list of pre-foreclosure homes from a listing...more
Why do traders always talk about support and resistance levels? What do they mean and how can traders use these levels to better understand where the market is heading next?Understanding support and resistance levels can greatly assist both traders and investors. It's all about understanding how prices tend to move.There are usually psychological barriers to prices moving beyond key levels. Support and resistance is all about understanding where those levels are and how prices are likely to move from that level.Support levelThink of a support level like a physical floor on the share price. Say that a share is trading at $4.30 and imagine there is a floor at $4.00. As the price moves towards $4.00, it has a difficult time getting past that price because the floor stops the price from going below $4.00.In fact you will probably see the price bounce off $4.00 as it tries to drill a hole in the floor. The more times that the price touches the floor, the weaker the floor will become. This occurs until the floor is broken.Once the floor is broken, the share price is free to fall to the next floor or support level.Resistance levelOnce a support level has been broken it becomes a...more
Value investing is all about picking up bargains on the sharemarket.If you're an investor, with the market at such low levels, now is the time to look at adding to your longer term portfolio.If you're a short term trader, the underpriced stocks can often be the ones to rebound strongly.Where did value investing come from?The world's most famous and...more
How do you turn $30,000 into a million dollars? The secret is time and the power of compounding. Here I'll run through this powerful concept which has helped Warren Buffett become one of the richest people in the world.Buffet has long been one of my heroes as the most successful investor in history. But now I feel let down as I read the latest book...more
What is a bear market?Generally a bear market is one where the market has decreased by more than 20%.In Australian the last high point in the market was reached on 1 November 2007 and since then it's dropped 36%. So the Australian market has been in a bear market for the last 11 months.How does a bear market end?The end phase of a bear market is called capitulation. Capitulation is when investors give up on stocks. Generally the view is that stocks are a bad investment and there is mass selling over a short period of time.The problem this time around is that the media is full of talk of capitulation which in itself indicates that total capitulation hasn't come yet. When real capitulation arrives, few will recognise it and ring a bell.Volatility is another indicator of the end. The Volatility Index or VIX index on the Chicago Board of Options reached an all-time high last week indicating extreme volatility. Extreme levels of volatility are usually associated with turning points in the market and not usually associated with trend continuation.Most brokerage houses are taking a cautious 'wait and see' attitude.What can you look out for?Capitulation or the end phase of a bear market...more
If you are looking for a steady income stream from your investments then shares can be an attractive proposition. Not only do shares provide a return in the form of capital gains or losses but most shares also pay a dividend.Traditionally, high...more
Day trading involves buying and selling shares on the same day. It is extremely difficult to do but if successful, the rewards can be substantial. The flipside is that it is also extremely risky which means that you could see your capital wiped out...more
There are many bargains on the market and one way that bargains can be identified is to use the net tangible assets (NTA) value.Here I'll explain how you can use this measure to help you identify cheap assets listed on the sharemarket.Net tangible...more
Positive belief has a direct impact on everything we do in Telephone Sales. It will increase our motivation to achieve higher sales results and our drive to perform well on each telephone sales call. It will improve our skills and abilities with each...more
We now know that building Customer Loyalty is key to success in any organization.The philosophy was first articulated by Fredreich Reicheld who studied the relationship between three factors - customer satisfaction, customer loyalty and profits....more
This special report was created at the urging of many of my clients and students. Apparently there is a myth that as a Realtor you must do everything yourself. Too often there are articles written touting the super strength of a Realtor who is being...more