Online Stock Trading

October 14th, 2008 by admin

Imagine your friends laughing when you say you made a lot of money as the stock market dropped. Then imagine their faces when you show them your incredible gains. They won’t laugh any more. They’ll beg for help.

Everybody loves it when the stock market goes up. Many people panic when it falls. But they don’t need to. An American market exists that allows traders to make money regardless of whether stocks are going up or down.

Professional investors know how to hedge their bet. They take precautions because they know the economy will move through various cycles. What goes up will eventually come down.

The common man and woman are different. They assume investing is difficult so they don’t take time to learn simple methods that might benefit their lifelong effort to get ahead. They throw their money into mutual funds or a 401-K account and hope for the best. This may work when things are going well in the financial markets. In a crisis, this method will be the cause of many a sleepless night.

Every family could use some extra money each month. And it’s not a pipe dream, if you are capable of taking simple direction and absorbing new information.

Here’s how you to make money when the stock market falls: hedge your bet by trading the mini-sized Dow Jones futures market. I know what you’re thinking. Futures?! Isn’t that a great way to lose money? My answer: Have you ever lost money in the stock market?

Today’s economic conditions should be a reminder that our money is always at risk. Yesterday’s victories may be tomorrow’s defeats. All the more reason to hedge - always - your most important investments.

The mini-sized Dow Jones electronic market is global and stays open for business throughout the night and into the next day. It closes briefly at the end of each business day, all day Saturday, then opens again late Sunday afternoon. Plenty of time to access and manage your online account.

One significant reason for learning this market is its simplicity. You can learn to trade the market up and down - and it’s all legal. For people who have only traded stocks, it is sometimes difficult to understand how a futures trader can make money when a market drops. But it’s true, it can be done, without breaking any laws.

This is not true of some “short selling” that takes place in the stock market. Some rogue brokerages break Securities and Exchange Commission rules and in the process rob good, honest investors. That is not what I’m suggesting. But that illegal practice is precisely why you would be wise to learn how to hedge your stock portfolio with the mini-sized Dow Jones futures market.

There are many tutorials to help you understand how to trade this market. Google “mini-sized Dow Jones” or “the mini-Dow” and you’ll have plenty to choose from.

But don’t fall for offers that ask you to pay big bucks for software and platforms you won’t need. I’m not suggesting you day trade - not at first anyway. So choose a guidebook that is modestly priced and then learn as much as you can from it before buying your next book.

The Chicago Board of Trade and the CME Group Exchange websites offer good, free information to help you understand the basics of trading futures. Take full advantage.

Finally, be a specialist. Master the one market that can do you the most good. The mini-sized Dow Jones stock index will be enormously beneficial if you have long-term or short-term stock investments. You’ll soon realize that by concentrating on one market you don’t have to be Warren Buffet to make smart moves.

Copyright 2008

October 14th, 2008 by admin

I didn’t want to find myself in this position.

Hank Paulson looks awful. He’s sweating, uncomfortable, and clearly would rather not be where he is. He looks like he has a gun to his head. Maybe he does… judging from his choice of words-”quickly,” “action is needed,” “strongly urge”-something dire is about to happen.

Indeed, Paulson’s got himself into a real fix. In July he asked Congress for a blank check-a “bazooka” as he called it-to potentially bailout Fannie and Freddie. At the time, his argument was that if the market perceived him as having this “bazooka” he wouldn’t have to use it.

Well, Hank DID have to use the bazooka… the bazooka didn’t do anything… and now Hank is back asking for a nuclear warhead. And this time he wants it without any judicial review or oversight.

Rather than delving into the actual testimony of the various officials, I’d rather focus on the subtext or real message they were trying to communicate without doing so explicitly. That message is the following…

We have lost control.

For decades the market has operated under the notion that the Federal Reserve would be able to solve its problems by controlling the money supply should things turn for the worse. We are now finding out that assumption was blatantly false. The Fed and the Treasury have done everything they can-including several actions that are not in their charters-to strengthen the financial markets.

All of their efforts have failed.

We are now at a CRITICAL point. Even if Congress DOES grant the regulators the $700 billion in funds they′ve requested, it won’t necessarily re-instate confidence in the credit, bond or stock markets. The trust is gone. And investors are panicking.

According to the New York Post money market funds were hit with $500 billion in sell orders last Thursday. The Post wrote that the Fed’s pumping of $105 billion was “just enough to keep key institutional accounts from following through on the sell orders…”

To give you an idea of the seriousness of this statement, consider that collectively money market funds control over $3 trillion. So $500 billion in sell orders represents nearly 15% of this market trying to liquidate at once. We were literally on the brink of a full blown systemic collapse.

Investors are now trying to find safety anywhere they can. It’s proving difficult. Last week the yields on Treasuries fell to their lowest levels since the Great Depression. At one point, investors were willing to lend to the US government for a paltry 0.4% in interest-they were essentially lending their money for free, just to insure that the principal was safe.

However, the interventions-particularly the proposed $700 billion-are not exactly dollar positive. Every bailout the US engages in means more debt on the US balance sheet and more money printing. Small wonder that yesterday the dollar posted its biggest single day decline since the Euro was introduced.

And then there’s gold…

Gold has staged an incredible turnaround as investors turn to value and safety again. There are even rumors that foreign central banks are buying. Hank Paulson might not like the position he’s in… but gold investors are loving it.

Best Regards,
Graham Summers

October 14th, 2008 by admin

Out comes the kitchen sink.

The actions of this last week will go down in history as the end of the US as an economic superpower. I realize that’s a harsh view to take. And I love this country dearly. But the writing is now on the wall. The regulators-SEC, Treasury, Federal Reserve, and President Bush-have officially bankrupted this country, destroyed the dollar and guaranteed that our quality of life will be on the downward slope for the next decade.

I’ve already commented at length on the Fannie/ Freddie deal. In a nutshell that intervention added $5 trillion-at least $1.2 trillion of which is garbage-in liabilities to the US balance sheet. And it:

Didn’t solve the housing crisis-housing starts fell 6.2% in August (a 17-year low) while building permits fell 8.9%.

Won’t boost the homebuilder industry-you can’t sell homes if banks aren’t lending.

Sure as heck didn’t save the stock market: all we got was a feeble one day rally.

However, this latest intervention-one that required Congress to expand the statutory limit on the national debt to $11.3 trillion-is the kiss of death. The benefits to US taxpayers from this deal are even fewer than those of the Fannie/Freddie deal. The Feds have now thrown everything they′ve got, including the kitchen sink, at the market. How the markets react remains to be seen.

As for the commentators going ballistic and saying this move is “unprecedented,” they′re wrong. The government has attempted to solve financial crises before by creating a separate fund or trust to buy crummy assets. The last time they did this was with the Resolution Trust Corporation (RTC) during the Savings & Loan crisis in the early 1990s.

The RTC, like today′s superfund, was a separate entity meant to take over insolvent banks and then sell off their assets-both good and bad. However, the key difference between the RTC and the government’s proposed superfund is that that the RTC primary dealt with real estate holdings-real assets that are relatively easy to value-while today′s superfund will deal with mortgage backed securities or debt-intangibles or paper that are impossible to value.

When you buy real estate, the asset changes hands at a price and the deal is closed. Buying derivatives from someone entails a shift in risk, but for many securities, the deal is not closed until the derivative expires or is triggered. Thus, the Feds are lining up several hundred billion dollars worth of open-ended liabilities.

Until the deal is announced and all the details worked out, it’ll be difficult to gauge its impact. But one thing is for certain:

It will be highly pro-inflationary.

Commodities have been slammed in the last two months due to the dollar rally. But we are now nearing a time of hyperinflation when the Feds paper over any and all problems with reckless abandon. As the market comes to realize this, commodities and other inflationary hedges will begin their bull market anew.

Be prepared to pull the trigger.

Best Regards,

Graham Summers

October 14th, 2008 by admin

Penny Stocks can generate a lot of money in a very short period of time. On the same note, you can lose a lot of money very quickly. This is why penny stocks have gained the reputation as being “risky”.

Penny Stocks are low cost investments and people think that no matter which stock they invest in, they are going to make bucks. This is far from true, and this is why so many people have failed and lost money in penny stocks.

The most important thing you need to do if you want to be profitable in penny stock investment, is research. Whether you are doing the research or someone else is, this is the without a doubt, the most important thing to consider when you are looking for a stock to invest in. Not too long ago I came across a program that greatly increases your chances of success.

This program works by performing rapid, extensive research on a stock charts, in order to tell you whether the price of the stock will go up or down. This program has the ability to research thousands of stock simultaneously, and then it informs you of which stocks are your best bet to make money. The average professional stock trader can analyze one stock chart every ten seconds. This software has the ability to read seven charts every second.

Therefore, this program performs by increasing your odds drastically of making a profitable penny stock investment. This program has a very high success rate, but like all investments there are some risk involved. However, if you are interested in penny stock investment, this will increase your likelihood of success.

If you are looking to make consistent, profitable penny stock investment, then this program is a really good choice to help increase your success.

October 14th, 2008 by admin

Penny Stocks have the potential to make you great sums of money in a short period of time. On the downside, you can lose an equal amount of money in this same short period of time. Time and time again people invest in penny stocks, thinking they will make large profits in a short period of time, then end up losing big chunks of money. The reason why the majority of these people fail is because they aren′t doing their research.

Because penny stocks investment can promise large sums of money overnight people are quick to invest their money. They randomly pick and choose stocks based on a gut feeling. If you aren′t doing proper research, you will not experience penny stock success. For the novice stock trader, researching stock charts can be a tedious task. You probably wouldn′t even know where to start.

The key to making a penny stocks investment is in using the right resources. You need guidance and it can come a few different forms. First of off you can hire a professional stock analyst. These people can give you advice on which stocks they predict will go up in value. However, this can be expensive and there are more accurate ways to increase your chances of penny stock success.

This comes in the form of a software program. This specific software is able to outperform any human stock trader ten fold. The average professional stock trader can analyze one stock chart every 8 to 10 seconds. This program scan analyze 7 stock charts every second. Therefore it can analyze far more information than multiple human minds combined. This program gives you an advantage over the 95% of people investing in penny stocks investment that have little to know knowledge of what they are doing.

Some people think that penny stock success is difficult, but with the right resources, you will make money in penny stocks investment. Remember though, this is still an investment, and all investments come with risk. So there is the chance of losing money. However, this program can greatly decrease your risk.