It may not be the NBA Finals, but as Dallas Mavericks billionaire owner Mark Cuban once quipped, “If you don’t follow the stock market, you are missing some amazing drama.”
As the stock market continues to reach record highs this year, a majority of Americans feel confident about their portfolios and their equity investments. According to a March poll by business channel CNBC, 60 percent of Americans feel confident that their stocks will trade higher this year, even after the survey was completed during a downturn in the market.
The market has seen an extraordinary run since last summer, going from the 10,000s to the high-13,000. Americans are becoming more secure with their financial aptitude nowadays, and realize that regular stock investing over time can result in tremendous returns.
The stock market isn’t without its defects, but a practical, easy-to-understand advice follows the logic that stocks have historically outperformed all other investments, averaging a 10 percent gain in the S&P 500 since 1926.
It’s no real secret that a diversified portfolio over the long run is part of a smart financial strategy. But there are rules to investing, and I believe the new book “How Come That Idiot’s Rich and I’m Not.” offers up some common-sense solutions for everyone who wants to invest in stocks and mutual funds.
Trying to outwit the experts is fruitless. People [who go to Vegas] always tell you about the time they went and won, but they never tell them about the other eight trips where they lost. If you’re a hobbyist picking stocks part time thinking you’re going to outsmart Wall Street, you’re out of your mind.
Robert Shemin, JD, MBA, and Wall Street Journal bestseller, who was once considered the “least likely to succeed,” is a multi-millionaire who speaks to hundreds of thousands yearly, regularly sharing the podium with such financial luminaries as Donald Trump, Robert Kiyosaki, David Bach, Suze Orman and Tony Robbins. Shemin has worked with high-net-worth individuals for Goldman Sachs, helped create four companies, and been involved in over l,000 real-estate transactions. Find out more about Robert at http://www.claimmybonus.com
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January 15th, 2008 by admin
If you are a long-term investor in stocks, there is a very exciting investment plan. It is most suitable plan both for the beginners and veterans in stock market investments. Most of the investors, whether new or old, are constantly haunted by just one fear: As soon as you start investing in the stock market, the price of your stock will tumble and it will spiral up the moment you sell out your shares most probably, at a loss.
This is not just a phobia, an imagined fear. It is a very real cause to worry especially if you are trying to catch moves or time of the markets. Not only the lay investors, even the professional traders and fund managers also have a hard time gauging the wayward, volatile and unpredictable market moves. Since you are a long-term investor, you do not want to play this type of guessing game with your hard earned money. You want to be on a surer footing. You, therefore, want a strategy that is proven, conservative and delivers good value on your investment over the long run. This strategy is called Dollar Cost Investing.
This type of investment works on the premise that if you buy the stocks of the same dollar amounts on regular basis, the unpredictable fluctuations in investment is squared off over a certain period of time. You basically buy more stock when the prices are low and buy less when the market is high since you are always investing the same dollar amount. You do not have to worry about buying the shares on higher costs and selling them on low. This happens because the risk of the timing is reduced. All you need to do is to consistently invest the same dollar amount on regular basis. If you purchase index funds, your investment will grow with the market. Obviously you are more in tune with the market over the long term.
This plan can be illustrated by an example. Suppose you are not investing on the principle of dollar cost averaging. Instead, you are buying the same amounts of shares every month. You buy, say, 100 shares on the 15th of every month and you continue to buy stock at different prices for six months.
Suppose you buy 100 shares in the first month @ $30, second month@ $40, third month @ $50, fourth month @ $90, fifth month @ $ 60 and in sixth month @ $30. Suppose your total investment over six months comes to be $ 30,000 and you buy 600 shares. Your average cost price per share would be $50.
Now suppose you buy your stock on the basis of dollar cost averaging. According to it, you spend the same amount that is, $ 30,000 spread over a period of six months so that you spend $5000 every month. Let us say you invest the same amount every month and buy 166.66 shares@ $30 in the first month, 125 shares @ $ 40 in the second month, 100 shares @ $50 in the third month, 55.55 shares @$90 in the fourth month, 83.33 shares @ $60 in the fifth month and 166.66 shares @ $ 30 in the sixth month. You buy a total of 697.2 shares for $30,000. If you divide $30,000 by 697.2, your average cost per shares comes to $43.02.
It is obvious that you have invested in fractional shares in the second investment plan. Your saving per share is huge although you are investing the same dollar amounts but buying shares fractionally. You actually buy more shares when the price is low and less shares when the price is high. You not only wind up with more shares, almost 700, at much less average price of $43 as against $50 in the first instance.
It must, however, be noted that it is much easier to make such purchases in a rising market when your investment appreciates. You have to be pretty much disciplined and stick to your strategy when the market is falling. You must also be aware of that each dollar buys more in a falling market, which potentially leads to higher gains in the future as the market recovers.
Although it is impossible to predict the market trends in the future, but historically, the market has risen over the long term and it takes the conservative investors right along with it.
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January 15th, 2008 by admin
W D Gann was one of the greatest traders of all time and he used astro charts in trading. He made more than 50 millions dollars from the stock market. His theory was based on Cycles that history repeats itself.
He asserted that stock market movements are cyclical and that stock market dynamics is pure maths! One day the Market goes up by 2% and next day it comes down by 2%. What else can the movement be, except maths ? Mathematical and astrological principles are the basis of all.
The Cyclical or the Periodic Law
Everything is cyclical. Shelley’s “If Winter comes, can Spring be far behind?” corresponds to the stock market equation “If Recession comes, can Boom be far behind?”. The Law of Bipolarity in Nature - rise & fall, flow & ebb, day & night, pleasure & pain, birth & death - corresponds to the gain and loss in the stock market. Technical analysis points out that all scrips display regular and recurrent patterns of price behavior. If you observe India’ s premier stock Reliance, you will come to know that it went up during boomtime and registered a sharp fall during recession.
Mr. Henry Hall, in his recent book devoted much space to ‘Cycles of Prosperity and Depression’ which he found recurring at regular intervals of time. The mathematical laws which we have applied in Zodiac Stock Market Astrology will give these cyclical swings, identifying the primary, secondary and tertiary trends. The resistance and the support levels of the Sensex and all major scrips can be known by these mathematical methods.
The Fourfold Economic Movement
The fourfold movement of an Economic Cycle are - Revival, Expansion, Recession & Contraction.
Gann averred “If we wish to avert failure in speculation, we must deal with causes. Everything in existence is based on exact proportion and perfect relationship. There is no chance in nature, because mathematical principles of the highest order lie at the foundation of all things″
90% of the traders today are ” Lottery Traders″ basing more on luck than on research. Stock trading is very lucrative and unfortunately there are no shortcuts. It is said that trading is easy but trading for profit is not ! A lot of time should be invested in research and study. Lottery traders believe in reading just a book and becoming a millionaire the next day.
Like buying a lottery ticket and testing one′ luck (where the probability of the investor getting the first prize is one out of 2 million). 90% of all traders lose money because of a lack of discipline, patience and knowledge. All you need to succeed is just common sense. If you know basic maths, you can bring home the bacon. As W.D. Gann states: “If you can add, subtract, multiply and divide, you can do what I do”.
“It is so simple and easy to solve problems and get correct answers and results with figures that it seems strange so few people rely on them to forecast the future of business, stocks and commodity markets. The basic principles are easy to learn and understand. No matter whether you use geometry, trigonometry, or calculus, you use the simple rules of arithmetic. You do only two things: You increase or decrease.” W.D. Gann (From his Stock Market Trading Course)
Elliot Wave Theory & Stock Market Astrology
Elliott concluded that the movement of the stock market could be predicted by observing and identifying a repetitive pattern of waves. We meant the same when we talked about planetary cycles in our earlier articles. In fact, Elliott believed that all of man’s activities, not just the stock market, were influenced by these identifiable series of waves. We meant the same that man’s activities can be predicted by these planetary cycles.
Astro-Economic Cycles
Stock Market Astrology states that Planetary Cycles do influence Economic Cycles. When we combine both we get the term Astro-economic cycles. The transit of the financial planet Jupiter do influence a nation’s economy. An adverse Jupiter in US’ horoscope is responsible for the fall of the Dow. We find that international indices are down. Only in India is there a stock market boom and this is due to the favourable posture of Jupiter in the lunar fifth.
By 2020, if we go by GDP growth , the No 1 nation will be China, second US & third India !
Secondary reactions are natural & the market is bound to bounce back once the correction is over. Grasim, Satyam Computers & Bharti Tele had reported excellent results. Amongst the cement companies, Grasim leads. Forbes includes Satyam, Infosys & Wipro in the list of the best corporations of India in their magazine. Also Bharat Forge. Knowledge, patience and discipline alone can win the game for us, as Gann remarked!
Article by G Kumar, ceo of http://www.realtyspeculation.com Recently he was awarded a Certificate by the Planetary Gemologists Association Global as a Planetary Gem Advisor. He has 25 years psychic research experience in the esoteric arts. To subscribe to his free informative Ezine, the Z Files mailto:info@eastrovedica.com?subject=SubscribeZF His Astro blog is up at http://www.zodiacastrology.blogspot.com Mobile# 091 9388556053
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