10 Tips for Creating Wealth from the Stock Market - free article ...

1. Do not spread your money too thin.

My friend has a little over $200,000 invested in the stock market through 27 different Mutual funds. In my opinion, 27 Mutual funds is 27 too many collecting load fees, management fees, commission fees, operating and advertising fees. Diversity is important, but just as important is over-diversification. Also, in my opinion, $200,000 should not be put into more than 12 stocks, let alone 27 different Mutual funds.

2. Do not pay commission fees to purchase a stock.

If you are going to invest your hard earned dollars into a company, the least the company could do is provide you a way to invest in their company commission free – and they do!

3. Only purchase those companies that pay a dividend.

The same company that you invest in commission free should also offer you another incentive for you to invest – a dividend for the use of your money.

4. Only purchase those companies that have a history of raising their dividend every year.

The same company should continue rewarding you for your faith in their company by increasing the amount of their dividend every year. Rising dividends are also the proof that the company is dong something right.

5. Dollar-cost average into each stock position.

By dollar-cost averaging (buying the same stock at different prices through the years) you’ll never pay too much for the company’s stock, even if the initial purchase is at a 52 week high. Have all the dividends from each company rolled back into more shares of each company, until retirement. The companies you invest in should do this for you, automatically, commission free.

6. Forget making a profit; instead focus on the income provided from your stock portfolio.

That’s right! Forget making a profit. The burden is now lifted - no more pressure on making a buck in the stock market (Instead of trying to bend the spoon, that is impossible, instead just think of the spoon as – omigosh! - I’m in the Matrix). When you focus on the amount of money your holdings are providing in dividends – and when those companies selected have a history of raising their dividends each year – a lower stock price allows the dividends that are being rolled back into the stock to accelerate your income. The total value of your portfolio may go lower, but your income from that lower priced portfolio would increase dramatically. Profit by income!

7. Make every stock purchase with the intent that the purchase will be a long-term investment.

Do not trade in and out of your holdings. There have been many up and downs in the stock market. The down markets only accelerate your income. GE has raised their dividend for 28 years in a row. Why sell it? 100 shares of GE ten years ago has turned into 1200 shares today due to stock splits, and that is not counting how many shares you would have now if the dividends were being rolled back into more shares of the stock through those years.

8. Understand that a lower stock price, after your initial purchase may be a blessing in disguise.

The income from your stock holdings should grow every quarter, no matter what the total amount of your stock portfolio is worth. (If your Mutual fund declines in price from one year to the next and if your income is not increasing (accelerating) from that fund, why are you in that fund?) A company pays their dividend not on how much their stock is worth in the market place. For example, a company pays a quarterly dividend of 50 cents a share. A company has little control on how much its stock price is worth in the market place on any given day. You will receive 50 cents a share per quarter whether the stock price is at 50 dollars a share, or drops to $40 a share or goes up to $70. While the stock is down at $40 a share your dividend reinvestment is loading up on more shares.

9. Develop a savings plan to add to your holdings each quarter to help your dividend reinvestments to accumulate more shares on a dollar-cost averaging basis.

The savings could be as little as $5.00 a week. Why put that savings in a savings account at 1.2 percent, when there are so many companies out there that are paying a 4 to 5% dividend yield and increasing their dividend every year? And since none of the companies you are investing in charge a commission, all of that $60.00 a quarter you saved and invested would help your dividend reinvestments to dollar-cost average into your holdings. Every cent you save and invest would work toward your ROI (Return on Investment).

10. Read my book ‘the Stockopoly Plan’ soon to be released by American Book Publishing.

I believe it will profit you and your family for the rest of your lives.

For more excerpts from the book ‘The Stockopoly Plan’ please visit http://www.thestockopolyplan.com

Forex Day Trading: How To Create Massive Wealth From Forex Day ...

Hello, how do you do?

Until now, you may have never known how easy it is to make fast money from forex day trading, because nobody has ever given you the correct information, as I will in this article.

Most people from middle class make their money from investments in real estate, stock trading, bond trading, mutual funds, CDs, auction programs and various internet programs and other small businesses.

They may have never heard about day forex trading, which is where multi-millionaires and billionaires make their money.

Forex day trading is the most profitable and attractive investment opportunity because you can do it from home or office and from any country in the world.

In forex day trading, you don’t need to do any marketing or selling or internet promotion to succeed.

In forex day trading, you don’t need to spend thousands of dollars to do any internet promotion.

In forex day trading, you don’t need any stocks or warehousing.

In forex day trading , all that you’ve to do is open an account with one of the brokers with as little as $300 or $2000.

Then follow simple instructions to buy and sell the currencies.

When the price of the currency is low, you buy.

In a few seconds or minutes, the price will go up, and you sell it and make a profit.

By so doing , in a day, you can easily make $500-$1000 by just buying, selling and trading these foreign currencies for about 3 or 4 hrs!

The more money you put in your forex day trading account, the more money you can make.

You can use $1 to control $200 investment in foreign currencies.
$200 to control $50,000 investment.
And $1000 to control $200,000 cash.

And get this:

You don’t even have to be stuck sitting behind your computer buying and selling these foreign currencies.

You can enter all your buy trades and specify the sell prices you desire and then log off.

Whenever the values of these foreign currencies rise and your selling prices reach, the currencies will be automatically sold for you and you make money!

If you put $300 in your LIVE "Forex day trading", you can generate a minimum of "$10 in 10 mins." or about "$50" minimum daily, 6 days/wk!

If you put $1000 in your LIVE "Forex day trading", you can generate "$100 in 10 mins." or about "$400" minimum daily, 6 days/wk!!

If you put $10,000 in your LIVE "Forex day trading", you can generate "$300 in 10 mins." or "$1000" minimum daily, 6 days/wk"!!!

If you are very ambitious build your live account to $50,000-$100,000 account, you may possibly rake in $1,000,000 in 1 year!

You can do forex day trading and at the same time keep your day job, because in forex day trading, there is no work to do.

In the future when you have made hundreds of thousands of dollars, you may then quit your job and just keep doing forex day trading forever and go on permanent vacation!

To understand the beauty of forex day trading Picture this:

In the morning, you get up from sleep at 6 am.

You go to your bathroom and have your shower.

At 7am, you hurry and eat your breakfast.

At 7.20 am, you login into your forex day trading account on the internet and spend 10 minutes to buy about 3 or 4 different currencies, [for example British Pound, Euro, CHF (Swiss Currency) and Yen (Japanese currency).]

You can specify the price at which you wish to sell each currency.

Then you can log off.

By 9 am, you’re at work in your office or business place.

You do your job as usual and by 5 pm, you’re finished and heading home.

When you get back home around 6.30 pm, you login into your forex day trading account to see how much money you’ve made.

Holy Molly, there in your account it says you have made $750!

“Is this for real?”, you wonder…

Yes, it is. (Your eyes are not deceiving you…)

$750 in a day for just clicking your mouse twice and doing no work?

(Whereas at your job, you work 8 hrs, but make only probably $150..)

This is how easy it is to make money from forex day trading.

But before you use real money to open a live forex day trading account, you have to open a free trial (demo) forex day trading account and practice first, to understand how it works and to acquire the right skills.

This free demo (trial) forex day trading account (forex simulation trading) will help you to reduce a lot of risks that can lead to loss.

In forex day trading, you can choose how much money to invest, how much money to make and when to make it.

You can make money daily, 365 days all year from forex day trading.

Your computer can be transformed into a personal, home “ATM” machine that cranks out cash for you daily (without large investment or hassles) from forex day trading.

In forex day trading, you can choose what type of risk you can manage, when to invest and when not to invest.

In forex day trading, you’re the boss. You may do as you please.

When forex day trading is compared to other investment programs such as stock trading, bond trading, mutual funds, real estate and regular business, it is evident that forex day trading is the fastest and greatest way to make money in the world.

Forex day trading is a 2.5 trillion dollars daily business and it is larger than all the stock trading in the world combined.

These are some of the reasons why I believe that forex trading is the fastest and best way to create fantastic wealth.

Perhaps from reading this article you’ll now come to know why forex day trading is the secret behind the greatest wealth on earth and why it has been kept hidden from the average people of the world and therefore little known to the masses.

May these forex day trading insights open your eyes to the possibility of infinite wealth and success that can be yours from forex day trading.

Please feel free to print or publish this article anywhere and read and also send to your friends and well wishers and please preserve the author’s resource box below.

Warmly,

Ikey Benney

(Stocks) Steal Warren Buffet's Stock Market Lesson Plans? - free ...

Why should you want to steal someone else's stock market lesson plans?


First, let me tell you that a trading plan is only useful if you follow it. Following your plan will make you successful, yet many traders circumvent the stock market lesson plans that they have carefully created. They become emotional invested in a trade, to the point where they ignore all warning signs. Remember, when the market corrects itself, which it always does, no position is immune, no matter how strongly your ego may be tied to it.


Many investors have stock market lesson plans that watch as their portfolio values are cut in half or more, yet they will still hold their positions. They may fear being left out of a big gain, or be so deep in loss that they felt they couldn't possibly sell at that point. But even if you believe that all positions will recover from their losses, and the truth is that not all of them will, this is a terrible way to trade.


You tie up too much capital, and your rate of return plummets. Just as you shouldn't become emotionally involved in a trade, you should also never become tied to ideas. By this I mean becoming so fond of a particular strategy or trend that you cling to it even after it has stopped working. You need to have strategies, and to have plans, but you must also be aware of the shifts and swings of the market, the beginning and the ends of trends.


When you first form your plan for a trade, you should consider what price or price range you think the stock is likely to reach. This is often called a target price, which gives some traders the wrong impression. A target price is not a price that the stock has to meet. A stock does not have to do anything. If you treat your target price as a goal, it can lead to many problems. Your target price should only be used as a guideline.


The target price helps you figure out your risk to reward ratio, and it gives you an exit point in your trade. At the least, it should give you a point where you'll reassess the trade's ability to continue to moving upward. But your trade may never reach your target price. Many market factors can interfere with its progress, and you may have set your target higher than you should have. Since there's no way all your trades will hit your price targets, it is a good idea to sell half your position at a more conservative target. Routinely taking profits will reward you in the long run.


There are a number of things that can interfere with a stock's movement and force you to close your position sooner than you'd anticipated. Your stock market lesson plans should cover all of these possibilities, but here are some reasons that should always prompt you to close a position:


1. The end of a trend. All trends end some time, and you should be prepared for this.

2. The stock's upward movement has slowed or been abruptly broken, ending its momentum.

3. The stock is approaching a major psychological barrier, perhaps reaching 100 dollars or 200 dollars a share, which should have been anticipated in your plan

4. The stock is about to reach a resistance level it has been unable to break through before.

This technical barrier should also have been anticipated in your plan.

5. A sudden market wide decline, or the threat of one, or some other serious uncertainty,

which leads to unsafe market conditions.


Exiting a losing trade is not a big deal. Ending a position whether or not the stock reaches its target price, in accordance with your stock market lesson plans, is good trading. The best traders would rather lose a small profit than take an unnecessary risk. You don't have to win on every trade; no one does, and it's dangerous to try. In fact, by limiting losses, a good trader can be profitable overall, and make money on only 40 percent of his trades. Cut your losses and start fresh with something else when you need to. You'll be happier, and you'll make much more money.

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How To Start Forex Trading � Very Useful For Forex Beginners Who Have Low Budget To Start!

Every forex beginner knows what is forex trading but the only one question for them is to how to start. As of now there are many tools, trading systems and software that are in use in daily trading. The big mistake that every beginner does is that they get tempted to the hype of forex trading robots or to some forex trading software and they start trading and finally end up with loss.

I am not against to the forex trading robots or to any software, but my point here is that it is not the right time to use a forex trading robot or a software when you are as beginner. We can use the robots and software at a later stage.

Here is a step by step plan on “How To Start Trading”. So let's start.

Plan For The First 15 Days – Phase 1:

Before you start trading you should always know the basics of forex trading and the terminology related to the forex market. This is not a big problem. If you goolge it, you can get lot information which you can't even digest. Or visit my website and subscribe to the free e-course in which you will be provided with all the needed knowledge and information on forex trading. At this stage nothing to hurry up, first finish off the basics of forex trading. Normally 10 to 15 days of time is really good enough for any average joe to be ready with basics. But we shall put it to 15 days of time.

Note: At this stage my kind request is not to get tempted to start real trading. Please do not start.

When you start learning basics in the first 15 days, along with it you also need to get register with any forex brokerage firm which is in this industry for a long time and very reliable. I suggest you to go for Easy Forex Brokerage firm or Forex Yard Brokerage firm as they are very reliable and the registration is completely free. After registering you can use their demo accounts for your practice and they will never force you to start real trading. So you can take enough time to practice on their demo accounts. Practice on the demo accounts as much as possible until you feel comfortable with them and this practice is really needed.

Be patient. There is still a long way for us to go and do not start real trading!

Plan for the Next 10 Days – Phase 2:

Now in phase 2, you need to learn when to start a trade by finding the entry points and also need to learn when to exit the trade by finding the exit points. For this you need to learn in depth of what technical analysis is and what fundamental analysis is. You can google them, but you cannot put them in an order to learn. If you subscribe to our forex beginner course, you will also be provided with free e-books on technical analysis and fundamental analysis at the end of forex basics course. I kindly request you to go through all of those e-books steadily, but do not hurry up. This is very critical phase which you need to concentrate a lot because this is the point where you exactly learn what is the real forex trading and this phase leads you to become a forex winner. To learn about all the useful technical analysis methods and fundamental analysis methods, normally 10 days is good enough.

Even now please do not start real trading.

Plan For The Next 15 Days – Phase 3:

The next 15 days you need to apply what you have learned till now and practice on demo accounts of either Easy Forex Broker or Forex Yard Broker.

Watch any of the TV channels such as NBC News, CNN Money, Forex News Channel, etc which provides you the Forex news. Now pick the points in the forex news. Now start co-relating the news with what you have learned in technical analysis and fundamental analysis and you need to find the entry and exit points for a trade.

Daily try to find at least 8 to 10 profitable entry points and exits points and start trading on your demo account. Make a note of all the entry points which have given you the profits and also remember the factors depending upon which you have derived that profitable entry point. Practice this for at least 15 days and at the end of 15th day you will be able to find at least 5 best profitable entry and exit points a day. Finding the best profitable trades is nothing but building a forex strategy for your trading.

So end of 40th day you will be in a position to trade forex on real account. Till now you have practiced the trades on a demo account so there will not be any involvement of emotions but once you start trading with real account emotions come in and they may lead you into loss. So you need to control your emotions and need to exit the trades as per your calculated exit points. Now you can go little advanced and try some automated tools such automated forex trading signal software which can generate the entry and exit points for you.

All the hard work in 40 days needs to be done by you as there won’t be any mentor for you other than yourself. Right now there are some online forex mentors who can mentor you such as FAP Winner as they are the best till now in mentoring the beginners. But they will charge you around $300 a one time payment. It is up to you to decide it or practice by yourself.

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Option Trading Strategies: Earn a Living Trading Options - Video 1 Part 1

Option Trading Software - TheWizard.com

The Wizard covers over 3, 000 stocks including the Dow Jones Industrial Average, an index of thirty of the biggest and most widely held public companies in the US. The Wizard also covers 600 Exchange Traded Funds (ETFs) in different categories such as market capitalization and asset class. They have a variety of product offerings for whatever investment style and market you choose. With The Wizard, simply view their subscription packages and start your portfolio the right way.

Their property trend indicators offer long and short term trends for various markets that include DJIA 30, BSG trend, Russell 2000, the U. S dollar and 10 year treasury. The Wizard also covers a total of eighteen different currencies as such EURCAD, EURGBP, GBPJPY and AUDJPY. The Wizard allows you to browse stocks in their database of industries and sectors.

Signals are available for both weekly as well as daily timeframes. You will get precise entry and exit signals. Both the conservative and aggressive scan methods are available. Conservative scan offers specific profit targets for every trade. Aggressive scan holds the whole position until it is reached. If you choose an industry and sector which is bright, then any kind of trading becomes easy. The Wizard picks out penny stocks as well as it picks out the higher price stocks.

Option trading software is one of the more powerful software available to traders. If you want current detailed information for option trading, then The Wizard is your best bet. The advanced option calculator lets you explore which combinations have positive mathematical expectations. It also calculates implied volatility and Greeks, as well as creating a profit/loss graph of your option’s position.

Stock chart Wizard downloads existing stock market data for your individual stocks. It can even display technical charts and significant indicators. It includes easy to use watch lists along with a useful spreadsheet and user friendly interface. With the help of this stock trading software, it becomes very easy to know when to buy, sell or get out of the market. This software applies screening formulas to a vast population of stocks. Day trading software is unique software that is used to search for information and execute your trades.

Online stock trading software is a great investment tool that can handle all your trading tasks. Stock picking software is also useful for helping you dig through information on many different stocks before making your decisions. It is able to find new stock investing opportunities in seconds.



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Options Trading Course: Trading stocks and options using the RSI Relative Strength Index

The ABCs Of Stock Options

As a performance incentive many companies are starting to offer employees the “option” to buy company stock as a part of their compensation packages. These “options” are referred to as stock options and they provide a unique opportunity for an employee to potentially increase his or her wealth along side company shareholders. The employee receiving company stock options should have a good understanding of the characteristics of the different types of stock options in order to maximize their potential benefits.
A stock option is a right granted by a company to an employee to purchase one or more shares of the company’s stock at a set time and predetermined purchase price. The employee benefits when the value of the company stock appreciates over and above the predetermined purchase price following the granting of the stock options, enabling the holder to purchase the company stock at a discount. There are two types of stock options: non-qualified stock options and incentive stock options.
Non-qualified stock options (NQSO) are more frequently offered to employees than Incentive stock options because of their flexibility and minimal requirements. NQSOs afford the employee the right to purchase a set number of employer shares at a specific, predetermined price. If the employee wishes to acquire the employer stock then he or she will exercise the option and purchase the employer stock at the predetermined (exercise) price. If the stock’s value has appreciated over and above the predetermined price the employee has received the benefit of acquiring the stock at a discount. The difference between the exercise price and the market value (commonly referred to as the bargain element) will be taxable income to the employee as ordinary income, potentially as high as 35%.
The other type of stock option is the Incentive stock option (ISO). In direct contrast to a nonqualified stock option, there is no income tax consequence when an employee exercisers the option to buy the employer stock. The difference between the exercise price and the market value (bargain element) is only taxable upon the ultimate sale of the employer stock. In other words, a gain is only recognized when the employer stock is sold and not when the option is exercised. If the stock is held the appropriate time period before being sold, all the gains recognized may qualify for long-term capital gains treatment, a maximum rate of 15%.
Being able to take part in an ISO program allows an employee to receive a number of tax saving benefits. But with these tax benefits comes added complexity to keep track of and to understand. For example , to qualify for the favorable long-term capital gain taxation, the employee must hold the stock for at least two years from the date the ISO was granted and for at least one year from the date the option was exercised. This is commonly referred to as the “2 year / 1 year rule”. If the employee sells the stock before these requirements are met, gain on the stock is taxed as ordinary income in the year of the sale, essentially converting the ISO to a non-qualified stock option.
An additional complexity of an ISO that should be kept in mind by the employee is the potential for an alternative minimum tax (AMT) consequence upon exercise of an ISO. For this and other reasons, it remains important to work with your financial advisor and tax professional when evaluating the strategies to take full advantage of the opportunities and benefits of stock options.



Put Option Writing | Stock Option Strategies

Newton�s Laws of Stock Market Trading

Read the oldest stock market wisdom from the world renowned physicist.

This revelation had me surprised too. I was idly flipping through my old physics textbooks yesterday when it suddenly struck me. I was amazed to realize that Sir Issac Newton’s laws of physics points to so many profound and important rules in the stock markets today.

So , here we are… the physics of the stock markets.

Newton's First Law of Trading

“A Stock at rest tends to stay at rest and a Trending Stock tends to stay in trend unless acted upon by an equal and opposite reaction or an unbalanced force. ”

This law teaches us the same thing the old commodity traders will… that the trend is your friend. If a stock is trending sideways, it tends to stay sideways until a powerful enough market force takes it out of its trend. If a stock is trending up or downwards, it will tend to stay moving up or downwards until drastic changes happen to the company or the market at large creating an “equal and opposite reaction”. We should therefore always trade in the direction of a trend and always be vigilant for signs of an ”equal and opposite reaction” or the “unbalanced force”. Such a force may take the form of a drastic change in the market sentiment at large or drastic change in the performance of the specific company in question.

Newton’s Second Law of Trading

“The acceleration of a stock as produced by a market consensus is directly proportional to the magnitude of that consensus, in the same direction as the consensus, and inversely proportional to the mass of the stock. ”

This law teaches us that a stock moves up or down into a trend due to a force created by market consensus. How much a stock moves up or down that trend is determined by the magnitude of the market consensus and how “massive” a stock is. By “massive” we are talking about the price of a stock. The more expensive a stock is, the more well established the company has been and the lesser in percentage you will make out of the same move in absolute dollar versus a smaller, less massive stock.

The force of the market consensus is directly proportionate to the event that spurred it. If a company produces a breakthrough product on a worldwide patent, it creates an extremely strong market consensus that is likely to take a stock very far. If a company merely scores a marginally higher earning this quarter, it is unlikely to produce a market consensus that will go very far.

Newton teaches us to not only look at what the news is but also how well established the company is in order to determine how much momentum it will produce in a given trend. The same breakthrough that drives a small company’s shares up by hundreds of percentage points may perhaps move a big company’s shares only by a fraction of that percentage.

Newton’s Third Law of Trading

"For every action, there is an equal and opposite reaction. "

No need to explain this one in much detail, do I?

For every buying or selling, there must be an equal amount of buyers or sellers on the other side. The stock market is a zero sum game. For every buyer, there must be a seller and for every seller, there must be a buyer. The real question is, who is profiting from each of their buying and selling. There is really no such thing as more buyers today than sellers or vice versa. Every trader needs to understand that you can be on the wrong side of the table at anytime and only a sensible portfolio management system can help you go in the long run.

I have traded actively in the stock markets for over a decade and survived with ancient wisdom such as what you have read here. There is indeed wisdom to be found in every corner of our life and if we care to look carefully, we will never be in a lack of guidance.

For more of the wisdom that have prospered me so far, please visit http://www.MastersoEquity.com


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What Are Stock Options? - What Is A Stock Option?