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...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 successful investor, Warren Buffett is a follower of value investing. In the last 30 years his...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 on Buffet, "The Snowball ・Warren Buffett and the Business of Life".There are some great revelations ・such as realising the power of compounding ・ but the man is obsessed with keeping score of his money and it seems as though it has been at a personal expense.In fact the title of the book "The Snowball" is a reference to a central theme in Buffett's life which is the concept of compounding.Let me give you a few examples. All the examples are going to assume an interest rate of 7% per annum with interest being calculated monthly.Compounding is like a snowflake that rolls into a snowball with time: $10,000 invested at 7% is worth more than $20,000 in 10 years time. In 50 years time, that $10,000 is worth more than $300,000.Of course, that doesn't take into account inflation eating away at your capital but with many...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...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 yielding shares have been buffered from a downturn in the market. This is because dividends usually get...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 very quickly. It's easy to focus just on the potential profits to be made but most smart traders will tell you that day trading is all about risk management. The motto should be to plan for the worst and hope for the best. Your capital is the only thing that allows you to play the day-trading game. Without it there is no opportunity to trade. Unfortunately for most first-time day traders, they only focus on return and fail to preserve the one thing that allows them to play the market and that's their capital. You want to have specific rules for entry and exiting positions. This is so that emotion does not get involved. Day trading is less about the "I want to make a profit" mentality and more about "Has there been a trigger for an entry or exit point." It's less about emotion and more about a plan for success. And finally you will need to use tools. If you just rely on your gut instinct to trade stock then that's no different to gambling...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
In these changing political times, for those seeking secure locations for offshore protection of assets, Panama remains a top choice.In a letter to the OECD after the London G-20 meeting at which Panama arbitrarily, (along with Switzerland and a...more
The SBA or Small Business Administration loan is a significant source of financing for small businesses. Typically, SBA loans are used to finance plant construction or expansion, to purchase equipment, and to provide working capital. Under the SBA...more