Archive for December, 2007

by Lance Parker
When I first starting trading, I didn’t know what I was doing…much less about being a consistent and profitable trader. Needless to say, I didn’t realize the pain I would go through to learn how to be successful. After having one of my worst days I remember being so angry with myself that I kicked the elevator door when I was leaving. The door opened and there was this old lady who looked mortified at the noise my foot had mad. It was a little embarrassing but I look back now and laugh. It was at that moment that I knew I needed help so I asked around to find out who was the most successful trader. All my life I have been successful by finding those who are and copy what they do. I was introduced to Ryan. It was then that I saw the difference between a winning trader and the others who didn’t know what they were doing…because I was one of them. Ryan was named one of the top 30 traders under 30 in the first anniversary edition of “Trader Monthly” magazine. He was amazing to watch. He and his team would make money with their computers by pressing keys almost like magic. I immediately started spending as much time with Ryan and his trading group…learning everything I could. Each had their own talents. Doc was incredibly consistent and Jorge was a master at stock selection and chart formations. They were like a well oiled machine, constantly talking about trading ideas and thoughts on current positions. Some time went on and I started to string together positive days. Then my winning days got bigger.

Having access to a team of traders was the key to my success. I am working to create a service to stock traders who would like to learn this profession. You will be able to listen to a team of stock traders in real time during markets hours. This will help you get in to the mind of a successful trader so you can become one too. Click here to discover online stock trading.

I have always been fascinated with the financial markets. It’s amazing to me that you can enter a trade and some time later (minutes or months); the stock is perceived to be more or less valuable. The trick is to be in high probability trades and on the right side of this market perception. No one will be right all the time. The key is to recognize when you are wrong and minimize your loss. I have always said that I am the best trader in the world when I am in a winner because the only thing left is where to start getting out of your position. It is vital to minimize your losses each trade and account drawdown is not your friend. This all comes down to discipline and sticking to your trading plan when you enter a trade. A fellow trader once said to me “Never walk in to a room where you don’t know where the door is.” No truer statement has ever been said. It is absolutely crucial that you maintain your capital reserves so that you can gain experience as you learn this profession. I have seen traders wipe through their savings in a week all because of lack of discipline or hope that things will turn around. The market does not care who you are, male or female, or how much money you have. It’s taking you for a ride, whether you are right or wrong. Discipline should be your focus as you start learning this business.

There are different types of trading related to the amount of time you are in a trade. First, there is the scalper. The trader that is looking to make 10 cents quickly in seconds or minutes and doing this many times during the day. I have seen traders make thousands of dollars in seconds (myself included) with this style. It is a very active way of trading and you are continuously in and out of trades throughout the day. The second area is what I like to call the intraday position trader which I like to do. It is the trader that tries to establish a position and hold for as long as possible in an attempt to capture the entire move of a stock. Positions in this style are closed out before the market closes. This can prevent large after and pre-market moves in your stock. The next type of trader is the swing trader. This is trading where you are holding a position for days or even weeks. I believe this is where the real money is in stock trading. The last type of trader is the long term investor which holds positions for years. Our trading team focuses on the first three: scalping, intraday position, and swing trading. Whether you decide to use a trading platform for direct electronic access to the market, you will still receive a tremendous benefit from our service and be able to learn how to be in high probability trades…no matter how long you hold the position.

If you are going to use an on line platform for trading, you will need several things. First, I would subscribe to charting software so you can review the price action, volume and chart formations of different stocks. I prefer eSignal. Next, I would get a stock scanner service that helps you look for certain stocks that fit your trading criteria. I use two: Whisper and the Custom Stock Screening Wizard from Investors Business Daily. If you would only like one, go with the stock screen at Investors Business Daily. Lastly, I would also have a computer that you can dedicate to trading, one that you can rely on and is reasonably fast.

Visit us to start your online stock trading.Lance ParkerStock Traders Live, LLC,lance@stocktraderslive.comhttp://www.stocktraderslive.com

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by GMax
Let’s assume that there is an Average John with Bachelor’s degree and there is an Average Paul with high school degree. According to the U.S. Census Bureau Average Joe will earn $52,200 per year, and Average Paul will earn $30,400 per year. What does it mean? That means that during 40 years of working Joe will earn around 2,1 million dollars, and Average Paul will earn 1,2 million dollars. The difference between two is $900,000 and that is a lot of money. You could say “Yes, but Average Joe will invest four year of his life in learning, and, in addition to that, he must pay for that”.

Let’s see how expensive is Bachelor’s degree. The average tuition and fees at four-year public colleges for the 2006-07 academic year is $5,836 and with room and board, the average public college tuition for in-state students is $12,796. For four-year private colleges average tuition fee is $22,218 and with room and board that would be $30,367 on average.

We can now calculate what is going on with Average Joe. First of all he will have to pay $120,000 for fees and room and boarding. So we could say that with $120,000 of investment Average Joe will get during 40 years $900,000 giving 5,17% annually. That is not much but it is not that bad also. This calculation was the worst case scenario. Actual cost of Bachelor’s degree is much smaller on public college, about $12,796 per year meaning that costs would be about $50,000 giving 7,49% annually. For good students there are scholarships, and he could also work during certain periods of his schooling, so this figure of $50,000 is actually much smaller on average, probably somewhere in area of $30,000 with 8,87% of annual return. But that is not all, you will start getting those $900,000 immediately after receiving Bachelor’s degree, and with very moderate investing with return rate of 5% you have total return rate somewhere in 10% area. With average increase on US stock market of 10% you will get about 13% annually. Also, you should consider that increase in education and income results with better health and longer life.

So what you should do? Go to school. If you just came back from school, go for some more school. A person with doctoral degree will earn about $89,000 per year or 3,4 million during 40 years of working. People with professional degree will benefit even more (M.D., J.D., D.D.S., or D.V.M.).

Zoran Maksimovic is a freelance author focused on investing and blogging.

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by Gregg Mountford
Ever wonder why so many people burn their hands in trying to become millionaires out of investing or dealing with property? Were their decisions and choices wrong? Were they hasty? Is the market becoming overheated? Each reason may be partly true; but the main reason why they did not succeed in making millions was because they lacked a millionaire mindset.

Millionaires think totally different from ordinary people. The secret is that if you are able to instill their way of thinking, you are able to become a millionaire within your lifetime by investing in property. Here are the 7 secret ways in which millionaire minds are different from ordinary minds.

1. Millionaires think big. Their dreams and plans are all large in nature. On the contrary, ordinary people’s thoughts, dreams, plans are small. Set your dreams high. Think big.

2. Millionaires do not play to lose or defend. They play to win only. Do not play to defend losing; play to win. Millionaires are focused, organised and proactive with one goal in front of them - winning.

3. Millionaires always see the brighter side and the possibility in a situation, while ordinary people, who never address their fears and doubts, first see the difficulty and obstacles in it.

4. Winners form alliances with winners. Unsuccessful people pair up with other unsuccessful people. Those who are financially successful, always befriend other financially successful people. This is the proven road to success.

5. Millionaires are master salespersons. The biggest tycoons are masterpieces of the art of selling. No one has ever grown rich without having excellent talents of a salesperson. Shying away from selling or self-promoting is detrimental to one’s ambition to be really rich.

6. Millionaires face their greatest fears & problems boldly. Millionaires and successful people never shrink from the essence of problems. They never run away. They learn from each experience; as an essential part of their lives. Unsuccessful people are discouraged by their limited beliefs and fears.

7. All millionaires are good students. They are open to new ideas and knowledge. They know they will be left behind, if they choose not to learn. Contrary to them, ordinary people are much more prejudiced about accepting new ideas and knowledge.

Gregg Mountford
Director of Negotiator Finance: Home Loans - Hassle Free http://www.negotiator.com.au
More Wealth Creation: http://www.investedwealth.com

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by Ray Prince
We are all aware of the saying that there are two things which you can’t escape - death and taxes.

Well, we would add a third here, and that is COSTS.

When we speak to our many doctor and dentist clients, or indeed to new clients, they understand that when they make an investment, there will be associated costs.

We always ensure that these costs are explicit, and agreed with the client at outset as to what they are:

- What they pay us

- What they pay for administration

- What the fund costs are

If you had invested say £100,000 yesterday, you would have these costs listed with an accompanying quotation called a Personal Illustration.

So thats ok then, its all there in print, and you are in possession of all the facts. If only it was as simple as that!

What clients are almost always unaware of however, is that there is a major “hidden” cost, that is not calculated within your illustration.

Regular readers of this newsletter will be aware that we favour ‘passive/asset class’ investment rather than ‘active’.

What does this mean?

Well, an active fund manager is frequently buying and selling shares to get the best return he/she can. This of course means that if they, say, sells £100,000 worth of Barclays shares and buys HSBC shares, there are costs involved in doing so.

(Studies in the US have concluded that the higher charges associated with portfolio turnover were not recovered by better performance***).

Over a given year the average manager will trade circa 70%# of the shares in their fund, meaning that by the end of the year if the fund owned 100 shares, only 30 would be unchanged. This percentage varies widely, and can be as high as 300% plus.

In a Financial Services Authority report called ‘The Round Trip’*, the Portfolio Turnover Rate (PTR) were calculated at 1.8%, and similar costs apply around the world**.

So the above trades would typically cost the fund - and you - £1,800.

A government commissioned report by Paul Myners estimates that these portfolio turnover charges costs UK investors £2.5 billion each year!

These costs of course reduce your returns, and are termed ‘Performance Drag’.

This means that it is common for many active funds to have explicit costs of say 2%, but also portfolio turnover costs of an extra 1-3%.

The Financial Tips Bottom Line:

As these charges can clearly eat into the returns on your investments the best course of action is to review your portfolio so that you know where you stand.

ACTION POINT

Look at your ISAs, PEPs, or Unit Trusts.

Find out what the portfolio turnover rate is - details can be found in the companies prospectus.

*Financial Services Authority (FSA) Occasional Paper 6

**Wilcox (1993) 1.2%, Carhart (1997) 0.95%, Orton (1999) 1%, James (2000) 1.3%

***Performance of Mutual Funds, J Chalmers, R Edelen & G Kadlec Nov 1999

# A typical passive fund for comparison would be nearer 7-8% pa PTR. This adds around 0.13% in trading costs.

Ray Prince is an Independent Financial Planner with Rutherford Wilkinson plc, and helps UK Resident Doctors and Dentists get the best deals on mortgages, protection and investments, as well as helping them achieve their financial objectives. Click here for Financial Advice for UK Doctors and Dentists and to get your free retirement guide, How To Avoid The 7 Most Common Retirement Planning Mistakes. Rutherford Wilkinson plc is authorised and regulated by the Financial Services Authority.

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by Chitra Ghosh-15984
Equity issues invariably form an integral component of a corporation’s growth cycle. But they also result in dilution for existing shareholders, and too much dilution often turns a carefully crafted investment profile upside down. Take hundreds of junior mining companies as a classic example: exploration exercises, triggering repeated issuance of shares, have caused so much dilution that shareholders can only look forward to nominal returns (if any) even if a resource is eventually identified in accordance with industry standards.

The dilution rate is an expression of the ratio of new shares issued for each existing share on a corporate transfer book at any given point in time. In theory, dilution should be accompanied by substantive enhancement in shareholder value along a pre-determined timeline. In practice, however, proceeds from shares sold are spent on useless experimentation and head office costs; particularly in the case of an exceptionally large number of juniors, also rather presumptuously called “growth corporations”.

As history proves, exploration can lead to windfall profits for shareholders. “The trick is to discover operations which can find the balance between new equity and sensible, fact-driven exploration schemes,” a European asset pool advisor highlighted in a recent client circular. “Our benchmark is to work with managements who are willing to walk away from an exploration target if the facts so warrant, and then to quickly move on to greener pastures.”

It is indeed rare to find a mining junior acknowledging publicly that an exploration program has failed. On the contrary, geologists keep providing fodder for press releases which are conditioned by highly technical information and which, in most instances, essentially hide more than they disclose. And, given the low market capitalization of the bulk of junior companies, fresh equity can only be placed at prices which significantly dilute shareholders on record.

Therefore, to justify dilution in an exploration context, there are some fundamental thresholds which must influence the quest for value. For one, investors should remember that, in general, any well-structured exploration plan will suggest the presence of one mineral or another in a large underlying property; but will the potential resource ever lead to profitable mining? Another criterion is the use of a “drop dead” budgetary ceiling; at what stage, and under what conditions, will the money-tap be turned off? Juniors must also confront the challenge of diversifying risk on a continuous basis, without creating dilution scenarios. Should on-ground joint ventures be actively encouraged in the early stages of the exploration process?

Finally, exploration need only be undertaken in regions with a proven past of generating sizable mineral reserves, with above-average concentration levels. There is little point in being a pioneer—at least not with other peoples’ money–in a situation where there are any numbers of “safer” bets, relatively speaking.

Prior to investing in a mining junior, investors owe it to themselves to be aware of one critical piece of information: the dilution ratio. Without access to that information, you are better advised to keep your money in the bank.

Authored by Chitra Ghosh a consultant and specialist writer on junior mining companies. (The view expressed here are solely and exclusively the opinions of the author and no organization or entity takes any other responsibility).Email: info@momentumgain.comHome URL: http://www.networkexploration.com

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by George Kissi
Bartering in stocks is a very rampant formula of investing and has been around since the 12th century. You may have heard investing in penny stocks is dangerous, but Investing in any company in general is fatal business, but if you are going to be trading in the penny market you have to make yourself cognizant about each company to preclude the imposition, rip offs, pump and
dumps, and other schemes to part you from your herculean earned do-re-mi. Without a basic education of the stocks you will be investing in you will make copious mistakes out of abashment and absence of direction.
By circumscribing any stock dealing under $5.00 is deliberated a penny stock are again and again labelled as a great deal insecure securities.

The majority of penny stocks are frequently traded on either the ‘OTCBB’ exchange (over the counter bulletin developing) or on what is called the ‘Pink Sheets’. OTC markets can be part of the NASDAQ which is the National Association of Securities Dealers Automated Quotation. OTCBB stocks
embody national, regional, and foreign equity issues, warrants, units, American Depository Receipts and Direct Participation Programs. OTC quotation services (OTCBB, Pink Sheets) contribute to quotation of unlisted securities. OTCBB issuers that become inappropriate in their entailed regulatory filings will have their securities withdrawn from the OTC Bulletin
Expanding. There are reasonably countless probability for the growth of amplitude and this is exceedingly seducing to OTC BB investors.

While there is an artistry to investing in penny stock companies I have found that it is more profitable to invest in companies that are still awaiting their future than companies which have already acclimatized what the future holds for them and are now in decline. Hence my advantage in penny stock investing! however, When it comes to investing in penny stocks, there is no doubt that there is a comprehensive insubstantiality. Notwithstanding, with a preparation of solid wisdom, you are predicted to make the first-class
preferences admissible when it comes to penny stock investing good fortune.

When investing in penny stocks you have the serendipity to dramatically increase your profits, nonetheless, you can just as proportionately loose your capacity quickly. The bottom line is, though, if you are in the business of
penny stock investing, you need to know who has your back. There are several things to analyze when it comes to penny stock investing or any kind of investing for that matter. First and foremost, is the cost embraced such as broker fees or commissions. Because of the expression penny stock, you may think that the cost of investing is minimum even so nothing can can be further from the truth. Some brokers demonstrably charge you more and require a big capacity in your account before you’re affirmed to invest in penny stocks. This cost should be taken into estimation when it comes to your
investing game plan as well as what your long phase goals are.

You can debilitate most of the cost assumed in penny stock investing by self-managing your own account. Even so, If you are creative to the world of investing and determine the nomenclature, expenses, fees, and process the
least bit confusing it is elite to utilize the services of a stock broker that is going to grind with you every step of the way and expound the way things labor at least for the first multitudinal trades you make. One of the centermost aspects to investing wisely with penny stocks is to know which kinds of penny stocks are the applicable ones for you as well as which style of a broker is best fitted for penny stock investing.

For this cause, I will disseminated down a few of the critical things to bring to mind and activity with when it comes to finding or sellecting the advantageous broker for penny stock investing. What you will realize is that majority of brokers are principal broker dealers in this book of penny stock investing. Nevertheless, one of the critical things you desire to unravel with is investing in the advantageous broker. Some brokers have illogical restrictions about penny stock investing which makes it very expensive to invest in penny stocks. So be sure to gather up out what their terms are as far as penny stock investing before you instate their service.

You can also conclude that there are things encompassing steps that you can draw from to ascertain that the penny stocks that you are investing in are the safest types of penny stocks on hand. With penny stock investing, you can noticeably see why it is foremost to have somebody that you can trust to hasten you with funding your transactions. According to circumstances, it can be tricky for the customary person to mark off if the penny stock they are considering investing in is a authoritative idea or not. Because of the high imperils associated with investing in the stock market, abundant investors are looking for a way of investing their bucks in a lower insecurity that still rewards you with pretty authoritative returns over time.

There is a behavior pattern to the game that consists of many scanty steps that, when followed accurately, can lead to noteworthy investing. It is my true feeling that those with less than one year’s experience investing in individual stocks need to not even think about investing in penny stocks, predominantly if you haven’t found your rhythm with the mid- and large-cap universe albeit. Third, I never, ever waste my time looking at those penny stock companies that are hyped in the miscellaneous junk emails I get from websites and promoters that are dedicated to penny stock investing. With penny stocks do not think for a minute that the game has changed. Habitually these promoters have certainly nothing at stake in the penny stock company they are promoting. Contrarily, they are paid by the penny stock companies to advocate and advocate them.

Ply providence when investing in Penny Stocks. Sometimes it’s profound not to be the early bird when stock investing, instead wait and see what the day will bring before you appropriate action. Study the financials of a penny stock company. Majority penny stock companies will have a negative ballance however it’s the flow of greenbacks and how they utilize their cabbage that matters the most. The commanding investing opportunities are finding companies that manage to reinvent themselves with gargantuan leaders and
fashionable products. Take a detailed advantage in the effectiveness of the penny stock company you’re interested in and determine out about their track record as this will eschew verify what they can achieve/accomplish with
the company. Additionally, you need to only invest cabbage that you are armed and ready to lose.

Most penny stocks are high-gamble investments with low bartering volumes and finite attention from investors. Nevetheless some penny stocks are of higher peril than others. Pink Sheets are the much risky with no reporting requirements. Additionally these insecure, pink sheet stocks give you incredible leverage. The leverage you get with the super subs makes up for them being more dicey. You may have heard investing in penny stocks is
riskful. Yes, it is insecure , nonetheless High insecurity means high reward. Bartering penny stocks, while inherently speculative, has some unique benefits. They do accommodate the possibilities to rise 100%, 200%, or even 1000% in a short period of time.

To succeed in vesting penny stocks, you need to obtain the stocks that have the nobility possibilities, fewest multitude of “red flags”, and you need to also have a tactics that will let you lock in solid profits and cheapen peril. Also, if you buy or sell shares of a abominable-volume stock, you run the insubstantiality of affecting the price due to excess demand or supply. This is an advanced technique that has strict requirements and higher imperils. Alleged to the volatility in penny stocks, commanding sums of chink can
and have been made by investors assenting to annex the peril. One need to also know that the perils are just as infinite as the potential for growth. Decidedly, I would say the imperils of loss is much cardinaler than the potency for gain which is why it is doubtlessly exigent to only invest with “risk ability”. A excellent insubstantiality in penny stocks is that they are commonly times de-listed from the OTC BB and are unable to get listed on further exchange or even re-instated on the OTC BB. Additionally with exceptionally ample research and alleged diligence and the company’s training and structure reasonably boundless ample sufficiency can be gained with minimized risk.

Much of the time the liability inherrent with penny stocks can be ascetic or mitigated by you knowing what you are doing and knowing how to make it a better investment casualness. With the correct tools and the absolute schooling, you gargantuanly minimize the peril. The more information and expertise you acquire, the less liability you incur. Taking the time to read and research will capaciously minimize penny stock investing riskinesss. If you do
not have the a thing for for riskiness then Stay bolt of these unreliable penny stock investments. Put in mind, much people fail when it comes to penny stocks as the riskinesss are high and they don’t do their home employment or research before jumping the gun or a highly promoted penny stocks. If you know anything about the standard stock market, then you know that the amount of danger that something carries is something that is defined by
certain things. In fact, every stock can be seen from a different liability vantage point from one lender to the next. With that said, you can conceive that there are some penny stocks that are less risky than others. In short, you need to acertain that what you invest in has the risk embracement that you can accept or slog on.

The good news is that penny stocks do extend some malleability in what peril that they yield. So, to add up, here is what you requisite to do to mark off just what your level of danger fortitude is. Pick out the amount of imperil that you are willing to woo on any penny stock that you invest in. Work with your
financial planner or advisor to pick out if the amount of gamble is a sensible decision for your own financial goals in the long expression and short term. determine what risk flatland you are amiable with and the catalog of penny stocks that fits those needs. When you woo the time to decidedly grind out what your financial danger forbearing is, you will be better fitted to selecting the appropriate category of penny stocks that you can invest in. The well-known fact is that having the advantageous inclusion of safety and gamble is the biggest instance in investing in penny stocks.

Whether you are a seasoned investor or just getting started, getting the right knowledge and investment/day trading tools is of utmost importance. George is a 10 yr veteran of the stock market and has helped a lot of individuals profit from stock market investment as well as day trading. For more free articles and investment tips visit:http://www.georgekissi.com and http://www.moneyismyfriend.com

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by George Kissi
Day trading is the practice of buying and selling financial instruments within the same trading day such that all open positions will accustomedly (not
necessarily always) be closed before the market closes for the trading day. Stock trading used to be exclusive to financial firms and accomplished investors and speculators.

It wasn’t even an option before the 1990’s but with the advent of online trading and discount brokerages Stock trading is clearly a phenomenon of our time. Day trading is considered a risky trading style, and regulations require brokerage firms to ask whether the clients understand the risks of stock trading and whether they have prior trading experience before entering the market.

Regardless, Day trading is extremely risky and can result in substantial financial losses in a very short period of time. It is also extremely stressful and can be a very expensive full-time labor. Day trading strategies demand
using the leverage of borrowed sugar to make profits. It allows you to ply much more buying power compared with swing trading, yet the run of luckis actually much lower than swing trading. Day trading for a Living: There are two primary divisions of accomplished day traders: those who employment in solitude and those who activity for a larger institution. Those who labor unabetted basically manage their own accounts and place trades solely on their own or set up a broker assisted accounts. The latter can be very expensive and you are still liable for all losses. If you’re just starting out having a coach is assertively crucial for excellence!

Those who trade for the financial institutions in other respects are the “big
boys” who can literally move the market one way or the with their huge orders. Stock trading development is critical before you become a trader. Stock trading isn’t easy, but with time, experience, determination, self control and acrimonious labor, you can expressly make millions trading.Stock trading
is a strategy for playing the stock market, where “playing” means grueling to make wealth it is designed to produce huge short term profits though Day trading is not auspicious for all investors.

Day trading involves taking expedience of price movements in stocks within one trading day. Stock trading futures market is a jawbreaking to find practice, but the rewards are equally substantial for people who know how to do it.

Day trading demands banner to some of the most complex and complex financial services and instruments in the markets. Stock trading stocks, options, futures or forex is a greatly daring and potentially profitable crusade for the educated and exposured investor, swing trader or day trader.

Stock trading is about risk taking not betting when the consciousness and leverage about the market and price endeavor is applied properly. It is not a “get rich quick” scheme for the everyday person, even though some seminars do their best to promote it as one. Stock trading is albeit a mentally and psychologically greatly daring campaign and is by no means meant for everyone.

To be a celebrated day trader, your position size has to be larger alleged to the fact you are looking for a small move with your short timeframe. Trading
large lots will allow you to expediently scale in or out of a position. Also by having a large position you can make a huge swoop in a very short time. Day trading strategies also demand the make use of of leveraged or borrowed do-re-mi to make profits.

Further day trading strategies (including scalping and arbitrage) require relatively sophisticated trading systems and software. This software can cost up to $50,000 dollars or more. Some Day traders ply real time screening software which is programmed to send stock symbols to a screen which
meet specific criteria during the day, such as displaying stocks that are turning from positive to negative.

Intricate analysis and device software are other famous additions. This type of trader has more advantages than individuals since he/she has more resources and epigraph to distinguishable research tools and equipment: large amounts of cash and leverage, large availability of fresh fund inflows to trade continuously on the markets, dedicated and direct lines to data centers and exchanges, expensive and high-end trading and analytical software, support teams to help, and much more.

Day trading software is an expensive necessity for most day traders. Those who rely on technical indicators or swing trades rely more on software than news. A fast Internet connection, such as broadband, is innate for day trading. Some stock trading strategies stunt to capture the deal in generalities as additional, or even the only, profits for lucrative trades. The main rule being that in order to do battle in pattern stock trading the trader must maintain an equity balance of at least $25,000 in a margin account.

Traders that participate in stock trading are called day traders although, stock trading has become increasingly established among even casual traders alleged to advances in technology, changes in legislation, and the popularity of the Internet. Although collectively called stock trading, there are many sub-trading styles within stock trading. Because of the nature of financial leverage and the rapid returns that are possible, stock trading can be either extremely profitable or extremely unprofitable, and high-run of luck profile traders can realize either huge percentage returns or huge percentage losses.

Some day traders manage to secure millions per year solely by stock trading. Because of the high profits and losses that day trading makes possible, these traders are sometimes portrayed as “bandits” or “gamblers” by other investors. Nevertheless day trading can become very risky, especially if one has poor self-control, poor bundle management and poor run of luck/reward ratio management.

One of the first steps to make day trading of shares potentially advantageous was the change in the commission scheme. This crusade was identical to modern stock trading, but for the longer duration of the settlement period. The thereafter important step in facilitating day trading was the founding
in 1971 of NASDAQ — a virtual stock exchange on which orders were transmitted electronically. These combination of factors has made stock trading in stocks and stock derivatives (such as ETFs) accomplishable. Some stock trading strategies (including scalping and arbitrage) require relatively sophisticated trading systems and software.

Since Day trading is considered a risky trading style, regulations require brokerage firms to ask whether the clients understand the risks of day trading and whether they have prior trading expertise before entering the
market. Ultimate day traders also have to meet certain minimum income level in order to be allowed to become engaged in day trading. This nominally is to effect that only individuals with accessible riskiness capacity can endulge in day trading.

Whether you are a seasoned investor or just getting started, getting the right knowledge and investment/day trading tools is of utmost importance. George is a 10 yr veteran of the stock market and has helped a lot of individuals profit from stock market investment as well as day trading. For more free articles and investment tips visit:http://www.georgekissi.com and http://www.moneyismyfriend.com

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by lavanya
A lot of investors go about their investments in an illogical way. They’re given a tip from their broker on basis of some rumor or news. They impulsively buy the scrip and afterwards wonder why they bought the stock.

Such Behavior is foolish and must be avoided. The moment you receive a tip on a stock, confirm the news on bse india or nse india website. The news, if any, will be on these sites; be it dividend payoffs, announcements, earnings, corporate move to buy another company, fight of top management or any other news.

Broadly one should abide by following guidelines:-

1. Business of Company

Buy stocks of only those businesses that you understand. Once you have bought a stock, keep watch on quarterly results of that company and also keep watch on the general trend in the sector of that stock.
2. Study the past performance
All companies present particulars of their fiscal operation in their yearly reports. Study their past performance and then invest.
3. Know the promoters
The Management team and promoters of a company are key people who bring growth to a business. Invest in companies that have good promoters, experienced management, and where promoters hold more than 40% of the shares.
4. Future outlook of the company

Although a company could have done well in the past, it is not necessary that it will carry on performing well in the time to come. Keep a close watch on sector trend and market trend. You can know this by reading views of financial experts.
5. Stock price
The share price of each company fluctuates continuously on the stock markets with investors buying and selling the shares. The cost at which a person is conformable to buy or sell a share of a company is the perceived value of the share of the company taking into consideration the company’s present business and future business growth. Besides this, investor sentiment plays a large role in pricing of stocks. It is important that prior to buying a stock, you evaluate whether the price of that share at which it is available for purchase, is adequately valued i.e. it is not over-priced. Similarly, when you sell, you need to be sure that you are not selling dirt cheap. To help you evaluate this, you may apply a popular ratio called the Price/Earning ratio (P/E ratio). The P/E ratio is based on the following formula:

P/E ratio = Market price of the share/Earning per share (EPS)*

*EPS = Profit After Tax (PAT)/ Total number of shares issued by the company

{”/” means divided by}

You can find information on the EPS, PAT and total number of shares issued by the company from its annual report. Once you have bought a stock after doing sufficient research, then you must not sell the stock in hurry if it falls by 5-10%.

Stock Recommendations India recommends investors to be aware of the technical tools of measuring stock performances before investing.

Lavanay is a featured boarder of Stock Recommendations India the stock market discussion forum where he and other featured boarders give free advise to members.

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by Mel Pistilli
Earlier this week, Bayfield Ventures [TSXV:BYV] and Rainy River Resources [TSXV: RR] announced that they have entered into an option agreement on Bayfield’s Burns Block property, which easterly adjoins Rainy River’s 17/ODM gold zones. Bayfield could not be more fortuitously placed in the gold hosting Rainy River District of northwestern Ontario. It seems the newly formed alliance between Bayfield and its ore-finding neighbour is a clear indication of the promising potential of Bayfield’s Rainy River Gold Properties.

A relatively new acquisition for Bayfield, the Burns Block is ideally located on the eastern boundary of what Rainy River calls the 17 Zone, which the company is now drilling to delineate an ore body and prove tonnage. The Burns Block lies 120 metres east-northeast of a drill hole (NR0&-189) with intersects of 9.0m grading 6.64 g/t Au between a depth of 439.50 and 448.50m.

“There’s three rules in my business,” says Bayfield President, Donald Huston, “Location, Location, Location.” One need only look at the aerial photo of the region on the company’s website to understand the importance of the Burns Block’s location: its proximity to the noteworthy discovery on the 17/ODM gold zone makes it an undeniably attractive target to Rainy River.

Last month, River Rainy announced that drilling on 17/ODM zones intersected strong gold intervals of 11.5 m grading 5.37 g/t Au (ODM Zone) and 8.0m grading 5.50 g/t Au (17 Zone).

Early in 2006, Rainy River’s exciting drill results on the 17, 433, and ODM gold zones –with intercepts of 23.5 meters of 10.6 g/t Au and 22.6 meters of 17.0 g/t Au — proved promising and helpful for Bayfield’s other three properties in the Rainy River District, Claim Blocks A, B, and C. The results, says Huston, provided them with evidence of the potential of their own properties, and saved the company time and money by helping Bayfield interpret exploration data and determine new drill targets.

The company believes the geophysical properties associated with the mafic/ultramafic rock sequences* identified on the Claim Blocks are similar to those discovered in Rainy River’s adjoining zones.

Bayfield first entered into an agreement to acquire the three blocks in November of 2006 and since then has carried out substantial exploration work. During that winter, the company embarked on an early exploration program that consisted of establishing line-cut grids, overburden drilling, till sampling, and conducting very detailed geophysical studies including electromagnetic and magnetometer surveys.

This summer, the company completed a 3,000 metre drill program with five holes on Claim Block A and 8 holes on Claim Block B. Bayfield is awaiting assay results, which are still pending, according to Huston, and will be released when all assays have been received from the lab. Drill work was not conducted on Claim Block C because a good portion of the property is swampland. The company is waiting for the winter freeze, which will enable drilling. For winter 2008, Bayfield is planning an additional 3,000 metres of drilling on the Claim Blocks.

The recently announced three-year term agreement gives Rainy River Resources the option to obtain a 60% interest in the Burns Block after the completion of a $3 million work program, $200,000 in cash payments, and issuance of 60,000 Rainy River shares.

The crucial aspect of the agreement is neither the cash nor the shares — it’s the $3 million in exploration expenditures that has really got Bayfield’s management excited.

“The alliance we’re forming with Rainy River is very important,” says Huston, “and bodes well for Bayfield Ventures in the Rainy River District.”

The deal should have investors excited as well. Not only will Bayfield not be out of pocket for exploration expenses on the property, but the very fact Rainy River is willing to spend $3 million aggressively exploring a mere 80 acres to gain only a 60% interest hints at the tremendous potential of the property. It leads one to believe that the overriding assumption is that the same gold vein that flows the 17 Zone must continue on through the Burns Block.

If this current agreement between the company and Rainy River Resources proves its potential, it is foreseeable that future partnerships may be put into play in regards to Bayfield’s three other properties. Clearly, there is a great potential for lucrative takeover proceedings, too.

But for now, the focus is on the Burns Block. Rainy River Resources has recently drafted a linecut grid with plans to initiate a diamond drill program on the property. A detailed ground magnetic survey is also currently being conducted and it’s anticipated that Rainy River will start the first drill hole before Christmas.

*Ultramafic and Mafic: A term used to describe igneous rocks or magmas that are rich in iron and magnesium and poor in silica. These rocks are associated with numerous metals worldwide, including platinum-group elements, nickel, cobalt, and gold, among others.

This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.

Resourcex Investor is an internationally distributed newsletter about emerging junior resource companies. Sign up for a free 1-month trial to our newsletter and get instant access to news and investing tips that have helped many of our readers make more money. http://www.resourcex.com

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by Jabulani Leffall
In the late nineteenth century Judge DeWitt Bisbee put up funds for the Copper Queen mine in Arizona and eventually got a city named after him.

Today Teryl Resources Corporation (TSX.V: TRC) Chief Executive John Robertson believes his latest hunches may be just as good.

But instead of a municipality bearing his surname, Robertson — encouraged by positive results from soil samples on Teryl’s Gold Hill property in Bisbee, Arizona — hopes merely to increase revenue and market capitalization for Teryl through further exploration.

It helps that Teryl is now mining in a stretch of desert foothills that once yielded approximately $1 billion in copper.

After a copper boom in the last half of the 20th century, Phelps Dodge Corporation discontinued mining operations 32 years ago in the Warren, Arizona-suburb of Bisbee around the famous Lavender Pit, where the Copper Queen became a mining icon.

The Lavender Pit is now little more than a tourist attraction, but Robertson says existing infrastructure along with excellent geophysical anomalies and geochemical copper values in the zone will go a long way. Just four miles southwest of the original site, Robertson thinks there is reason enough to feel confident about future prospects as Teryl drills its first hole starting in December and continuing in 2008.

Assays up to 2.54% copper were located on the Gold Hill proposed drill locations.

“It’s still a very hot area,” said Robertson. “When you talk about an area that yielded one of the richest copper deposits in history, it’s an exciting proposition to see what we can make of it along with our other holdings in gold and other minerals.”

British Columbia-based Teryl Resources spreads its risk considerably well through a JV project in silver mining in northern British Columbia, a formidable gold joint venture with Kinross in Alaska and modest revenue from oil and gas businesses in Texas and Kentucky.

For the foreseeable future, however, Gold Hill is where the firm will focus a good deal of attention as well as raising capital of about $1 million to unearth what it believes to be a large disseminating deposit of both copper and gold.

The Gold Hill Mine, which got its name from a modicum of gold extracted from sediment scattered throughout the area, includes nearly 249 acres on which there are about14 patented mining claims. There are even physical indicators for where miners might want to look, or have a shot at continuing to excavate, in the form Old Shallow placer diggings throughout the property as well as small shafts, pits and cuts.

Further, Teryl’s geologist believes the geological characteristics of Gold Hill to be similar or at least comparable to the Carlin Trend, just outside of Elko, Nevada. That gold mining district, which is 5 miles in width and stretches for more than 40 miles long, has produced more gold than the any other mining district in the United States. It also resembles the Witwatersrand System, a formation of sedimentary hills in South Africa comprised of quartz, shales and other mineral conglomerates, according to Teryl.

Diversified Holdings

While visions of tons of copper and other minerals that could come out of Gold Hill makes Bisbee, the “it,” property for Teryl right now, the company also sees golden opportunities through its four-site portfolio of advanced gold properties in Alaska’s Fairbanks Mining District, where Teryl is one of the principle landowners.

Its Gil project, on the eastern-most edge of the district in Fairbanks, is a JV with Kinross Gold Corporation (TSX:K; NYSE:KGC) where Teryl gets 20 percent to Kinross’ 80 percent. Just northwest of the Gil property are the Fish Creek Claims, where Teryl has optioned 50 percent optioned from Linux Gold Corp. (OTC BB:LNXGF). Rounding out the portfolio are Stepovich Claims, from which Teryl will get 10% in net profits from Kinross and the West Ridge property, which Teryl owns outright.

Between Gold Hill and the Alaska holdings, Robertson believes he has a good chance of a “pay-dirt” extraction from one of the many claims. With Gold poised to fetch as much as $1,000 per ounce and resource demands for copper and oil in India and China increasing, a good dig could pay dividends for Teryl.

Robertson and his management team believe that at the very least leveraging what it can from mining targets will garner attention from investors and at best will give Phillips Dodge or Kinross Gold the notion of either buying out claims or acquiring Teryl as a whole.

As junior resource concerns go, Teryl’s stock is in solid shape, seeing modest gains Since September and leveling off as the year comes to a close — now pushing a new price ceiling of twenty-five cents per share.

Shares of Teryl as of December 6 were trading at 21 cents per share, seven cents off a 52-week high of 18 cents but up by more than 30 percent from a 52-week low of 13 cents.

With about 40 million shares outstanding (fully diluted), Robertson says he would definitely like to see more liquidity pumped into the stock, with the price ideally getting up above a dollar.

“I’ll definitely be happy when I see a dollar-plus,” he said. “The thing about this business that you have to remember is that when you drill a hole and come up solid assays, your fortunes can change in a New York minute.”

This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.

Resourcex Investor is an internationally distributed newsletter about emerging junior resource companies. Sign up for a free 1-month trial to our newsletter and get instant access to news and investing tips that have helped many of our readers make more money. http://www.resourcex.com

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