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Written by Adrian Jameson
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Thursday, 25 September 2008 19:00 |
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The news is full of doom and gloom (negative sentiment) about stock markets all around the world, but particularly the instability of the US market. Share prices have tumbled and fear has seen people flee the markets for safer havens such as gold, government bonds (some of which have been negatively geared!) and for those who are seriously terrified hiding their money under the bed. There are various product names that we have grown up with and use around the home, on the car or even wear, and when we see these products at a discount at our local store we will often buy extra as we see these as representing good value. Thanks to media and fear mongers there are company shares available at a considerable discount right now. What's changed? These companies have the same management, same line of products, the same manufacturing facilities and strong balance sheets, what has changed is the overall market sentiment. There are a few options so that you take advantage of these circumstances. If you are contributing to your pension scheme right now you could increase that contribution, or make extra ones, so that your pension company can buy more shares and when the market changes the value will go up much quicker. Another option is to do some careful research into current stock values since there are bargains to be had. Of course you don't have to buy stocks - another option is to learn how to trade share options. These can be seen as risky for the unwary so get the best knowledge you can afford before embarking on this strategy as the returns can be phenomenal.
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Written by Adrian Jameson
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Sunday, 08 June 2008 13:49 |
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Richard Branson announced in September 2006 that he was pledging US$3bn to finding alternative energy sources (BBC news link ). Was this just a philanthropic gesture or something more? In my opinion not only was this a grand gesture but an opportunity for his companies to make many billions of dollars from alternative fuels in the future. As oil prices spike there is still money to be made in oil but when
this current bubble bursts the adjusted price will only be for the
short term. The rise of the new economies in Asia (for example China
and India) and their hunger for energy will cause a further upward
trend in the value of oil. The supply of oil is decreasing and there
have been few major finds in recent years but the demand is still
increasing.
So what are the alternatives for the savvy investor? Early investing in
companies that already have a good infrastructure and proven financial
fundamentals such as companies involved in wind farms, solar power and
tide power should give a long term return. Also look at companies
developing or improving new forms of energy such as bio mass, hydrogen
and methane.
One method would be to look at this changing picture for the long term,
taking dividends and seeking company growth either through increased
value or take-overs. This could be combined with a buy and hold
strategy or with covered calls or just call options. Covered calls can
limit your profits and your risk if used with put options.
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Written by Karen Leslie
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Wednesday, 28 May 2008 12:07 |
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Let's start off by saying that we are newbies to share trading too. Well maybe I should say newbies to successful share trading. I started share trading over ten years ago with a few friends. The idea was that we would all research different companies and learn different things about share trading and pass this knowledge on to the others. In the end there were only three of us left and the share trades we did weren't astounding. The only strategy we had was buy low and sell high.
Now I know that may sound like a good strategy but there are so many others out there. I hadn't even started my financial education where shares were concerned, so I didn't know what I didn't know. Examples of that were I didn't know that I could sell the shares automatically if they fell to a certain price (stop loss). At one stage I had one share that would cost me more to sell than it would to hold since it's value was so low. I had another share that did (eventually) go up in price and I made a profit. Knowing what I know now I could have made a much bigger profit. Personally I like to minimise my risk and so that is why we are trading covered calls. That means we are actually buying shares and then giving someone else the option to buy them at a set price and for that they pay us a premium.We started virtual trading in the US stock market in December 2007 and started live trading in January 2008. Our return over that period equates to about 35%pa in a turbulent US market. We are using a system called Sharelord that is sold by Financial Freedom Institute (FFI). I wish they had affiliates for it since we would have made a small recommending this product, but they don't. The reason I went for Sharelord over other courses is that it was explained in a way that I understood and there would be support. I can't fault the support at all since I've been in touch with them by email, phone and even skype. The other thing that appealed to me was cash flow. As far as we are concerned cash flow is king especially with moving to a new country without jobs. Sharelord is written by Nik Hallik who has incredible knowledge when it comes to making money and producing system that others can follow.
Our next investment will be the Mastery of Stock Market Intelligence (MSMI) but we will wait on that for next year since we have enough to concentrate on for the moment and we set up one income stream at a time.
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