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Add You - Stock and Bond Trading as a Conservative Investment Strategy
Workaholism is rife in the business world. To many it is a badge of honour, worn with pride. A workaholic sees work as their life - the means and the end in their search for successful living. If this picture fits you it is worth noting that, of the people on the 9/11 hijacked planes who were able to make a last-ditch call from their mobile phone, none of them called the office.For generations now, we have been conditioned to believing that work is the core of successful living. The world's economy and our individual material benefits depend on it. Emerging generations today however are working to live, not living to work.Why do you work? Is money the purpose of, or the means to, your definition of successful living? What are the qualities that go towards creating a successful life for you?. They are likely to include achi
Trading does not have to be done quickly to be productive, and it doesn't have to focus on higher risk securities to be profitable. And perhaps most importantly, it doesn't have to avoid the interest rate sensitive income securities that are so important to the long-term success of any true investment portfolio. No matter how beaten up a speculativ
“Change is inevitable; except from a vending machine” author unknownOnly a few things stay constant in life. For me, one example would be my hair follicles. Last year I was bald; this year I am still bald. The Chicago Cubs haven’t been to a World Series in 100 years, so that never changes. Other than that, we live in a state of constant change.Even Dell Computers is changing. They will now sell computers in retail stores, a marked departure from their previous philosophy. Dell has always been a mail-order and online computer company, with no retail presence. All of their computers are manufactured to your specifications, and it usually takes a few days for the computer to arrive. Now there are more alternatives than acquiring a Dell electronically.Even billion-dollar companies change course when their performanc
Bond, (and other Income Security) trading is generally avoided by most non-professional traders. Obviously, it takes more investment capital to establish positions in Corporate and Municipal Bonds, Real Estate, or Government Securities than it does in Equities, and the volatility that traders thrive upon is just not a standard feature of the mundane world of debt securities. Surprisingly, most investment advisors and stock brokers have not discovered that there is a more exciting approach to Income Investing that is actually safer for investors and less inflexible in the face of changing interest rate expectation scenarios. Certainly, Wall Street financial institutions pressure their representatives to push individual new issues and/or investment products, but I think that the Market Value fixation that stretches from Wall Street to Main Street is the real culprit. Income securities need to be "valued" for long-term income growth and traded with great pleasure... albeit much less frequently.
Consequently, most trading is done in an Equity only environment that, by its very nature, is too speculative for most mature (in whatever sense you choose) investors. But this is not the way it needs to be. Since stock prices are likely to remain volatile in the short run and cyclical in the long run, there will always be opportunities for profit taking. [Note that it is the combination of volatility, market accessibility, universal equity ownership, and confiscatory taxation that have made "Buy 'n Hold" a tar pit Investment strategy.] Similarly, there are no rules against taking advantage of the cyclical nature of interest rate sensitive security prices. Trading is the world's oldest form of commercial activity, and it is unfortunate that it is treated with such disrespect by our dysfunctional tax code. It is even more unfortunate that it is looked at askance by client attorneys and brokerage firm compliance officers... masters of hindsight that they are.
Trading does not have to be done quickly to be productive, and it doesn't have to focus on higher risk securities to be profitable. And perhaps most importantly, it doesn't have to avoid the interest rate sensitive income securities that are so important to the long-term success of any true investment portfolio. No matter how beaten up a speculativ
Many internet marketers blow mountains of start-up cash on their websites just trying to break into search engine rankings. I was one of these internet marketers.I spent cash on get-rich-quick submission services that claimed they would submit my page to thousands of seach engines. . .for a small fee. I spent money to get registered with big name search engines. I even spent money on search engine optimization services.And then I waited. . .I waited to see SOME response--any response--from all of this work I had done. I waited for the spiders to reach my pages and rank my page for everyone to see. I waited for my blown marketing funds to come back to me in profits. . .But they never did. The spiders took weeks. The page rankings were dismal. I was ready to give up.And then I received t
Bond, (and other Income Security) trading is generally avoided by most non-professional traders. Obviously, it takes more investment capital to establish positions in Corporate and Municipal Bonds, Real Estate, or Government Securities than it does in Equities, and the volatility that traders thrive upon is just not a standard feature of the mundane world of debt securities. Surprisingly, most investment advisors and stock brokers have not discovered that there is a more exciting approach to Income Investing that is actually safer for investors and less inflexible in the face of changing interest rate expectation scenarios. Certainly, Wall Street financial institutions pressure their representatives to push individual new issues and/or investment products, but I think that the Market Value fixation that stretches from Wall Street to Main Street is the real culprit. Income securities need to be "valued" for long-term income growth and traded with great pleasure... albeit much less frequently.
Consequently, most trading is done in an Equity only environment that, by its very nature, is too speculative for most mature (in whatever sense you choose) investors. But this is not the way it needs to be. Since stock prices are likely to remain volatile in the short run and cyclical in the long run, there will always be opportunities for profit taking. [Note that it is the combination of volatility, market accessibility, universal equity ownership, and confiscatory taxation that have made "Buy 'n Hold" a tar pit Investment strategy.] Similarly, there are no rules against taking advantage of the cyclical nature of interest rate sensitive security prices. Trading is the world's oldest form of commercial activity, and it is unfortunate that it is treated with such disrespect by our dysfunctional tax code. It is even more unfortunate that it is looked at askance by client attorneys and brokerage firm compliance officers... masters of hindsight that they are.
Trading does not have to be done quickly to be productive, and it doesn't have to focus on higher risk securities to be profitable. And perhaps most importantly, it doesn't have to avoid the interest rate sensitive income securities that are so important to the long-term success of any true investment portfolio. No matter how beaten up a speculativ
Your car loan is now less than an hour away from approval with an online car loan lender. You can have a check in hand to buy a car the next day once your online application is approved.How It WorksOnline car loan lenders work with several financing companies to offer car loans for all types of situations. Whether you have poor credit or a first time buyer, car loan lenders can find you financing.The entire process just takes a matter of days to complete, but the application just takes minutes. The car loan application is completed online, which takes less than fifteen minutes to complete. You can expect an approval usually in less than an hour. Your car loan package will arrive as soon as the next day. You can complete the paperwork that day and buy your car.Applying For A Car Loan Online
Consequently, most trading is done in an Equity only environment that, by its very nature, is too speculative for most mature (in whatever sense you choose) investors. But this is not the way it needs to be. Since stock prices are likely to remain volatile in the short run and cyclical in the long run, there will always be opportunities for profit taking. [Note that it is the combination of volatility, market accessibility, universal equity ownership, and confiscatory taxation that have made "Buy 'n Hold" a tar pit Investment strategy.] Similarly, there are no rules against taking advantage of the cyclical nature of interest rate sensitive security prices. Trading is the world's oldest form of commercial activity, and it is unfortunate that it is treated with such disrespect by our dysfunctional tax code. It is even more unfortunate that it is looked at askance by client attorneys and brokerage firm compliance officers... masters of hindsight that they are.
Trading does not have to be done quickly to be productive, and it doesn't have to focus on higher risk securities to be profitable. And perhaps most importantly, it doesn't have to avoid the interest rate sensitive income securities that are so important to the long-term success of any true investment portfolio. No matter how beaten up a speculativ
People who are willing to expand their thought process, learn new things and broaden their horizons often contemplate a career change at some point of time in their life. Very often, they tend to make a wrong career choice because of lack of information or the inability to make a calculated decision. While career selection based on up-to-date information does help in making a living, it does not guarantee permanent satisfaction. This is evidenced from the fact that even people eventually elect to change their career path completely in spite of well paying, secure jobs.Working Professionals Change Careers Depending On Following Factors:• Either professional or psychological factors determine the career path. At times individuals experience a professional setback and find their current career unsatisfactory, whereas some are
Consequently, most trading is done in an Equity only environment that, by its very nature, is too speculative for most mature (in whatever sense you choose) investors. But this is not the way it needs to be. Since stock prices are likely to remain volatile in the short run and cyclical in the long run, there will always be opportunities for profit taking. [Note that it is the combination of volatility, market accessibility, universal equity ownership, and confiscatory taxation that have made "Buy 'n Hold" a tar pit Investment strategy.] Similarly, there are no rules against taking advantage of the cyclical nature of interest rate sensitive security prices. Trading is the world's oldest form of commercial activity, and it is unfortunate that it is treated with such disrespect by our dysfunctional tax code. It is even more unfortunate that it is looked at askance by client attorneys and brokerage firm compliance officers... masters of hindsight that they are.
Trading does not have to be done quickly to be productive, and it doesn't have to focus on higher risk securities to be profitable. And perhaps most importantly, it doesn't have to avoid the interest rate sensitive income securities that are so important to the long-term success of any true investment portfolio. No matter how beaten up a speculativ
Business traveling, even with all of its hustle, bustle, and flat hotel pillows, does have one perk: your company pays for it. Whether they reimburse you for cars from rental agencies or for the miles you put on your own vehicle, one thing stands between you and your financial compensation: tangible proof of what you’ve spent.Keeping financial records of business trips may seem – on the surface – quite simple. However, when more pressing matters get in the way – late plane departures, important business meetings, getting lost in a new city – it’s rather easy to lose track of what you are spending. Adhering to some of the following tips of advice can help you to keep track of all your expenses and allow you to stick it to “the man,” one mile at a time.Put your Receipts somewhere safe: Receipts on business trips are a
Trading does not have to be done quickly to be productive, and it doesn't have to focus on higher risk securities to be profitable. And perhaps most importantly, it doesn't have to avoid the interest rate sensitive income securities that are so important to the long-term success of any true investment portfolio. No matter how beaten up a speculative day trader becomes, whatever profit taking experience there has been is invaluable. Once a trader/speculator is weaned off the gambling mentality that brought him to the "shock market" in the first place, he can apply his trading skills to investing and to portfolio management. The transition from trader/speculator to trader/investor requires some education... education that cannot be obtained from product salespersons.
Step One is to gain an appreciation of the power of Asset Allocation using the principles of The Working Capital Model. Asset Allocation is the process of dividing the portfolio into two conceptual "buckets". The first of these will contain Equity Securities, whose primary purpose is to produce growth in the form of Realized Capital Gains. The other bucket will contain various securities whose primary purpose is to produce some form of regular income... dividends, interest, rents, royalties, etc. The percentage allocated to each is a function of a short list of personal facts, concerns, goals, and objectives. The cost basis of the securities, absolutely not their constantly changing Market Values, must be used in all Asset Allocation calculations. Asset Allocation is a critical portfolio planning exercise that is: based on the purpose of the securities to be purchased, long term in nature, and never "rebalanced' or altered due either to current market circumstances, hedging, or some form of market timing (which, of course, is impossible).
Market Values are used in the selection process that identifies trading candidates that will fill the buckets... cash from all income sources, by the way, is always "destined" for one bucket or the other, and may be held unused if no proper candidates exist. Selecting potential Equities must first be "fundamental", then "technical"... i.e. based on the Quality of the security first, and the price second. My experience is that higher quality companies purchased at a 20% or more discount from the 52-week high, with a profit target of approximately 10% (realized as quickly as possible) is a very manageable approach. The proceeds find their way back into the "smart cash" pot for Asset Allocation according to formula. There will be times when "smart cash" grows quickly while the list of new trading candidates shrinks, but when trading candidates are all over the place, "smart cash" is replenished with a portion of every income dollar produced by both fully invested buckets! Thus, insistence upon some form of income from all securities owned makes enormous sense!
But what about trading the Income Bucket securities? Enter the Closed End Income Fund, in the form of a common stock, and in a surprising variety of income producing specialti
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