By Peter Carbonara with Joan Caplin
January 1, 2003
(MONEY Magazine) – The theater at Madison Square Garden, located beneath the famous New York arena, is a 5,600-seat venue that has played host to boxing matches, trade shows and numerous second-tier rock groups. One Tuesday night this past fall the attraction was Robert Kiyosaki, author of Rich Dad, Poor Dad, a financial self-help book now in its third year on the New York Times paperback bestseller list. For a solid three hours, standing in front of a table laden with purple and gold Rich Dad merchandise, the 55-year-old Kiyosaki told a full house of paying customers that most of what they thought they knew about money and finance was wrong.
A job with good benefits and a 401(k)? Strictly for suckers.
Continue reading.......
Monday, May 9, 2011
Friday, May 6, 2011
Prospectus Summary: Ayala Corporation Preffered Class “B” Shares (PSE:ACPR)
Here’s another “hard-to-find” prospectus summary or description of one of the relatively actively traded preferred stocks in the Philippine Stock Market (PSE), ACPR.
• Issue Price: Php100.00 per share
• Issue Date: 21 July 2006
• Dividend Rate: 9.4578% (of the Issue Price)
• Dividends on the Shares will be payable on January, April, July, and October of each year.
• The declaration and payments of dividends on each Dividend Payment Date will be subject to the sole and absolute discretion of the Board of Directors to the extent permitted by law. The dividends, however, is cumulative.
• As and if declared by the Board, the Issuer may redeem the Preferred Shares on the fifth anniversary from the Listing Date (the Optional Redemption Date) or on any Dividend Payment Date thereafter in whole (but not in part only), at a redemption price equal to the Issue Price of the Shares plus accrued and unpaid dividend periods up to the actual redemption by the Issuer.
• If the Preferred Shares were not redeemed by the Issuer, the Dividend Rate shall be adjusted on the Optional Redemption Date to the higher of (a) the Dividend rate, or (b) the 10-year Fixed Rate Treasury Note benchmark yields as displayed on the “MART1″ page (or such successor page) of Bloomberg (or such successor electronic service provider) as of the Optional Redemption Date.
• Issue Date: 21 July 2006
• Dividend Rate: 9.4578% (of the Issue Price)
• Dividends on the Shares will be payable on January, April, July, and October of each year.
• The declaration and payments of dividends on each Dividend Payment Date will be subject to the sole and absolute discretion of the Board of Directors to the extent permitted by law. The dividends, however, is cumulative.
• As and if declared by the Board, the Issuer may redeem the Preferred Shares on the fifth anniversary from the Listing Date (the Optional Redemption Date) or on any Dividend Payment Date thereafter in whole (but not in part only), at a redemption price equal to the Issue Price of the Shares plus accrued and unpaid dividend periods up to the actual redemption by the Issuer.
• If the Preferred Shares were not redeemed by the Issuer, the Dividend Rate shall be adjusted on the Optional Redemption Date to the higher of (a) the Dividend rate, or (b) the 10-year Fixed Rate Treasury Note benchmark yields as displayed on the “MART1″ page (or such successor page) of Bloomberg (or such successor electronic service provider) as of the Optional Redemption Date.
Wednesday, May 4, 2011
Prospectus Summary: First Philippine Holdings Corporation (Preferred) (PSE:FPHP)
copied from jcmiras.net
• Offered price: Php100 per share
• Issue Date: 30-Apr-2008
• Dividend yield of 8.7231% net for corporate clients and 7.85% net for individuals. Dividends payments is twice a year.
• Shares are preferred, perpetual, cumulative, non-voting, non-participating, and non-convertible.
• Optional Redemption at 5 years after the issue date at offer price. If not redeemed after 5 years, the dividend rate will be adjusted to whichever is higher of 8.7231% or 175bps on top of the 10yr PDS-TF.
• Offered price: Php100 per share
• Issue Date: 30-Apr-2008
• Dividend yield of 8.7231% net for corporate clients and 7.85% net for individuals. Dividends payments is twice a year.
• Shares are preferred, perpetual, cumulative, non-voting, non-participating, and non-convertible.
• Optional Redemption at 5 years after the issue date at offer price. If not redeemed after 5 years, the dividend rate will be adjusted to whichever is higher of 8.7231% or 175bps on top of the 10yr PDS-TF.
Monday, May 2, 2011
TIPS ON HOW TO BECOME A BETTER INVESTOR
By Ron Nathan
ORIGINALLY, when I wrote this article 6 years ago, it was entitled the Ten Commandments. However, this time, there are only nine, as I decided to omit the one about adultery. When Moses went up Mount Cyanide, he came down with two heavy tablets made of stone, engraved in Hebrew. Unfortunately, I am much older than he was, so I took the cable car up Mount Mayon and instead of bringing down two large tablets, I brought down two capsules. I had them translated from Mayonaise to English and here they are.
Despite the humorous introduction, the rest of this article will completely change your investment psychology and you will be a far better investor in the future. What follows is based on 59 year’s experience in London and Manila. You can profit from my observations and mistakes. It will be particularly useful for beginners whose knowledge of investing is limited. Good luck, and if you find it useful, cut out the articles and paste them on your bedroom or office wall, in between your pin-ups of Beyonce and Jessica Alba.
Commandment No. 1: Do Not Trade Against The Trend
You will be shocked to learn that almost 90% of investors in the Philippines, U.S., UK and Japan lose money in the stock market. This is because they ignore the first commandments and jump in only after the market has already had a big rise. Let us examine the Phisix first.
On January 9, 1997, the index stood at 3,420. Since then, it has been changed many times, with the worst performers weeded out and replaced by better companies. Despite this, the Phisix is still below the level it was 13 years ago. So, in theory, you have lost about 20 percent of your money but this does not take into account inflation, which in earlier years was very high. Adjusting for the depreciation of the peso, you have lost 40 percent. During this period, you would have received hardly any dividends whereas you could have earned 10 percent plus on bonds before. Allowing for the loss of 13 years interest, your real loss is around 60 percent.
It was the same story in Japan, where the NIKKEI plunged from, almost 40,000 down to 8,000, and is still only a fraction what it was in 1990. It would have been far better to have bought gold, property or an oil tanker. The value of super tankers had tripled.
So why invest in the stock market at all? The short and honest answer is that you should not, unless you follow the rules, which I will set out in the next few pages. The prime requirement is patience. There is no such thing as long-term investment. Ask the Japanese, whom after 20 years are still losing much of their capital.
You only BUY when the market has fallen and the technical indicators say that it is about to turn up. There are many indicators and I will deal with some in due course. Conversely, you SELL when that index has had a big rise and the indicators show that momentum is slowing down or is about to decline.
Players do not use their head, they trade on their emotions, and this is nearly always wrong. I will tell you where to get the necessary fundamental and technical data, but in the meantime, you can use a 20-day moving average of the index or any stock, which you hold. If you have a computer program, you have a big advantage over the average investor.
Commandment No. 2: Cut Your Losses Quickly
Years ago, before the 9/11 attack, a financial journalist wrote two books called Market Wizards, in which he interviewed about 50 fund managers who had outstanding records over a five-to-10-years period. Obviously, this could not be just attributed to luck so he interviewed them in great detail, hoping to find the connecting link. They traded commodities, currencies, options, futures and stocks.
They came in all shapes and sizes, short, tall, fat, thin, and it took him a long time to find theconnection. Some were pure fundamental analysts who never looked at charts; others were technical analysts who did not know one side of a balance sheet from the other. Some studied economics and neural networks while others preferred tarot cards or feng shui. Some had master’s degrees or doctorates while others came from the street where they ran the jueteng or sold drugs. Some were extremely serious and studied DESCARTES while others made terrible puns, were covered in tattoos and wore nose rings. It took him a long time before he hit on the solution. As the first four groups were highly leveraged, about 10 to 1, they followed the principles of POP COLA.
Prolong Our Profits, Cut Our Losses Aggressively
Incredible as it may seem, although they took great care in their entry points, 63 percent of their transactions resulted in small losses. About 30 percent made small gains while the remaining seven percent scored huge gains, doubling, tripling, quadrupling or even becoming 10-baggers, because of the leverage.
So, when you get it right, let your profits run until momentum stops rising. But when you get it wrong put a stop loss below your buying price, dependent upon your risk tolerance. Sometimes, this will be a mistake but it protects you against disaster. After all, you don’t complain about paying fire insurance because your house didn’t burn down. You can afford to cut small losses. It is the big ones that ruin you.
Commandment No. 3: Do Not Average Down
One client bought 20 million shares at 54 centavos on the advice of his neighbor who was a director of the company. I was acutely unhappy because the shares had risen from their par value of 1 centavo. Not only would he not sell at 50 centavos as I suggested, but also he averaged down at 40 cents, 30 cents, 20 cents and 10 cents. He had to sell his house and his business to raise the money. Finally, the shares stabilized at 1 centavo, before going bankrupt.
If you follow the second commandment, such disasters cannot happen to you. so you will never be faced with the decision of whether to average down.
Commandment No. 4: Do Not Overtrade
That small percentage is enough to make all the incredibly costly casinos in Las Vegas profitable. They can afford to give free rooms, free food and drink, and free shows to high rollers because they know that a percentage advantage of 3.6% is enough to guarantee the house a sure profit over the long run. Trade only when the technical indicators tell you to. For the remainder of the time, do nothing. Patience is a virtue.
Commandment No. 5: Do Not Trade On Tips
In England, we say, “Where there’s a tip, there’s a tap.”
I am sure you all remember BW. The shares were run up deliberately by a consortium that, by tips and cross trading, created enormous volume and sent the shares from P0.40 (under a different name) to P108. Almost everyone except me got sucked in, mostly at the higher levels, and those speculators, who did not use stop losses, saw their shares go all the way down to P0.40 and below. One old lady wrote to me that her broker had recommended it at P104. Would she ever see her money back? I replied, somewhat unkindly, “Only if you believe in reincarnation.” These days, fewer people follow tips.
Commandment No. 6: Do Not Chase Prices
If the price runs away from you, don’t chase it. Most of the time, it will correct.
Commandment No. 7: Be Wary Of Inactive Stocks
The documentary stamp, which made trading in shares well below their par value prohibitive, has been removed. As a result, trading has increased greatly and numerically third-liners comfortably exceed leaders.
I have a computer program that tells me when a stock increases in price by a certain percent and its volume is 50 percent above its 50-day moving average. This alerts me to inactive stocks that suddenly become active. Often, the spread between bid and offer is too great or the number of shares available is too small to be of any interest but occasionally, it throws up something interesting.
Commandment No. 8: Buy Low Priced Stocks
The Last Commandment, No. 9: LEARN TECHNICAL ANALYSIS and I will tell you where to get information.
If you desire to become a really competent investor, you must also learn global economics and fundamental analysis. By global, I do not mean that you have to study every country, but you must at least know what is happening in the United States. Wherever the American stock market is heading, the rest of the world will follow. After the 9/11 attack, the US market got battered for a few months and every other stock market followed the downtrend. When the US market finally got back on its feet, every other market recovered.
How do you learn about the American stock market? First, listen every night to Bloomberg, assuming that you have cable TV, and tune into CNN. Listen to Chairman BERNANKE when he addresses the Senate or Congress. If you cannot do this, then read his speeches in the newspaper or go to the Internet and check on CNN Money.com or Bloomberg.com and also read the commentaries. When Wall Street sneezes, the rest of the world catches pneumonia.
Basic Knowledge
For the local market, the business section should give you all the necessary information. But if you want more details, to the web sites of the National Economic and Development Authority or the Philippine Stock Exchange and listen to channels which are largely devoted to the economic and political situation of the Philippines. You can also enroll in courses at universities and colleges.
Next, you should have a basic knowledge in fundamental analysis. This means that you need to know all about companies. You must know how to read a balance sheet, calculate the earnings per share and from this, the price/earnings ratio. You need to understand what a yield means, how many times a dividend is covered, and what preferred and convertible stocks are. You should know book value and understand such concepts as debt and cash flows.
You can take a course in accounting or business management, and there are plenty of books, local and imported, in all the major bookstores. Or you can subscribe to my newsletter, which contains all of the above.
If you want to buy a simple but excellent technical analysis book, try TECHNICAL ANALYSIS OF THE FUTURES MARKET by John Murphy, available at local bookstores but expensive. It was written years ago but is still considered to be a classic. Every aspect is explained simply and it can be used for trading stocks, commodities, currencies or futures. Also buy Beyond Candlesticks by Steve Nison, a must. There are many sites on the Internet, which will teach you technical analysis and provide the necessary charts and parameters.
ORIGINALLY, when I wrote this article 6 years ago, it was entitled the Ten Commandments. However, this time, there are only nine, as I decided to omit the one about adultery. When Moses went up Mount Cyanide, he came down with two heavy tablets made of stone, engraved in Hebrew. Unfortunately, I am much older than he was, so I took the cable car up Mount Mayon and instead of bringing down two large tablets, I brought down two capsules. I had them translated from Mayonaise to English and here they are.
Despite the humorous introduction, the rest of this article will completely change your investment psychology and you will be a far better investor in the future. What follows is based on 59 year’s experience in London and Manila. You can profit from my observations and mistakes. It will be particularly useful for beginners whose knowledge of investing is limited. Good luck, and if you find it useful, cut out the articles and paste them on your bedroom or office wall, in between your pin-ups of Beyonce and Jessica Alba.
Commandment No. 1: Do Not Trade Against The Trend
You will be shocked to learn that almost 90% of investors in the Philippines, U.S., UK and Japan lose money in the stock market. This is because they ignore the first commandments and jump in only after the market has already had a big rise. Let us examine the Phisix first.
On January 9, 1997, the index stood at 3,420. Since then, it has been changed many times, with the worst performers weeded out and replaced by better companies. Despite this, the Phisix is still below the level it was 13 years ago. So, in theory, you have lost about 20 percent of your money but this does not take into account inflation, which in earlier years was very high. Adjusting for the depreciation of the peso, you have lost 40 percent. During this period, you would have received hardly any dividends whereas you could have earned 10 percent plus on bonds before. Allowing for the loss of 13 years interest, your real loss is around 60 percent.
It was the same story in Japan, where the NIKKEI plunged from, almost 40,000 down to 8,000, and is still only a fraction what it was in 1990. It would have been far better to have bought gold, property or an oil tanker. The value of super tankers had tripled.
So why invest in the stock market at all? The short and honest answer is that you should not, unless you follow the rules, which I will set out in the next few pages. The prime requirement is patience. There is no such thing as long-term investment. Ask the Japanese, whom after 20 years are still losing much of their capital.
You only BUY when the market has fallen and the technical indicators say that it is about to turn up. There are many indicators and I will deal with some in due course. Conversely, you SELL when that index has had a big rise and the indicators show that momentum is slowing down or is about to decline.
Players do not use their head, they trade on their emotions, and this is nearly always wrong. I will tell you where to get the necessary fundamental and technical data, but in the meantime, you can use a 20-day moving average of the index or any stock, which you hold. If you have a computer program, you have a big advantage over the average investor.
Commandment No. 2: Cut Your Losses Quickly
Years ago, before the 9/11 attack, a financial journalist wrote two books called Market Wizards, in which he interviewed about 50 fund managers who had outstanding records over a five-to-10-years period. Obviously, this could not be just attributed to luck so he interviewed them in great detail, hoping to find the connecting link. They traded commodities, currencies, options, futures and stocks.
They came in all shapes and sizes, short, tall, fat, thin, and it took him a long time to find theconnection. Some were pure fundamental analysts who never looked at charts; others were technical analysts who did not know one side of a balance sheet from the other. Some studied economics and neural networks while others preferred tarot cards or feng shui. Some had master’s degrees or doctorates while others came from the street where they ran the jueteng or sold drugs. Some were extremely serious and studied DESCARTES while others made terrible puns, were covered in tattoos and wore nose rings. It took him a long time before he hit on the solution. As the first four groups were highly leveraged, about 10 to 1, they followed the principles of POP COLA.
Prolong Our Profits, Cut Our Losses Aggressively
Incredible as it may seem, although they took great care in their entry points, 63 percent of their transactions resulted in small losses. About 30 percent made small gains while the remaining seven percent scored huge gains, doubling, tripling, quadrupling or even becoming 10-baggers, because of the leverage.
So, when you get it right, let your profits run until momentum stops rising. But when you get it wrong put a stop loss below your buying price, dependent upon your risk tolerance. Sometimes, this will be a mistake but it protects you against disaster. After all, you don’t complain about paying fire insurance because your house didn’t burn down. You can afford to cut small losses. It is the big ones that ruin you.
Commandment No. 3: Do Not Average Down
Under normal circumstances, I am against the death penalty, but not for those who break this commandment. They should be barbecued slowly over a fire while concentrated hydrochloric acid is dropped upon them. All the people I know who went bankrupt averaged down.
One client bought 20 million shares at 54 centavos on the advice of his neighbor who was a director of the company. I was acutely unhappy because the shares had risen from their par value of 1 centavo. Not only would he not sell at 50 centavos as I suggested, but also he averaged down at 40 cents, 30 cents, 20 cents and 10 cents. He had to sell his house and his business to raise the money. Finally, the shares stabilized at 1 centavo, before going bankrupt.
If you follow the second commandment, such disasters cannot happen to you. so you will never be faced with the decision of whether to average down.
Commandment No. 4: Do Not Overtrade
If you are trading every day, the only person making money is your broker. The expense involved is too high. You have to pay two commissions and a 0.5 percent sales tax. In addition, there is the difference between the bid and offer price, usually about 1 to 2 per cent. So you have to make four per cent just to break even. This is fine, so long as you BUY just as the stock is turning up, but if you deal constantly, the expense will ultimately cripple you.
That small percentage is enough to make all the incredibly costly casinos in Las Vegas profitable. They can afford to give free rooms, free food and drink, and free shows to high rollers because they know that a percentage advantage of 3.6% is enough to guarantee the house a sure profit over the long run. Trade only when the technical indicators tell you to. For the remainder of the time, do nothing. Patience is a virtue.
Commandment No. 5: Do Not Trade On Tips
In England, we say, “Where there’s a tip, there’s a tap.”
I am sure you all remember BW. The shares were run up deliberately by a consortium that, by tips and cross trading, created enormous volume and sent the shares from P0.40 (under a different name) to P108. Almost everyone except me got sucked in, mostly at the higher levels, and those speculators, who did not use stop losses, saw their shares go all the way down to P0.40 and below. One old lady wrote to me that her broker had recommended it at P104. Would she ever see her money back? I replied, somewhat unkindly, “Only if you believe in reincarnation.” These days, fewer people follow tips.
Commandment No. 6: Do Not Chase Prices
If the price runs away from you, don’t chase it. Most of the time, it will correct.
Commandment No. 7: Be Wary Of Inactive Stocks
The documentary stamp, which made trading in shares well below their par value prohibitive, has been removed. As a result, trading has increased greatly and numerically third-liners comfortably exceed leaders.
I have a computer program that tells me when a stock increases in price by a certain percent and its volume is 50 percent above its 50-day moving average. This alerts me to inactive stocks that suddenly become active. Often, the spread between bid and offer is too great or the number of shares available is too small to be of any interest but occasionally, it throws up something interesting.
Commandment No. 8: Buy Low Priced Stocks
By this, I don’t mean stocks quoted at a fraction of a centavo. I mean decent stocks standing around at P1 to P5. Obviously, it is easier to double your money on a low-priced stock than on a high-priced bank or insurance company. TEL, my most successful recommendation at P226 and now over P2600, is not likely to double from this level.
The Last Commandment, No. 9: LEARN TECHNICAL ANALYSIS and I will tell you where to get information.
If you desire to become a really competent investor, you must also learn global economics and fundamental analysis. By global, I do not mean that you have to study every country, but you must at least know what is happening in the United States. Wherever the American stock market is heading, the rest of the world will follow. After the 9/11 attack, the US market got battered for a few months and every other stock market followed the downtrend. When the US market finally got back on its feet, every other market recovered.
How do you learn about the American stock market? First, listen every night to Bloomberg, assuming that you have cable TV, and tune into CNN. Listen to Chairman BERNANKE when he addresses the Senate or Congress. If you cannot do this, then read his speeches in the newspaper or go to the Internet and check on CNN Money.com or Bloomberg.com and also read the commentaries. When Wall Street sneezes, the rest of the world catches pneumonia.
Basic Knowledge
For the local market, the business section should give you all the necessary information. But if you want more details, to the web sites of the National Economic and Development Authority or the Philippine Stock Exchange and listen to channels which are largely devoted to the economic and political situation of the Philippines. You can also enroll in courses at universities and colleges.
Next, you should have a basic knowledge in fundamental analysis. This means that you need to know all about companies. You must know how to read a balance sheet, calculate the earnings per share and from this, the price/earnings ratio. You need to understand what a yield means, how many times a dividend is covered, and what preferred and convertible stocks are. You should know book value and understand such concepts as debt and cash flows.
You can take a course in accounting or business management, and there are plenty of books, local and imported, in all the major bookstores. Or you can subscribe to my newsletter, which contains all of the above.
If you want to buy a simple but excellent technical analysis book, try TECHNICAL ANALYSIS OF THE FUTURES MARKET by John Murphy, available at local bookstores but expensive. It was written years ago but is still considered to be a classic. Every aspect is explained simply and it can be used for trading stocks, commodities, currencies or futures. Also buy Beyond Candlesticks by Steve Nison, a must. There are many sites on the Internet, which will teach you technical analysis and provide the necessary charts and parameters.
Good Luck!
Friday, April 29, 2011
Prospectus Summary: Ayala Corporation Preferred Class “A” Shares (ACPA)
It’s quite hard to find a comprehensive prospectus of stock shares in the Philippine Stock Market (PSE) particularly, for the Preferred Shares. Here’s a good description of the features for the AYALA CORPORATION PREFERRED CLASS “A” SHARES (ACPA);
• Issue price: Php500.00 per share
• Issue Date: 25-Nov-2008
• Dividend Rate is fixed at 8.88% (of the issue price) per annum.
• Dividends will only be distributed to shareholders if and when the company’s Board of Directors decides to declare it. The dividends, though, are cumulative.
• The Dividends will be paid quarterly in arrears on the last day of each 3-month Dividend Period (Dividend Payment Date) of February, May, August, and November of each year.
• The Shares are redeemable, as and if declared by the Issuer’s Board, on the fifth anniversary from the Listing Date (Optional Redemption Date) at a price equal to the Issue Price plus accrued and unpaid dividends for all dividend periods up to the Redemption Date.
• If the Shares are not redeemed on the fifth year from the Listing Date, the dividend rate will be adjusted to the higher of the Dividend Rate, or the 10-year Fixed Rate Treasury Note benchmark yields as displayed on the “PDST-R2″ screen of the PDEX page of Bloomberg at approximately 4:15 p.m. for the date corresponding the Optional Redemption Date, plus a spread of 0.0088 or 88 bps.
• Issue Date: 25-Nov-2008
• Dividend Rate is fixed at 8.88% (of the issue price) per annum.
• Dividends will only be distributed to shareholders if and when the company’s Board of Directors decides to declare it. The dividends, though, are cumulative.
• The Dividends will be paid quarterly in arrears on the last day of each 3-month Dividend Period (Dividend Payment Date) of February, May, August, and November of each year.
• The Shares are redeemable, as and if declared by the Issuer’s Board, on the fifth anniversary from the Listing Date (Optional Redemption Date) at a price equal to the Issue Price plus accrued and unpaid dividends for all dividend periods up to the Redemption Date.
• If the Shares are not redeemed on the fifth year from the Listing Date, the dividend rate will be adjusted to the higher of the Dividend Rate, or the 10-year Fixed Rate Treasury Note benchmark yields as displayed on the “PDST-R2″ screen of the PDEX page of Bloomberg at approximately 4:15 p.m. for the date corresponding the Optional Redemption Date, plus a spread of 0.0088 or 88 bps.
Thursday, April 28, 2011
Your quiz answers have suggested that your trader profile is a "Timid Struggler"
If you are a Timid trader then typically you might lack confidence and might be unsure about what trades you should be taking. Even when you do take trades, you are probably not too confident about them and don't really have a positive expectation of the result.
Since you aren't too sure or comfortable, you will tend to look to others for advice and direction. You might research to find what others are saying or doing so you essentially become a market 'follower'.
Your lack of confidence will generally mean that you will also be cautious in the market - this might lead to taking a lower number of trades and making sure that you don't leave your trading funds too exposed or at risk.
Struggler
As the name suggests, this stage occurs when traders find it difficult to actually get going with their trading or with making profits. It is the stage where the dream of easy profits is met by the harsh reality of what it actually takes to be successful.
This is a stage that many traders will find themselves in at one point of their journey. It is important to understand why and then look at what you need to do to push ahead (before it's too late). The Struggler is often a trader that has started learning about forex trading and then gets frustrated when the profits don't start flowing like they had been led to believe. You maybe started trading and found that certain circumstances have conspired against you. Your trades have not panned out as you anticipated. You may not really know what has gone wrong or what you need to do to correct things.
People get attracted by all the mentions of potential profits that can be made but the Struggler suddenly finds it is not as easy as they had imagined. You may have already made some losing trades and seen your bankroll shrink. You might start chasing losing trades or making trades that put your bankroll at risk.
Often Strugglers will recognize the need for change but they don't always know what to do about it. So you might feel isolated and lacking in resources to turn things around. You might not have any support systems or guidance that can point you in the right direction.
"Moving Forward"
Timid
You need to progress from being this type of trader if you hope to make real and sustainable profits. This means looking at ways to increase your confidence and experience. There are various ways to do that including accessing quality trading education and learning practical trading skills from experienced mentors.
The important first step is making a commitment to yourself to really change your mindset and approach. It is fine to be timid or cautious with your trading funds but you need to ensure that you develop more confidence with the trades that you take and the overall potential of your trading future.
Struggler
To move forward from the Struggler stage, make sure that you firstly take a step back from your trading until you are comfortable with the direction you are heading. Don't be afraid to get suitable training or to find someone that might be able to guide you on the right path. Take action and do it quickly.
Struggling with your trading can be frustrating and annoying. You need to also make sure that it's not financially devastating as well. Work out what areas of trading you need help with. Develop a plan of attack for how you will solve them and then take action as soon as you can.
Don't be dispirited. It's just time to take your trading more seriously.
Rommel, Your Next Action:
A great trader generally has developed skills and characteristics such as:
being decisive, organized, and able to execute trades systematically
being able to grasp the "big picture"
being able to analyze the charts and use logic to base sound decisions on
We've designed a solution called the Forex Power Group specifically to meet the needs of your trader profile (the "Timid Struggler") and many others. Make sure you watch our next video in a few days time to see how the Forex Power Group can take your trading to the next level and beyond!
Explanatory Notes
The trader profiles are not meant to be a scientific or detailed assessment although they have been determined based on extensive research into the various factors that influence individual performance.
They are not intended to be critical or negative in any way, in fact they have been created as a way of identifying areas that can be improved so that every trader has the best possible chance of long- term success.
Please take note of how you can move forward and achieve the type of future that you have probably dreamed about.
Our trader profiles cover two main components:
Trading Personality and Mindset
This looks at some of your personal attitudes and attributes. It also looks at how you approach your trading. It is meant to indicate something about how you personally look at trading and how this might impact on your success or failure.
This is important as studies have shown that profitable traders have a lot of common attributes that help to make them successful. We can use this information to see how we compare and to see what areas we might need to improve in so that we can achieve the same level of success over the long term.
Don't take the result or the category too literally but consider if it applies to you and how you can use this information to be successful in the future.
The Stages of Forex Learning
Like most things in life, Forex can be a bit of a journey. We might know that we want to end up making money and becoming successful traders but we have to start at the beginning and work our way there. It is not always quick and it certainly is not always easy. You'll find plenty of potential detours that will divert you from the overall path and there will also be plenty of potholes along the way.
Just like any journey, there are various stages that you need to go through before you become a professional. I classify most traders into five broad categories which I call how quickly you can move through the various stages so that you become genuinely successful. I call this this the "Speed of Transition" - it's something to keep in mind when you think about your future in Forex. Just stay focused on your end goal and move forward to get there as soon as you can.
Since you aren't too sure or comfortable, you will tend to look to others for advice and direction. You might research to find what others are saying or doing so you essentially become a market 'follower'.
Your lack of confidence will generally mean that you will also be cautious in the market - this might lead to taking a lower number of trades and making sure that you don't leave your trading funds too exposed or at risk.
Struggler
As the name suggests, this stage occurs when traders find it difficult to actually get going with their trading or with making profits. It is the stage where the dream of easy profits is met by the harsh reality of what it actually takes to be successful.
This is a stage that many traders will find themselves in at one point of their journey. It is important to understand why and then look at what you need to do to push ahead (before it's too late). The Struggler is often a trader that has started learning about forex trading and then gets frustrated when the profits don't start flowing like they had been led to believe. You maybe started trading and found that certain circumstances have conspired against you. Your trades have not panned out as you anticipated. You may not really know what has gone wrong or what you need to do to correct things.
People get attracted by all the mentions of potential profits that can be made but the Struggler suddenly finds it is not as easy as they had imagined. You may have already made some losing trades and seen your bankroll shrink. You might start chasing losing trades or making trades that put your bankroll at risk.
Often Strugglers will recognize the need for change but they don't always know what to do about it. So you might feel isolated and lacking in resources to turn things around. You might not have any support systems or guidance that can point you in the right direction.
"Moving Forward"
Timid
You need to progress from being this type of trader if you hope to make real and sustainable profits. This means looking at ways to increase your confidence and experience. There are various ways to do that including accessing quality trading education and learning practical trading skills from experienced mentors.
The important first step is making a commitment to yourself to really change your mindset and approach. It is fine to be timid or cautious with your trading funds but you need to ensure that you develop more confidence with the trades that you take and the overall potential of your trading future.
Struggler
To move forward from the Struggler stage, make sure that you firstly take a step back from your trading until you are comfortable with the direction you are heading. Don't be afraid to get suitable training or to find someone that might be able to guide you on the right path. Take action and do it quickly.
Struggling with your trading can be frustrating and annoying. You need to also make sure that it's not financially devastating as well. Work out what areas of trading you need help with. Develop a plan of attack for how you will solve them and then take action as soon as you can.
Don't be dispirited. It's just time to take your trading more seriously.
Rommel, Your Next Action:
A great trader generally has developed skills and characteristics such as:
being decisive, organized, and able to execute trades systematically
being able to grasp the "big picture"
being able to analyze the charts and use logic to base sound decisions on
We've designed a solution called the Forex Power Group specifically to meet the needs of your trader profile (the "Timid Struggler") and many others. Make sure you watch our next video in a few days time to see how the Forex Power Group can take your trading to the next level and beyond!
Explanatory Notes
The trader profiles are not meant to be a scientific or detailed assessment although they have been determined based on extensive research into the various factors that influence individual performance.
They are not intended to be critical or negative in any way, in fact they have been created as a way of identifying areas that can be improved so that every trader has the best possible chance of long- term success.
Please take note of how you can move forward and achieve the type of future that you have probably dreamed about.
Our trader profiles cover two main components:
Trading Personality and Mindset
This looks at some of your personal attitudes and attributes. It also looks at how you approach your trading. It is meant to indicate something about how you personally look at trading and how this might impact on your success or failure.
This is important as studies have shown that profitable traders have a lot of common attributes that help to make them successful. We can use this information to see how we compare and to see what areas we might need to improve in so that we can achieve the same level of success over the long term.
Don't take the result or the category too literally but consider if it applies to you and how you can use this information to be successful in the future.
The Stages of Forex Learning
Like most things in life, Forex can be a bit of a journey. We might know that we want to end up making money and becoming successful traders but we have to start at the beginning and work our way there. It is not always quick and it certainly is not always easy. You'll find plenty of potential detours that will divert you from the overall path and there will also be plenty of potholes along the way.
Just like any journey, there are various stages that you need to go through before you become a professional. I classify most traders into five broad categories which I call how quickly you can move through the various stages so that you become genuinely successful. I call this this the "Speed of Transition" - it's something to keep in mind when you think about your future in Forex. Just stay focused on your end goal and move forward to get there as soon as you can.
Tuesday, April 26, 2011
What's the difference Between SMC Secondary Offerings with other offerings?
A secondary offering is the issuance of new stock for public sale from a company that has already made it's IPO. They normally do this to raise more capital or to refinance their business.
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