If you know how to sell affiliate products then you have an almost limited source of material to sell, and there is also no restriction on how much you can sell at any one time.
Affiliate products can be sold individually, from individual minisites, or in bulk from large affiliate showcase pages. Groups of similar products can be sold together, or you can feature a number of products that complement each other without providing the same information. Whatever method you use, the most important aspect of affiliate marketing is advertising.
You might argue that advertising is the most important part of any form of marketing, but with affiliate products the situation is different. You are advertising the product, but are not trying to sell it! That sounds a bit converse, but it is true. While you do the advertising, the merchant who owns the product does the actual selling.
Your advertising should be designed to send the prospect to the merchant’s sales page, and it is then the merchant that looks after the persuading, the taking of the order and the payment and also, you will be pleased to know, the handling of any complaints.
Want to learn more about driving traffic? Download a free traffic guide here: Traffic Generation
Many affiliates try to send the respondents to their adverts directly to the merchant’s website, but the most successful affiliate marketers have their own website. With your own website you are not restricted to pay-per-click campaigns, and you have to keep in mind that Google allow only one advert in their Adsense program for each search term (keyword) that is sent directly to the merchant’s domain.
You can send the respondents to your advert either to a squeeze page or a preselling page. On the squeeze page you first persuade the prospect to give you their name and email address, and then you can send them to the presales page. That is a page where you try to ‘presell’ the product by providing a positive review of it, or a list of testimonials, that convinces the prospect that the product does what it says it does. If that is your landing page, be sure to collect the name and address before you send them off to the merchant’s website.
Do you want to learn about article marketing? Download a free guide today: Secrets of Article Marketing
Do you want to learn how to build a massive list fast? Click here: Email List Building
Tuesday, July 24, 2007
Saturday, February 03, 2007
Some Advice For HYIP Beginners
This article describes hyip - investment programs. It is intended for those who are the beginners in such business. I think, a beginner can gather some rules and advice that can help not to lose but earn some money by participating in such projects. First of all, you should decide: whether this method of earning money appeals to you? First of all, answer the following questions, and then make your own decision. I do not advise you to start participating in this business if the following character traits are inherent to you:
1. You are afraid to risk your money. It is necessary to note, that absolutely reliable hyip projects do not exist. Any commercial or state bank offers low profitability of an investment with high reliability. On the contrary, hyip offers high liquidity, but often many of them have a short term of existence.
2. You should realize that hyip projects cannot make a profit from anything. You should deposit necessarily some minimum of money to receive profit. It is well-known, that it is impossible to receive something from anything. If you do not have necessary minimum (as a rule, it's over 100-1000$) you should earn and deposit them first.
3. Are you very emotional? Are you nervous? In this case, hyip business is not for you. Moreover, if you are capable to unforeseen rash acts, is very dangerous to participate in hyip projects. In the first case you'll suffer from sleeplessness, in the second - an opportunity to lose quickly all the money.
4. You like to blame others for your mistakes. If, once a failure occurs, you blame everyone (be it an administrator, a friend, a boss, the government, God, weather, coincidence etc) except yourself, you should stay away from HYIP. Keep in mind that YOU are the only one being responsible for the decisions you are making, and the entire fault in case of a failure is yours. If you have lost money in HYIP – you are the only one who is to blame for your unpredictability and greed, having taken over your common sense. Remember that no one was pulling you on a lace and you have voluntarily given your money to a scammer.
5. I strongly advise you not to participate in hyip projects, if cheating is inherent in your character. There are too many dishonest persons in this business besides you.
HYIP – is for you, if:
1. HYIP is the best way of earning money for you, if the realized risk - congenital feature of your character. You should understand, that risk is a noble business. You should be ready to risk anywhere and anywhen to subdue top or to lose all. You’ve got a well-developed intuition and common sense.
2. For a successful promotion in hyip business you should have a good intuition and skill of precise analysis. Your experience and intuition should be a basis of your decisions. Your experience and opinion should have priority over the opinion of hyip forums participants etc. You and only you make a decision whether participate or not participate in this or that project.
3. You should be capable of taking experience from the latest mistakes. Hyip is not intended for those who recedes after the first defeat. Hyip - a choice of strong people, able to make conclusions from their mistakes.
HYIP : first steps. This part of the article is an array of advices for those people, who meet the requirements stated above and decide to take part in hyip business. How to begin. You should take some knowledge before participation in hyip. You can get this knowledge by reading news on different forums, opinions of well-known people and professionals of this business. It is well-known, that's learning from mistakes of others is better than from your own. You should start only after your own close research of hyip business world.
Starting capital. A lot of hyip programs have too small start invest capital about $1-5. You should clearly understand that such a small sum of money can’t be the foundation of real business. You’d better buy a beer for yourself than participate in hyip business with such money. You should start your learning with at least $100, expanding this amount till $1000, if you want to succeed. And you should remember that amount of your investments and possible loosing of them should not be fatally dangerous for you.
A variety of investments. Do not invest all of your money in any unique invest-project. You should have contributions in at least ten various projects, you'll have an opportunity to succeed. You should clearly understand, that always there is a high risk of half of these funds to be closed.
You should ensure the safety of your accounts if do not want to be plundered by hackers of various kinds, swindlers, etc. Do not forget to update anti-virus software and firewall programs on your machine. Only you can protect yourself from a robbery by hackers.
Life expectancy of hyip projects.
Any investment program chosen by you should be preliminary researched by you. You should estimate the time of its existence and starting your work on the project. You should know, that any of such investment projects has a certain term of life. The overwhelming majority of projects are financial pyramids, also known as ponzies. They pay you from the deposits of new investors for a period of time while new investments are larger than the total amount of payouts. If you try to participate in an old program, you will face a huge risk of getting in the bottom of such financial pyramid.
Stages of development. Any program has a certain life of expectancy. This life can be divided into some periods conditionally:
1. The opening of the program. This is the most successful time for investment. The program receives big investments, investors receive their interest and demand withdrawal quite seldom. Bankruptcy at this stage can be caused by admin's insincerity. He can decide and disappear with the money instead of continuing the work of the project. Such state of events can be determined by researching statistics of the program. Such project is a bankrupt if in statistics the huge quantity of investments in the beginning of the work of the project is specified. Also the project can become incapacitated, because a huge amount of money was spent on advertising campaign and website design.
2. The period of stability. It is the period of the most fruitful existence of the project, when the program develops, deposits grow, and the small quantity of withdrawals of money is made.
3. The end of existence. This stage comes, when the amount of inquiries about withdrawal reaches the sizes of the common capital of the project. Admin closes the project, leaving difference of investments and the withdrawn incomes to itself.
4. Sometimes project continues its existence. It is possible in that case if it's really the productive investment project or a commercial deceit by means of advertising. This stage is a logic end of activity of the project. You should o withdraw the money at this stage if it is still possible.
5. Extraordinary events.It may take place if the website of the project is attacked by hackers. The most probable consequence of this accident is complete bankruptcy of the project.
Types of hyip projects.
1. Short-term ponzies. It is a kind of programs promising up to 200% daily payment. Usually term of life of such programs is no longer than one or two weeks. It is very dangerous to invest in such projects, which are like “roulette." I strongly recommend not to participate in such programs.
2. Medium-term ponzies .Term of life of such programs may change from about two weeks to two months. They pay around 5-7 percent a day. This is the most dangerous kind of projects.
3. Long-term ponzies. It's the best way for your investments. The real period of existing of such programs is about five months, and some of the most successful can live till half a year. Their payments are about from 2-3 percent a day. So, you have a high possibility of returning your investments in a two-month term and earn some profit.
4. Extra-long term projects.This type of projects can work a very long period of time, a whole year. They promise less than 25 % monthly. Nevertheless, it is a very dangerous kind of projects. You should put concerning the big deposit to receive the essential income in this case. The risk in this project is very high, so, participation in such projects is not your best way to earn the money.
Private programs.
When you start to participate in investment projects, you'll hear about so called private projects. Their admins admit that new members can participate in such programs only by the special invitation. It is not a VIP project as you think. It's a simple advertising attempt to get more investments from its old members. The unique feature of such projects is their quite high life expectancy. You should be very careful with such projects. Programs of such kind have too high possibility to be closed soon.
You should keep in mind that HYIP world has a lot fake programs. You should rely on your own experience and experience of professional investors. Pay attention to messages on hyip forums. It is important to monitor the admin's speeches - it is not very difficult to tell the truth from lie. For example, admin, most likely, say lies speaking about the use of investments on FOREX, because an overwhelming majority of such projects are only financial pyramids.
HYIP is an uneasy business, and administrators often escape with the invested money. You should clearly understand that there is no way to get back your loosed money. You should always remember it! You should know that there is no mechanism to control Internet payments.
Rules of all HYIP projects say that the administrator is not responsible for your money and you are depositing them voluntarily. Practically it is impossible to start lawsuit against a dishonest admin of hyip project, but it's impossible to return your money. Even charges on police investigation will exceed the sum of your deposit. HYIP projects do not submit to any laws. If you have decided to participate in HYIP business - I sincerely wish you good luck and be rich!
Written by Investor-Info.biz Admin December 22 2006 Investor-Info.biz. All rights reserved!
i encourage you to visit this page url: http://www.investor-info.biz/lib/beginadvices.html More articles about HYIP: http://www.investor-info.biz/lib.php
1. You are afraid to risk your money. It is necessary to note, that absolutely reliable hyip projects do not exist. Any commercial or state bank offers low profitability of an investment with high reliability. On the contrary, hyip offers high liquidity, but often many of them have a short term of existence.
2. You should realize that hyip projects cannot make a profit from anything. You should deposit necessarily some minimum of money to receive profit. It is well-known, that it is impossible to receive something from anything. If you do not have necessary minimum (as a rule, it's over 100-1000$) you should earn and deposit them first.
3. Are you very emotional? Are you nervous? In this case, hyip business is not for you. Moreover, if you are capable to unforeseen rash acts, is very dangerous to participate in hyip projects. In the first case you'll suffer from sleeplessness, in the second - an opportunity to lose quickly all the money.
4. You like to blame others for your mistakes. If, once a failure occurs, you blame everyone (be it an administrator, a friend, a boss, the government, God, weather, coincidence etc) except yourself, you should stay away from HYIP. Keep in mind that YOU are the only one being responsible for the decisions you are making, and the entire fault in case of a failure is yours. If you have lost money in HYIP – you are the only one who is to blame for your unpredictability and greed, having taken over your common sense. Remember that no one was pulling you on a lace and you have voluntarily given your money to a scammer.
5. I strongly advise you not to participate in hyip projects, if cheating is inherent in your character. There are too many dishonest persons in this business besides you.
HYIP – is for you, if:
1. HYIP is the best way of earning money for you, if the realized risk - congenital feature of your character. You should understand, that risk is a noble business. You should be ready to risk anywhere and anywhen to subdue top or to lose all. You’ve got a well-developed intuition and common sense.
2. For a successful promotion in hyip business you should have a good intuition and skill of precise analysis. Your experience and intuition should be a basis of your decisions. Your experience and opinion should have priority over the opinion of hyip forums participants etc. You and only you make a decision whether participate or not participate in this or that project.
3. You should be capable of taking experience from the latest mistakes. Hyip is not intended for those who recedes after the first defeat. Hyip - a choice of strong people, able to make conclusions from their mistakes.
HYIP : first steps. This part of the article is an array of advices for those people, who meet the requirements stated above and decide to take part in hyip business. How to begin. You should take some knowledge before participation in hyip. You can get this knowledge by reading news on different forums, opinions of well-known people and professionals of this business. It is well-known, that's learning from mistakes of others is better than from your own. You should start only after your own close research of hyip business world.
Starting capital. A lot of hyip programs have too small start invest capital about $1-5. You should clearly understand that such a small sum of money can’t be the foundation of real business. You’d better buy a beer for yourself than participate in hyip business with such money. You should start your learning with at least $100, expanding this amount till $1000, if you want to succeed. And you should remember that amount of your investments and possible loosing of them should not be fatally dangerous for you.
A variety of investments. Do not invest all of your money in any unique invest-project. You should have contributions in at least ten various projects, you'll have an opportunity to succeed. You should clearly understand, that always there is a high risk of half of these funds to be closed.
You should ensure the safety of your accounts if do not want to be plundered by hackers of various kinds, swindlers, etc. Do not forget to update anti-virus software and firewall programs on your machine. Only you can protect yourself from a robbery by hackers.
Life expectancy of hyip projects.
Any investment program chosen by you should be preliminary researched by you. You should estimate the time of its existence and starting your work on the project. You should know, that any of such investment projects has a certain term of life. The overwhelming majority of projects are financial pyramids, also known as ponzies. They pay you from the deposits of new investors for a period of time while new investments are larger than the total amount of payouts. If you try to participate in an old program, you will face a huge risk of getting in the bottom of such financial pyramid.
Stages of development. Any program has a certain life of expectancy. This life can be divided into some periods conditionally:
1. The opening of the program. This is the most successful time for investment. The program receives big investments, investors receive their interest and demand withdrawal quite seldom. Bankruptcy at this stage can be caused by admin's insincerity. He can decide and disappear with the money instead of continuing the work of the project. Such state of events can be determined by researching statistics of the program. Such project is a bankrupt if in statistics the huge quantity of investments in the beginning of the work of the project is specified. Also the project can become incapacitated, because a huge amount of money was spent on advertising campaign and website design.
2. The period of stability. It is the period of the most fruitful existence of the project, when the program develops, deposits grow, and the small quantity of withdrawals of money is made.
3. The end of existence. This stage comes, when the amount of inquiries about withdrawal reaches the sizes of the common capital of the project. Admin closes the project, leaving difference of investments and the withdrawn incomes to itself.
4. Sometimes project continues its existence. It is possible in that case if it's really the productive investment project or a commercial deceit by means of advertising. This stage is a logic end of activity of the project. You should o withdraw the money at this stage if it is still possible.
5. Extraordinary events.It may take place if the website of the project is attacked by hackers. The most probable consequence of this accident is complete bankruptcy of the project.
Types of hyip projects.
1. Short-term ponzies. It is a kind of programs promising up to 200% daily payment. Usually term of life of such programs is no longer than one or two weeks. It is very dangerous to invest in such projects, which are like “roulette." I strongly recommend not to participate in such programs.
2. Medium-term ponzies .Term of life of such programs may change from about two weeks to two months. They pay around 5-7 percent a day. This is the most dangerous kind of projects.
3. Long-term ponzies. It's the best way for your investments. The real period of existing of such programs is about five months, and some of the most successful can live till half a year. Their payments are about from 2-3 percent a day. So, you have a high possibility of returning your investments in a two-month term and earn some profit.
4. Extra-long term projects.This type of projects can work a very long period of time, a whole year. They promise less than 25 % monthly. Nevertheless, it is a very dangerous kind of projects. You should put concerning the big deposit to receive the essential income in this case. The risk in this project is very high, so, participation in such projects is not your best way to earn the money.
Private programs.
When you start to participate in investment projects, you'll hear about so called private projects. Their admins admit that new members can participate in such programs only by the special invitation. It is not a VIP project as you think. It's a simple advertising attempt to get more investments from its old members. The unique feature of such projects is their quite high life expectancy. You should be very careful with such projects. Programs of such kind have too high possibility to be closed soon.
You should keep in mind that HYIP world has a lot fake programs. You should rely on your own experience and experience of professional investors. Pay attention to messages on hyip forums. It is important to monitor the admin's speeches - it is not very difficult to tell the truth from lie. For example, admin, most likely, say lies speaking about the use of investments on FOREX, because an overwhelming majority of such projects are only financial pyramids.
HYIP is an uneasy business, and administrators often escape with the invested money. You should clearly understand that there is no way to get back your loosed money. You should always remember it! You should know that there is no mechanism to control Internet payments.
Rules of all HYIP projects say that the administrator is not responsible for your money and you are depositing them voluntarily. Practically it is impossible to start lawsuit against a dishonest admin of hyip project, but it's impossible to return your money. Even charges on police investigation will exceed the sum of your deposit. HYIP projects do not submit to any laws. If you have decided to participate in HYIP business - I sincerely wish you good luck and be rich!
Written by Investor-Info.biz Admin December 22 2006 Investor-Info.biz. All rights reserved!
i encourage you to visit this page url: http://www.investor-info.biz/lib/beginadvices.html More articles about HYIP: http://www.investor-info.biz/lib.php
Saturday, September 02, 2006
Computerized investing. Online investing. Have you taken the next step yet?
These days among savvy investors, online investment resources are synonymous with opportunity.
The capabilities that we currently have at our fingertips were unavailable just ten years ago. The speed at which you can invest with an online broker, along with ease of use (you can trade in your underwear), makes traditional local brokers seem obsolete.
More and more people are taking to “active investing” rather than just sticking money in mutual funds recommended by their advisors. This means atypical investors are now taking active roles in their portfolios and seeing greater returns, if they know what they are doing.
In order to become an active investor, you must know what you are doing. It is your money we are talking about here. The thing is, once you know that there are ways to net up to 18%+ returns on investments that are hardly more risky than what most people consider safe today (mutual funds, diversification), you can hardly live with yourself by leaving your money in a “safe” 4% fund.Of particular interest is commercial real estate investing,which at the moments has one of the highest returns.But this area is potential very risky if you are not skilled in real estate.We shall talk about it indepth in my next post,a follow up to this one.
I work with people to change their perceptions about what is possible with investing today. The tools available online for investors are simply incredible when you think about the fact that investing news and the latest trends would have to wait to reach you until they were printed and flown to whatever part of the country you live in.
Now you can track and trade and get your news up to the minute with online investment resources, many of which are free to use. This is turning former passive traders into active traders over night.
There are dangers though, and they all have to do with education. Lack of experience can get you into a whole lot of problems, putting your money and retirement at risk.
It does not matter if you are into stock investing,finance investing,bond investing,offshore investing or you are investing in forex,you need the right education and the right attitude to be able to succeed.
But a relatively little bit of education can take you places you never thought possible financially.
So if you are ready to open those doors and get out of the 2%-4% doldrums you need two things:
1)The education to become a good active investor
2)The right tools to make your job easy and fun, with as little as 2 hours per week investing
I have put together a free resource for people wanting to learn more about the tools of online investors. Http://www.investinginfo4u.com will get you started.
But you will also need education to protect you from the mistakes that a lot of first-time active investors make. And for that education, you can check out my book called “Scientific Wealth Strategies.”
I guarantee that once you get started with active investing and you start to see returns over 10%, you are going to get hooked like so many others who have become active traders.
I talked about stock investing and a host of others,lets take a more closer look into stocks investing.
There are many important things you need to know to trade and invest successfully in the stock market or any other market. 12 of the most important things that I can share with you based on many years of trading experience are enumerated below.
1. Buy low-sell high. As simple as this concept appears to be, the vast majority of investors do the exact opposite. Your ability to consistently buy low and sell high, will determine the success, or failure, of your investments. Your rate of return is determined 100% by when you enter the stock market.
2. The stock market is always right and price is the only reality in trading. If you want to make money in any market, you need to mirror what the market is doing. If the market is going down and you are long, the market is right and you are wrong. If the stock market is going up and you are short, the market is right and you are wrong.
Other things being equal, the longer you stay right with the stock market, the more money you will make. The longer you stay wrong with the stock market, the more money you will lose.
3. Every market or stock that goes up will go down and most markets or stocks that have gone down, will go up. The more extreme the move up or down, the more extreme the movement in the opposite direction once the trend changes. This is also known as "the trend always changes rule."
4. If you are looking for "reasons" that stocks or markets make large directional moves, you will probably never know for certain. Since we are dealing with perception of markets-not necessarily reality, you are wasting your time looking for the many reasons markets move.
A huge mistake most investors make is assuming that stock markets are rational or that they are capable of ascertaining why markets do anything. To make a profit trading, it is only necessary to know that markets are moving - not why they are moving. Stock market winners only care about direction and duration, while market losers are obsessed with the whys.
5. Stock markets generally move in advance of news or supportive fundamentals - sometimes months in advance. If you wait to invest until it is totally clear to you why a stock or a market is moving, you have to assume that others have done the same thing and you may be too late.
You need to get positioned before the largest directional trend move takes place. The market reaction to good or bad news in a bull market will be positive more often than not. The market reaction to good or bad news in a bear market will be negative more often than not.
6. The trend is your friend. Since the trend is the basis of all profit, we need long term trends to make sizeable money. The key is to know when to get aboard a trend and stick with it for a long period of time to maximize profits. Contrary to the short term perspective of most investors today, all the big money is made by catching large market moves - not by day trading or short term stock investing.
7. You must let your profits run and cut your losses quickly if you are to have any chance of being successful. Trading discipline is not a sufficient condition to make money in the markets, but it is a necessary condition. If you do not practice highly disciplined trading, you will not make money over the long term. This is a stock trading “system” in itself.
8. The Efficient Market Hypothesis is fallacious and is actually a derivative of the perfect competition model of capitalism. The Efficient Market Hypothesis at root shares many of the same false premises as the perfect competition paradigm as described by a well known economist.
The perfect competition model is not based on anything that exists on this earth. Consistently profitable professional traders simply have better information - and they act on it. Most non-professionals trade strictly on emotion, and lose much more money than they earn.
The combination of superior information for some investors and the usual panic as losses mount caused by buying high and selling low for others, creates inefficient markets.
9. Traditional technical and fundamental analysis alone may not enable you to consistently make money in the markets. Successful market timing is possible but not with the tools of analysis that most people employ.
If you eliminate optimization, data mining, subjectivism, and other such statistical tricks and data manipulation, most trading ideas are losers.
10. Never trust the advice and/or ideas of trading software vendors, stock trading system sellers, market commentators, financial analysts, brokers, newsletter publishers, trading authors, etc., unless they trade their own money and have traded successfully for years.
Note those that have traded successfully over very long periods of time are very few in number. Keep in mind that Wall Street and other financial firms make money by selling you something - not instilling wisdom in you. You should make your own trading decisions based on a rational analysis of all the facts.
11. The worst thing an investor can do is take a large loss on their position or portfolio. Market timing can help avert this much too common experience.
You can avoid making that huge mistake by avoiding buying things when they are high. It should be obvious that you should only buy when stocks are low and only sell when stocks are high.
Since your starting point is critical in determining your total return, if you buy low, your long term investment results are irrefutably better than someone that bought high.
12. The most successful investing methods should take most individuals no more than four or five hours per week and, for the majority of us, only one or two hours per week with little to no stress involved.
I hope you enjoy reading this post,untill i come with the next instalment.
These days among savvy investors, online investment resources are synonymous with opportunity.
The capabilities that we currently have at our fingertips were unavailable just ten years ago. The speed at which you can invest with an online broker, along with ease of use (you can trade in your underwear), makes traditional local brokers seem obsolete.
More and more people are taking to “active investing” rather than just sticking money in mutual funds recommended by their advisors. This means atypical investors are now taking active roles in their portfolios and seeing greater returns, if they know what they are doing.
In order to become an active investor, you must know what you are doing. It is your money we are talking about here. The thing is, once you know that there are ways to net up to 18%+ returns on investments that are hardly more risky than what most people consider safe today (mutual funds, diversification), you can hardly live with yourself by leaving your money in a “safe” 4% fund.Of particular interest is commercial real estate investing,which at the moments has one of the highest returns.But this area is potential very risky if you are not skilled in real estate.We shall talk about it indepth in my next post,a follow up to this one.
I work with people to change their perceptions about what is possible with investing today. The tools available online for investors are simply incredible when you think about the fact that investing news and the latest trends would have to wait to reach you until they were printed and flown to whatever part of the country you live in.
Now you can track and trade and get your news up to the minute with online investment resources, many of which are free to use. This is turning former passive traders into active traders over night.
There are dangers though, and they all have to do with education. Lack of experience can get you into a whole lot of problems, putting your money and retirement at risk.
It does not matter if you are into stock investing,finance investing,bond investing,offshore investing or you are investing in forex,you need the right education and the right attitude to be able to succeed.
But a relatively little bit of education can take you places you never thought possible financially.
So if you are ready to open those doors and get out of the 2%-4% doldrums you need two things:
1)The education to become a good active investor
2)The right tools to make your job easy and fun, with as little as 2 hours per week investing
I have put together a free resource for people wanting to learn more about the tools of online investors. Http://www.investinginfo4u.com will get you started.
But you will also need education to protect you from the mistakes that a lot of first-time active investors make. And for that education, you can check out my book called “Scientific Wealth Strategies.”
I guarantee that once you get started with active investing and you start to see returns over 10%, you are going to get hooked like so many others who have become active traders.
I talked about stock investing and a host of others,lets take a more closer look into stocks investing.
There are many important things you need to know to trade and invest successfully in the stock market or any other market. 12 of the most important things that I can share with you based on many years of trading experience are enumerated below.
1. Buy low-sell high. As simple as this concept appears to be, the vast majority of investors do the exact opposite. Your ability to consistently buy low and sell high, will determine the success, or failure, of your investments. Your rate of return is determined 100% by when you enter the stock market.
2. The stock market is always right and price is the only reality in trading. If you want to make money in any market, you need to mirror what the market is doing. If the market is going down and you are long, the market is right and you are wrong. If the stock market is going up and you are short, the market is right and you are wrong.
Other things being equal, the longer you stay right with the stock market, the more money you will make. The longer you stay wrong with the stock market, the more money you will lose.
3. Every market or stock that goes up will go down and most markets or stocks that have gone down, will go up. The more extreme the move up or down, the more extreme the movement in the opposite direction once the trend changes. This is also known as "the trend always changes rule."
4. If you are looking for "reasons" that stocks or markets make large directional moves, you will probably never know for certain. Since we are dealing with perception of markets-not necessarily reality, you are wasting your time looking for the many reasons markets move.
A huge mistake most investors make is assuming that stock markets are rational or that they are capable of ascertaining why markets do anything. To make a profit trading, it is only necessary to know that markets are moving - not why they are moving. Stock market winners only care about direction and duration, while market losers are obsessed with the whys.
5. Stock markets generally move in advance of news or supportive fundamentals - sometimes months in advance. If you wait to invest until it is totally clear to you why a stock or a market is moving, you have to assume that others have done the same thing and you may be too late.
You need to get positioned before the largest directional trend move takes place. The market reaction to good or bad news in a bull market will be positive more often than not. The market reaction to good or bad news in a bear market will be negative more often than not.
6. The trend is your friend. Since the trend is the basis of all profit, we need long term trends to make sizeable money. The key is to know when to get aboard a trend and stick with it for a long period of time to maximize profits. Contrary to the short term perspective of most investors today, all the big money is made by catching large market moves - not by day trading or short term stock investing.
7. You must let your profits run and cut your losses quickly if you are to have any chance of being successful. Trading discipline is not a sufficient condition to make money in the markets, but it is a necessary condition. If you do not practice highly disciplined trading, you will not make money over the long term. This is a stock trading “system” in itself.
8. The Efficient Market Hypothesis is fallacious and is actually a derivative of the perfect competition model of capitalism. The Efficient Market Hypothesis at root shares many of the same false premises as the perfect competition paradigm as described by a well known economist.
The perfect competition model is not based on anything that exists on this earth. Consistently profitable professional traders simply have better information - and they act on it. Most non-professionals trade strictly on emotion, and lose much more money than they earn.
The combination of superior information for some investors and the usual panic as losses mount caused by buying high and selling low for others, creates inefficient markets.
9. Traditional technical and fundamental analysis alone may not enable you to consistently make money in the markets. Successful market timing is possible but not with the tools of analysis that most people employ.
If you eliminate optimization, data mining, subjectivism, and other such statistical tricks and data manipulation, most trading ideas are losers.
10. Never trust the advice and/or ideas of trading software vendors, stock trading system sellers, market commentators, financial analysts, brokers, newsletter publishers, trading authors, etc., unless they trade their own money and have traded successfully for years.
Note those that have traded successfully over very long periods of time are very few in number. Keep in mind that Wall Street and other financial firms make money by selling you something - not instilling wisdom in you. You should make your own trading decisions based on a rational analysis of all the facts.
11. The worst thing an investor can do is take a large loss on their position or portfolio. Market timing can help avert this much too common experience.
You can avoid making that huge mistake by avoiding buying things when they are high. It should be obvious that you should only buy when stocks are low and only sell when stocks are high.
Since your starting point is critical in determining your total return, if you buy low, your long term investment results are irrefutably better than someone that bought high.
12. The most successful investing methods should take most individuals no more than four or five hours per week and, for the majority of us, only one or two hours per week with little to no stress involved.
I hope you enjoy reading this post,untill i come with the next instalment.
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